Name of the Project
T3 copper/silver project.

Location
The project is located in the Kalahari Copperbelt, in Botswana.

Client
The project is a joint venture (JV) between Metal Tiger and MOD Resources.

Project Description
The T3 project has a maiden mineral resource comprising 28.36-million tonnes, containing about 350 200 t of copper and 14.27-million ounces of silver. This includes a high-grade resource using a 1.5% copper cutoff grade, which consists of 8.48-million tonnes grading 2.16% copper and 30.6 g/t silver, containing an estimated 183 000 t of copper and 8.34-million ounces of silver. About 64% of the total T3 resource (0.5% copper cutoff) is in the indicated resource category and 88% of the total scoping study production target is in the indicated resource category.

A scoping study on the project envisages a two-million-tonne-a-year operation, producing about 21 800 t/y of copper and 665 000 oz/y of silver over a ten-year mine life.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project is expected to have a net present value, at a 10% discount rate, of $297-million and an internal rate of return of about 42%, with a payback of about two years.

Value
The base case model on the project will require a capital investment of $135-million.

Duration
The project is expected to enter production in the fourth quarter, subject to all regulatory approvals being received.

Latest Developments
MOD Resources has reported a 16% increase in the contained copper at the T3 project, which is now estimated to host a total mineral resource of 36-million tonnes, at 1.14% copper and 12.8 g/t silver for an estimated 409 000 t of copper and 14.8-million ounces of silver.

The resource upgrade follows drilling work completed in the March quarter of this year.

As a result of the increased resource estimate, MOD’s feasibility team is rethinking the planned mining schedule and processing rate to be used in the prefeasibility study.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
MOD Resources, tel +61 8 9322 8233, fax +61 8 9322 8077 or email administrator@modresources.com.au.