for personal use only - asx · 2017-01-31 · t3 maiden resource on 26 september 2016, six months...

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About MOD Resources

MOD Resources Ltd is a Perth-based and

ASX-listed Company with a focus on the

Botswana Copper Project, with total

combined holdings of 100% owned and

joint venture granted licences covering

~11,343km2 in the central and western

parts of the Kalahari Copper Belt.

MOD holdings include a 70% interest in the

joint venture company Tshukudu Metals

Botswana (Pty) Ltd with Metal Tiger Plc

(AIM: MTR) holding 30%. Tshukudu is the

Botswana operating company and the

majority of the licences acquired from DMI

in 2015 recently transferred to Tshukudu.

The joint venture holds 14 granted

prospecting licences and rights to two

additional option licences with a total area

of ~7,347km2 in the Kalahari Copper Belt.

MOD's other investment is the Sams

Creek Gold Project in New Zealand, where

the Company has earned an 80% interest

with OceanaGold Corporation (20%).

Sams Creek has a JORC compliant

inferred and indicated mineral resource

containing 1.02Moz gold. MOD has

announced its intention to sell all or part of

its interest in Sams Creek.

Julian Hanna Managing Director

Mark Clements Executive Chairman/

Company Secretary

Simon Lee AO Non-Executive Director

Steve McGhee Non-Executive Director

Market Capitalisation (Jan 17) ~$65m

MOD Resources Limited ABN 78 003 103 544

First Floor, 1304 Hay St,

West Perth WA 6005

PO Box 1927,

West Perth WA 6872

T +61 (8) 9322 8233

F +61 (8) 9322 8077

E [email protected]

ASX code: MOD

www.modresources.com.au

MOD LAYS FOUNDATION FOR STRONG GROWTH IN 2017

Robust scoping study delivered for T3 project

Two-year extensions granted for 10 key JV licences

Additional licences increase JV holdings to >200km of strike length

A$5.46M raised from institutional placement (before costs)

Major exploration program underway following rain delays

Four-year extension granted to 1Moz Sams Creek Gold permit

MOD Resources (ASX: MOD) is pleased to announce a very positive December

quarter, with a robust scoping study for the T3 copper/silver project a highlight of

the period. Based on the highly encouraging project economics, MOD and joint

venture partner, Metal Tiger Plc (30%), have commenced a pre-feasibility study

(PFS) expected to be completed in mid-2017.

The scoping study outlined a 2mtpa open pit project producing 21ktpa copper

and 665kozpa silver at C1 cash cost of US$1.29/lb, over a production life of 9.25

years. T3 is the second copper deposit discovered by MOD in the region, the

other being the 100% owned T1 underground deposit, 20km north of T3.

MOD Resources’ Managing Director, Mr Julian Hanna, said the December

quarter was all about laying a strong foundation for growth heading into 2017 at

a time of renewed global interest in copper.

“Completing the T3 resource and scoping study were key milestones in our path

to becoming a long-life copper producer in Botswana. The exploration programs,

metallurgical testwork, licence renewals and acquisitions during the quarter were

also very important in building future growth opportunities for MOD in this highly

prospective region,” said Mr Hanna.

During the quarter, the Botswana Mines Minister granted two-year extensions for

10 joint venture licences centred around the Company’s T3 Project Area.

Additionally, the Botswana operating company, Tshukudu Metals Botswana (Pty)

Ltd entered an option agreement to acquire two additional licences immediately

west of Ghanzi, resulting in over 200km strike length of the central structural zone

now covered by granted licences with numerous targets.

Exploration and PFS programs will accelerate from early 2017 with the focus on

the 60km-long T3 Dome using a combination of magnetics, soil sampling, 3D IP

and substantial drilling programs. At the time of this report, several activities had

been delayed due to very heavy rains in early and mid-January limiting site

access. Three drill rigs are now operating and the trial 3D IP survey across part

of T3 Dome is progressing well with first results expected soon. 50% of the T3

geotechnical drilling program has also been completed.

“We’re entering an extremely busy and exciting period of exploration and project

development and will be discussing MOD’s unique situation and the project’s

wider potential with Australian and global investor groups,” he said.

December 2016

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Quarterly Report December 2016

T3 Maiden Resource

On 26 September 2016, six months after the discovery of T3, MOD announced a maiden resource at T3 comprising 28.36Mt grading 1.24% copper and 15.7g/t silver, containing approximately 350,200t copper (~772Mlbs copper) and >14Moz silver. The T3 resource includes 18Mt grading 1.35% Cu and 16.7g/t Ag in the Indicated Resource category which represents 64% of the total resource (Table 1). The resource is open along strike to the west and east and extension drilling will commence in February 2017 to test this potential. T3 mineralisation consists of disseminated and vein hosted copper sulphides including chalcopyrite, bornite and chalcocite occurring within a shallow dipping sequence of sediments (‘host sequence’) up to 50m true width. T3 demonstrates strong zonation of sulphides from the top to the bottom contacts of the deposit, and down dip from near surface to the deeper part of the resource. A review of T3 drill core by site geologists in the December quarter resulted in a clearer understanding of sulphide zonation within the deposit which is supported by the resource model. This interpretation is represented in a 1100m long section looking north through the centre of T3 (Figure 1).

Figure 1: Interpreted long section of T3 showing sulphide zones up to 50m width, and scoping study pit profile

As part of the PFS program, infill drilling commenced in January 2017 around areas of vein hosted bornite mineralisation in the western part of the resource to define the extent of this high-grade mineralisation. The results may provide potential for improving the grade of current production targets at an early stage of mining. Two infill holes (MO-G-63D and MO-G-64D) of this program have already been completed and assay results will be reported once received (Figure 2). The T3 resource remains open along strike and a six-hole program will commence in early February 2017 to test the potential for the chalcopyrite vein zone to extend east beyond the current pit design and west of an interpreted fault where MO-G-22D intersected 0.6m @ 3.0% Cu and 59g/t Ag at the end of the hole (ASX announcement 29 July 2016) (Figure 1).

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Figure 2: T3 drill hole plan showing significant intersections and line of cross section shown in Figure 1

T3 Scoping Study

On 6 December 2016, MOD announced the results of a scoping study for an open pit mining and processing operation at T3, based on the maiden resource. The scoping study was undertaken by independent specialist consultants located in Australia, South Africa and Botswana (Table 2). The scoping study has indicated potential for strong financial outcomes and will be further evaluated during the pre-feasibility study (PFS) which started in early 2017. A cautionary statement included with the scoping study announcement on 6 December 2016 is also included in the Forward Looking Statements and Disclaimer section included in this Quarterly Report.

Key Outcomes of T3 Scoping Study

The scoping study includes an optimised pit design to approximately 220m vertical depth and construction of a processing plant to treat 2Mtpa of ore with potential for future low cost expansion if required. Pre-stripping of the first stage of the planned open pit is scheduled to commence in 2019 with ore processing targeted to commence later in 2019. Total indicative mine life is approximately 10 years with 9.25 years of ore production with estimated life of mine (LOM) average production of approximately 21.8ktpa copper and 665kozpa silver.

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Two preliminary scoping level cashflow models have been generated using two different copper price assumptions: A. Preliminary Base Case Model

A preliminary base case model was prepared using a consensus copper price of US$2.53/lb Cu. The consensus price used in the preliminary base case model was approximately 6% lower than the copper spot price (approximately US$2.69/lb Cu) at the time of the announcement. The base case model indicates robust financial metrics which include an estimated average annual pre-tax cash flow of approximately US$44M pa, a pre-tax NPV10% of approximately US$180M and an IRR of approximately 31%. LOM C1 costs are estimated to be US$1.29/lb Cu including silver credits. The estimated project cost (±35%) is US$135M (MOD share US$94.5M), including US$18M capital for pre-strip costs and US$18.3M contingency. The expected payback period is 2.6 years.

B. Preliminary Upside Case Model

A preliminary upside case model has been prepared using an elevated price of US$3.00/lb Cu. This elevated price is in line with previous UBS Global Research price projections for 2019 and is approximately 20% above the base case Cu price assumption. This is considered by the MOD Board to be a reasonable forward estimate to use as a basis for the upside case model. The upside case model indicates outstanding financial metrics which include an estimated average annual pre-tax cash flow of approximately US$65M pa, a pre-tax NPV10% of approximately US$297M and an IRR of approximately 42%. C1 costs are estimated to be US$1.31/lb Cu including silver credits. The expected payback period is approximately 2 years. Each US10 cent/lb rise in the Cu price is estimated to add approximately $US25M to pre-tax NPV.

Based on the results of the scoping study a decision was made to proceed with a six month PFS commenced in early 2017. The PFS will consider optimising the mining schedule and evaluating options to reduce project capital and operating costs with a view to further enhancing the already robust metrics of the T3 project.

T3 Project Area Exploration and PFS Program On 10 January 2017, MOD announced that MOD and Metal Tiger joint venture was stepping up activity within the T3 Project Area, which covers ~1,000km2 of the T3 Dome, a 20km wide structural zone defined by magnetics (Figure 3). This area which represents approximately 10% of MOD’s total holdings in the Kalahari Copper Belt is planned to be the focus of the MOD/Metal Tiger exploration and T3 development campaign during 2017. Eleven exploration targets have been identified for testing within the T3 Dome during the March 2017 quarter. In addition, a substantial soil geochemical program covering the T3 Project Area is also planned and a state of the art 3D IP survey is in progress with the objective to ‘map’ the T3 host sequence below surface and identify new structural targets considered to have potential for ‘T3 Type’ deposits. As part of the T3 PFS program, geotechnical, metallurgical and resource infill drilling within the T3 pit area commenced in January. Pump testing of existing and planned water bores in the area around T3 is also expected to start in mid-February to identify potential sources of process water for the planned treatment plant.

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Figure 3: Magnetic image showing T3 Project Area and planned drilling targets for March Quarter 2017

Exploration priorities include:

Resource extension drilling directly east and west of planned T3 pit

Diamond drilling to follow up base metal (Pb/Zn) sulphides west of T3

RC drilling to test soil and structural anomalies in five areas along T3 Dome

~11,000 sample soil geochemical program to cover entire ~60km long T3 Dome

3D IP survey to map host sequence below surface and define new targets

3D inversion modelling of close spaced magnetic data to define structure

Diamond drilling to test structural, IP and Cu soil anomalies at depth

T3 PFS priorities include:

HQ diamond drilling to provide geotechnical information to assist pit design

Resource infill drilling to test extent of high grade bornite vein zone within planned pit

Metallurgical test work on the three sulphide ore domains and initial ore supply

Drilling and pump testing of proposed process water bores in area of T3 pit

Baseline environmental studies and commencement of early stage permitting activities

The 2017 exploration and PFS drilling program commenced on 7 January, initially using two diamond core and one RC drill rigs, with three additional rigs available on site as needed. Soon after work commenced on site, the Ghanzi District was inundated with heavy rains. While excellent news for cattle farmers in the region, the rain has restricted vehicle access to many areas around the T3 Dome during January (Figure 4). Despite some delays, excellent progress has been made around T3 with 4 of the 8 PFS pit geotechnical holes already drilled and around 50% of the 3D IP survey completed with results and interpretation awaited. The 11,000 soil sample soils program has been delayed and access to exploration targets for the RC drill rig has been limited to the area immediately west of T3 and to an area of soil anomalies north of T3.

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Figure 4: Access track in the T3 Project Area

Depending on access, exploration drilling is scheduled to test a number of priority targets around the T3 Dome throughout the March 2017 quarter. Priority targets include a strong copper soil anomaly approximately 30km northeast of T3, only 7km from Cupric’s substantial Chalcocite Zone deposit (Figure 3). An evaluation of MOD’s 100% owned T1 (Mahumo) Cu/Ag deposit, 20km northeast of T3 and located along the northern boundary of the T3 Dome, commenced during the December quarter (Figure 3). This work includes a proposal to test for extensions to high grade mineralisation below the current resource to around 600m depth and to review MOD’s 2015 mining scoping study, assuming underground ore could be treated at the planned T3 process plant. Resource extension drilling is planned to commence in February 2017. During the December quarter, soil sampling was carried out over MOD’s 100% owned T13 prospect located ~100km NE of T3 and approximately on the same structural zone which hosts Cupric’s substantial Boseto copper/silver deposits (Figure 5). A strong copper anomaly (peak value 152ppm Cu) has been defined along a >2km zone which is interpreted from magnetics to occur on the southern limb of an anticline. At the time of this report, a 5 hole RC drilling program has commenced as an initial test of the T13 target.

Regional Licences and Exploration Programs In December 2016, the Botswana Mines Minister granted two-year extensions for 10 joint venture licences which cover the T3 Dome and extend to the Namibian Border. These licences have also been transferred into the joint venture owned Botswana operating company Tshukudu Metals Botswana (Pty) Ltd. In addition, Tshukudu Metals entered an option agreement to acquire two additional licences immediately west of Ghanzi which cover a wide domal structure interpreted from magnetics to be a potential extension to the regional structural corridor that hosts the T3 and T1 deposits, and Cupric Canyon Capital’s Zone 5 deposit and Banana Zone resources (Figure 5). If the option is exercised, it will extend MOD’s JV and 100% holdings to over 200km strike length in the central structural zone with numerous targets identified for testing. There is minimal previous effective exploration and no known outcrop on the two Ghanzi West option licences. A number of anomalous surface copper values reported on the licences are based on portable XRF analysis and require verification by conventional, systematic soil sampling and laboratory analysis.

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During the December quarter the MOD exploration team conducted substantial soil sampling programs over several prospective targets, including T12, T16, T18 and T19 located near the Namibian border (Figure 5). Despite proximity to Ghanzi and easy access on farm roads there has been no previous exploration known in this area. One of the more compelling targets, T12, is located at the intersection of a major NE trending regional structure which hosts T4, T1 and Zone 5, and which extends >300km through the centre of the Kalahari Copper Belt. Approximately 2,000 soil samples were collected from T12 and have been submitted to a laboratory in Johannesburg for analysis. Results from T12 are expected in February 2017.

Figure 5: Kalahari Copper Belt showing T3 and regional targets on MOD/MTR JV and MOD 100% licences

Sams Creek Gold JV, New Zealand (MOD 80%) During the December quarter, Sams Creek Gold Limited was granted a four-year extension to permit 40338 which covers the 1Moz Sams Creek porphyry hosted gold deposit located in the South Island, New Zealand. MOD has held recent discussions with parties who have expressed interest in acquiring part or all of MOD’s interest in Sams Creek.

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Corporate

On 19 December 2016, the Company announced it had successfully raised approximately $5.46M before costs from an institutional placement (Placement) to accelerate the development of T3 and increase the rate of exploration, particularly along the T3 Dome. Following MOD’s recent announcement of the T3 scoping study, which outlined a 2Mtpa project producing 21ktpa copper and 665kozpa silver over an initial mine life of 9.25 years, the Company received significant investor interest in the development of T3 and high prospectivity of MOD’s extensive holdings in the surrounding area. The majority of proceeds of the Placement will be used to finance feasibility studies with the objective to reach a decision to mine at T3 by early 2018. Proceeds will also enable a substantial 2017 exploration program continuing the strategy that lead to the early, low cost discovery of T3 at shallow depth. The Placement involves the issue of 188,596,537 fully paid ordinary shares at $0.029 per share to sophisticated and institutional investors to raise $5,469,299, before costs. The Placement includes commitments from MOD directors for a total value of $300,000 which will require approval at a shareholder meeting to be convened on 20 February 2017. The Placement was done using the Company’s existing placement capacity and the offer price represented a discount of approximately 4.8% to the 15-day VWAP at the time. Blue Ocean Equities acted as the Lead Manager to the Placement.

For and on behalf of the Board.

Julian Hanna Mark Clements

Managing Director Executive Chairman and Company Secretary

Jane Stacey

Associate, AMN Corporate

+61 412 159 433

[email protected]

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Background Botswana Copper/Silver Project The combined MOD holdings are located in the relatively unexplored central and western Kalahari Copper Belt, which is largely covered, by sand and soil (Figure 5). MOD’s holdings comprise: 100% interest in granted prospecting licences held through a subsidiary MOD Resources Botswana (Pty) Ltd and a 70% joint venture interest are held through UK joint venture company, Metal Capital Ltd (MCL) and its wholly owned subsidiary Tshukudu Metals Botswana (Pty) Ltd (TMB), following the acquisition of DMI announced on 16 December 2015. MOD has been an active explorer in the Kalahari Copper belt since 2011 and discovered the ‘Corner K Deposit’, now re-named Mahumo Copper/Silver Deposit (T1). The T1 deposit was discovered by drilling a soil anomaly along the northern margin of a regional 20km wide structural zone (Mahumo Structural Corridor) which can be interpreted to extend >300km along the Kalahari Copper Belt. T1 resource remains open below the limit of drilling along 2.4km strike length and diamond drilling is proposed to test for extensions to ~600m depth. In March 2016, MOD and MTR announced the discovery of significant Copper/Silver mineralisation in drilling at shallow depth at T3, 20km southwest of T1 (Mahumo). Mineralisation at T3 consists of vein hosted and disseminated chalcopyrite, bornite and chalcocite within a 50-60m wide sequence of shallow dipping green siltstones and marl units (T3 ‘Host Sequence’). There is no outcrop or previous drilling at T3, which is interpreted to form part of a ~60km long structural ‘dome’ (T3 Dome) within the Mahumo Structural Corridor Since the discovery of T3 in March 2016, MOD and MTR have defined a substantial maiden resource, which was announced on 26 September 2016 and have completed a scoping study to determine the open pit potential at T3. Soil sampling and IP geophysical surveys in the area surrounding T3 have also identified additional high priority drilling targets which are being drill tested during the March 2017 quarter. In November 2015, neighbouring Cupric Canyon Capital announced the potential development of a substantial underground mine at the Zone 5 deposit. Zone 5 is located ~100km NE and on the same structural contact as the T1 (Mahumo) deposit. Cupric’s reported resources at Zone 5 are 100.3Mt @ 1.95% Cu and 20g/t Ag (December 2015). Zone 5 is currently the largest announced resource in the Kalahari Copper Belt and demonstrates the wider potential of this under-explored, sand covered region. Sams Creek Gold Project The Sams Creek Gold Project is located 100km north of the Reefton gold field in the South Island of New Zealand. MOD through subsidiary Sams Creek Gold Limited, owns 80% of Sams Creek Joint Venture with OceanaGold Corporation, which is New Zealand’s largest gold producer holding 20%. Sams Creek has an existing JORC 2012 compliant Mineral Resource containing approximately 1.0Moz gold (announced 9 October 2013). The resource estimate was prepared by Golder Associates Pty Ltd. The resource has not materially changed since it was last reported in an announcement to ASX on 9 October 2013. However, on 18 September 2015, MOD announced the results of a review of high-grade mineralisation at a 2.0g/t gold cut-off grade, based on 58 drill hole intersections within the Mineral Resource. Gold mineralisation at Sams Creek is contained within a porphyry dyke up to 35m wide in the Main Zone deposit. The dyke can be traced 6km along strike within the Sams Creek permit area and extends into the 100% owned Barrons Flat permit area, which directly adjoins Sams Creek. It should be noted that the Sams Creek porphyry dyke does not always contain gold mineralisation.

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Competent Person’s Statement The information in this announcement that relates to Mineral Resource estimation and classification of the T3 Copper/Silver Project was conducted and approved by Mr A.I. Pretorius, MSc. Pri.Sci.Nat. Mr Pretorius is an independent consultant to MOD Resources Ltd and a member of the South African Council for Scientific Professionals (SACNASP Membership Number 400060/91). Mr Pretorius has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Pretorius 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 Botswana Copper/Silver Project is reviewed and approved by Jacques Janse van Rensburg, BSc (Hons), Business Development Manager for MOD Resources Ltd. He is registered as a Professional Natural Scientist with the South African Council for Natural Scientific Professions (SACNASP) No. 400101/05 and has reviewed the technical information in this report. Mr Janse van Rensburg 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 Exploration Results, Mineral Resources and Ore Reserves. Mr Janse van Rensburg consents to the inclusion in this announcement of the matters based on information 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 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. Exploration Targets and Results This announcement refers to Exploration Targets as defined under Sections 18 and 19 of the 2012 JORC Code. The Exploration Targets quantity and quality referred to in this announcement are conceptual in nature. There has been insufficient exploration at Exploration Targets mentioned in this announcement to define a Mineral Resource and it is uncertain if further exploration will result in the Exploration Targets being delineated as a Mineral Resource. This announcement includes several drill hole intersections, which have been announced by MOD Resources Limited previously. 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 Resources Limited. 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 Resources Limited 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.

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This announcement has been prepared by MOD Resources Limited. The document contains background information about MOD Resources Limited 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 Resources Limited, 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. Scoping Study Parameters - Cautionary Statements The scoping study referred to in this announcement has been undertaken to determine the potential viability of an open pit mine and sulphide flotation processing plant constructed onsite at T3 and to reach a decision to proceed with more definitive feasibility studies commencing in early 2017. It is a preliminary technical and economic study of the potential viability of the T3 deposit. It is based on low level technical and economic assessments that are not sufficient to support the estimation of ore reserves. Further evaluation work and appropriate studies are required before MOD will be able to estimate any ore reserves or to provide any assurance of an economic development case. Approximately 88% of the total LOM production target is in the Indicated Resource category with 12% in the Inferred Resource Category. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further infill drilling of the T3 resource will result in the determination of indicated mineral resources or that the production target itself will be realised. The scoping study is based on the material assumptions outlined in MOD’s announcement of 6 December 2016. These include assumptions about the availability of funding. While MOD considers all the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the scoping study will be achieved. To achieve the range of proposed feasibility studies and potential mine development outcomes indicated in the scoping study, additional funding will likely be required. Investors should note that there is no certainty that MOD will be able to raise funding when needed. The Company has concluded it has a reasonable basis for providing the forward looking statements included in this announcement and believes that it has a “reasonable basis” to expect it will be able to fund the development of the project. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the scoping study

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APPENDIX

Table 1: T3 Resource Table (September 2016)

JORC Category

Cut-off Cu%

Tonnes Grade Cu%

Grade Ag g/t

Contained Cu (tonnes)

Contained Ag (oz)

Indicated 0.5 18,071,000 1.35 16.7 244,320 9,724,550

1.0 10,103,000 1.84 24.2 186,198 7,848,794

1.5 6,773,906 2.12 29.6 143,675 6,450,935

Inferred 0.5 10,287,000 1.03 13.7 105,853 4,546,534

1.0 3,162,296 1.82 26.0 57,396 2,640,127

1.5 1,706,001 2.30 34.5 39,221 1,892,814

TOTAL 0.5 28,358,000 1.24 15.7 350,221 14,271,083

(Indicated 1.0 13,265,000 1.84 24.6 243,678 10,488,664

& Inferred) 1.5 8,479,907 2.16 30.6 182,912 8,343,592

Table 2: Consultants who contributed to the key components of T3 Scoping Study

Consultant Scope of Work

Mr A I Pretorius (South Africa) Resource Estimate

Independent Metallurgical Operations Pty Ltd (IMO) (Australia) Metallurgical Testwork

Sound Mining Solution (Pty) Ltd (South Africa) Mining Study (Mine Design and Scheduling)

Minnovo Pty Ltd (Australia) Process Engineering and Infrastructure

Karunya Efforts (Pty) Ltd trading as Karunya Consulting (Botswana) Environmental and Social Permitting and Baseline

Table 3: T3 Diamond Drill Hole Parameters (revised as at 30 January 2017)

Drill Hole ID Collar Collar

Azi Dip EOH

UTM East UTM North m

Resource Drilling Phase 1

MO-G-01D 636189 7641820 160 -60 313.7

MO-G-02D 636225 7641728 160 -60 283.6

MO-G-03D 636111 7642004 160 -60 256.9

MO-G-04D 635923 7641937 160 -60 263.7

MO-G-05D 636302 7642069 160 -60 268.79

MO-G-06D 635735 7641871 160 -60 259.7

MO-G-07D 636045 7642192 160 -60 328.7

MO-G-08D 636151 7641912 160 -60 214.54

MO-G-09D 636490 7642136 160 -60 268.84

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MO-G-10D 636237 7641837 160 -60 169.6

MO-G-11D 636143 7641803 160 -60 178.74

MO-G-12D 636256 7641790 160 -60 157.6

MO-G-13D 636678 7642201 160 -60 271.79

MO-G-14D 636568 7641952 160 -60 169.5

MO-G-15D 636473 7641919 160 -60 166.5

MO-G-16D 636378 7641887 160 -60 181.6

MO-G-17D 636284 7641853 160 -60 181.69

MO-G-18D 636095 7641787 160 -60 181.5

MO-G-19D 636000 7641753 160 -60 169.52

MO-G-20D 635907 7641722 160 -60 184.74

MO-G-21D 635813 7641686 160 -60 181.5

MO-G-22D 635774 7641781 160 -60 211.6

MO-G-23D 635868 7641814 160 -60 205.79

MO-G-24D 635962 7641847 160 -60 226.5

MO-G-25D 636057 7641879 160 -60 220.55

MO-G-26D 636245 7641945 160 -60 198.79

MO-G-27D 636340 7641978 160 -60 220.42

MO-G-28D 636434 7642012 160 -60 220.5

MO-G-29D 636527 7642046 160 -60 184.8

MO-G-30D 636622 7642079 160 -60 187.62

MO-G-31D 636584 7642170 160 -60 226.89

MO-G-32D 636867 7642270 160 -60 214.67

MO-G-33D 636395 7642105 160 -60 220.7

MO-G-34D 636207 7642039 160 -60 226.82

MO-G-35D 636018 7641973 160 -60 232.52

MO-G-36D 635829 7641905 160 -60 247.76

MO-G-37D 635851 7641596 160 -60 133.64

MO-G-38D 635949 7641631 160 -60 160.48

MO-G-39D 635890 7641503 160 -60 109.74

MO-G-40D 635989 7641540 160 -60 109.79

MO-G-41D 636039 7641661 160 -60 172.54

MO-G-42D 636077 7641569 160 -60 85.79

MO-G-43D 636131 7641694 160 -60 118.71

MO-G-44D 636320 7641761 160 -60 91.47

MO-G-45D 636418 7641795 160 -60 115.69

MO-G-46D 636511 7641827 160 -60 91.64

MO-G-47D 636605 7641816 160 -60 91.77

MO-G-48D 636262 7641638 160 -60 79.71

MO-G-49D 636453 7642228 160 -60 301.69

MO-G-50D 636352 7642193 160 -60 265.67

MO-G-51D 636259 7642160 160 -60 273.57

MO-G-52D 636408 7641948 160 -60 193.48

MO-G-53D 636310 7641913 160 -60 193.49

MO-G-54D 636219 7641881 160 -60 196.57

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MO-G-55D 636128 7641839 160 -60 184.52

MO-G-56D 636031 7641818 160 -60 190.51

MO-G-57D 636541 7642258 160 -60 271.48

MO-G-58D 636636 7642291 160 -60 274.57

MO-G-59D 635934 7641784 160 -60 196.50

MO-3R-01D 636038 7642518 160 -80 532.84

MO-3R-02D 636114 7642543 160 -80 550.77

T3_GEOTECH_1 636108 7641633 340 -60 205.80

T3_GEOTECH_2 636400 7641720 310 -60 185.28

T3_GEOTECH_3 636085 7641950 198 -60 215.26

T3_GEOTECH_4 636271 7642006 223 -60 In progress

MO-G-63D 635897 7641876 160 -60 252.65

MO-G-64D 635990 7641912 160 -60 In progress

Table 4: Sams Creek Resource Table

Sams Creek Resource Category

Cut-Off g/t Au

Tonnes (Mt)

Grade g/t Au

Contained 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

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Schedule of Exploration Licences

Botswana Copper/Silver Project

Permit/Licence Number Size (km2)

(approx.) Holding Title Holder

Licence Commencement

Date Renewal Date

MOD Licences

PL686/2014 463.0 100% MOD Resources Botswana (Pty) Ltd 01 Jan 17 31 Dec 18

PL203/2014 77.7 100% MOD Resources Botswana (Pty) Ltd 01 Apr 14 31 Mar 17


PL280/2014 116.0 100% MOD Resources Botswana (Pty) Ltd 01 Jul 14 30 Jun 17




MOD JV Licences

PL009/2012 154.6 80% GGZ Investments (Pty) Ltd 01 Jan 16 31 Dec 17

PL141/2012 387.3 80% MOD Resources Botswana (Pty) Ltd 01 Oct 15 30 Sep 17

PL044/2012 75.7 80% MOD Resources Botswana (Pty) Ltd 01 Oct 15 30 Sep 17

MOD/MTR JV Licences

PL186/2008 557.0 70% Tshukudu Metals Botswana (Pty) Ltd 01 Jan 17 31 Dec 18










PL060/2012 809.2 70% Discovery Mines (Pty) Ltd 01 Jan 16 Application*

PL061/2012 974.9 70% Discovery Mines (Pty) Ltd 01 Jan 16 Application*

PL231/2016 65.0 70% Tshukudu Metals Botswana (Pty) Ltd 01 Oct 16 30 Sept 19

PL335/2016 45.0 70% Tshukudu Metals Botswana (Pty) Ltd 01 Jan 17 Application**

PL126/2013 341.4 70% Senyetse Resources (Pty) Ltd 01 Jul 16 30 June 18***

PL127/2013 668.6 70% Senyetse Resources (Pty) Ltd 01 Jul 16 30 June 18***

TOTAL 11343.66

Note:

*MOD has applied for two (2) year first renewals for these licences, being processed at date of this announcement

**MOD has applied for this licence, being processed at date of this announcement

***Tshukudu has an option agreement to acquire 100% of these licences

Sams Creek Gold Project

Permit/Licence Number Size (km2) Holding Title Holder Licence Commencement

Date Renewal Date

EP40338 30.6 80% Sams Creek Gold Limited 27 Mar 98 26 Mar 21

EP54454 32.0 100% Sams Creek Gold Limited 25 Sep 12 25 Sep 17

TOTAL 62.6

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for personal use only - asx · 2017-01-31 · t3 maiden resource on 26 september 2016, six months...

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