THERE was more evidence of heightened activity in Botswana’s copper exploration and development sector after Sydney-listed MOD Resources said its T3 project contained 44% more total mineral resources than a previous estimate.
The improved estimate, which assumes the same 0.4% copper cut-off grade of the previous estimate, had “… far exceeded expectations”, said Julian Hanna, MD of MOD. The firm was now assessing how the resource increase would impact T3.
“As a minimum, this upgrade would appear to support the compelling Expansion Case pit model announced in the pre-feasibility study, which was based on average annual production of 28,000 tonnes of copper over a 12 year mine life. We are very encouraged by the new resource and believe there is potential that production and mine life could be extended beyond the Expansion Case,” said Hanna.
Said SP Angel, a stockbroker in the UK: “The expansion of the resource estimate at T3 supports the expanded production case reported in the pre-feasibility study and may require adjustments to the base case of the full feasibility study currently underway.
“It also highlights the potential of the wider drilling programme directed at targets in the area with similar geophysical characteristics to T3”.
Botswana’s copper sector is benefiting from the improvement in the price of the red metal, as well as strong future fundamentals.
UK-listed Cradle Arc restarted copper mining at Mowana, a mine near Francistown in Botswana which was initially developed by the former African Copper. It commissioned the mine in 2008, but immediately ran into financial difficulties.
Kevin van Wouw, CEO of Cradle Arc, took Mowana out of liquidation last year and the company is now controlled 60% by Cradle Arc with the Zambian-owned ZCI holding the balance of 40%. ZCI/African Copper had invested some $170m in building the mine.
