ASX listed MOD Resources raises the anchor for copper in Botswana

The ASX listed MOD Resources Ltd sold gold asset in Australia to focus on expanding exploration and development activities in the Kalahari Copper Belt in Botswana.

In the African country, the holding of the Australian company comprises 24 prospecting licences covering a total area of 11,111 km2.

Through a joint-venture with the AIM-listed Metal Capital Ltd and a subsidiary company Tshukudu Metals Botswana (Pty) Ltd, MOD owns 70% of 16 licences with a total area of approximately 7,347km2 in the Kalahari Copper Belt.

In fact, MOD is working to increase mineral resources and complete a pre-feasibility study for a potential open pit mine and processing plant at the copper/silver T3 project.

Besides, the Australian company plans to conduct a substantial regional exploration program exploring for satellite deposits at other priority targets around T3 and on its regional holdings.

So as to have a strong financial base to harness the potential of its portfolio, MOD Resources has sold Sams Creek gold project of 20.5Mt total resources at 1.54 g/t Au at a 0.7 g/t Au cut-off grade, in New Zealand.

It announced, on 3 July, to have entered into a binding Share Sale Agreement to divest the gold asset for a total consideration of 3.8 million A$.

The agreement was reached with Condamine Resources Ltd, a gold exploration and development company focused on opportunities in New Zealand.

On successful completion of the sale, MOD will receive cash proceeds of 1.75 million A$ and 10.25 million shares in Condamine at a minimum issue price of A$0.20 per share for a total consideration of 3.8 million A$.

In Botswana, MOD’s joint venture with Metal Tiger Plc (30%) includes the T3 copper/silver deposit where a discovery RC drill hole intersected 52m @ 2.0% Cu and 32g/t Ag from shallow depth in March 2016.

On 26 September last year, it announced a substantial maiden copper/silver resource at T3.

The total cost of discovery of T3 and delineation of the maiden resource “was an exceptionally low 1.7 million US$ equivalent to only US 0.22 cents/lb copper contained within the resource”, the company reported.

On 6 December the same year, MOD disclosed the results of its scoping study for an open pit mine at T3 but waited early 2017 to commence pre-feasibility study that is targeted for completion in the December quarter 2017.