MOD Resources Ltd has announced a substantial upgrade to the Ore Reserve within the planned, 100% owned, T3 (Motheo) open pit mine or T3 Copper Project. The T3 Copper Project Feasibility Study, which incorporates this revised Ore Reserve, is nearing completion, is expected to be announced before the end of March 2019 and will provide further detailed information on the T3 Copper Project.
According to the company, T3 open pit Ore Reserve increased to 34.4Mt at 1.0% Cu and 13.2 g/t Ag with Ore Reserve containing 342.7kt (~756mlb) of copper and 14.6 Moz of silver. There was a 61% increase in total tonnage compared with the Pre-Feasibility Study and 57% increase in contained copper and 107% increase in contained silver.
The revised Ore Reserve demonstrates both the significant scale of the T3 deposit within the planned open pit and the substantial increase in contained copper and silver, compared with the Pre-Feasibility Study. The open pit is designed to be developed in stages to support a mine life that now extends beyond 11 years.
MOD’s Managing Director, Julian Hanna said the T3 Copper Project is an outstanding project located in Botswana, arguably the best mining and investment jurisdiction in Africa. Hanna added that with this >60% increase in the size of the ore reserve, we have continued to improve on the already strong fundamentals identified within the Pre-Feasibility Study announced in January 2018.
“Since publication of the Pre-Feasibility Study, the Company has focused on developing a better understanding of the geology that underpins the proposed T3 open pit, conducted substantial additional drilling and continued to identify and define further copper mineralisation, improving what was already a robust investment case,” Hanna said.
“The increase in the T3 open pit Ore Reserve is significant for MOD, our supportive shareholders and people in the Ghanzi District. The proposed six stage open pit mine and 3Mtpa conventional processing plant is expected to produce high-margin, high-quality copper concentrates for more than 11 years. This should generate strong returns for investors and provide potential to create increased employment opportunities and generate significant benefits for Botswana and local communities.”
The T3 Ore Reserve was updated as part of the T3 Copper Project FS. The modifying factors supporting the Ore Reserve were developed by experienced Competent Persons (“CP”) from a range of disciplines and in accordance with the requirements of the JORC 2012 Code.
During 2018 and since the release of the T3 Pre-Feasibility Study on 31 January 2018, the Company completed an infill and extensional drilling program (comprising approximately 90 additional holes) within a larger proposed pit shell boundary. The objective was to increase the density of drill hole spacing, improve confidence in the quality and continuity of the resource and facilitate a significant increase in the T3 open pit Ore Reserves.