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T3 Pit Project

T3 PIT PROJECT (MOD 100%)

MOD's flagship 60Mt T3 Copper Project is a significant new sediment hosted copper and silver deposit in the emerging Kalahari Copper Belt, Botswana.

The Company progressed T3 from discovery to completion of a pre-feasibility study (PFS) in under two years which indicated a potential for a highly profitable, low-risk, relatively low-capital, long life open pit copper mine 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.

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 (FS) is now underway and is expected to be completed by the end of the March 2019 quarter, followed by a Decision to Mine.

On 2 July 2018, MOD announced a major resource upgrade, comprising 60Mt @ 0.98% Cu and 14 g/t Ag containing ~590.4 Kt Cu and 26.9 Moz Ag, representing a 44% increase in contained copper, at 0.4% cut-off. There was also a significant increase in copper grades at higher cut-off grades. Approximately 61% of the total resource tonnes (and 70% contained copper) is now in the Indicated Resource category, providing further confidence in the project.

Following this resource upgrade, MOD’s project development team reviewed how the expanded resource would impact the FS, and on 10 August 2018, announced a 20% increase in the PFS Base Case process plant throughput to 3Mtpa, with allowance for staged future expansion. The T3 resource remains open along strike and at depth with further drilling required for both potential open pit and underground resource extensions.

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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