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January 2017
MODERN MINING
67
COPPER
D
ue to the robust financial out-
comes indicated by the scoping
study, MOD and joint venture
partner, Metal Tiger (30 %), will
proceed with a pre-feasibility
study (PFS) commencing early 2017.
On 26 September 2016, MOD announced
a maiden resource at T3 comprising 28,36 Mt
grading 1,24 % copper and 15,7 g/t silver,
containing approximately 350 200 tonnes
(772 Mlb) of copper and more than 14 Moz of
silver. The T3 resource includes 18 Mt grad-
ing 1,35 % Cu and 16,7 g/t Ag in the indicated
resource category which represents 64 % of the
total resource. The resource is open along strike
west of current drilling.
T3 mineralisation consists of disseminated
and vein-hosted copper sulphides including
chalcopyrite, bornite and chalcocite occurring
within a shallow dipping sequence of sedi-
ments up to 50 m true width. As part of the
PFS, MOD intends to conduct infill drilling
around areas of high-grade vein mineralisation
within the resource. The purpose is to define
the extent of this high grade mineralisation
which may provide opportunities for improv-
ing the grade of current production targets at an
early stage of mining.
The PFS will also consider optimisation of
the mining schedule and reducing project capi-
tal and operating costs with a view to further
enhancing the already robust metrics of the
project.
T3 is located within 12 km of the Ghanzi
Highway in an area of freehold cattle farms.
MOD has been advised by Botswana Power
Corporation that grid power is planned to
be extended along the Ghanzi Highway in
mid-2019.
In parallel with the PFS, exploration will
also increase in early 2017, initially to test a
large area within the T3 Dome directly north
of T3 for similar type sediment-hosted depos-
its. The T3 Dome is interpreted to extend over
50 km in length and is covered by MOD and
Metal Tiger joint venture prospecting licences.
The scoping study includes an optimised pit
design to approximately 220 m vertical depth
and construction of a processing plant to treat
2 Mt/a of ore with low cost expansion option-
ality if required. Pre-stripping of the first stage
of the planned open pit is scheduled to com-
mence in 2019 with ore processing targeted to
commence later in 2019.
Total indicative mine life is approximately
10 years with 9,25 years of ore production with
an estimated life of mine (LOM) average pro-
duction of approximately 21,8 kt/a copper and
665 koz/a silver.
Two preliminary scoping level models have
been generated using two different copper price
assumptions – a preliminary base case model
using a consensus copper price of US$2,53/lb
Cu and a preliminary upside case model using
an elevated price of US$3,00/lb Cu.
The base case model indicates robust
financial metrics which include an estimated
average annual pre-tax cash flow of approxi-
mately US$44 million per annum, a pre-tax
NPV
10%
of approximately US$180 million and
an IRR of approximately 31 %. LOM C1 costs
are estimated to be US$1,29/lb Cu including sil-
ver credits. The estimated project cost (±35 %)
MOD delivers “robust” scoping
study
on T3 project in Botswana
The 2 Mt/a sulphide flota-
tion plant proposed for the
T3 deposit.
ASX-listed MOD Resources (MOD) has announced results of the scoping study
for a proposed open-pit mine at its 70 %-owned T3 copper-silver deposit in
the Kalahari Copperbelt of Botswana. According to the company, the project
economics are highly encouraging and highlight MOD’s potential to become a
long-life copper producer in Botswana.