MOD Resources Ltd (ASX/LSE: MOD) is a dual listed Australian exploration and development company with a goal of becoming a substantial copper producer. After discovering copper in the first drill hole in March 2016, MOD is approximately four months away from completion of a feasibility study for its 100% owned 60Mt T3 Pit Project in the Kalahari Copper Belt, Botswana.
In parallel with the development of the T3 Copper Project, a major exploration program is underway across a combination of 100% owned and JV licenses covering ~11,700km2, to explore for additional resources that could be processed through the planned T3 plant, potentially adding significant value to the project.
MOD owns 70% of a UK incorporated joint venture company, Metal Capital Exploration Limited, with AIM-listed Metal Tiger Plc owning 30%. Metal Capital’s wholly owned subsidiary, Tshukudu Exploration (Pty) Ltd runs the JV Exploration Assets in Botswana. The in-country operating company for the T3 Copper Project is Tshukudu Metals Botswana (Pty) Ltd (MOD 100%). ‘Tshukudu’, meaning rhino in the Setswana language, manages all the daily on-site activities with specialist inputs from Australia.
Total cost of discovery of T3 and delineation of the maiden resource was an exceptionally low US$1.7 million, equivalent to only US0.22 cents/lb copper contained within the resource. After a number of resource upgrades, the total resource now comprises 60.2Mt @ 0.98% Cu and 13.9 g/t Ag containing ~590.3 Kt copper and 26.9 Moz silver. Results of the pre-feasibility study, announced 31 January 2018 suggest a robust, long life, open pit mining and processing operation at T3 with 9 year Base Case for 2.5Mtpa production, pre-tax NPV A$370m, IRR of 39% and payback within 2.7 years. Since the announcement of the PFS, there has been a 20% increase to the Base Case process plant throughput to 3Mtpa, with allowance for staged future expansion.
MOD’s state of the art exploration techniques have developed the Company’s understanding of the unique ‘dome’ style geology in the region. Drilling at multiple high priority exploration targets, supported by airborne electromagnetics has already proved successful in discovering encouraging copper mineralisation within the 5km long A4 Dome and the ~12km A1 Dome which lie 8kms and 20km from the T3 Project respectively.
There are two styles of mineralisation being tested by drilling in the domes around the T3 Copper Project; shallower high-grade vein hosted mineralisation and deeper sediment contact hosted mineralisation known as the NPF contact. NPF contact mineralisation is an important target as this contact hosts most of the substantial copper deposits located east of MOD's licences, including the ~100Mt @ 2% Cu 'Zone 5' resource planned to be mined underground by Cupric Canyon Capital.
MOD has an option to acquire MTR's interests in any new JV resource which progresses to a scoping study within three years from 15 November 2018, as well as an option to acquire all the remaining JV assets at the end of the three year period.