PERTH (miningweekly.com) – A feasibility study into the T3 copper project, in Botswana, has estimated that the project could be developed at a capital cost of $182-million.

ASX- and LSE-listed MOD Resources on Thursday reported that T3 was expected to produce an average of 28 000 t/y of copper and 1.1-million ounces a year of silver over an 11.5-year mine life, with first production targeted for the first quarter of 2021.

The T3 project was expected to have life-of-mine revenues of $2.3-billion and earnings before interest, taxes, depreciation and amortization of $1.1-billion, with the feasibility study estimating a pre-tax net present value of $368-million and an internal rate of return of 33%.

“There are a number of outstanding operational and financial outcomes of the feasibility study, however, several stand out when compared to other emerging global copper developers and producers,” said MOD MD Julian Hanna.

“Firstly, the T3 project represents a relatively straightforward openpit mine and processing plant, requiring moderate capital expenditure to bring into production. Then, due to the very favourable geometry, grade and metallurgical characteristics of the orebody, the feasibility study has demonstrated that even at copper prices much lower than today’s spot price, the T3 project is expected to generate excellent returns.”

Hanna said that T3 also provided the possibility for future production expansion from other potential deposits in the surrounding area, where MOD has already demonstrated early drilling success.

“Drilling is expected to focus on this satellite potential during 2019 to take advantage of the capital invested into T3.”

Hanna on Thursday told shareholders that the project has generated strong interest from debt providers to fund a large part of the development capital, with formal expressions of interest having been received from a number of selected financial institutions.

In parallel with the debt funding process, MOD is advancing discussions with potential strategic partners to assist with funding the non-debt component of the project.