TIDMMTR
Metal Tiger PLC
("Metal Tiger" or the "Company")
Botswana Copper/Silver Project - T3 Feasibility Study Confirms
High-Margin, Low-Capital Open Pit Copper Mine
Metal Tiger plc (AIM:MTR), the London Stock Exchange AIM listed
investor in strategic natural resource opportunities, is pleased to
provide the Feasibility Study ("FS") results for the T3 Copper
Project ("T3"), held 100% by MOD Resources Limited ("MOD"), in the
Kalahari Copper Belt, Botswana following MOD's announcement earlier
today. Metal Tiger currently holds approximately 10.48% of the
issued share capital of MOD.
Key T3 Copper Project Feasibility Study Findings
-- Strong Project Economics
Estimated LOM revenue of US$2.3 billion and EBITDA of US$1.1
billion.
NPV (pre-tax) of US$368m with IRR of 33% using long term
US$3.08/lb Cu and 8% real discount rate.
Pre-tax free cashflows of US$777m, inclusive of development
capital.
Payback 3.7 years from production start.
LOM All-In Sustaining Costs (AISC) of US$1.56/lb Cu after
deducting silver credits.
-- T3 Funding Options
Expressions of Interest from numerous global, top-tier debt
institutions, many have commenced preliminary due diligence
and
completed site visits.
MOD is advancing discussions with a number of potential
strategic
parties for non-debt funding.
-- Competitive Capital Intensity
Development capital of US$182m includes mine development,
process
plant and infrastructure.
-- Robust Project Parameters
Ore Reserve containing 342.7kt Cu and 14.6Moz Ag in the
Probable
category.
11.5-year mine life targeting first production Q1 2021.
Average open pit mine grade of 1.0% Cu and 13.2g/t Ag.
LOM average annual production of 28kt (61mlb) Cu in
concentrate
and 1.1Moz Ag
Averaging over 30kt (66mlb) Cu in the first 7 years of full
production following ramp-up (2022 to 2028).
-- High Grade Concentrate Production
Average Cu concentrate grade 30.4% and 383g/t Ag, strong
interest
from metal traders and smelters.
Michael McNeilly, Chief Executive Officer of Metal Tiger,
commented:
"We are delighted to report on the findings of the MOD
Feasibility Study for the T3 Open Pit mine project in Botswana.
The study demonstrates the strong project economics and a clear
case towards project development with a relatively straightforward
open pit mine and processing plant design.
We commend MOD and the feasibility team for delivering the study
to an aggressive schedule and we look forward to supporting them as
they progress the project forward towards a decision to mine.
The Feasibility Study findings continue to support the
exploration of the surrounding joint venture holdings with the mine
and plant design having built in optionality for bringing in new
satellite deposits."
This announcement coincides with MOD's announcement earlier
today which contains supportive images and can be viewed through
the following
link:https://www.asx.com.au/asx/share-price-research/company/MOD
T3 Open Pit Project Background
The T3 Project is a significant new sediment hosted copper and
silver deposit in the under-explored Kalahari Copper Belt in
Botswana. Over the past three years T3 has progressed from the
discovery drill hole, announced in March 2016, to completion of a
Feasibility Study. The FS has demonstrated the opportunity to
develop a copper mine that is expected to generate revenue of
US$2.3 billion at an EBITDA margin of over 47% across the 11.5-year
mine life using a long-term consensus copper price of $3.08/lb.
T3 is based on the T3 Resource, announced on 16 July 2018, and
the T3 open pit is modelled on the T3 Ore Reserve announced 25
March 2019. The FS identified that the T3 Copper Project is
underpinned by strong fundamentals including an average copper
grade of 1.0%, an orebody geometry that facilitates a simple,
six-staged open pit design and metallurgy that requires a
relatively moderate capital investment, producing high grade copper
concentrates with an average copper grade of 30.4%. This premium
grade concentrate contains minimal deleterious elements, presenting
an opportunity to blend and improve lower quality smelter
feedstock, which has generated significant interest from numerous
metal traders and smelters.
The proposed six stage open pit will utilise conventional
equipment to support an average annual mining rate of 3.0Mtpa of
ore for a LOM strip ratio of 5.7 to 1.
Pre-strip activities are expected to commence during the first
half of 2020 and ore from the first stage of the open pit is
targeted to be processed during the first quarter of 2021. The bulk
of waste movement is expected between 2020 and 2024 resulting in a
higher strip ratio during these early years. Following this, the
strip ratio will reduce to an average of 2 to 1 and mining costs
should follow this general downward trend.
The open pit is located less than 1 kilometre from the process
plant. Ore will be either directly fed into the primary crusher or
directed to a Run of Mine ("ROM") stockpile, providing surge
capacity and opportunity for ore blending.
The T3 orebody is comprised of metallurgically favourable
chalcopyrite, bornite and chalcocite. Ore will be processed through
a conventional process plant with an annual throughput of up to 3.2
million tonnes at a head grade of 1.0% copper and 13.2g/t silver.
The flow sheet includes a primary crusher / SAG / Ball mill
comminution circuit to achieve a grind size of P80 180µm, a natural
pH flotation circuit, rougher flotation with a regrind circuit to
achieve a grind size of P80 90µm and a cleaner flotation
circuit.
LOM metallurgical recoveries are 92.9% copper and 88.0% silver,
producing a concentrate with grades that peak at 34.7% Cu and 601
g/t Ag, averaging 30.4% Cu and 383 g/t Ag.
The Project Execution Schedule, following a three-month early
work programme, defines a 19-month design, construction and
commissioning timeframe targeting first concentrate production
before the end of the first quarter of 2021.
Average annual production over the life of mine is expected to
be approximately 28kt of copper and 1.1Moz of silver however for
the first seven full years of production (between 2021 and 2028),
plant throughput, feed grades and recoveries are expected to be
higher than LOM average and support copper production averaging
over 30kt.
All-In Sustaining Costs over the life of mine are highly
dependent on mining costs and waste movement. Over the life of
mine, average AISC are expected to be in the lowest quartile of the
cost curve at a very competitive $1.56 per pound of copper
produced, after silver credits.
The estimated direct capital cost for the process plant is US$49
million. Project indirect costs, including engineering, procurement
and construction costs, are estimated at US$32 million. Site
infrastructure costs, which include site preparation, a 14km
all-weather unsealed access road to the A3 highway, the expansion
to a 400-person accommodation camp in Ghanzi and administration
buildings are estimated at US$23 million.
The current estimated direct and indirect capital cost for the
establishment of the mine, the construction of the process plant
and associated infrastructure is US$142 million (excluding mining
pre-strip costs).
T3 Copper Project FS Economics
Capital Expenditure US$m
Mine Establishment 1
Process Plant (direct costs) 49
Site Infrastructure 23
Tailings Storage (including 14
surface water management)
Project Indirects (based on EPC) 32
Corporate and Owners 11
Contingency1 12
Mining Pre-strip 40
Development Capital 182
Sustaining Capital 84
Operating Costs US$/t milled US$/lb
Mining Costs 17.60 0.86
Power Cost 2.48 0.12
Processing Cost (excluding 3.61 0.18
power costs)
Site Administration 2.18 0.11
Logistics 3.88 0.19
Treatment and Refining Charges 3.76 0.18
Silver By-Product Credit (5.96) (0.29)
Operating Costs (C1 Cash Costs) 27.55 1.35
Key Outcomes
Life of Mine (Processing) 11.5 years
Ore Tonnes Mined 34.4Mt
Waste: Ore ratio (including 5.7
pre-strip)
Copper Grade 1.0%
Copper cut-off grade 0.22%
Silver Grade 13.2g/t
Processing Plant Capacity2 3.0Mt/a
Metallurgical Recovery 92.9
Cu - LOM (%)
Metallurgical Recovery 88.0
Ag - LOM (%)
Copper in concentrate - LOM 318.4kt
Copper in concentrate - LOM 702Mlb
Life of Mine Financial Economics
Base Case Copper Price (Bloomberg March $3.08lb
2019 consensus long term average)3
Revenue (net of payability) $2,301m
Unit Revenue (Net of payability) $2.98/lb
C1 Cash Costs4 $1.35/lb
All in Sustaining Costs5 $1.56/lb
EBITDA $1,083m
Net Cash Flow (pre-tax) $777m
Undiscounted Cash Breakeven $2.15/lb
Copper Price
Pre-tax NPV (8% real) $368m
IRR (pre-tax) 33%
Capital Payback Period (from 3.7 years
first production)
Notes:1. No contingency applied to pre-strip costs.2. Process
plant designed to treat up to 3.2 Mtpa.3. Copper prices in year 1,
2 and 3 of production averages 3.11 US$/Ib Cu (2021), 3.16 US$/Ib
(2022) and 3.11 US$/lb (2023).4. Includes operating cash costs
including mining, processing, geology, OHSE, site G&A,
concentrate transport, TC and RC costs less by-product credits,
divided by copper in concentrate produced (100% payable basis).5.
All-in sustaining cash costs are cash operating costs (C1 cash cost
including royalties) plus sustaining capital.
T3 Copper Project Funding Update
MOD report that the T3 Project has generated strong interest
from global, top-tier, debt providers to fund a large part of the
development capital. Formal Expressions of Interest have been
received from a number of selected financial institutions who have
already commenced preliminary due diligence and conducted site
visits. A Request for Proposal will be sent, by MOD, to financial
institutions following the release of the FS.
In parallel with the debt funding process, MOD reports they are
advancing discussions with potential strategic partners to assist
with funding the non-debt component of the T3 Copper Project.
The strong interest and positive engagements from both debt and
non-debt institutions provides MOD with confidence in the
availability of funding options for the T3 Project.
Feasibility Study Summary
The following is a text only summary, a version with supportive
figuresand images is appended to the MOD release linked above.
1.Background
The proposed T3 mine site is located approximately 80 km
north-east of Ghanzi and 200 km south-west of Maun, in the western
side of Botswana.
The T3 deposit is within freehold farmland on Farm 153-NL. The
farm is located in Prospecting Licence ("PL") 190/2008. Tshukudu
Metals Botswana (Pty) Ltd (Tshukudu Metals), a full subsidiary of
MOD, holds 100% of the 25km2 area of the PL on which the T3 Copper
Project is located. The balance of PL190/2008 is held by Tshukudu
Metals in Trust for the Joint Venture entity Tshukudu Exploration
(Pty) Ltd (Tshukudu Exploration). The PL forms part of the
regionally extensive Kalahari Copper Belt and is one of many copper
deposits that extend 1,000 kilometres along the Neoproterozoic age
Damara Mobile Belt and is located entirely within Ghanzi
District
2.Study Parameters
The FS is based on the following key parameters:
-- JORC 2012 Code compliant T3 Mineral Resource of 60.2 Mt at 0.98 % Cu
and 13.9 g/t Ag, containing 590.4 kt Cu and 26.9 Moz Ag (cut-off
grade
0.4% Cu).
-- Open pit earthmoving mining operations conducted by mining contractors.
-- Process plant and infrastructure built under an Engineering,
Procurement and Construction ("EPC") contract and Owner
operated.
-- Power supplied from the national power grid (currently being expanded
from Maun to Ghanzi).
-- Raw water available from pit-dewatering activities and on-site bore
field to provide sufficient process and potable water, with
contingency bores to draw on if required
-- Management of Project implementation by the MOD Owner's team ("Owner's
Team").
3.Study Team
The FS was managed by MOD working in conjunction with several
specialised consultants as listed below to complete studies on all
aspects of the Project. The FS was limited to investigating the
technical and economic viability of an open pit operation. The FS
was also limited to processing ore from the T3 deposit only and
excluded the potential of processing ores from T3 underground and
other regional ore bodies (apart from design of the layout of the
ROM pad where consideration has been made for future haulage
access).
Contributing consultants were as follows:
-- Sedgman Pty Ltd - Process plant, associated infrastructure.
-- SRK Consulting (Aus) - Mine planning and optimisation.
-- SRK Consulting (UK) - Mine geotechnical engineering.
-- CSA Global - Resource model.
-- LOCI Environmental (Botswana) - Environmental, stakeholder engagement,
baseline studies and Environmental and Social Impact
Assessment
("ESIA") preparation.
-- Knight Piesold - Tailings dam design, water modelling, surface water
management, geochemical investigations and plant site
geotechnical
studies.
-- Water Surveys Botswana (Pty) Ltd - Borefield testing and modelling.
-- Rescology Environmental Consultants (Australia) - Closure planning and
cost estimating.
-- Minescope Services - Environmental consulting.
-- Mr P Geddes (GoldFern Consulting, Australia) - Mining engineering
consultant.
-- Ms Lizelle van Wyk - Financial modelling.
-- Mr B Parker (Chemech Consulting) - Metallurgical consultant.
-- ALS Laboratories - Metallurgical testwork (comminution).
-- Metallurgy Pty Ltd - Metallurgical testwork (flotation).
-- Pocock Industrial Inc - Thickening and filtration testwork.
-- Jenike & Johanson - Materials handling testwork.
-- Discovery Drilling - Water bore drilling.
-- BPDT & Co - TC / RC's and concentrate market.
4.Project Approvals
Botswana is well defined, well understood, involves public
participation and is transparent. Land access and landowner
agreements are in place and ongoing engagement and consultation
continues with key stakeholders. Strategic plans to support the
Environmental Social Management System are in the development phase
and will address impacts identified in the draft Environmental
Social Impact Assessment.
During the FS, a draft ESIA was submitted to the Department of
Environmental Affairs ("DEA") on 24 December 2018. The ESIA is
currently under review by the DEA and their appointed review
committee. The DEA provided feedback on the draft ESIA on 11 March
2019. MOD is currently responding to the comments received.
Once the ESIA is updated, it will be resubmitted to the DEA for
approval for public review. Following a 4-week public review
process, the DEA may elect to issue final approval. Upon final ESIA
approval (and completion of the FS), a mining license application
can be made.
5.Project Funding Options
Given the robust economics of the T3 Copper Project, there has
been strong interest and engagement from a range of potential
financial institutions. Several are conducting preliminary due
diligence, including being granted access to a data room and
attending site visits to Botswana.
The MOD Board and senior management has continued to proactively
engage with these potential financial institutions. During the
first quarter of 2019 the Company requested Expressions of Interest
("EOI") from selected global, top-tier debt providers for the T3
Copper Project. To date, the Company has received very strong and
positive indicative support. Following the release of the FS, the
Company will issue a Request for Proposal to create a short-list,
targeting the finalisation of debt agreements by the end of the
third quarter of 2019.
The Company is also engaging with independent technical experts
and expects to confirm the appointment of an Independent Technical
Engineer and Independent Environmental & Social Consultant
shortly after release of the FS.
In addition, the Company and its advisers continue to advance
non-debt funding options while simultaneously progressing
discussions with a range of other interested parties that can
provide debt and/or equity funding including corporates, private
equity funds, metal traders, smelters, royalty companies and other
potential strategic partners and will update the market with any
material developments.
6.Project Execution
The development of the T3 Copper Project will be managed by the
Owners Team who will utilise the services of experienced
contractors during the construction phase. The three main
contractor's responsible for the development will be:
-- EPC Contractor - Design, procurement, construction and commissioning
of the Process plant and associated infrastructure.
-- Mining Contractor - Supply of pre-strip and mining activities.
-- Tailings Dam Contractor - Installation of tailings dam and associated
earthworks.
Local contractors will be engaged to undertake works as required
to de-risk the project schedule and provide the best commercial
outcome. This includes early works to prepare for the Contractors
arrival to site including:
-- Camp construction.
-- Game fence construction.
-- Site access.
The Owner's Team will manage the interface between the
contractors as well as external and government stakeholders to
ensure the Project is delivered safely, on-time and within budget.
A suite of project management documents will be developed, that
define how the Project will be designed, constructed and
commissioned. These documents will form part of each of the
Contractor's scope to ensure consistency and quality standards are
met.
An Operational Readiness Plan will be developed to ensure that
MOD will have all the systems, standards and procedures in place
and an operations team recruited, trained and ready to accept care,
custody and control of the Project assets when handed over by the
development team.
The Project Execution Schedule is based on a three-month early
works programme followed immediately by a 19-month design,
construction and commissioning timeframe with the objective of
achieving first concentrate production during the first quarter of
2021. The schedule assumes a Mining Licence and MOD board approval
will be granted by the end of the second quarter of 2019 and
Project Finance will be available in the third quarter of 2019.
7.T3 Ore Reserves
SRK Consulting completed the production schedule defining the
updated Ore Reserve tonnes and grade. The Ore Reserve was defined
in accordance with the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves, JORC Code
2012, supported by Competent Persons acting under the JORC 2012
Code, taking responsibility for their areas of expertise.
The Ore Reserves are presented in the following table.
Ore Reserve Category Tonnes Copper Silver
(Mt)
Grade (%) Kt Grade (g/t) Moz
Proven - - - - -
Probable 34.4 1.0 342.7 13.2 14.6
Total Ore Reserve 34.4 1.0 342.7 13.2 14.6
Notes:1. The Probable Ore Reserve is based on the Indicated
category of the Mineral Resource. No Inferred category has been
included.2. The lowest grade of ore added to the process plant feed
in the FS is 0.22% Cu.3. Ore Reserves are calculated based on a
copper price of US$2.91/lb and a sliver price of US$16.81/oz.4. Ore
loss and dilution were applied to the Mineral Resource model in a
two-step process which resulted in an ore loss of approximately 9%
and a diluted tonnage addition of approximately 8%.5. Metallurgical
testwork recoveries were applied in accordance to the recovery
algorithms developed from the variability testwork programme
conducted during the FS.6. Appropriate modifying factors were
applied.
8.T3 Geology and Geological Interpretation
The copper and silver mineralisation which is the basis for the
T3 Mineral Resource is interpreted to be a vein related sediment
hosted deposit which is different to other known deposits and mines
in the central Kalahari Copper Belt in Botswana.
The Mineral Resource is defined along a >1.5km long strike
length and the copper and silver sulphide mineralisation occur in
veins and disseminations within host rocks that include mudstone,
siltstone, sandstone and marl units considered part of the D'Kar
Formation. Footwall to the copper/silver resource is generally
defined by low-grade disseminated lead and zinc mineralisation
within sediments also considered part of the D'Kar Formation.
Mineralisation is highly continuous and is dominated by
chalcopyrite with chalcocite and bornite copper sulphides occurring
in lesser amounts. Mineralisation extends from shallow depth (circa
25m depth) to the limit of drilling to date at approximately 480m
vertical depth, well below the planned open pit. Minor malachite
and chrysocolla oxide mineralisation occur near surface between
around 25-50m depth.
The T3 mineralisation type can be described as a sheeted vein
deposit dipping at 20-30 degrees to the northwest with varying
widths of disseminated mineralisation around the veins. The deposit
may represent multiple stacked, mineralised veins and units,
thrusted one upon the other.
This interpretation opens up potential for resource extensions
along strike east and west, as well as at depth towards the north
and down dip. Drilling continues to test for potential underground
extensions at depth across the T3 deposit.
9.Geotechnical Assessment
SRK carried out a review of all the relevant data sources for
the deposit and subsequently designed a geotechnical ground
investigation programme to collect information for the FS. The
investigation consisted of eight geotechnical drill holes for
detailed geotechnical logging that were surveyed using Acoustic
Televiewers ("ATV") for detailed structural logging. A further nine
drill holes were used to define the location and nature of the Pit
Thrust C Fault located in the footwall ("FW") of the final pit. A
suite of geomechanical testing was undertaken to develop an
understanding of the rock mass strength.
Weathering influences the engineering characteristics of the
rock mass and the bench design for the upper two slopes has
accounted for this. The weathering profile is generally restricted
to between 10 metres and 15 metres below ground level and, below
this, has little impact on the overall slope design. The rock mass
structure has been interpreted from structural logging and is
characterised by the moderately dipping bedding and five other
joint sets. The deposit is in a low risk seismic area and therefore
seismicity will have no impact on the pit. A major structural model
has been developed for the deposit.
A geotechnical model was created utilising all the data and the
rock types have been thoroughly analysed and classified using
internationally recognised standards. The rock mass strength has
been assessed using the various data sources and representative
design parameters have been assigned to each geotechnical domain to
carry out the geotechnical design.
Planar failure and limit equilibrium analysis have been utilised
to assess the overall stability of the proposed T3 pit. Factors of
safety for the site are considered high overall, suggesting that
overall slope angles should be driven primarily by the kinematic
constraints.
To minimise risks to the main ramp entrance on the FS, it is
advised that pore pressure monitoring be installed in the Thrust C
Fault to ensure proper depressurisation.
Slope design recommendations have been based on the kinematics
and overall pit slope analysis. The structure is the limiting
factor for the design and the berm widths presented are to ensure
that the inter ramp angles is no more than 41° for the FW and 61°
for the HW.
The geotechnical parameters have been applied uniquely to three
zones. The Hanging wall, Footwall and the top 20m of material. The
Footwall is relatively shallow at an Overall Slope Angle ("OSA") of
35°, effectively following the base of the ore zone after
approximately the first 100 vertical metres of mining. The Hanging
wall OSA is considerably steeper at 57°. The top 20 metres in all
three zones has an OSA of 27° to address the unconsolidated sands
and weathered material.
The open pit designs are based on the recommended geotechnical
design parameters and assume dry slopes based on the assumption of
adequate dewatering and/or depressurisation ahead of mining.
The Footwall Final Pit walls are established with the initial
stages of mining. The likely performance of the Hanging wall zone
can be assessed by the interim Hanging walls of the pit stages and
adjusted as required.
10.Open Pit Mining
The T3 Copper Project is in relatively sparse bushland utilised
for free-range cattle farming activities. The topography is flat
with the difference in height across the mining area of less than
5m. From a mining perspective, accessing and developing the mining
operation will not be impeded due to topography.
The T3 deposit is proposed to be mined utilising a mining
contractor and conventional truck and excavator (backhoe
configuration) open pit mining methods, with MOD maintaining
orebody definition, quality control and medium to long term mine
planning functions and management.
The proposed contractor based mine operations model offers MOD
the following advantages:
-- Minimises the upfront capex requirements by MOD as the contractor will
supply the mobile fleet and required supporting
infrastructure.
-- The contractor brings specialised open pit mining knowledge, systems
and experience, lowering operational risk.
The general mining method is summarised as follows:
Clearing and stripping of suitable material from all disturbed
areas into discrete stockpiles for later use in rehabilitation
activities
-- Systematic pit mapping to demarcate ore boundaries.
-- Drilling and blasting of ore and waste on 10 metre benches.
-- Load and Haul utilising 120-250 tonne excavators and 140 tonne
capacity haul trucks mining on 2.5-metre-high flitches in ore
zones
and 3.5-metre-high flitches in bulk waste zones.
-- Ore will be direct fed to the crusher or placed on stockpiles for
future rehandle as required.
-- Pit dewatering is expected to be minimal and will be managed by a
collection of external dewatering and depressurising bores
(if
required) and in-pit sumps for use within the mining
operation.
RC grade control will be utilised on a predominantly 12 metre by
6 metre angled RC drill pattern, and is campaigned during the mine
life, with technical and management direction from MOD.
Open pit optimisation studies to identify the mineralised
material inventory to guide final pit designs utilised a set of
cost, processing and design criteria based on most up to date
parameters. The final optimisation parameters are tabulated below
in Table 2.
Table 2: Pit Optimisation Parameters
Parameter1 Unit Value
Copper Price $ / lb 2.91
Silver Price $ / Troy oz 16.81
Transport Cost $ / t conc. 140.00
Copper Refining Cost $ / lb 0.08
Silver Refining Cost $ / Troy oz 0.40
Treatment Charge $ / t conc. 80.80
Copper Payability % 96.5
Silver Payability % 90.0
Copper Royalties % 3
Silver Royalties % 5
Process Copper Recovery % variable
Process Silver Recovery % variable
Whittle input PCAF $ / t ore 10.41
(Processing
Cost Adjustment Factor)
Estimated Dilution at % 9%
a 0.4% Cu cutoff
Estimated Ore Loss % 8%
at 0.4% Cu cutoff
Reference Mining Cost $ / t mined Varies by elevations;
- Above RL 1,114.5 m Above RL 1,114.5 m, US$1.35/t;
Below RL 1,114.5 m, US$ 2.11/t.
General and Administration $ / t mined 0.41
Cost
Incremental Mining $ / t mined 0.023
Cost Adjustment
per 10m below RL 1,116.5 m
Overall Slope Angle Varies by zones & elevation;
Above RL 1,095 m, 27°;
Below RL 1,095 m,
57° (Hanging Wall)
35° (Foot Wall).
Notes:1. Optimisation Parameters may differ from final FS Study
outcomes due to timing.
The Ore Reserve is supported by a mining cost estimate, mining
productivities and all other parameters required as inputs to the
mineral resource optimisation process, pit design and production
scheduling of the deposit.
The selected mining method, design and extraction sequence suit
the orebody characteristics, minimise dilution and ore loss, defer
waste movement, conform to maximum rates of vertical mining advance
and utilise planned process plant capacity in a safe manner. The
open pit has been scheduled based on realistic mining productivity,
consistent material movements, taking into consideration
operational realities and safe access to stages
A total of six stages have been designed based on Whittle pit
shells, early waste minimisation assessments and staging logic with
a primary driver to minimise the capitalised pre-strip, minimise
variability in total material movement while maintaining process
plant throughput and monitoring feed grades. A minimum cutback
mining width of 100 metres has been targeted between stages to
ensure full production rates can be maintained safely. The stage
designs have focused on reducing the impact of narrow mining areas
between stages.
The Stage 1 pit design is well within the first identified
economic Whittle pit shell which is effectively the Stage 2 pit
design. Stage 1 has been implemented to give early access to
sustained ore production, to minimise capitalised pre-strip.
The Final Pit design (Stage 6) is based on a Whittle pit shell
defined by a Revenue Factor of 0.85. The selection of the 0.85
Revenue Factor by MOD achieves the targeted ore tonnes and grade,
while also being within MOD's risk profile for the Project.
The pit designs have been geotechnically reviewed by the
developer of the geotechnical parameters to ensure the parameters
and intent of these geotechnical parameters have been adhered to.
There were no material issues identified by this review of the pit
designs.
The inventory and layouts of staged pit designs are illustrated
in Table 3.
Table 3: Mining Inventories for Each Stage
Pit Ore Waste Total Strip Cu grade Ag grade Pb grade Zn grade S grade
design (Mt) (Mt) Movement ratio (%) (g/t) (%) (%) (%)
(Mt)
Stage 2.9 24.2 27.1 8.2 1.02 9.9 0.13 0.14 0.94
1
Stage 4.0 16.9 20.9 4.2 1.07 14.2 0.05 0.07 0.99
2
Stage 4.0 24.4 28.4 6.1 1.10 12.1 0.05 0.06 0.85
3
Stage 8.9 65.3 74.2 7.4 1.11 16.8 0.08 0.07 0.67
4
Stage 9.0 36.0 45.0 4.0 0.89 11.7 0.07 0.07 0.62
5
Final 5.7 29.1 34.7 5.1 0.89 12.5 0.06 0.06 0.62
Pit
Total 34.4 195.9 230.4 5.7 1.00 13.2 0.07 0.07 0.73
Final Pit is approximately 1,400 metres in length, 700 metres
wide and 250 metres deep.
The in-pit ramp system has been designed to minimise haulage
distances to the ROM Pad and the Waste Dump ("WD") and is based on
the operability and safety aspects anticipated during mining
operations. Catch berms above ramps have been utilised for some
stages where subsequent stages were assessed as posing an elevated
risk when operating above these ramps.
The mining operating costs have been provided by contractor
quotes based on a detailed Request for Quotation. These quotes were
reviewed and validated internally by a shadow estimation process.
The shadow estimate costing was used for the financial model and
was within 5% of the costs utilised for the Whittle optimisation
process.
11.Mining Ore Loss and Dilution
Mining ore loss and dilution modifying factors were implemented
by regularising the mineral resource model to a Selective Mining
Unit ("SMU") with a block size of 5mE x 5mN x 2.5mRL. The impact on
the magnitude of ore loss and dilution due to differing SMU sizes
was tested as part of a sensitivity assessment. The ore loss and
dilution of the selected SMU was also checked for reasonableness
utilising an ore zone 'skinning' logic at 0.5 metre and 1 metre
'skins' of ore loss or dilution to confirm volumetric consistency
of the mineral resource model being regularised to the SMU block
size. This SMU model is classed as a diluted Mining Model suitable
for optimisation and production scheduling.
The regularisation to an SMU of 5mE x 5mN x 2.5mRL resulted in
an ore loss of approximately 9% and a diluted tonnage addition of
approximately 8%. When using a 0.4% copper grade cut-off to create
a grade shell, a 1 metre 'skin' around this grade shell is
approximately volumetrically the same as the dilution and ore loss
volume presented by the selected SMU block size of 5mE x 5mN x
2.5mRL. There is approximately a 2.7% loss of copper metal due to
the SMU regularising process.
12.Cut-off Grade
The production schedule has targeted producing at a 0.25% copper
cut-off (slightly above the marginal break-even grade) over the
life of mine. This adds a level of conservatism to the production
schedule, giving contingency access to ore tonnes if required to
maintain feed to the process plant when in operation. The marginal
break-even grade to cover processing costs is variable based on
copper and silver grades with the associated metal recoveries and
costs, and is in the range of 0.18% to 0.20% Cu. Material between
the marginal break-even grade and 0.25% Cu grade is classed as Low
Grade, and while economically viable, is stockpiled separately and
only utilised to maintain process plant feed rates during periods
of high waste movement and to maintain a steady total material
movement between periods.
There are localised zones of high lead/zinc mineralisation
associated with copper identified within the Final Pit. This
material has the potential to elevate the lead/zinc levels in
concentrate to a point where penalties are incurred on the sale of
the concentrate. To manage this issue material with a low copper to
lead + zinc ratio (less than 1) was separately identified in the
production schedule and blended to the crusher opportunistically.
The remainder of this elevated lead/zinc material was classed as
Mineralised Waste and is being mined and dumped separately to the
rest of the waste so that control of this mineralised waste can be
effectively managed from an environmental and mine closure
perspective.
13.Mining Infrastructure
The proposed mine plan includes a single pit with haul roads
connected to a single waste rock dump, mineralised waste dump, low
grade stockpile and a ROM pad. There are surface water diversion
channels, surface dewatering bores, light and heavy vehicle
workshop facilities, explosives storage, processing facilities,
supply facilities, technical services facilities, and
administration facilities.
The mining contractor will construct the mining infrastructure
required to maintain mining operations. MOD will supply services
such as power and water.
14.Mining Schedule
Initial mine development and pre-stripping activities are
scheduled to limit capital expenditure and land disturbance and to
provide sufficient material required to construct the Tailings
Storage Facility ("TSF"), site roads and ROM pad. There are over 12
years of mining with the first year defined as capitalised
pre-strip prior to the ramp up of the process plant to full
production.
The mining schedule adopts the following key parameters and
assumptions:
-- A primary loading fleet consisting of a maximum of five hydraulic
excavators in the 120-250 tonne classes which is considered
the
optimal option that could achieve the required productivity,
maintain
a degree of selectivity when required and minimise the number of
units
required for practical separation of loading and hauling
units.
-- The ore and waste haulage fleet will consist of 140 tonne mechanical
drive haul trucks and will be capable of direct tipping to the
primary
crusher.
-- There is a step change to a lower annualised total material movement
("TMM") after Year 5. A peak TMM of 39Mt (annualised) was
maintained
during the first four years of the schedule requiring 24 trucks
and 5
excavators to ensured continuous ore supply. TMM dropped to
6Mtpa
after Year 6 and was generally maintained for the remaining
LOM.
-- The mining schedule has been constrained by setting a maximum vertical
advance rate of 120 metres per annum to allow sufficient time
for
dewatering, grade control, drill and blast and load and
haul.
-- The maximum vertical lag between benches is set at 50 metres.
-- The production schedule achieves the target process plant throughput
rates both during ramp-up and during steady state operations
of
3.0Mtpa to 3.2Mtpa (Peak).
15.Metallurgy
A comprehensive metallurgy testwork program was implemented for
the FS with the specific objective of verifying technical
feasibility and providing data for resource estimation.
The major copper sulphide minerals in the T3 orebody are
chalcopyrite, bornite and chalcocite in varying blends. Minor
copper minerals include digenite, malachite, chrysocolla and
occasionally native copper. Other sulphides present include galena,
sphalerite, molybdenite, bismuthinite, pyrite,
tetrahedrite/tennantite, arsenopyrite and cobaltite. Gangue
minerals are silicates such as quartz, as well as muscovite,
biotite, albite, potassium feldspar and chlorite, or oxides in the
form of calcite, apatite and titanite.
Metallurgical testwork was conducted by Metallurgy Pty Ltd
("MET") in Perth, Australia and commenced early Q3 2018 and
completed in Q1 2019.
A total of 34 samples were selected for comminution testwork to
support the FS. Samples were selected on the basis of lithological
domain and spatial representivity across the T3 pit. Due to limited
sample mass and particle size available for the comminution
samples, 11 additional samples were selected for specific testing
including Bond Abrasion Index and Bond Rod Work Index testing. As
with the main comminution samples, the additional samples were
selected based on lithology type and spatial representivity across
the T3 resource.
Comminution test results are reported in Table 4. Findings from
the testwork show that the ore is moderately competent, abrasive
and hard.
Table 4:Comminution Testwork Results
Parameter Units No of Tests Minimum Maximum Average Design
DWi kWh/m3 38 3.99 9.38 6.43 7.6
A*b 38 28.8 70.3 44.4 36.8
Ai g 12 0.014 0.319 0.087 0.087
BRMWi kWh/t 13 15.8 21.0 18.1 19.4
BBMWi kWh/t 45 7.6 18.8 13.8 15.6
Flotation flowsheet development testwork confirmed copper and
silver can be recovered using conventional flotation techniques.
The optimum flotation circuit was found to include rougher
flotation followed by single stage cleaner and cleaner scavenger.
Optimised flotation conditions include a primary grind size P80
180µm with rougher flotation at natural pH, rougher concentrate
regrind size P80 90 µm and pH11 cleaner flotation .
Following the flowsheet development testwork, 49 variability
tests were carried out to evaluate metallurgy performance with
variations to copper mineralisation, deleterious elements, copper
head grades, and spatial distribution. Findings of the variability
test results are reported in Table 5.
Table 5:Flotation Variability Test Results
Component Final Concentrate Grades Final Concentrate Recoveries, %
Minimum Average (49) Average (53) Maximum Minimum Average (49) Average (53) Maximum
Wt % --- --- --- --- 1.1 3.9 3.8 9.4
Cu % 16.2 29.9 30.4 50.0 54.4 94.3 94.4 98.8
Ag g/t 45 343 348 1,225 67.0 86.9 87.2 97.6
Mo g/t 40 3,235 3,213 34,081 16.2 54.9 55.8 91.7
Zn % 0.02 1.12 1.25 6.24 2.1 36.2 38.9 84.3
Pb % 0.03 2.37 2.40 21.2 28.0 78.1 79.1 98.1
As g/t 14 870 910 7,076 16.5 61.1 61.9 86.8
From the variability tests, recovery and grade algorithms were
developed for copper, silver, and sulphur, as well as the penalty
elements lead, zinc, molybdenum, arsenic and bismuth. A mass
recovery algorithm was developed for final concentrate recovery.
Recovery and grade algorithms for copper and silver are:
Recovery Models for Copper and Silver
Cu Rec % = 101.1 - 0.91 ((Feed% ASCu / Feed % Cu) x 100)
Ag Rec % = 78.43 + 3.49Ln(Feed Ag g/t) - 0.54 ((Feed% ASCu /
Feed % Cu) x 100) - 2.29Ln(Feed As ppm) + 1.85Ln(Feed Pb+Zn
ppm)
Concentrate Grade Models for Copper and Silver
Cu Grade % = 38.82 + 12.24Ln (Feed %Cu) - 8.94 (Feed%S) - 0.18
((Feed% ASCu / Feed % Cu) x 100)
Ag Grade (g/t) = 172 + 188.1Ln(Feed Ag gt) - 87.3Ln(Feed As
ppm)
Applying the recovery and grade algorithms to the production
schedule the life of mine final weighted copper recovery averaged
92.9% and silver weighted recovery averaged 88.0% The life of mine
final weighted copper concentrate grade averaged approximately
30.4%. The final copper recovery was strongly related to the
proportion of acid soluble copper present in the feed.
Final concentrate silver grades averaged 383 g/t, and penalty
elements, lead and zinc averaged 1.72% and 1.09% respectively. Lead
and zinc recovery were variable and some blending of ores and or
final concentrates may be required to minimise their effects. The
blending strategy developed to manage the impact of lead and zinc
can be applied to arsenic, bismuth and molybdenum.
Locked cycle tests ("LCT") were carried out on four production
composites representative of the staged pit development. The tests
were done to verify copper and silver recovery and evaluate how
deleterious minerals behave in recycled streams within the
optimised flowsheet. Results of the locked cycle tests are reported
in Table 6.
Table 6:Locked Cycle Test (LCT) Results
Component Final Concentrate Grades Final Concentrate Recoveries, %
P1 P2 P3 P4 P1 P2 P3 P4
Wt % - - - - 2.9 2.2 2.6 2.7
Cu % 32.0 36.7 39.2 33.3 96.0 94.8 97.0 92.7
Ag g/t 345 426 441 415 91.1 92.1 91.9 88.5
Mo g/t 1,579 2,446 1,309 6,399 60.5 64.0 64.9 74.5
Zn % 3.40 1.92 2.10 3.80 78.3 60.5 70.7 80.7
Pb % 2.58 2.02 2.69 3.66 92.5 87.4 92.3 92.6
As g/t 2,990 589 721 1,170 86.2 58.3 68.7 70.0
Outcomes from the LCT show that the optimised flowsheet can
produce a saleable copper concentrate with silver credits.
In addition to the flotation testwork, ancillary testwork to
determine flotation tails and concentrate thickening parameters,
slurry rheology properties, concentrate filtration parameters, and
final concentrate transportable moisture limits ("TML") and
maritime shipping properties were carried out.
Thickening testwork concluded that underflow densities of 74%
solids (w/w) to 78% solids (w/w) could be obtained for the final
concentrate and 68% solids (w/w) to 72% solids (w/w) could be
obtained for the flotation tailings. Pressure filtration of the
flotation concentrate could achieve a final moisture content of
8.0%. The transportable moisture limit (TML) of the final
concentrate was found to be 9.9%.
16.Ore Processing and Production
The unit operations selected to process the T3 ore are well
proven in the minerals processing industry. The overall approach
was to provide a robust process plant flowsheet that is simple to
operate and maintain, while being able to handle variability in
metallurgical performance. The T3 process flowsheet incorporates
the following major process operations:
-- Primary crushing
-- Coarse ore stockpile with reclaim system
-- Open circuit semi-autogenous grinding ("SAG") with ball mill operating
in closed circuit
-- Rougher flotation
-- Rougher concentrate regrind mill
-- Cleaner flotation
-- Cleaner scavenger flotation
-- Final concentrate and flotation tails thickening
-- Concentrate filtration
-- Fresh water and tailings reclaim water supply
-- Reagent preparation and distribution.
The process design criteria incorporated outcomes from the
testwork program and mine schedule as well as benchmark data for
similar operations. The key criteria selected for the plant design
are:
-- The mill will process a total of 34.4Mt of ROM ore for 11.5 years
-- The annual ROM treatment is 3.0Mtpa with a peak treatment rate of 3.2
Mt/a, at a primary grind size of 80% passing 180µm
-- Design availability of 91.5% with standby equipment in critical areas
-- Design copper head grade of 1.3%. This head grade allows for grade
variation from the life-of-mine average grade of 1.0%
copper.
-- 85th percentile of comminution ore properties
-- Ore specific gravity of 2.8 t/m3
-- Laboratory rougher flotation residence of 6.0 minutes, and cleaner 1
and cleaner 1 scavenger residence time of 2.0 minutes and 8.0
minutes
respectively
-- Rougher concentrate mass recovery of 6.2% (w/w) for regrind circuit
sizing and final concentrate mass recovery of 3.6% (w/w) for
thickener
and filter sizing.
The copper recovery plant and associated service facilities will
process ROM ore delivered to a single stage primary crusher. The
crushed ore will be stockpiled from where it is fed to a two-stage
grinding circuit using SAG and ball milling. Copper minerals in the
ground ore will be concentrated in a conventional copper flotation
circuit, made up of roughing, regrind and a single stage of
cleaning. Concentrate from the cleaning stage will be thickened
then filtered on site prior to transporting to Walvis Bay in
Namibia. From Walvis Bay the concentrate will be shipped to
third-party smelters.
Tailing from the roughing and cleaning stages will be pumped to
the TSF located south of the proposed mine. The TSF is designed to
store approximately 34.4 Mt of conventional thickened tailing -
enough for the 11.5 years of the Project life.
The process plant is forecast to produce a LOM annual average
copper in concentrate of 28kt, with average grades for Cu and Ag of
30.4% and 383g/t respectively.
17.Infrastructure, Road Access and Accommodation
The T3 Copper Project is located within the Kalahari Copperbelt,
in the Ghanzi Region, close to the northern edge of the Kalahari
Desert and within the Kalahari basin. The most direct access route
to the Project site is a two-hour drive from Maun, east of Ghanzi,
along the A3 highway. Direct flights into Maun from Johannesburg
occur daily with a flying time of approximately 2 hours. The A3 is
a sealed dual lane highway with gazetted average speed limit
between 80 km/h and 120 km/h.
The T3 Copper Project site is 14 kilometres by road off the A3
highway, the turn-off is approximately 70 kilometres from Ghanzi
and an all-weather, unsealed access road from the A3 highway to the
Project site is scheduled to be built early in the Project's
development. The current access road is a series of farm tracks
that will be upgraded to a 12-metre-wide carriageway, of gravel
construction utilising crushed and screened calcrete for pavement.
The calcrete will be sourced during the pre-strip phase of the mine
development. The road will be fenced on both sides with gates
installed at locations to allow farmers access for movement of
livestock.
At the end of 2018 Tshukudu Metals completed the construction of
a 40-person self-contained accommodation camp located approximately
6 kilometres east of Ghanzi on the A3. The accommodation camp is
inclusive of kitchen/dining facilities, a laundry area, office
block, potable water treatment plant and covered carpark area.
As the T3 Copper Project moves into a production phase the
workforce will either reside locally in nearby townships or commute
and reside at a dedicated camp in Ghanzi during rostered days on.
To meet the increase in workforce the existing accommodation camp
will be expanded to house an additional 360 persons. The level of
accommodation will be split into three categories, being:
-- Junior accommodation consisting of 240 beds. The junior accommodation
is split into 12 blocks each with 10 rooms and suitable to house
20
persons per block. In addition to the rooms 5 ablution blocks
will be
installed
-- Senior accommodation consisting of 120 beds. Senior accommodation is
split into 30 blocks each block with 4 rooms. Ablutions will
be
included with each block.
-- Management accommodation consists of the existing 40 self-contained
units.
During the implementation phase, the expanded accommodation camp
will be upgraded to accommodate a total of 760 beds. This will
occur by adding beds to the new rooms, which are sized for the
expansion. Surplus construction labour will be housed in a
temporary 300-person camp located next to the expanded camp and a
second temporary 100-person camp located at the T3 Copper Project
site.
The Ghanzi accommodation camp is located approximately 70
kilometres from the T3 project site. Buses will be used to mobilise
the Tshukudu and mine contractor employees to and from the
accommodation camp and the T3 Copper Project site each day.
18.Power
The T3 Copper Project has an installed maximum power demand of
11.5 MW. Following a review of the various forms of energy supply
(diesel generation, grid connection and wind), it was concluded
that grid connection provided the best combination of capital and
operating cost with the least environmental impact.
The Botswana Government has awarded contracts for the extension
of 220kV grid power transmission line along the A3 highway that
joins Toteng and Ghanzi, near the T3 Copper Project, scheduled to
be available during Q1 2020. MOD has maintained regular
communication the Botswana with Power Corporation ("BPC") to
confirm the scheduled availability of power.
The key aspects of the high-voltage network are:
-- A new connection station at the intersection of the A3 highway and
access road for the connection to the grid.
-- 132 kV overhead transmission line, 14 km long, from A3 highway to the
principal substation at the process plant.
-- The principal substation will be equipped with two 132/11 kV stepdown
transformers of 20 MVA capacity and associated switchgear.
-- The plant 11kV MV Substation, located in the grinding area, will be
supplied from the HV substation via 11kV buried cables. From
here all
the grinding motors, plant MCC transformers, office minisubs
and
overhead powerlines will be reticulated.
-- The 11kV overhead line will be extended from the 11kV MV Substation
located at the grinding area to the crushing MCC, plant
workshop
minisub, mining workshop minisub, tailings decant water pump
station
and the explosives facilities.
19.Borefields and Water Supply
Test pumping and groundwater modelling of the nineteen water
bores installed to date indicate that groundwater has the potential
to meet the Project water demand. Nineteen water bores were
installed and tested to depths of between 120 metres and 220 metres
with eleven of the bores (eight dewatering bores and three water
supply bores) having estimated yields of between 20m3/hr and
110m3/hr (6 L/s to 31 L/s) and averaging 67 m3/hr (19 L/s). The
groundwater is fresh with total dissolved solids (TDS)
concentrations ranging from 445 mg/L to 764 mg/L, and slightly
alkaline with pH values ranging from 7.3 to 8.
A three-dimensional numerical groundwater (MODFLOW) model was
developed based on the test pumping data to predict the pit
dewatering requirement of the initial pit stages and the ability to
meet the 287 m3/hr (80 L/s) mine water supply borefield
requirement. The Pit Stage 1 dewatering operation is predicted to
require fourteen pit dewatering bores, of which eight have already
been installed. The dewatering borefield supply will need to be
supplemented by the existing water supply borefield to the west.
Pumping tests will be undertaken on all newly installed bores and
longer-term pumping tests will be undertaken on selected bores
before commencing pit dewatering and pre-stripping activities.
The mine water supply will be sourced from dewatering bores and
a dedicated water supply borefield located up to 2 kilometres to
the west of the open pit. This will provide raw water to supplement
the water demand required for the processing of ore, fire water
supply, and feed to a Reverse Osmosis ("RO") plant in the process
plant area. The RO plant will deliver 30m3 per day of fresh water
to the change house, on-site buildings, and safety showers.
The configuration of bores will involve:
-- 4 x existing water supply bores.
-- 14 x pit dewatering bores consisting of:
8 x existing pit de-watering bores
6 x new pit de-watering bores to replace existing bores as
they
become redundant during pre-strip.
The borehole pumps will be powered from local generators
installed next to each bore pump starter panel. These pump starters
will be equipped with soft starters to lessen the effect of
starting current on the generator.
20.Geotechnical Assessment - Tailings Storage Facility (TSF)
& Site Plan
A geotechnical site investigation has been undertaken for the
TSF and Plant Site, comprising of drilling 10 boreholes and
excavation of 49 test pits across the major infrastructure
footprint areas. Disturbed samples were recovered and underwent
classification and geotechnical testing. Rock is present at shallow
depth and the maximum excavation depth at the TSF and Plant Site is
expected to be limited to a few metres. Aeolian sands are present
across the site to an average depth of approximately 1.3 metres
(2.6 metres maximum depth encountered). Risks due to collapsible
sands present on the site will be mitigated during earthworks
construction. Therefore, the Plant Site and TSF locations are
considered suitable for the construction of the infrastructure.
21.Tailings Storage Facility (TSF)
The T3 Copper Project area comprises an expansive low relief
plain and there are no major surface drainage channels in the
immediate area of the mine site. The area drains toward the north
at an incline of approximately 1V:500H. The proposed process plant
site is located west of the open pit and the proposed Waste Rock
Dump ("WRD" or "WD") is situated immediately south of the pit. The
TSF is abutting the southern wall of the Waste Dump.
The TSF is designed and will be engineered as a paddock facility
and will be formed by a multi-zoned earth-fill embankment with a
compacted soil liner throughout the basin area and upstream face.
The basin and upstream face of the embankment will be lined with an
impermeable High-Density Polyethylene ("HDPE") geomembrane. The
design incorporates an underdrainage system to reduce the pressure
head acting on the liner to reduce seepage, increase water
recovery, increase tailings densities, and improve the geotechnical
stability of the embankments.
The tailings parameters are based on laboratory testing carried
out as part of the FS and considers tailings performance on similar
projects. The TSF is designed with an ultimate storage capacity of
34.4Mt, based on a production rate of 3.0Mtpa over 11.5 years. The
tailings will discharge to the TSF at 68% solids (w/w).
Geochemical testing of the tailings sample recorded a moderate
number of element enrichments, with the level of enrichment tending
to be significant. Bismuth was recorded as highly enriched, whilst
silver, boron, copper, molybdenum and antimony were recorded as
significantly enriched. Arsenic was also recorded as slightly
enriched. Therefore, a closure cover system has been included in
the design.
The supernatant was found to have no metals detected above
Botswana, International Release or Livestock guidelines. Comparison
of the supernatant results with Drinking Water Guidelines indicated
that arsenic and antimony exceeded both Botswana and international
guidelines, with molybdenum also exceeding World Health
Organisation ("WHO") guidelines. Based on the agricultural land use
in proximity to the site and the local groundwater, the TSF design
currently includes for HDPE liner and an underdrainage system to
provide management and control of seepage during operations.
22.Surface Water Management - Site General
The surface water management controls the stormwater drainage
conditions taking into consideration rainfall events, ground
conditions and environmental factors. The site area and associated
catchment have few topographic features. The site is relatively
flat with the catchment sloping gently in a north-westerly
direction. The 100-year Annual Recurrence Interval ("ARI") peak
discharge values have been estimated, with consideration of
rainfall intensities and assumed runoff coefficients, as a design
basis for the surface water management.
A 1 metre high bund with 1V:3H batters are designed to mitigate
inundation of clean runoff to the site area. The surface water
management structures within the site comprise a series of
trapezoidal channels. Most of the catchments acting on these
channels are in contact with the TSF embankments or the waste
dumps, therefore stormwater discharge is directed into three
sediment control structures to reduce the effects of sediment
transport and disturbance to the environment. The structures have
been designed to contain particle sizes larger than 0.05 mm.
23.Waste Rock Geochemical Assessment
Waste Rock Characterisation test work indicates all 67 samples
were found to be non-acid forming. Based on these results acid
generation and drainage from the waste dumps is unlikely. A low to
moderate number of enriched elements were identified. The most
commonly enriched elements were silver, arsenic, bismuth, cadmium,
copper, lead and zinc. A cover system will likely be required at
closure to prevent the waste from being exposed at the external
surfaces of the final landform.
24.Surface Water - Pb/Zn Stockpile Management
The lead and zinc material stockpile will be constructed with a
compacted soil liner throughout the base area with a perimeter
bund. The base and perimeter will be lined with HDPE geomembrane
liner to reduce seepage. Excess run-off will be removed via pumping
to the process plant for use in processing.
25.Site Infrastructure
The following administration and plant buildings will be newly
constructed for the T3 Copper Project:
-- Gate house.
-- Main administration building with medical centre, data room, change
house, and training room.
-- Plant crib room.
-- Plant office.
-- Plant workshop and warehouse.
-- Reagent storage.
-- Crusher control room.
-- Plant control room.
-- Laboratory, by contractor.
Office space requirements were defined by the proposed
departmental staffing structures.
Plant wide communications will be provided on a ringed
single-mode-optical-fibre ("SMOF") network between plant switch
rooms, on-site power station, and administration building.
Connections to other minor buildings and facilities will be
provided on a radial network basis using both SMOF and category six
copper cabling.
IP voice and data connectivity will be provided to all offices,
plant control room and plant switch rooms.
The mine workshop, mine administration and training centre,
change house, mine warehouse, and fuel storage facilities will be
positioned near the T3 mine. These facilities will be designed for
the servicing of surface mining equipment, the trucks and loaders
used for transport of ore to the process plant, and the road
maintenance fleet and light vehicles. An emulsion plant will be
located between the process plant and T3 mine.
The high-explosives magazine and detonator magazine will be
located at a convenient and safe location to the west of the
TSF.
MOD have engaged a diesel fuel supplier with storage terminals
in Walvis Bay, Namibia, and regional storage facilities in
Mozambique and South Africa. As part of a potential agreement the
fuel supplier will supply and install above ground diesel tanks to
international and local standards, with suitable storage for 12
days based on 1.25 million litres per month. In addition, the fuel
supplier will supply and install off-loading and supply pumps for
re-filling mining equipment and light vehicles.
26.Capital Expenditure
The capital cost estimate for the process plant and associated
plant infrastructure has an accuracy level of ±15% as of March 2019
and is reported in US dollars.
The estimated costs include all site preparation, mine
pre-strip, process plant and associated ancillaries, first fills,
site buildings, road works including site access road, and
400-person permanent accommodation camp located in Ghanzi.
The estimate excludes escalation, capital expenses prior to
March 2019, and life of mine sustaining capital and mine closure
estimates which have been included as part of the financial
model.
Data for these estimates were obtained from numerous sources
including:
-- Feasibility level engineering design.
-- Mine plan.
-- Project execution schedule.
-- Topographical information obtained from site survey.
-- Geotechnical investigation.
-- Budgetary equipment proposals.
-- Budgetary unit costs from local contractors for civil, concrete, steel
and mechanical works.
-- Data from recent completed similar studies and projects.
Table 7: Capital Cost Estimate Summary
CAPITAL ITEMS COST ($m)
Direct Costs
Mine Establishment 1
Process Plant
Crushing (inc ROM), Stockpile & Reclaim 11
Milling 19
Flotation 6
Tailings Thickening and Disposal 3
Concentrate Filtration and Storage 5
Reagents and Services 5
Site Infrastructure
Site Preparation, Access Roads and, Fencing 10
General 2
General Buildings 3
HV Power Connection 4
Camp Expansion 4
Tailings and Water Management
TSF 12
Surface Water Management 1
Pb/Zn Stockpile Liner 1
Indirect Costs
Project costs (based on EPC) 32
Owners
Owners Labour (pre start-up, project 6
development, commissioning)
Environment Monitoring & Water 1
Corporate and Owners 4
Contingency1 12
Mining pre-strip 40
Total Development Capital 182
Notes:1. No contingency has been applied to pre-strip costs.
The capital cost estimate includes:
-- Direct costs of the Project development
-- Indirect costs associated with the design, construction and
commissioning of the new facilities
-- Owner's cost associated with the management of the Project from
design, engineering, construction up to the handover to
operations and
Project close-out
-- Insurance, operating spares and first fills
-- Costs associated with Operational Readiness and pre-production
operations
-- Contingency on Project scope definition and risks.
The cost estimate was developed with input from Sedgman, SRK,
Knight Piesold and MOD.
The estimate is based on preliminary engineering, quantity
take-offs, tendered price quotations for major equipment, bulk
commodities and unit rates for installation. Bulk material
quantities and quoted prices were benchmarked against recent
similar projects undertaken in Southern Africa, North America and
Australia.
27.Sustaining Capital Expenditure
The Sustaining Capital Expenditure ("Susex") estimate represents
cost expended to sustain and/or maintain the capital assets to
perform to the Project design criteria during the LOM and the costs
for future tailings dam development. The FS Susex estimate is $84
million.
28.Operating Expenditure
The operating costs estimate was prepared with a base date of
March 2019 to an accuracy level of ±15%.
Costs were estimated for processing the T3 open pit and include
costs associated with operating the mine, process plant and general
and administration functions.
The operating costs were determined from first principals using
inputs from numerous sources including:
-- Supplier quotations for mining consumables and maintenance rates.
-- Detailed scheduling of the fleet requirements.
-- Grinding power requirements derived from comminution testwork.
-- Reagent consumption from metallurgical testwork.
-- Reagent & consumable costs from supplier quotations.
-- Logistics & transport costs from supplier quotations.
-- Manning levels developed from typical organisation charts and work
rosters.
-- Personnel salaries & overheads sourced from the Ghanzi region.
-- Previous study assessments.
Concentrate treatment and refining charges (TC/RC) and copper
payability are derived on the basis of recent annual benchmark
data, less applicable discounts which is based on indicative
non-binding offtake terms, and as adopted by the industry. An
allowance has been made for all royalties, including 3.0% for
copper and 5% for silver on a net smelter return basis.
Table 8: Operating Cost Estimate Summary (US$/lb)
Cost Item US$ / lb Cu
Mining Costs 0.86
Power Cost 0.12
Processing Cost 0.18
Site Administration1 0.11
Logistics 0.19
Treatment and Refining Charges 0.18
C1 Cost (pre by-product credit) 1.64
Silver By-Product Credit (0.29)
C1 Cost (post by product credit) 1.35
Royalties 0.09
Total Cash Production Costs (C2) 1.44
Sustaining Capital 0.12
All in Sustaining Costs (AISC) 1.56
Notes:1. Site administration costs comprise of site G&A,
Site administration cost includes: a Metal Tiger Royalty of $2
million and a compensation payment over a 5 year period to operate
a processing plant. The royalty is two per cent of revenue, though
capped at $2 million over the LOM. The royalty will be paid in the
first year of production and compensation payments.
29.Mine Operating Costs
Mining costs for the Project were estimated and based on the
mining schedule prepared by SRK. The operating costs for drilling,
blasting, loading and hauling, topsoil removal and crusher feed
activities (ROM rehandle) were developed from first principles on
the basis of contract mining. This includes operating hours, haul
cycles, labour rates, fuel consumption, maintenance requirements
and consumables.
The mining cost estimate incorporates costs from the first
quarter of 2021, which is the quarter during which copper
production commences. All mining costs incurred prior to this date
are classed as capital costs and included in the Capital Cost
estimate described above.
Table 9: Life-of-Mine Average Mine Operating Costs
Parameter LOM1($m) LOM Cost LOM Cost LOM Cost Proportional
($/t mined) ($/t ore) ($/lb) Cost (%)
Load and 426 1.85 12.37 0.61 70
Haul
Drill and 156 0.68 4.53 0.22 26
Blast
Grade 9 0.04 0.26 0.01 2
Control
ROM 12 0.05 0.35 0.02 2
rehandle
Mining 3 0.01 0.09 0.00 0
Other
TOTAL 606 2.63 17.60 0.86 100
Notes:1. LOM costs exclude capitalised operating costs
(pre-strip).
30.Process, General and Administration Operating Costs
The LOM operating cost estimate for process plant and General
and Administration costs ("G&A") are presented in Table 10. The
processing costs were split into fixed and variable costs and based
on an owner-operated model. G&A includes site and corporate
costs relating to the Project.
Table 10: Life-of-Mine Average Mine Processing Costs
Parameter LOM ($m) Unit Cost Unit Cost ($/lb) Proportional
($/t ore) Cost (%)
Labour 36 1.04 0.05 13
Maintenance 31 0.89 0.04 11
Consumables 58 1.68 0.08 21
Mobile Equipment 7 0.19 0.01 2
Power 85 2.48 0.12 31
G&A 60 1.76 0.09 22
TOTAL 276 8.03 0.39 100
31.Financial Modelling and Evaluation
The value of the T3 Copper Project was assessed using an
incremental discounted cash flow approach with a base date 1 July
2019. A standalone model was used to derive the physical and
financial measures that formed the basis of this evaluation. The
evaluation is based on assumptions as listed in Table 11.
Table 11: Key FS Financial Assumptions
Criteria Assumption
Discount rate 8% real
Product prices Consensus commodity price
forecast (March 2019)
TC and RC for Cu TC: $72.72/ t concentrate
RC: $0.072/lb
Taxation Annual tax rate = 70
minus (1,500/x),
where x is taxable income as
a percentage of gross income. The
minimum annual tax rate is 22%.
Ore reserves 34.4 Mt at 1.0% Cu grade
and 13.2 g/t Ag
Processing plant throughput Capacity constraints were built
into the mine plan.
Overall recoveries (Pit to Product) Cu Recovery: 92.9%,
Ag Recovery: 88.0%
Cu grade in concentrate 30.4%
grade (LOM average)
Copper and silver prices were based on consensus long term
commodity price forecasts from Bloomberg March 2019 (from more than
30 financial institutions). A summary of LOM economics is presented
in Table 12.
Table 12: Life of Mine Financial Economics
Criteria Assumption
Copper Price (Bloomberg 2021: $3.11/lb, 2022: 3.16/lb,
Consensus March 2019) 2023 : $3.11/lb LT: $3.08/lb
Revenue (net of payability) $2,301m
Unit Revenue (Net of payability) $2.98/lb
C1 Cash Costs $1.35/lb
All in Sustaining Costs $1.56/lb
EBITDA $1,083m
Net Cash Flow (pre-tax) $777m
Pre-tax NPV (8% real) $368m
Pre-tax IRR 33%
Key notes on pre-tax cashflow include:
-- The T3 Copper Project is expected to generate a positive cumulative
cash flow of $777 million.
-- T3 Copper Project is expected to repay development capital within 3.7
years after production starts.
-- Expected negative cash flows in 2019 to 2020 are due to the capital
required to develop the T3 Copper Project.
Sensitivity analysis was completed on a number of inputs to
identify key areas of potential financial variance. Table 13
demonstrates the sensitivity of the pre-tax US$ NPV8% to the key
financial drivers.
Table 13: Sensitivity Analysis (US$m)
-25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25%
Cu Price 66 126 187 247 308 368 429 489 550 610 671
Cu Ore Grade 103 156 209 262 315 368 421 474 527 580 633
Recovery 75 134 193 251 310 368 427
Ag Price 340 346 351 357 363 368 374 380 385 391 397
Development 401 394 388 381 375 368 362 355 349 342 336
Capital
C1 Cost 560 522 484 445 407 368 330 291 253 215 176
Changes in copper price and copper recovery were identified as
the major areas of sensitivity on both the upside and downside,
followed by copper feed grade as the next most sensitive.
32.Social and Environmental
Studies and investigations managed by Loci Environmental
Consulting have confirmed there were no rare, threatened or
priority conservation significant flora or vegetation communities
identified during the Environmental and Social Impact Assessment.
Habitats suitable for supporting free roaming wildlife including
several conservation significant species were identified and
mitigation of impacts by mining on these during operations have
been adequately addressed in the Draft Environmental and Social
Impact Assessment submitted to the Department of Environmental
Affairs on 24th December 2018
Knight Piesold Consulting conducted geochemical test work of
tailings, waste rock and mineralised waste and expects that the
majority of waste rock characterised may be non-acid forming and
not prone to metalliferous drainage. Further column test work to
adequately assess leachability of heavy metals is required on
mineralised waste (containing elevated levels of lead and zinc
mineralisation). MOD propose that any materials identified as
potentially acid forming and/or prone to metalliferous drainage
will be adequately managed through the engineered design of the
waste storage facility.
Further work is required by MOD to assess impacts on the
environment by the pit lake at mine closure. A conceptual mine
closure plan has been developed with the principle objective being
to create safe, stable and non-polluting land forms.
The Botswana permitting and approvals process is well defined,
understood, involves public participation and is transparent.
Land access and landowner purchase agreements are in place and
ongoing proactive engagement and consultation continues with key
stakeholders. Any concerns and issues raised by host communities,
farm owners and identified stakeholders during engagement meetings
are addressed in the consultation process. A qualitative and
quantitative socio-economic impact assessment undertaken as part of
the Draft Environmental Social Impact Assessment process has
identified community baseline indicators. Strategic plans to
support the Environmental and Social Management System are in
development phase and will address impacts identified in the Draft
Environmental Social Impact Assessment.
MOD continues to demonstrate a strong social licence to operate
within Botswana as well as within the host community of Ghanzi. A
dedicated community relations office established in Ghanzi town
manages Human Resources and Community Relations. It is supported by
a highly qualified in-country team that has a strong presence in
the local community and is well positioned to continue engaging
with its stakeholders and work collaboratively with community
groups, government and agencies, workforce and contractors to
promote social development. Government relations are well
established at both local District and national Botswana
levels.
33.Next Steps
-- ESIA
The DEA has compiled a list of comments in relation to the first
draft of the ESIA that was submitted on 24 December 2018. This
includes comments raised at the stakeholder engagement meetings and
site visits conducted in January 2019. MOD will respond to these
comments and submit a second draft in April 2019. Once the FS and
the approved ESIA have been submitted, Tshukudu Metals will apply
for a mining licence for T3.
-- T3 Infill Drilling
MOD continues to progress a planned 60-hole resource infill
drilling program within the boundaries of the first two stages of
the proposed T3 Copper Project open pit, with the objective of
upgrading early production into the higher confidence, JORC
compliant Measured Resource category. Testwork will be carried out
to confirm the metallurgical response of this ore.
Several drill holes are dedicated to targeting shallower copper
mineralisation within the T3 pit.
-- Hydrogeology
Pumping tests will be undertaken on all newly installed bores
and longer-term pumping tests will be undertaken on selected bores
before commencing pit dewatering and pre-stripping activities. The
hydrogeological model will then be updated.
All bores will be registered, and a water licence will be
applied for.
-- Accommodation Camp
The design of the 400-person camp and associated services will
be finalised in the second quarter of 2019 and an EMP will be
submitted to the DEA.
-- Implementation Strategy
A detailed implementation strategy will be developed in the
second quarter of 2019. This will include consideration of
Front-End Engineering Design ("FEED"), early contractor engagement,
tender strategy and the planning of infrastructure pre-works.
-- T3 Underground Study
A T3 Underground conceptual study was completed in March 2019
with very encouraging preliminary results. Additional drilling will
be planned and implemented aimed at delineating an underground
resource which will be used as the basis of a Scoping Study planned
for completion in the second half of 2019. The aim is to upgrade
the underground resource to support the mining of a targeted circa
400-500kt per annum of ore to supplement the T3 open pit ore and
potentially increase T3 annual copper production beyond 30kt.
Feasibility Study Competent Person's Statements
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.
The information in this announcement that relates to the Mine
Planning aspects of the T3 Copper Project, specifically the mining
cost and productivity inputs, the development of the mining ore
loss and dilution parameters, the optimisation of the mineral
resource model, pit and dump designs and the production schedule,
supporting the Ore Reserve defined in this announcement, is based
on information reviewed by or compiled by Mr Carl Murray, Principal
Consultant for SRK Consulting (Australasia) Pty Ltd. Mr Murray is a
Fellow member of the Australasian Institute of Mining and
Metallurgy and has reviewed the technical information in this
announcement that is based on the above defined areas of
responsibility. Mr Murray has sufficient experience, which is
relevant to the style of mineralisation and type of deposit under
consideration and the activity being undertaken 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 Murray consents to the inclusion in this
announcement of the matters based on his information in the form
and context in which it appears.
The information in this announcement that relates to Metallurgy
for the T3 Mineral Resource described in this release is reviewed
and approved by Mr Peter Hayward, Diploma of Metallurgy, Senior
Metallurgist for Sedgman Pty Ltd. Mr Hayward is a Fellow of the
Australian Institute of Mining and Metallurgy and has reviewed the
technical information in this report. Mr Hayward 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 Hayward consents to
the inclusion in this announcement of the matters based on
information in the form and context in which it appears.
The information in this announcement that relates to
Geotechnical Modelling of the T3 Mineral Resource described in this
release is reviewed and approved by Mr Neil Marshall, CEng, MSc,
BSc (Hons), Principal Geotechnical Engineer and Corporate
Consultant of SRK (UK) Ltd. Mr Marshall is a registered member of
the Institute of Mining, Metallurgy and Materials (IOM3) and a
Chartered Engineer and has reviewed the technical information in
this report. Mr Marshall 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 Marshall consents to the inclusion
in this announcement of the matters based on information in the
form and context in which it appears.
The information in this announcement that relates to TSF,
surface water management, water modelling and geochemistry
described in this release is reviewed and approved by Mr David
Morgan, BSc Civil Engineering, MSc Irrigation Engineering, Managing
Director for Knight Piésold. Mr Morgan is a registered member of
the Australasian Institute of Mining and Metallurgy (Australasia,
202216) and has reviewed the technical information in this report.
Mr Morgan 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 Morgan consents to the inclusion in this announcement
of the matters based on information in the form and context in
which it appears.
The Social content in this announcement that relates to the
Draft Environmental and Social Impact Assessment has been reviewed
and approved by Ms Louanne Munz, Community Consultant for MOD
Resources Ltd. A current member of AusIMM, Ms Munz is a community
practitioner with over 30 years in the resources sector,
specialising in business processes that recognise and satisfy
corporate social responsibility and comply with IFC Performance
Standards on Social Sustainability. Ms Munz qualifies as a
Competent Person as defined in the 2012 Edition of the Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves and consents to the inclusion in this announcement of
the matters based on information in the form and context in which
it appears.
The information in this announcement that relates to the Draft
Environmental and Social Impact Assessment and the Conceptual Mine
Closure Plan, excluding of the social components, described in this
release is reviewed and approved by Ms Catherine Galli, BSc Agric
(Hort), CenvP, GAICD, Principal Environmental Consultant of
Rescology Environmental Consulting (Australia). Ms Catherine Galli
is a registered member of the Australasian Institute of Mining and
Metallurgy (AUSIMM), a certified Environmental Practitioner (CenvP)
and member of the Environmental Institute of Australia and New
Zealand (EIANZ). Ms Galli has sufficient experience in
environmental impact assessment, environmental management, ecology
and mine closure planning relevant to the Project, which is 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. Ms Galli consents to the inclusion in
this announcement of the matters based on information in the form
and context in which it appears.
The information in this announcement that relates to the
financial modelling (and inputs) as described in this release is
reviewed and approved by Mr Jeffery Bowen, BSc (Hons), Manager
Project Development for MOD Resources Ltd. Mr Bowen is a registered
member of the Australian Institute of Mining and Metallurgy and has
reviewed the technical information in this report. Mr Bowen has
over 20 years industry experience in both operations and Project
development activities, with sufficient experience 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 Bowen consents to the inclusion in this
announcement of the matters based on information in the form and
context in which it appears.
ENDS
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who
is a qualified geologist and acts as the Competent Person under the
AIM Rules - Note for Mining and Oil & Gas Companies.Mr O'Reilly
has visited the T3 site and reviewed MOD's drilling and sampling
protocols and procedures. Mr O'Reilly is a Principal consultant
working for Mining Analyst Consulting Ltd, which has been retained
by Metal Tiger to provide technical support.
The Company currently holds 31,838,393 MOD ordinary shares,
representing approximately 10.48% of MOD's issued share capital;
40,673,566 unquoted options with a nil exercise price expiring on
15 November 2021; and 154,167 options over MOD ordinary shares,
each exercisable at AU$0.60 per MOD ordinary share on or before 15
April 2019. In addition, Metal Tiger holds a 30% interest in
Tshukudu Exploration (Pty) Ltd, via Metal Capital Exploration
Limited, with MOD holding the remaining 70%. For further
information on this JV, please see the Company's announcements of
18 July 2018 and 16 November 2018.
For further information on the Company, visit:
www.metaltigerplc.com:
Michael McNeilly (Chief Executive Officer) Tel: +44 (0)20 7099 0738
Mark Potter (Chief Investment Officer)
Richard Tulloch Strand Hanson Limited Tel +44 (0)20 7409 3494
James Dance (Nominated Adviser)
Jack Botros
Nick Emerson SI Capital (Broker) Tel: +44 (0)1483 413 500
Gordon Poole Camarco (Financial PR) Tel: +44 (0)20 3757 4980
James Crothers
Monique Perks
Notes to Editors:
Metal Tiger plc is listed on the London Stock Exchange AIM
Market ("AIM") with the trading code MTR and invests in high
potential mineral projects with a base, precious and strategic
metals focus.
The Company's target is to deliver a high return for
shareholders by investing in significantly undervalued and/or high
potential opportunities in the mineral exploration and development
sector. The Company's key strategic objective is to ensure the
distribution to shareholders of major returns achieved from
disposals. Metal Tiger has two investment divisions, Direct
Equities and Direct Projects.
The Direct Equities division invests in undervalued natural
resource companies listed on AIM, the ASX and the TSX. Through the
trading of equities and warrants, Metal Tiger seeks to generate
cash for investment in the Direct Projects division.
Metal Tiger's Direct Projects division is focused on the
development of its key project interests in Botswana, Spain and
Thailand. In Botswana, Metal Tiger, through its 10.48% interest in
MOD Resources Limited and related JV, has a growing interest in the
large and highly prospective Kalahari copper/silver belt. In Spain,
the Company has tungsten and gold interests in the highly
mineralised Extremadura region. In Thailand, Metal Tiger has
interests in two potentially near-production stage lead/zinc/silver
mines as well as licences, applications and critical historical
data covering antimony, copper, gold, lead, zinc and silver
opportunities.
The Company actively assesses new investment opportunities on an
on-going basis and has access to a diverse pipeline of new
opportunities in the natural resources and mining sectors. For
pipeline opportunities deemed sufficiently attractive, Metal Tiger
may invest in the project or entity by buying publicly listed
shares, by financing privately and/or by entering into a joint
venture.
Background information on the T3 Project
The T3 Project is located on the Kalahari Copper Belt in
northern Botswana and is a Copper/Silver Project. T3 is located
within the central part of the T3 Dome Complex (approximately
1,000km2), which is the focus of rapidly increasing exploration
activity undertaken by MOD. Two significant resources have been
discovered to date within the T3 Dome: T1 (Mahumo deposit - 100%
MOD) and T3 (100% MOD).
The T3 Deposit was discovered in March 2016 when a reverse
circulation ("RC") drill hole intersected 52m @ 2.0% Cu and 32g/t
Ag from shallow depth. The maiden T3 JORC (2012) compliant Mineral
Resource Estimate was announced on 26 September 2016 with the first
Resource upgrade announced on 24 August 2017. The results of a
Scoping Study for an open pit mine at T3 with a 2Mtpa processing
plant, an indicative mine life of 10 years and an average
production rate of 21,800tpa of copper and 665,000oz pa of silver
was released on 6 December 2016. Work on a Pre-Feasibility Study
(PFS) commenced in January 2017 and additional deeper copper
mineralisation was discovered below the T3 Resource in February
2017.
The Phase 2 drilling at the T3 Copper/Silver Deposit commenced
on 7 August 2017, with approval granted for the recommencement of
both diamond core ("DC") and RC drilling at the T3 Project and its
vicinity, through to December 2018 (which has subsequently been
extended to December 2020). This included 90 DC drill holes
designed to infill the Resource and test for possible extensions.
The objective of the infill programme is to increase geological
confidence and upgrade categorisation of the T3 Resource. The
programme also included grid drilling to investigate the potential
for an underground Resource down-dip and along strike from the
planned open-pit, and to investigate geophysical targets. Drilling
approval has been granted for the wider T3 Dome with the acceptance
of the T3 Dome EMP announced on 3 April 2018.
The results of the T3 Open Pit Pre-Feasibility Study were
announced on 31 January 2018; the revised and upgraded T3
Copper/Silver Deposit Mineral Resource Estimate was announced on 2
July 2018; a Resource re-classification announced on 16 July 2018;
an Ore Reserve upgrade on 25 March 2019; and the results of the T3
Open Pit Feasibility study were announced on 28 March 2019.
Outside of the T3 Project licence area, Tshukudu Exploration,
the Metal Tiger (30%) and MOD (70%) joint venture, continues to
conduct regional exploration on the highly prospective Kalahari
Copper Belt.
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