Both MOD Resources (LSE:MOD) and Metal Tiger (LSE:MTR) were trading up on Tuesday following strong infill drilling results from the T3 copper project.
So far, assay results have been received for 11 holes at the site, based in Botswana’s Kalahari Copper Belt and 100opc owned by MOD. These form part 60-hole programme that began in T3’s proposed open pit in January with the aim of upgrading early production into the high-confidence measured resource categories.
Many strong intersections have been recorded, including one within hole MO-G-188D of 31.5m at 2pc copper from 85.6m downhole including 10m at 4.7pc copper from 105m downhole. Meanwhile, another hole called MO-G-192D intersected 33m at 2pc copper including 16m at 3.3pc copper from 99m.
MOD was trading up 2.7pc to 19p on the news as at writing. Managing director Julian Hanna said the initial results demonstrate the high-grade nature of the veins within the T3 open pit.
‘The initial results published today from the T3 infill drilling program are very strong. They continue to support and validate the accuracy of the resource model while also identifying significant new copper intercepts within the early stages of the planned open pit,’ he added. ‘These wide, high-grade intersections are increasing our confidence in the quality and continuity of the resource. In addition, they provide encouragement of the potential to increase the current open pit resource.’
All-in-all, MOD has so far drilled 25 of the 60 holes, utilising up to three drill rigs. It expects to complete the remaining 35 infill drill holes by the end of H1 2019, ahead of both the proposed T3 open pit ore reserve and feasibility.
MOD said the latter remains on track for completion by the end of March 2019. A pre-feasibility study on the project gave it a base case NPV of $281m and only weeks after a resource upgrade gave it a total mineral resource estimate of 590Kt copper and 27Moz silver.
Metal Tiger, which sold off its position in T3 last year but retained exposure through its 10.5pc stake in MOD, also rose on the news, advancing 3.9pc to 1.35p. The jump came despite a separate RNS showing that the company’s cornerstone investors Sprott had reduced its stake slightly from 13.7pc to 12.9pc.
On the infill drilling results, chief executive Michael McNeilly said: We are pleased to report the significant infill drilling intersections from MOD’s T3 project in Botswana. The infill drilling programme is expected to allow a significant portion of the Mineral Resource to be categorised as Measured, with these initial results also providing the prospect of increasing the current open pit resource.
Author: Daniel Flynn
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