Modern Mining April 2019

MINING News

T3 Feasibility Study delivers “compelling results”

potential deposits in the sur- rounding area, where MOD has already demonstrated early drill- ing success. Drilling is expected to focus on this satellite potential during 2019 to take advantage of the capital invested into T3.” The T3 project, which is 100 %-owned by MOD, is a signifi- cant new sediment-hosted copper and silver deposit in the under- explored Kalahari Copperbelt in Botswana. Over the past three years, MOD has progressed T3 from the discovery drill hole, announced in March 2016, to

Process plant layout (developed for FS).

completion of the FS. The FS has identified that the T3 project is underpinned by strong fundamentals including an orebody geometry that facili- tates a simple, six-stage, open-pit design and metallurgy that requires a relatively moderate capital investment, producing high-grade copper concentrates. It is envisaged that mining will be undertaken by a contractor using conven- tional equipment to support an average annual mining rate of 3,0 Mt/a of ore with a LoM strip ratio of 5,7 to 1. Load and haul would utilise 120-250 tonne excavators and 140 tonne capacity haul trucks mining on approximately 2,5 m-high flitches in ore zones and approximately 3,5 m-high flitches in bulk waste zones. Pit dewater- ing is expected to be minimal and will be managed by a collection of external dewatering and depressurising bores (if

MOD Resources, listed on the ASX and LSE, has announced what it describes as the “compelling results” of the completed Feasibility Study (FS) for the T3 copper project in Botswana. The project will com- prise an 11,5-year open-pit mine, a 3 Mt/a conventional processing plant and all asso- ciated infrastructure. The FS estimates a Life of Mine (LoM) revenue of US$2,3 billion and EBITDA of US$1,1 billion, an NPV (pre-tax) of US$368 million and an IRR of 33 %, based on a long- term consensus copper price of US$3,08/ lb Cu and an 8 % real discount rate. The project would generate pre-tax free cash flows of US$777 million, inclusive of devel- opment capital. LoMAll-In Sustaining costs (AISC) are estimated at US$1,56/lb Cu after deducting silver credits “The strong economics clearly demon- strate the value of this high-quality asset

located within the excellent mining and investment jurisdiction of Botswana,”com- ments Julian Hanna, MD of MOD. “There are a number of outstanding operational and financial outcomes of the Feasibility Study; however, several stand out when compared to other emerging global cop- per developers and producers. “Firstly, the T3 project represents a rela- tively straightforward open-pit mine and processing plant, requiring moderate cap- ital expenditure to bring into production. Then, due to the very favourable geome- try, grade and metallurgical characteristics of the orebody, the Feasibility Study has demonstrated that even at copper prices much lower than today’s spot price, the T3 copper project is expected to generate excellent returns. “T3 also provides the possibility for future production expansion from other

Another accolade for Wits Mining School The National Research Foundation (NRF) has bestowed another accolade on the School of Mining Engineering at Wits University by awarding a C2 rating to staff member Professor Rudrajit Mitra. Professor Mitra, who is Associate Professor and Centennial Chair of Rock Engineering, is now one of four academ- ics in the school who hold this level of professional recognition. All four are

Professor Stacey, Professor Cuthbert Musingwini and Professor Fred Cawood are the other three NRF-rated researchers at the Wits Mining School. Professor Mitra’s award comes on the strength of 112 research outputs over the past eight years – including five book chapters, 37 journal articles and 49 conference papers. As a lecturer, he has also supervised or co-supervised 11 PhD students to graduation, two Masters students and 67 Honours students. The NRF’s C2 ranking recognises “established researchers with a sustained recent record of productivity in their chosen field” and who are judged by their peers as having produced“a body of quality work …which … attests to ongoing engagement with the field.” In a rigorous process involving the applicant, the university, the NRF and a range of international reviewers, the impact of the research generated by Professor Mitra was assessed by experts from around the world. 

based at Wits Mining School, making it the only mining school in South Africa with NRF-rated academics. “I feel really honoured to be rated at C2 level by the NRF, espe- cially in my field of rock mechanics,” said Professor Mitra. “I am humbled to be in the company of great academics in rock mechan- ics such as Professor Dick Stacey, for instance.”

10  MODERN MINING  April 2019