This junior has more copper than it thought, and it’s higher quality
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Copper hopeful MOD Resources has delivered a 16 per cent uplift in copper at its Botswana T3 project, adding significant value and profitability.
MOD’s (ASX:MOD) revised resource estimate is a 27 per cent jump to 35.97 million tonnes and a 16 per cent increase in contained copper to 408,900 tonnes compared with the maiden resource.
The copper grade is 1.14 per cent copper and the silver grade is 12.8 grams per tonne silver. The revised resource was estimated at a cut-off grade of greater than 0.5 per cent copper which was also used for the maiden resource announced in September 2016.
A quarter of the revised resource (8.9 million tonnes at 1.27 per cent copper and 12.5 grams per tonne silver) have converted into the high-confidence “measured” resource category.
Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.
The increase is a result of including holes completed in the March quarter.
“The 16 per cent uplift to more than 400,000 tonnes contained copper has potential to add significant value and profitability to this project,” MOD managing director Julian Hanna said.
“Coincidently, copper has also risen approximately 30 per cent since the maiden resource was announced, approaching the US$3/lb copper price used for the upside case in the original T3 scoping study we released on December 6, 2016.
“As a result of these very positive developments, our feasibility study team is rethinking the planned mining schedule and processing rates to be used in the pre-feasibility study.”
MOD has begun the next phase of drilling at T3, initially with four drill rigs testing the potential for additional resource extensions and high grade vein mineralisation extending from the planned open pit.
T3 forms part of a joint venture between MOD (70 per cent) and London AIM-listed Metal Tiger (30 per cent) which includes a holding in the central and western parts of the Kalahari Copper Belt.
Shares in MOD were trading at 6.4c in late morning trade, up 5 per cent. The company is valued at $123 million.