MOD Resources Increases T3 Copper Resource

THE DRILL SERGEANT: MOD Resources (ASX: MOD) announced a substantial increase to the Mineral Resource at the company’s T3 copper project in Botswana following inclusion of recently completed drilling.

The T3 project forms part of a Joint Venture between MOD (70%) and AIM-listed Metal Tiger (30%), which includes a licence holding in the central and western parts of the Kalahari Copper Belt.

Mod Resources said an assumed cut-off grade of greater than 0.5 per cent copper – that was used for the maiden resource announced in 2016 – was implemented in the revised resource estimate.

The new estimate represents approximately a 27 per cent increase in total resource tonnes to 35.97 million tonnes and a 16 per cent increase in contained copper to approximately 4.09 million tonnes.

The copper grade is 1.14 per cent copper and the silver grade is 12.8 grams per tonne silver.

In addition, 25 per cent of the total resource tonnes of the revised resource at 0.5 per cent copper cut-off (8.9 million tonnes at 1.27 per cent copper and 12.5g/t silver) has converted into the high confidence Measured Resource category.

MOD declared that, assuming a higher cut-off grade (>1.0% Cu), the revised total Mineral Resource comprises 20.57 million tonnes at an average grade of 1.43 per cent copper and 14.7g/t silver.

“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 Resources managing director Julian Hanna said in the company’s announcement to the Australian Securities Exchange.

“Coincidently, copper has also risen approximately 30 per cent since the maiden resource was announced, approaching the US$3 per pound copper price used for the upside case in the original T3 scoping study we released on 6 December 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 Resources indicated its recently-announced next phase of drilling at T3 (Phase 2) has commenced, initially with four drill rigs testing the potential for additional resource extensions, high-grade vein mineralisation extending down dip from the planned open pit, and IP and EM targets north of T3.

This program includes holes to test within, below, down dip and along strike from the revised resource.

All six holes completed to date have intersected visible copper mineralisation and results are expected to be announced when assays are received and interpreted.

Website: www.modresources.com.au