PERTH (miningweekly.com) – ASX-listed MOD Resources has reported a 13% increase in the indicated resource of its T3 deposit, in Botswana, which could support a potential increase in the planned design throughput.
MOD on Monday said that a reclassification of the T3 resource has seen the indicated mineral resource estimate grow to 417 000 t of copper and 18.6-million ounces of silver, representing some 70% of the contained copper and 61% of the tonnes in the total mineral resource.
The total mineral resource at T3 remains unchanged at 60-million tonnes, containing 590 000 t of copper and 27-million ounces of silver.
MOD MD Julian Hanna told shareholders that the T3 project team is now reviewing how the reclassification will impact the T3 project.
“This very positive upgrade would appear to support a potential increase in the design throughput of the planned T3 processing plant. We also consider there is now potential that the feasibility study ore reserve could significantly exceed the ore reserve used in the prefeasibility study.”
A prefeasibility study at T3 estimated that the project would require a capital investment of $155-million to develop an openpit operation and plant with a 2.5-million-tonne-a-year throughput capacity, producing 23 000 t/y copper and 690 000 oz/y of silver in concentrate.
The study indicated a net present value of $281-million and an annual free cash flow of $77-million from the start of production.
A pit feasibility study for T3 is due in the first quarter of 2019.