TIDMMOD
RNS Number : 2270X
MOD Resources Limited
26 April 2019
26 April 2019
MOD Resources Limited
Quarterly Report - March 2019
MOD Reports Outstanding T3 Open Pit Economics
-- T3 Feasibility Study confirms high-margin open pit mine with outstanding economics
-- Strong T3 open pit infill drilling results support the resource model
-- Targeting growth opportunities at T3 Underground and at A4 Dome
-- Strengthened balance sheet with successful share placement and entitlements issue
-- Received non-binding, indicative proposal for 100% of MOD shares
-- MOD continues to advance discussions with potential strategic partners
-- Strong, positive indicative support from top-tier, global debt institutions
-- MOD received prestigious Craig Oliver Award for all-round excellence
MOD Resources Ltd. (ASX/LSE: MOD) ("MOD" or "the Company") is
pleased to release this first quarter report for the period ended
31 March 2019.
MOD's Managing Director, Julian Hanna said, "Just three years
since discovery, MOD achieved a significant milestone with
completion of the T3 Copper Project Feasibility Study during the
quarter. The Feasibility Study confirmed the potential for a
high-margin, low capital cost copper mine expected to generate
significant cash flows over 11.5 years. We envisage the T3 open pit
is the beginning of a much larger opportunity and are now moving
towards defining potential additional, near-mine resources within
the Expansion Project which could provide the opportunity to
increase production through the T3 process plant in the
medium-term."
"As we move towards a decision to mine at the T3 open pit mine,
we are looking at satellite growth opportunities, initially
focussing drilling at the T3 Underground and nearby A4 Dome
prospect where previous results have indicated strong
potential."
During the quarter, the Company completed the T3 Copper Project
Feasibility Study ("T3 Feasibility Study") on time and on budget.
The study confirmed the outstanding economics of the T3 Copper
Project, expected to become MOD's first mine. The Environmental and
Social Impact Assessment ("ESIA") is nearing completion and the
Company is targeting application for the Mining Licence in
mid-2019.
The Company also progressed the T3 open pit resource infill
drilling program, with assays confirming strong copper
mineralisation at relatively shallow depths. Drilling to date
demonstrates the presence of wide, high-grade vein hosted copper
mineralisation within the boundaries of the initial stages of the
open pit, validating the accuracy of the resource model while
identifying new, near surface copper intercepts which could have a
positive impact on early production.
The Company strengthened its balance sheet, raising $15.2
million (before costs) following the completion of a share
placement and entitlement issue. As announced 21 January 2019, MOD
received an unsolicited, non-binding, indicative, conditional
proposal from Sandfire Resources NL (ASX: SFR) equivalent to $0.38
per share for 100% of MOD shares, which the Board believes
undervalues MOD's assets.
Following a successful listing on the Main Board of the London
Stock Exchange in November 2018, the Company is pleased to announce
the appointment of BMO, Numis and Tamesis as our UK Corporate
Brokers to enhance the reputation of MOD and the T3 Copper Project
globally and potentially diversify its shareholder base.
OVERVIEW
During the first quarter of 2019, the Company recorded a Lost
Time Injury Frequency Rate ("LTIFR") of 1.36 per million hours
worked. These statistics include both contractors and
employees.
MOD continued to deliver on its commitments including
significantly upgrading the T3 Ore Reserve, completing the T3
Feasibility Study, strengthening the balance sheet and presenting
impressive infill results from the T3 infill drilling program.
On 25 March 2019, as announced, the Company significantly
increased the T3 open pit Ore Reserve by 61% to 34.4Mt at 1.0%
copper and 13.2g/t silver. The Ore Reserve contains 342.7kt
(756mlb) of copper, up 57% and 14.6Moz of silver, up 107% compared
to the Pre-Feasibility Study.
On 28 March 2019, the Company released the findings of the T3
Feasibility Study, identifying a copper mine with a planned
production rate of approximately 3Mtpa which is expected to produce
an annual average of 28kt of copper over the 11.5-year mine life,
at an All-In Sustaining Cost ("AISC") of US$1.56/lb copper. The
project is expected to generate life of mine revenue of US$2.3
billion and an EBITDA of US$1.1 billion, assuming a long-term
copper price of US$3.08/lb.
During the quarter, the Company received feedback on the ESIA
for the T3 Copper Project from the Department of Environmental
Affairs ("DEA"). The review of the draft ESIA did not reveal any
material issues. MOD is in the process of responding to the
comments and expects to submit a final ESIA to the DEA in the
second quarter. Upon DEA approval the ESIA will be released for
public comment with final approval expected mid-2019. Once an
approved ESIA is received, MOD expects to apply for the T3 Mining
Licence.
Infill drilling of the early stages of production within the T3
open pit continued and to date 40 holes were completed, using up to
three diamond drill rigs for approximately 6,500 metres (Table
1).
Table 1: Holes Drilled Within MOD 100% and MOD 70% JV
Licenses
Area / Target Q1 2019 Comments
T3 Copper Project 40 Resource Infill
A1 Dome 1 In progress
T2E 1 Exploration hole; Assay's
pending
TOTAL 42
During the second quarter, the T3 pit infill drilling program is
expected to be completed within the first two stages of the planned
open pit to upgrade early production into the higher confidence,
JORC compliant Measured Resource category. The Company expects to
utilise three diamond drill rigs to complete this program during
the second quarter.
Following completion of the T3 pit infill drilling, the Company
will resume drilling at the T3 Underground Project to follow-up
previous high grade, vein hosted intersections which could support
a potential underground development below and down dip from the
planned T3 pit. Subsequent to the T3 Underground Project drilling,
the Company plans to conduct follow-up drilling within the T3
Expansion Project area, including the very encouraging
intersections within the large A4 Dome, 8km west of T3.
In addition, the Company plans to expand its regional
exploration drilling campaign to follow-up drilling of very
encouraging shallow mineralisation within the T4-T23 area as well
as drill highly prospective exploration targets within the T20
Exploration Project area (Figure 1).
Please see image in the full version of the announcement at
www.modresources.com.au
Figure 1: Licence plan showing T3 Copper Project, T3 Expansion
Project and the T20 Exploration Project
T3 Copper Project - Feasibility Study (100% MOD)
On 28 March 2019 MOD announced the T3 Feasibility Study which
includes a proposed six stage open pit mine with an 11.5-year mine
life, a 3Mtpa conventional processing plant and all associated
infrastructure with a total capital cost of US$182 million with a
payback period of 3.7 years. The compelling pre-tax net present
value ("NPV") of the project is US$368 million with an Internal
Rate of Return of 33%.
The proposed six stage open pit (Figure 2) is based on an ore
reserve of 34.4Mt and will utilise conventional equipment to
support an average annual mining rate of 3Mtpa of ore with a LOM
strip ratio of 5.7:1.
Please see image in the full version of the announcement at
www.modresources.com.au
Figure 2: T3 Open Pit Design - Showing 6 Development Stages and
current T3 Underground Resource Drill Holes
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 half 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 2:1 and mining costs
should follow this general downward trend.
The open pit is located less than 1 kilometre from the process
plant and ore will be either directly fed into the primary crusher
or directed to a Run of Mine ("ROM") stockpile (Figure 3).
Please see image in the full version of the announcement at
www.modresources.com.au
Figure 3: Process Plant Layout
The T3 orebody is comprised of chalcopyrite, bornite and
chalcocite sulphides. 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 mill / Ball mill comminution
circuit to achieve a grind size of P80 180um, a natural pH rougher
flotation circuit, a rougher concentrate re-grind circuit to
achieve a grind size of P80 90um and a cleaner flotation
circuit.
Life of mine 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 (Figure 4).
Please see image in the full version of the announcement at
www.modresources.com.au
Figure 4: Quarterly Forecast Concentrate Production and Cu
Concentrate Grade
Average annual production over LOM is expected to be 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,
supporting copper production averaging over 30ktpa.
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 $1.56 per pound of copper produced, after silver
credits.
This high-margin copper concentrate production will result in an
expected total revenue of US$2.3 billion, generating excellent cash
flows with EBITDA of US$1.1 billion at a robust margin of 47%.
The Project Execution Schedule defines a 19-month design,
construction and commissioning timeframe targeting first
concentrate production during the first half of 2021.
T3 Environmental and Social Impact Assessment (ESIA)
At the end of 2018, the Company submitted the draft ESIA to the
DEA. Following the submission, members of the ESIA review panel
attended site and held discussions with key stakeholders as a part
of the project review process. The DEA provided the Company with
comments and feedback on the draft ESIA. The feedback and comments
received from the DEA in relation to the ESIA did not require
material amendments or additions to the ESIA and as such, the
Company is compiling a response to the comments and questions
raised.
Subject to a favourable public consultation period and a final
review, the Company targets receipt of approval of the ESIA
mid-2019.
Mining Licence Application
On receipt of the approved ESIA the Company expects to submit an
application to the Ministry of Mineral Resources, Green Technology
and Energy Security for the T3 Copper Project Mining Licence.
T3 Accommodation Village
Currently, the T3 Accommodation Village located 5km east of
Ghanzi on the A3 Highway (Figure 5) includes individual rooms for
40 persons with a substantial kitchen and mess complex and an
administration office. However, during construction, mine
development and production, a 400-person village is required.
Following engagements with the DEA, the Company was advised that
the village expansion requires an Environmental Management Plan
("EMP"), rather than a more onerous ESIA. The Company expects to
submit this EMP to the DEA during the second quarter of 2019.
Design work for the camp expansion and associated services and
infrastructure will be carried out during the EMP approval process.
The company is targeting the commencement of construction
activities in the third quarter of 2019 with a schedule that aims
to accommodate the growing number of personnel through the T3 site
pre-works, mining and construction activities and into
production.
Please see image in the full version of the announcement at
www.modresources.com.au
Figure 5: Stage 1 Accommodation Village near Ghanzi. (Office and
Kitchen/Mess complex located to right of picture)
T3 EXPANSION PROJECT
The T3 Copper Project (Figure 6) is centrally located within the
T3 Expansion Project (963km2) comprising PL 189/2008, PL 190/2008,
PL 074/2017. It includes the T1 (100% MOD), A1 Dome (70% MOD), A4
Dome (70% MOD) and the T3 Underground (100% MOD) Projects. The T3
Expansion Project forms part of a strategy to explore for
additional resources within transport distance of the planned T3
Copper Project process plant, to benefit from significant
infrastructure being established at T3 and provide the opportunity
to add substantial value to the project.
Please see image in the full version of the announcement at
www.modresources.com.au
Figure 6: T3 Expansion Project Area showing current priority
exploration targets
T3 Open Pit (100% MOD)
On 28 March 2019, the Company announced a significant upgrade to
the T3 open pit Ore Reserve, delivering a 61% increase in ore
tonnes to 34.4Mt (Table 2). The T3 open pit Ore Reserve increased
contained copper by 57% to 342.7kt (756mlb) Cu while significantly
increasing contained silver, up 107% to 14.6Moz Ag, supporting a
11.5-year mine life from a six-stage open pit mine.
Ore Reserves were calculated using US$2.91/lb copper and
US$16.81/oz silver.
Table 2: T3 Open Pit Ore Reserve (25 March 2019)
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. No Proven Ore Reserve has been defined.
3. The lowest grade of ore added to the process plant feed was 0.22% Cu.
4. Ore Reserves are calculated based on a copper price of
US$2.91/lb and a sliver price of US$16.81/oz.
5. 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%.
6. Metallurgical testwork recoveries were applied in accordance
to the recovery algorithms developed from the variability testwork
program conducted during the feasibility study
7. Appropriate modifying factors were applied. All Material
Assumptions for the T3 Open Pit Ore Reserve are given in Appendix
1.
During the first quarter the Company progressed with the planned
60-hole infill drilling program which is expected to upgrade early
production into the higher confidence, JORC compliant Measured
Resource category and may result in upgrading part of the current
Probable Ore Reserve to the Proved Ore Reserve category.
As announced on 12 March 2019, the Company completed 25 drill
holes and received assays for 11 of these holes. At the end of the
quarter, a total of 40 holes had been completed, with the infill
drilling program expected to be completed during the second
quarter, utilising up to three diamond drill rigs.
As expected, assay results indicate the presence of wide,
high-grade intersections of vein hosted copper. To date, results
from the infill drilling program continue to support and validate
the accuracy of the resource model while identifying new, copper
intercepts within the early stages of the planned open pit.
Significant intersections from results announced on 12 March
2019 include:
-- MO-G-188D with 31.5m at 2.0% Cu, 36g/t Ag from 85.6m
including 10m at 4.7% Cu, 98g/t Ag from 105m;
-- MO-G-191D with 47m at 0.9% Cu, 7g/t Ag from 89m including
15.3m at 1.6% Cu, 15g/t Ag from 104m;
-- MO-G-192D with 13.7m at 1.6% Cu, 6g/t Ag from 52.8m
-- MO-G-192D with 33m at 2.0% Cu, 14g/t Ag from 88m including
16m at 3.3% Cu, 20g/t Ag from 99m;
-- MO-G-193D with 17.7m at 1.4% Cu, 21g/t Ag from 97.8m
including 6.5m at 2.5% Cu, 36g/t Ag from 108.1m;
-- MO-G-197D with 22m at 1.1% Cu, 10g/t Ag from 95m
A further revision to the T3 open pit resource will be carried
out when all results of the infill drilling program are
received.
T3 Underground Project (100% MOD)
The T3 resource remains open along strike and at depth and the
previously announced results from drilling has indicated the
potential for high-grade vein hosted mineralisation at depth and
down-dip from the current planned T3 open pit (Figure 2).
During the second quarter, the Company expects to commence a
resource definition drilling program aimed at delineating a
potential underground resource which could support the mining of
additional ore from a number of underground, high-grade veins to
blend or supplement the T3 open pit ore and possibly incrementally
increase T3 annual copper production.
SUSTAINABILITY
Health and Safety
One of the most significant risks posed to the health and safety
of our contractors and employees relates to vehicles and travel. As
a result, during the first quarter the Company focused on an
awareness campaign to educate and engage employees and contractors
on the importance of ensuring drivers adhere to road rules at all
times and that all vehicles are well maintained and contain
appropriate equipment for driving on bitumen and off-road. The
Company expects to provide off-road driver training for staff and
contractors during the second quarter of 2019.
During the quarter the fire truck purchased at the end of 2018
was delivered to site and is currently being fitted out to suit
local conditions, so it becomes available for use by the Company
and the local community (Figure 7). A collaborative fire and
emergency response training program with the Ghanzi Fire Brigade is
planned during the second quarter.
Please see image in the full version of the announcement at
www.modresources.com.au
Figure 7: Tshukudu Fire Truck Mobilised to Site
Environment
During the first quarter, the Company there were no reportable
environmental incidents.
Following submission of the ESIA to the DEA in December 2018,
the DEA completed a site tour and conducted stakeholder engagement
meetings as a part of the review process. Subsequently, the Company
received feedback and comments and will consider these and submit a
second draft ESIA for review by mid-2019.
Community Relations
Following the employment of a Community Relations Manager within
the Tshukudu Metals ("Tshukudu") Ghanzi Office, Tshukudu commenced
a review of its strategic engagement and communication plan,
identifying improvement opportunities for:
-- The timely provision of information to stakeholders;
-- Responding to social incidents, complaints and grievances; and
-- Effective identification and implementation of social and
community initiatives or investments.
During the quarter, Tshukudu renewed the sponsorship of the
Kanabo Vulture Conservation program. This sponsorship significantly
contributes to the protection of endangered vulture species through
the provision of wildlife research while providing education on the
importance of environmental conservation to schools in the Ghanzi
District.
Additionally, during the quarter Tshukudu participated in the
review of the Ghanzi District Development Plan, providing input
into socio-economic development plans and participated in key
events at local schools and learning centres. MOD also continued to
support the Ghanzi Library through the donation of books.
Looking to the second quarter, Tshukudu will continue to develop
a formal procedure, outlining the application and approvals process
for the Community Social Investment Program, to ensure that any
social investment is made following strong stakeholder engagement
in order to ensure that any initiative will deliver lasting,
positive outcomes.
Awards
On 20 February 2019, the Company was awarded the Craig Oliver
Award at the 2019 RIU Explorers Conference in Perth. The Craig
Oliver Award is presented each year to an "all-round" small to
mid-cap Australian mining company, that has excelled in areas
including exploration, corporate activity as well as being
recognised as a leader in social and environmental performance
throughout the year.
Previous recipients of the Craig Oliver Award have gone on to
become some of the most recognisable names in the Australian and
global resources sector, including Evolution Mining (ASX:EVN),
Independence Group (ASX:IGO), Northern Star (ASX:NST), Metals X
(ASX:MLX) and Pilbara Minerals (ASX:PLS). MOD Resources is very
proud to have been recognised for its achievements to date with the
T3 Copper Project, while continuing to work towards proving up the
potential copper-belt scale opportunity of the Kalahari Copper Belt
in Botswana (Figure 8).
Please see image in the full version of the announcement at
www.modresources.com.au
Figure 8: Craig Oliver Award
On 7 March 2019, MOD Resources Non-Executive Director, Bronwyn
Barnes was inducted to the WA Women's Hall of Fame, recognising and
celebrating her contribution to the resources sector over 20
years.
Investor Relations
To capitalise on the positive momentum generated with the
significant upgrade of the T3 Ore Reserve and the release of the
outstanding results of the T3 Copper Project Feasibility Study, the
Company embarked on a global investor relations campaign, with
executives and senior management meeting with existing and
potential investors in Australia, Asia, London, Europe, and North
America.
CORPORATE
Cash & Debt Position
At the end of the quarter, the cash balance was $13.8 million.
The Company remains debt free.
During the quarter, the Company successfully completed an equity
raise of $10 million (before costs) through placement of 33.33
million shares to institutional and sophisticated investors at
$0.30 per share. On 25 February 2019, the Company finalised a fully
underwritten Entitlement Issue, priced at $0.24 per share offered
to existing shareholders at 1 new share per 13 held. The Rights
Issue raised $5.1 million (before costs) from approximately 21.4
million shares.
The funds raised from the Placement and Entitlement Issue will
be used for;
-- Completion of purchase of the farm on which the T3 Copper Project is located;
-- Commencement of T3 pre-works and construction of initial infrastructure;
-- Infill drilling to upgrade a part of the early stages of T3
production to a JORC compliant Measured Resource;
-- Resource drilling and conceptual underground mining studies
for the T3 Underground project and A4 Dome;
-- Conducting follow-up drilling of initial, shallow copper and
silver intersections at the T4 - T23 Dome; and
-- Initial shallow drilling of selected targets within extensive T20 soil anomaly.
Corporate Brokers
Subsequent to listing on the Main Board of the London Stock
Exchange ("LSE") in November 2018, during the first quarter, MOD
appointed three London and European based Corporate Brokers
including BMO, Numis and Tamesis.
The number of brokers that provide research on MOD is now eight.
The Company believes that the addition of these London and European
based brokers will significantly improve the global understanding
and recognition of MOD and the excellent investment opportunity
that exists in the Kalahari Copper Belt.
Additionally, as announced on 31 October 2018, MOD continues to
advance discussions with potential partners to unlock value at the
T3 Copper Project and MOD's strategic 11,700km2 land package, and
during the first quarter the Company appointed BMO Capital Markets
and Sternship Advisers as Financial Advisers to assist with this
ongoing global process.
T3 Copper Project Funding
During the quarter, the Company received a number of Expressions
of Interests ("EOI") from global, top-tier debt institutions for
the funding of the T3 Copper Project. This follows preliminary due
diligence and site visits conducted by several of these
institutions. During the second quarter, the Company will approach
selected debt providers with a Request for Proposal with the
intention of creating 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 in
the second quarter.
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. The Company will update the
market with any material developments.
Other Developments
During the quarter, the other major copper developer in the
Kalahari Copper Belt in Botswana, Khoemacau Copper Mining,
announced on 25 February 2019 that it had secured funding of US$565
million, which includes a US$275 million senior debt facility and
an advance of US$212 million for 80% of silver production, to
develop the large Zone 5 Underground Copper/Silver mine located
120km northeast from T3.
Sams Creek Gold JV, New Zealand (80% MOD)
Sams Creek is a substantial undeveloped gold project with >1
million-ounce porphyry hosted gold resource (see Appendix 1 - Table
3) which remains open at depth and along strike, supporting
significant additional exploration potential. The Company remains
focussed on advancing its T3 Copper Project in Botswana and is
considering opportunities to divest this non-core project.
-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
Investor Relations PR & IR)
E: IR@modresources.com.au Tavistock
P: +61 (8) 9322 8233 P: +44 (0) 207 920 3150
P: +44 (0) 778 855 4035
E: MOD@tavistock.co.uk
Subscribe at: www.modresources.com.au
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.
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 Government regulators and members of the
Ghanzi District community to ensure that any social investments and
developments are targeted to create a positive and lasting
legacy.
Competent Person's Statement
The information in this news release that relates to Mineral
Resource estimates (excluding prior estimates) is based on and
fairly represents information and supporting documentation compiled
by Dr Matthew Cobb; an employee of CSA Global Pty Ltd. Dr Cobb is a
member of both The Australasian Institute of Mining and Metallurgy
and Australian Institute of Geoscientists. Dr Cobb has sufficient
experience relevant to the style of mineralisation under
consideration and to the activity which he 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". Dr Cobb consents to the inclusion in
this announcement of the matters based on their information in the
form and context in which it appears.
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 Geological
Data and Exploration Results at the Sams Creek Gold Project is
based on and fairly represents information compiled by Mr Paul
Angus, Project Manager of Sams Creek and a Director of MOD
Resources Limited's subsidiary, Sams Creek Gold Limited. Mr Angus
is a member of the Australasian Institute of Mining and Metallurgy
and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration to qualify
as a Competent Person as defined in the December 2012 edition of
the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (JORC Code). Mr Angus has approved the
Statement as a whole and consents to the inclusion in this
announcement in the form and context in which it appears.
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.
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.
APPIX 1
Table 1: T3 Infill Drilling Results (announced 12 March
2019)
HOLE ID SIGNIFICANT T3 INFILL INTERSECTIONS
MO-G-187D 14m @ 1% Cu & 7g/t Ag from 48m downhole
---------------------------------------------
and 9.8m @ 0.8% Cu & 6g/t Ag from 83.2m downhole
---------------------------------------------
and 20.2m @ 0.8% Cu & 4g/t Ag from 100.8m
downhole
---------------------------------------------
Inc. 8.2m @ 1.2% Cu & 5g/t Ag from 103m downhole
---------------------------------------------
MO-G-188D 8.1m @ 0.9% Cu & 7g/t Ag from 50.9m downhole
---------------------------------------------
and 31.5m @ 2% Cu & 36g/t Ag from 85.6m downhole
---------------------------------------------
Inc. 10m @ 4.7% Cu & 98g/t Ag from 105m downhole
---------------------------------------------
MO-G-189D 5.4m @ 0.6% Cu & 8g/t Ag from 78m downhole
---------------------------------------------
and 6m @ 0.8% Cu & 5g/t Ag from 90.1m downhole
---------------------------------------------
and 5.4m @ 0.7% Cu & 2g/t Ag from 105.6m
downhole
---------------------------------------------
MO-G-190D 17m @ 0.9% Cu & 5g/t Ag from 52m downhole
---------------------------------------------
Inc. 8m @ 1.3% Cu & 6g/t Ag from 58m downhole
---------------------------------------------
and 3.8m @ 0.8% Cu & 6g/t Ag from 77.3m downhole
---------------------------------------------
and 7.6m @ 0.7% Cu & 6g/t Ag from 89m downhole
---------------------------------------------
and 16m @ 0.6% Cu & 3g/t Ag from 109m downhole
---------------------------------------------
MO-G-191D 18.3m @ 1.1% Cu & 5g/t Ag from 65.6m
downhole
---------------------------------------------
and 47m @ 0.9% Cu & 7g/t Ag from 89m downhole
---------------------------------------------
Inc. 15.3m @ 1.6% Cu & 15g/t Ag from 104m
downhole
---------------------------------------------
MO-G-192D 13.7m @ 1.6% Cu & 6g/t Ag from 52.8m
downhole
---------------------------------------------
and 33m @ 2% Cu & 14g/t Ag from 88m downhole
---------------------------------------------
Inc. 16m @ 3.3% Cu & 20g/t Ag from 99m downhole
---------------------------------------------
MO-G-193D 6m @ 0.7% Cu & 4g/t Ag from 75m downhole
---------------------------------------------
and 17.7m @ 1.4% Cu & 21g/t Ag from 97.8m
downhole
---------------------------------------------
Inc. 6.5m @ 2.5% Cu & 36g/t Ag from 108.1m
downhole
---------------------------------------------
and 9m @ 0.6% Cu & 4g/t Ag from 119m downhole
---------------------------------------------
MO-G-194D 7m @ 1.3% Cu & 5g/t Ag from 97m downhole
---------------------------------------------
and 8m @ 0.8% Cu & 6g/t Ag from 108m downhole
---------------------------------------------
and 9.8m @ 1.2% Cu & 6g/t Ag from 120m downhole
---------------------------------------------
MO-G-195D 10.8m @ 0.7% Cu & 10g/t Ag from 82m downhole
---------------------------------------------
and 4.8m @ 0.8% Cu & 5g/t Ag from 101.8m
downhole
---------------------------------------------
MO-G-196D 5m @ 1.3% Cu & 6g/t Ag from 80m downhole
---------------------------------------------
and 7m @ 1.3% Cu & 3g/t Ag from 89m downhole
---------------------------------------------
and 7m @ 0.9% Cu & 16g/t Ag from 106m downhole
---------------------------------------------
and 8m @ 0.5% Cu & 9g/t Ag from 122m downhole
---------------------------------------------
MO-G-197D 3.3m @ 1.1% Cu & 6g/t Ag from 85.4m downhole
---------------------------------------------
and 22m @ 1.1% Cu & 10g/t Ag from 95m downhole
---------------------------------------------
and 2.7m @ 1% Cu & 14g/t Ag from 122.5m downhole
---------------------------------------------
and 7.1m @ 0.6% Cu & 11g/t Ag from 128m downhole
---------------------------------------------
Table 2: T3 Infill Drill Collar Parameters (12 March 2019)
Drill Hole WGS84_34S_E WGS84_34S_N RL EOH Azi Dip COLLAR
ID (m) (m) (UTM) SURVEY
MO-G-187D 636293.297 7641772.032 1116.229 130.40 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-188D 636248.848 7641747.719 1116.260 124.47 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-189D 636175.066 7641705.683 1116.830 121.62 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-190D 636334.664 7641799.800 1116.042 136.35 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-191D 636284.701 7641797.735 1116.153 139.52 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-192D 636270.556 7641769.670 1116.228 130.52 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-193D 636142.342 7641732.580 1116.307 136.50 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-194D 636126.246 7641716.372 1116.420 136.52 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-195D 636158.150 7641716.811 1116.616 130.62 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-196D 636174.922 7641775.651 1116.084 160.65 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
MO-G-197D 636150.650 7641778.452 1116.161 166.52 160.00 -60.00 DGPS
------------ ------------ --------- ------- ------- ------- --------
Table 3: Sams Creek Resource Table (9 October 2013)
Sams Creek Resource Cut-Off Tonnes Grade Contained
Category g/t Au (Mt) g/t Au 000's oz
Au
-------- ------- --------
Indicated 0.7 10.1 1.77 575
Inferred 0.7 10.4 1.31 439
--------------------- -------- ------- -------- ----------
TOTAL 0.7 20.5 1.54 1,014
--------------------- -------- ------- -------- ----------
Indicated 1.0 7.9 2.03 515
Inferred 1.0 5.8 1.70 315
TOTAL 1.0 13.7 1.89 830
-------- ------- --------
Indicated 1.5 5.0 2.48 402
Inferred 1.5 2.5 2.33 187
TOTAL 1.5 7.5 2.43 588
-------- ------- --------
APPIX 2
Schedule of Prospecting Licences
Botswana Copper/Silver Project
Permit/Licence Size (km(2) Holding Title Holder Licence Commencement Renewal
Number ) (approx.) Date Date
MOD Licences
MOD Resources Botswana
PL686/2009 463.0 100% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ----------------------- --------------------- ----------
MOD Resources Botswana
PL204/2014 35.5 100% (Pty) Ltd 01 Apr 18 31-Mar-20
------------- -------- ----------------------- --------------------- ----------
MOD Resources Botswana
PL280/2014 70.2 100% (Pty) Ltd 01 Apr 18 31-Mar-20
------------- -------- ----------------------- --------------------- ----------
MOD Resources Botswana
PL034/2015 619.5 100% (Pty) Ltd 01 Apr 18 31-Mar-20
------------- -------- ----------------------- --------------------- ----------
MOD Resources Botswana
PL035/2015 496.6 100% (Pty) Ltd 01 Apr 18 31-Mar-20
------------- -------- ----------------------- --------------------- ----------
MOD Resources Botswana
PL036/2015 470.0 100% (Pty) Ltd 01 Apr 18 31-Mar-20
------------- -------- ----------------------- --------------------- ----------
MOD Resources Botswana
PL141/2012 387.3 100% (Pty) Ltd 01 Apr 18 31-Mar-20
------------- -------- ----------------------- --------------------- ----------
MOD Resources Botswana 31 Dec
PL 211/2017 974.0 100% (Pty) Ltd 01 Jan 18 20
------------- -------- ----------------------- --------------------- ----------
Permit/Licence Size (km(2) Holding Title Holder Licence Commencement Renewal
Number ) (approx.) (after transfer of Date Date
licences complete)
MOD/MTR JV Licences
Tshukudu Exploration
PL186/2008 557.0 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL187/2008 648.8 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL188/2008 395.0 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL189/2008 210.7 70% (Pty) Ltd 01 Oct 18 30 Sep 20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Metals Botswana
(Pty) Ltd
(Includes 25km(2)
PL190/2008 708.0 70% T3 Project) 01 Oct 18 30 Sep 20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL191/2008 572.0 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL192/2008 604.5 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL102/2005 331.1 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL103/2005 131.1 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL104/2005 285.3 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL060/2012 809.2 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL061/2012 974.9 70% (Pty) Ltd 01 Jan 19 31-Dec-20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL231/2016 65.0 70% (Pty) Ltd 01 Oct 16 30 Sep 19
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL074/2017 45.0 70% (Pty) Ltd 01 Apr 17 31 Mar 20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL093/2018 160.0 70% (Pty) Ltd 01 Oct 18 30 Sep 21
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL099/2017 285.0 70% (Pty) Ltd 01 Oct 17 30 Sep 20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL189/2017 370.0 70% (Pty) Ltd 01 Oct 17 30 Sep 20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL126/2013 341.4 70% (Pty) Ltd 01 Oct 18 30 Sep 20
------------- -------- ------------------------- --------------------- ----------
Tshukudu Exploration
PL127/2013 668.6 70% (Pty) Ltd 01 Oct 18 30 Sep 20
------------- -------- ------------------------- --------------------- ----------
TOTAL 11,678.66
-------------
Sams Creek Gold Project
Permit/Licence Size (km(2) Holding Title Holder Licence Commencement Renewal
Number ) Date Date
26 Mar
EP40338 30.6 80% Sams Creek Gold Limited 27 Mar 98 21
------------ -------- ------------------------ --------------------- --------
25 Sep
EP54454 32.0 100% Sams Creek Gold Limited 25 Sep 17 22
------------ -------- ------------------------ --------------------- --------
TOTAL 62.6
------------
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END
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