TIDMMOD
RNS Number : 1873Y
MOD Resources Limited
07 May 2019
MOD Progresses Growth Strategy
MOD Resources Limited ("MOD" or "the Company") (ASX/LSE: MOD) is
pleased to announce that the Company is progressing with its growth
strategy as the T3 open pit ("T3") continues towards a decision to
mine and the Company and its advisers advance a range of funding
options with interested parties following the successful completion
of the T3 Copper Project Feasibility Study.
The objectives of the growth strategy are to continue to build
mineral resources, confirm the potential for increased production
through the planned T3 process plant and demonstrate the unique
copper-belt scale opportunity of MOD's Joint Venture and 100%
licence holdings, through new discoveries.
Planned targets include:
-- T23 drilling will test the potential for near surface mineralisation over a wide area
-- Success at T23 will provide further encouragement of the copper-belt scale opportunity
-- T3 Underground Project represents a medium-term production growth potential for T3
-- A4 Dome represents a significant opportunity for expanded production and mine life at T3
While the Feasibility Study has confirmed the outstanding
economics of the T3 open pit, MOD is now looking to define
additional high-grade resources in the surrounding T3 Expansion
Project area which could leverage off the proposed T3
infrastructure and potentially result in increased production
through the process plant.
In addition, exploration drilling will focus on several targets
in the T20 Exploration Project, including the T23 Dome and T4 West
Prospect. The objective is to scope out the potential for new
resources in this highly prospective area and confirm the wider
potential of MOD's dominant licence holdings in the copper
belt.
As announced on 26 April 2019 and in-line with forecast
exploration expenditure, drilling over the next few months
initially comprises three high priority resource targets (Table
1):
Table 1: Planned Upcoming Staged Drilling Activity
Drill Target Planned Drill Program Targets Timing
T23 Stage 1: 9 RC and Follow-up drilling along May 2019
4 DD 4km of T23 Dome
T3 U/G Stage 1: 16 DD Resource definition drilling June 2019
Stage 1: 6 RC and Preliminary resource scoping
A4 Dome 1 DD drilling 2H 2019
----------------------- ------------------------------ ----------
MOD's Managing Director, Julian Hanna, said:
"Over the past three years, the MOD/Tshukudu team has
demonstrated the ability to make new discoveries in this
under-explored copper belt, systematically increase mineral
resources, and move our first mine towards early production. The
growth strategy will aim to continue the momentum at T3 and
leverage infrastructure to be developed at T3 to add further value
to the project and open up the wider potential of this copper
belt."
He added "The exploration drilling which forms a key part of the
growth strategy will initially focus on near surface targets in the
T20 Exploration Project area and targets where there have already
been numerous ore grade intersections reported, in close proximity
to the planned T3 open pit mine."
T23 Dome Drilling Program
Commencing in May 2019, the Company plans to follow-up on very
encouraging shallow disseminated copper and silver mineralisation
reported in the first three holes at the T23 Dome, in December
2018.
The T23 Dome appears to be a part of a structural zone,
interpreted to link T4, T4 West and T23 prospects extending over
>15km (Figures 1 and 3). A preliminary interpretation of EM data
along this structural zone indicates a number of potential domes
and anticlinal folds occurring at a shallow depth (Figure 3).
Figure 3 shows three interpreted EM cross sections along a 15km
strike length of the structural zone. The sections show existing
drilling intersections at T4 including 2m @ 6.1% Cu and 111g/t Ag
(announced 1 April 2016), and hole MO-T23-003D which intersected
significant disseminated and vein hosted copper and silver at a
shallow depth (announced 10 December 2018) at the T23 Dome, 15km
west of the T4 intersection.
While the EM data suggests the same structures may continue
between T23 Dome and T4, drilling is required to test this
potential given there has been no previous drilling within this
area. The first stage of nine widely spaced RC and four diamond
drill holes is planned to follow-up the initial shallow
intersections at T23 and test a 4km strike length of this
structure.
If the T23 drilling program is successful, drilling is planned
to extend to the T4 West target, approximately 7km east of T23. T4
West also shows similar structural features to the T4 prospect,
where MOD has previously announced significant copper
intersections.
T3 Underground Project (100% MOD)
Following completion of the T3 resource infill drilling program
expected in late May 2019, MOD expects to commence resource infill
drilling of high-grade, vein-hosted mineralisation which is known
to extend immediately below and down dip of the planned T3 open
pit.
Drilling is expected to occur in two stages, with the first
stage comprising a planned 16-hole diamond drill program, designed
to delineate further high-grade copper and silver mineralisation
within the T3 Underground Target Area (Figures 4 and 5). The second
stage of drilling will include infill holes to assist with defining
a resource, expected during the second half of 2019.
The T3 Underground drilling will follow up high-grade
intersections as announced 7 December 2017, including:
-- MO-G-93D - 6.5m at 2% Cu and 49g/t Ag from 190m downhole
-- MO-G-93D - 2m at 2.1% Cu and 46g/t Ag from 227m downhole
-- MO-G-96D - 18m @ 1.9% Cu & 14g/t Ag from 120m downhole
including 6.2m at 3% Cu and 24g/t Ag from 128.8m downhole
-- MO-G-132D - 11.5m at 1.8% Cu and 36g/t Ag from 243m downhole
-- MO-G-145D - 6.2m at 1.9% Cu and 40g/t Ag from 268m downhole
-- MO-G-162D - 1.5m at 6.3% Cu and 106g/t Ag from 155.5m downhole
The Company expects this drilling may confirm the presence of
continuous, potentially economically viable widths and grades of
mineralisation, that could provide the opportunity to contribute
additional higher-grade throughput to the T3 process plant,
potentially supporting increased production in the medium-term.
During 2018, MOD's mining consultants undertook conceptual
underground mining studies for T3 Underground and the A4 Dome
projects with encouraging preliminary results. Further studies will
run concurrent with drilling.
A4 Dome
The A4 Dome is approximately 8km to the west of the proposed T3
open pit and process plant and as announced on 4 October 2018,
represents potential to support the T3 expansion strategy. The A4
Dome drilling program commenced in mid-2018, with immediate success
in MO-A4-003D, intersecting 52m @ 1.5% Cu and 14 g/t Ag from 232.2m
downhole, including 15.5m @ 2.9% Cu and 42g/t Ag (announced 6
August 2018).
At the end of 2018, the Company had drilled 20 holes along the
large A4 Dome with 18 of the 20 completed holes (Figures 6 and 7)
intersecting good widths and grades of both vein hosted and NPF
contact copper mineralisation.
The area targeted to date, represents only a small part of the
prospective A4 Dome area (Figures 6 and 7).
The proposed A4 Dome drilling program will be staged to follow
up on three different targets. Drilling planned to commence in the
second half of 2019 will include:
1. Six shallow RC drill holes to follow-up the shallow
vein-hosted mineralisation intersected in hole MO-A4-019D
(announced 20 December 2018)
2. One deep diamond drill hole to follow up the high-grade vein
hosted mineralisation in hole MO-A4-003D and MO-A4-008D (announced
20 December 2018)
3. All drill holes will test for the widespread NPF contact mineralisation below the A4 Dome
The Company expects that drilling of the A4 Dome, if successful,
would allow further drilling programs designed to delineate and
define a resource. Again, if successful, once delineated any A4
resource is expected to provide the opportunity to contribute
additional throughput to the T3 process plant, to potentially
support increased production in the medium-term.
Please see images in the full version of the announcement at
www.modresources.com.au
-S-
For and on behalf of the Board.
Julian Hanna Mark Clements
Managing Director Executive Chairman and Company Secretary
Jeff Sansom Jos Simson / Emily Fenton (UK PR & IR)
Investor Relations Tavistock
+61 9322 8233 +44 207 920 3150
IR@modresources.com.au MOD@tavistock.co.uk
Subscribe at: www.modresources.com.au Follow us on:
About MOD Resources
MOD Resources Ltd (ASX/LSE: MOD) is a dual listed copper
exploration and development company with a dominant land position
within the Kalahari Copper Belt in Botswana. The Company is
focussed on the 100% MOD owned T3 Copper Project, expected to be a
high-margin, low-cost copper mine. In parallel with the development
of the T3 Copper Project, MOD continues its exploration program
across several priority drill targets and within untested areas of
interesting and potentially significant Cu-Zn soil anomalies.
A substantial in-fill drilling program is in progress with the
objective to upgrade a portion of T3 Indicated Mineral Resources to
the higher confidence Measured Resource category subsequent to this
FS announcement.
The Company is continuing to advance discussions with interested
parties in relation to T3 funding opportunities and is targeting to
commence development of the T3 Copper Project in the second half of
2019, with a vision of first copper concentrate production in the
first half of 2021. In the mid-term MOD will focus on generating
value for shareholders.
MOD has a social licence to operate within Botswana as well as
within the host community of Ghanzi. MOD will continue to work
collaboratively with regulators and members of the Ghanzi District
to ensure that any social investments and developments are targeted
to create a positive and lasting legacy.
No New Information
To the extent that this announcement contains references to
prior exploration results and Mineral Resource estimates, which
have been cross referenced to previous market announcements made by
the Company, unless explicitly stated, no new material information
is contained. The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the relevant market announcements and, in the case of
estimates of Mineral Resources that all material assumptions and
technical parameters underpinning the estimates in the relevant
market announcement continue to apply and have not materially
changed.
Exploration Targets and Results
This announcement refers to Exploration Targets as defined under
Sections 18 and 19 of the 2012 JORC Code. The Exploration Targets
quantity and quality including the T3 Underground, A4 Dome and T3
Expansion Project referred to in this announcement are conceptual
in nature. There has been insufficient exploration at Exploration
Targets mentioned in this announcement to define a Mineral Resource
and it is uncertain if further exploration will result in the
Exploration Targets being delineated as a Mineral Resource. This
announcement includes several drill hole intersections, which have
been announced by MOD Resources Limited previously.
Competent Person's Statement
The information in this announcement that relates to Geological
Data and the T3 Mineral Resource described in this release is
reviewed and approved by Mr Bradley Ackroyd, BSc (Hons), Manager
Mine Geology for MOD Resources Ltd. Mr Ackroyd is a registered
member of the Australian Institute of Geoscientists and has
reviewed the technical information in this report.
Mr Ackroyd has sufficient experience, which is relevant to the
style of mineralisation and type of deposit under consideration and
the activity, which it is undertaking to qualify as a Competent
Person as defined in the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Ackroyd consents to the inclusion in this announcement
of the matters based on information in the form and context in
which it appears.
Forward Looking Statements and Disclaimers
This announcement includes forward-looking statements that are
only predictions and are subject to risks, uncertainties and
assumptions, which are outside the control of MOD. Actual values,
results, interpretations or events may be materially different to
those expressed or implied in this announcement. Given these
uncertainties, recipients are cautioned not to place reliance on
forward-looking statements in the announcement as they speak only
at the date of issue of this announcement. Subject to any
continuing obligations under applicable law and ASX Listing Rules,
MOD does not undertake any obligation to update or revise any
information or any of the forward-looking statements in this
announcement or any changes in events, conditions or circumstances
on which any such forward-looking statement is based. This
announcement has been prepared by MOD.
The document contains background information about MOD current
at the date of this announcement. The announcement is in summary
form and does not purport to be all inclusive or complete.
Recipients should conduct their own investigations and perform
their own analysis in order to satisfy themselves as to the
accuracy and completeness of the information, statements and
opinions contained in this announcement.
The announcement is for information purposes only. Neither this
announcement nor information contained in it constitutes an offer,
invitation, solicitation or recommendation in relation to the
purchase or sale of shares in any jurisdiction. The announcement
may not be distributed in any jurisdiction except in accordance
with legal requirements applicable in such jurisdiction. Recipients
should inform themselves of the restrictions that apply to their
own jurisdiction as a failure to do so may result in a violation of
securities laws in such jurisdiction. This announcement does not
constitute investment advice and has been prepared without taking
into account the recipient's investment objectives, financial
circumstances or particular needs and the opinions and
recommendations in this announcement are not intended to represent
recommendations of particular investments to particular
persons.
Recipients should seek professional advice when deciding if an
investment is appropriate. All securities transactions involve
risks, which include (among others) the risk of adverse or
unanticipated market, financial or political developments. To the
fullest extent of the law, MOD, its officers, employees, agents and
advisers do not make any representation or warranty, express or
implied, as to the currency, accuracy, reliability or completeness
of any information, statements, opinion, estimates, forecasts or
other representations contained in this announcement. No
responsibility for any errors or omissions from the announcement
arising out of negligence or otherwise is accepted.
This information is provided by RNS, the news service of the
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END
DRLGMGGKVNMGLZG
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