MOD Resources (LSE:MOD), already listed on the Australian ASX market joins the London Stock Exchange this morning. The copper exploration and development company joins the standard list of the Main Market with a Market Cap of around £62m at a share price of 25p.
MOD is focused on the central and western Kalahari Copper Belt in Botswana where the company's primary focus is the development of its wholly owned T3 Copper Project. The Mineral Resource estimate for the project includes 60 Mt at 0.98% copper and 13.9 g/t of silver, equating to 590Kt of copper and 27Moz of silver.
A Pre-feasibility Study completed in January 2018 suggested a ‘robust, long-life open-pit copper mine’ based on a base case process plant throughput of 2.5m tonnes per annum (Mtpa). A complete Feasibility Study is expected in Q1 2019 just 3 years since MOD’s first drill hole discovering copper and is based on an expanded process throughput of 3Mtpa
With drilling results from A4 and A1 Domes supporting an expansion strategy to define additional sources of ore within the T3 Expansion Project that could enable future increases in production.
MOD is targeting first production by the end of 2020, and quote the capital required for development to be somewhere between $155m to $192m, based on a 2.5Mtpa base case and 4Mtpa expansion case respectively. Life of mine is predicted to be 8.8 years base case, up to 11.7 years in the case of expansion of resources with payback from the point of first being around 3 years.
In parallel with the T3 Copper Project, a major exploration program is underway covering more than 11,500km2 in the region, to explore for additional resources that could be processed through the planned T3 process plant. Some of the licenses are 100% owned by MOD, others are joint venture assets operated by Tshukudu Exploration (Pty) Ltd, which is a wholly owned subsidiary of UK incorporated joint venture company, Metal Capital Exploration Limited, owned 70% by MOD and 30% by Metal Tiger Plc.
Earlier this month, MOD completed the acquisition of Metal Tiger’s (LSE:MTR) 30% interest in the T3 Copper Project, giving MOD a 100% interest. MOD has an option to acquire Metal Tiger’s interests in any new JV resource which progresses to a scoping study within three years from 15 November 2018, as well as an option to acquire all the remaining JV assets at the end of the three-year period.
In addition to the T3 copper and T3 Expansion projects, MOD's priorities include a 60km long anomalous soil zone within the T20 Exploration Project which is located 100km from the T3 Copper Project. Diamond drilling in the first two widely spaced holes at the T23 Dome, the first drilling target within the T20 Exploration Project recently intersected shallow visible copper mineralisation with assay results pending.
Julian Hanna, Managing Director of MOD, commented:
"We are delighted to be joining a peer group of quality copper companies listed on the Main Market of the London Stock Exchange. The listing allows us to introduce MOD Resources to European and UK investors as we look to develop into a substantial copper producer. The LSE has a strong track record as a leading destination for companies with African mining assets, making it a natural dual listing destination for a company like ours with an exciting copper portfolio in Botswana's Kalahari Copper Belt."
Author: Stuart Langelaan
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Systems Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Systems Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance