Name of the Project
T3 openpit copper/silver project.

Location
The project is located on the Kalahari copperbelt, in northern Botswana.

Client
MOD Resources (70%) and Metal Tiger (30%).

Project Description
The T3 prefeasibility study (PFS) has confirmed the project as a robust, long-life copper mine. The project has total proven and probable reserves of 21.43-million tonnes grading 1.02% copper and 10.3 parts per million silver.

The PFS comprises openpit mining and conventional flotation processing, with two production scenarios – the PFS base case and the PFS expanded case.
Mining and process engineering studies for the PFS base case have used a revised processing rate of 2.5-million tonnes a year, a 25% increase on the scoping study production target announced in December 2017.

In the PFS base case, the ore reserves are mined from a four-stage openpit with a waste:ore ratio of 4:76. Ore will be processed through a conventional semiautogenous (SAG)/ball mill and flotation circuit, powered for the first two years by a diesel generation plant before switching to grid power.

The expansion case considers mining and processing at a rate of 2.5-million tonnes a year for the first three years in accordance with the PFS base case. The process plant will be upgraded to process four-million tonnes a year during the fourth year.

Mining will be from a five-stage openpit with a waste:ore ratio of 4:28. The optimised pit has been modelled in accordance with the PFS base case, except for the inclusion of inferred mineral resources and the reduction in processing costs, owing to grid power.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PFS base case has a pretax net present value, at an 8% discount rate, of $281-million and an internal rate of return of 39%, with a payback of 2.7 years from the start of production. The PFS expansion case has a pretax net present value, at an 8% discount rate, of $402-million and an internal rate of return of 37%, with a payback of 3.3 years from the start of production.

Value
The total initial development capital cost of the PFS base case is estimated at $154.86-million, which includes project contingency of $17.1-million. The total initial development capital cost of the PFS expansion case is estimated at $191.6-million, which includes project contingency of $17.1-million.

Duration
Not stated.

Latest Developments
The latest assay and drill hole intersection results for the T3 copper/silver project have indicated openpit expansion potential, Metal Tiger has said.

Preliminary modelling has shown that the total mineralisation intersected by drilling to date extends well outside the resource announced on August 24, 2017. The company looks forward to the results of the next resource upgrade scheduled for early June to convert additional inferred mineral resources to the indicated and measured categories and increase the overall resource size.

Drilling results will also feed into the feasibility study to help increase confidence in the T3 expansion case model, which assumes ore processing at a rate of 2.5-million tonnes a year for about three years before ramping up to four-million tonnes a year for eight years and help with mine schedule modelling.

The Phase 2 drilling at the T3 copper/silver deposit began on August 7, 2017, with approval granted for the restart of diamond core (DC) and reverse circulation drilling at the T3 project and its vicinity until December this year.

This includes up to 70 planned DC drill holes designed to infill the current resource and test for possible extensions.

The objective of the infill programme, however, is to increase geological confidence and upgrade categorisation of the T3 resource. The programme also includes grid drilling to investigate the potential for an underground resource down-dip and along strike from the planned openpit and to investigate geophysical targets.

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 or email administrator@modresources.com.au.
Metal Tiger, tel +44 207 099 0738 or email info@metaltigerplc.com.