Name of the Project
T3 copper/silver project.

Location
The project is located in the Kalahari Copperbelt, in Botswana.

Client
The project is a joint venture (JV) between Metal Tiger and MOD Resources.

Project Description
The T3 project has a maiden mineral resource comprising 28.36-million tonnes, containing about 350 200 t of copper and 14.27-million ounces of silver. This includes a high-grade resource using a 1.5% copper cutoff grade, which consists of 8.48-million tonnes grading 2.16% copper and 30.6 g/t silver, containing an estimated 183 000 t of copper and 8.34-million ounces of silver. About 64% of the total T3 resource (0.5% copper cutoff) is in the indicated resource category and 88% of the total scoping study production target is in the indicated resource category.

A scoping study on the project envisages a two-million-tonne-a-year operation, producing about 21 800 t/y of copper and 665 000 oz/y of silver over a ten-year mine life.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project is expected to have a net present value, at a 10% discount rate, of $297-million and an internal rate of return of about 42%, with a payback of about two years.

Value
The base case model on the project will require a capital investment of $135-million.

Duration
The project is expected to enter production in the fourth quarter, subject to all regulatory approvals being received.

Latest Developments
Metal Tiger has progressed prefeasibility work at the T3 copper project.

Key highlights of progress made includes the T3 environmental management plan (EMP) that is expected to be lodged, which should allow for the earlier advancement of the next phase of drilling at T3.

High-priority drill targets, which include two induced polarisation (IP) geophysics anomalies 800 m north of T3 and the Zone 3 mineralisation below the T3 Resource, have also been identified.

Additionally, the companies plan to start an airborne electromagnetic geophysics survey soon to identify new conductors on the T3 Dome.

The Department of Environmental Affairs has agreed that an EMP will suffice for permitting further resource drilling at T3 and the drill testing of the various exciting targets in the wider T3 area.

The decision is significant, as it should allow for drilling to resume sooner than would have been required if the JV had to conduct the more detailed studies required for an environmental-impact statement for the drilling permits.

“Considering the required EMP public review period, we now expect the drilling to resume in July  . . . work will continue on the T3 prefeasibility study (PFS), the airborne electromagnetic geophysics survey and . . . soil sampling programmes,” Metal Tiger CEO Michael McNeilly has said.

The companies also looking forward to reporting on the findings of the T20 soil programme in due course.

Planned activities for the next few months include systematic drilling of the Zone 3 mineralised contact, below the T3 resource, and finalising the metallurgical, mining and processing studies for the T3 PFS.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
MOD Resources, tel +61 8 9322 8233, fax +61 8 9322 8077 or email administrator@modresources. com.au.