This morning, MOD Resources: (LSE:MOD) and Metal Tiger (LSE:MTR) released an update on drilling at A4 Dome in the central Kalahari Copper Belt in Botswana. The A4 Dome forms part of the T3 Expansion Project in which MOD holds a 70% working interest alongside joint venture partner, Metal Tiger.

MOD stated the initial phase of drilling is supportive of the company’s strategy to define additional sources of ore within the T3 Expansion Project which could result in increased production through the planned T3 processing plant.

To date only one-third of the approximately 5km long prospective area has been tested which lies only 8km from MOD’s 60Mt T3 Copper Project. Drill hole intersections included significant widths and grades of both vein and Ngwako Pan Formation (NPF) contact type mineralization.

Independent underground mining consultants, Entech Pty Ltd, have undertaken a preliminary, conceptual underground mining study of the A4 Dome using inputs from one of Australia’s leading underground mining service providers, Barminco, a subsidiary of AusDrill. The study gives positive outcomes for a combination of room-and-pillar ore extraction of higher-grade contact mineralisation and long hole open stoping mining of the NPF contact related mineralization via a decline from surface. 

The NPF contact is an important regional target in the Kalahari Copper Belt as it hosts substantial deposits including the 100Mt @ 2% Cu 'Zone 5' resources held by Cupric Canyon Capital, around 125km east of A4 Dome.

MOD's Managing Director, Julian Hanna, said: "Recent drilling results from the A4 Dome, combined with the preliminary conceptual underground mining study, provide strong support to expand drilling along the dome and start developing it into a resource. If results continue to be positive, the A4 Dome has potential to provide substantial additional ore sources, which may lead to an increase in production levels through the proposed T3 process plant, only 8km from the A4 Dome."

"While the feasibility study for the T3 Copper Project is nearing completion, and represents a robust, long-life, stand-alone mining opportunity for the Company, the nearby A4 Dome keeps delivering good results. The large scale of the A4 Dome, and the potential to utilise capital and infrastructure planned at T3, has allowed us to consider modern, highly efficient underground mining techniques as a realistic option for A4 Dome."

A decision to progress the A4 Dome programme towards a potential mineral resource estimate is expected to be made early 2019.

Author: Stuart Langelaan

Disclosure: The author does not own shares in the company mentioned above