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T3 Pit Project

T3 PIT PROJECT (MOD 70%)

MOD's flagship T3 project (MOD 70%: MTR 30%) is a significant new sediment hosted copper and silver deposit in the emerging Kalahari Copper Belt, Botswana.

The Company has progressed T3 from discovery to completion of a PFS in under two years and has recently announced a major regional exploration campaign.

As drilling at T3 continues to intersect encouraging results, the PFS has been designed with flexibility to allow for process plant expansion capacity from 2.5Mtpa to 4Mtpa, ensuring that the full value of this asset can be extracted.

The PFS concluded that T3 offers a low-risk, low capital pathway to copper production supported by improving confidence in the long-term consensus copper price.

One of the key advantages of T3 is its unique geometry, which provided the opportunity for a substantial inbuilt growth step (Expansion Case) in addition to an extremely robust Base Case.

A decision to proceed with the Expansion Case can be made after two years production, which is aligned with the staged pit plan, and could be funded from free cash flow.

Under the Base Case, the project is expected to generate an average annual US$77m (A$101m) free cash flow from first production.

The Feasibility Study is now underway as the project takes a step further towards development and is expected to be completed in the March 2019 quarter, followed by a Decision to Mine.

T3 Project Summary

Base Case

2.5Mtpa

Expansion Case

4Mtpa

Development

US$154.8m

US$191.6m

Life of Mine from production

8.8 years

11.7 years

Waste: ore ratio

4.7

4.2

Copper grade

1.0%

0.8%

Average annual production

23kt Cu, 690koz Ag

28kt Cu, 903koz

 

Life of Mine Financials
(US$3.00/lb, AUD:USD $0.76)

Base Case

Expansion Case

Revenue

US$1,410m

US$2,263m

C1 Cash Costs LOM

US$1.22/lb

US$1.30/lb

AISC, LOM

US$1.36/lb

US$1.46/lb

EBITDA

US$734m

US$1,103m

Net Cash Flow (pre-tax)

US$530m

US$840m

NPV (8% real, pre tax)

US$281m

US$402m

NPV (8% real, pre tax)

A$370m

A$529m

IRR (pre tax)

39%

38%

Payback (from first production)

2.7 years

3.3 years

 

t3
Planned T3 Pit – Base Case PFS Pit design (grey), Expansion Case PFS Pit Design (orange)
 

RESOURCE ESTIMATES

(as at 16 July, 2018)

JORC Category

Cut-off 

Cu%

Tonnes

Grade

Cu%

Grade

Ag g/t

Contained 

Cu (Kt)

Contained 

Ag (Moz)

Indicated

0.25

50,040,000

0.92

13.00

461.3

20.95

0.4

36,631,000

1.14

16.00

417.0

18.60

0.5

27,139,000

1.38

19.00

374.5

16.82

1

14,154,000

2.06

31.00

291.9

14.30

1.5

10,962,000

2.29

36.00

250.7

12.61

 

           

Inferred

0.25

27,667,000

0.68

10.00

187.3

9.18

0.4

23,524,000

0.74

11.00

173.3

8.30

0.5

19,884,000

0.79

11.00

156.9

7.35

1

3,511,000

1.58

22.00

55.6

2.46

1.5

1,640,000

2.04

29.00

33.5

1.55

 

 

 

 

 

 

 

TOTAL

0.25

77,706,000

0.83

12.00

648.6

30.14

0.4

60,155,000

0.98

14.00

590.4

26.90

0.5

47,023,000

1.13

16.00

531.5

24.17

1

17,665,000

1.97

30.00

347.6

16.77

1.5

12,602,000

2.25

35.00

284.2

14.16

 

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