Botswana – This is following the receipt of encouraging assay results from the first holes completed since drilling resumed at its T3 copper project (T3) on 7 August 2017.
T3 forms part of the joint venture (JV) between MOD (70%) and AIM listed Metal Tiger Plc (30%) and includes an extensive licence holding in the central and western parts of the Kalahari Copper Belt. The in-country operating company is Tshukudu Metals Botswana (Tshukudu).
The current programme includes up to 70 diamond core drill holes designed to infill the current resource, test potential resource extensions and drill new targets in the area around the planned pit. The objective of the infill programme is to upgrade categorisation of the resource in the current PFS.
A substantial number of the planned holes are intended to test the potential for an underground resource within high-grade copper/silver veins stacked below, down dip and along strike from the planned pit.
Recent assay results provide encouragement of this underground potential with up to four veins (V1 to V4) identified in many of the holes drilled to date. Veins V1 and V2 occur within the Zone 1 mineralised sequence and V3 and V4 within the Zone 2 sequence.
Based on current results, veins V1 and V2 appear to be continuous along >1 100 m strike length. This strike length may increase with hole MO-G-90D, which is still in progress, intersecting two bornite/chalcocite vein intervals approximately 300 m north-east of the planned pit.
MOD Resources' MD Julian Hanna says T3 is a new type of copper/silver deposit with big widths in the planned open pit and additional upside in high grade veins around the pit. A conceptual underground mining study is in progress to evaluate whether these veins could be accessed via a decline from the planned pit.
“T3 is demonstrating it is a quality project which is rapidly moving through feasibility studies towards development. We are continuing to attract global interest in this under-explored, highly prospective copper belt and the opportunity exists for MOD Resources to fill a void in the market for exciting new projects, at a time of strengthening copper prices.”
The Zone 3 contact hosts a number of significant, copper deposits in the Kalahari Copper Belt. These include the 2 Mt copper resource at Cupric Canyon's ‘Zone 5’ deposit, MOD Resources’ 100%-owned high-grade copper/silver deposit at T1, 20 km north-east of T3, and Cupric Canyon’s large disseminated resource at Chalcocite Zone, 30 km east of T3.
Although high-grades have not yet been intersected in Zone 3 below T3, high grade vein mineralisation may occur elsewhere within this very prospective contact which is a high priority target, in addition to the numerous airborne EM targets yet to be drilled along the wider T3 Dome.
In addition to the current drilling focus at T3, progress is being made to open up other drilling targets along the T3 Dome.
Targets include 20 Airborne EM (AEM) anomalies identified within an 8 km wide zone extending along the 50 km strike length covered by the AEM survey completed in July 2017 and several as yet untested copper soil anomalies.
Tshukudu expects environmental approval soon to commence drilling on another farm block north of T3, which covers three AEM anomalies.
Two additional farm blocks covering MOD Resources' 100% owned T1 resource are also progressing through the drilling approval process and an application is being prepared for five additional farm blocks which cover nine AEM anomalies, including the highly rated A1, A2, A4 and A9 anomalies.
MOD Resources has entered into access agreements with farmers to conduct drilling on all the farm blocks described above. Progress is also being made at another district scale target, the T20 Dome, 120 km west of the T3 Dome.
Recent results from infill soil sampling have confirmed extensive copper and zinc soil anomalies identified in the initial widely spaced sampling programme. Two blocks of AEM are planned to be flown as a trial to identify potential conductors and drilling targets in these areas.
The sample preparation facility has arrived on site in Ghanzi and commissioning is planned to commence soon. The facility will be managed by certified analytical laboratory ALS. To comply with Tshukudu’s guiding principles and employment policy, ALS will manage a training programme to build skilled local employment, which will benefit exploration and future planned mining operations.
Tshukudu has also recently been advised that the Botswana government has approved the supply of grid power into Ghanzi District and contracts have been awarded for a transmission line within 12 km of T3.
Grid power is scheduled to be available during the first quarter 2020, which is an important development, as it should result in a significant reduction in processing costs at T3.