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 received approval from the Botswana Department of Environmental Affairs (DEA) to start drilling on a farm north of its T3 copper project, doubling its approved exploration area to 100 km2 while opening additional airborne electromagnetic (AEM) survey targets for drilling.

The environmental approval enables MOD to drill two further AEM targets, A15 and A18 immediately.

The DEA has also approved an environmental management plant for a planned 20-hole diamond drilling programme at MOD’s 100% held T1 Project.

The approval is subject to a four-week public review, which started on November 24.

MOD’s in-country subsidiary Tshukudu has also submitted a project brief for the substantial T3 dome drilling programme. Once the project brief is approved, Tshukudu will submit an environmental management plan for authorisation by the DEA. This is expected to be followed by a four-week public review process, with drilling targeted to start in the first quarter of 2018.

The T3 Dome drilling programme will initially focus on testing about nine AEM targets including the high priority A1, A2, A3, A4, A9 and A10 anomalies.

Tshukudu has received approval from the Civil Aviation Authority of Botswana to fly a 193 km² extension, east and south of the previous T3 Dome AEM survey area. The extension will cover a strong soil anomaly and several large magnetic structural features. Flying is expected to start in December.

Meanwhile, the T3 openpit prefeasibility study (PFS) works are progressing well, with the PFS team conducting further optimisation work on the planned mining schedule and costs. As a result of the extra level of optimisation detail, the PFS will now be completed in January 2018.

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.