In a newly released feasibility study, MOD Resources estimates the life-of-mine revenue for its T3 copper project will be US$2.3 billion.
T3, located in Botswana’s Kalahari Copper Belt, comes with a proposed 11.5-year open-pit mine and 3-million-tonne-per-year (MTPA) processing plant. From the feasibility study, MOD estimates that developing T3’s mine, processing plant and infrastructure will have a capital price tag of US$182 million.
The project also boasts a pre-tax net present value of US$368 million and an internal rate of return of 33 percent; payback is docketed at 3.7 years from the beginning of production. LOM all-in sustaining costs are estimated at US$1.56 per pound of copper, with LOM average annual production set for about 28,000 tonnes of copper and 1.1 million ounces of silver.
The feasibility study comes just days after the company upgraded the ore reserve at T3 by 61 percent, pushing it to 34.4 million tonnes at 1 percent copper and 13.2 grams per tonne silver.
The upgrade represented a 57 percent increase in contained copper and a 107 percent increase in contained silver from the prefeasibility study; the ore reserve now consists of 342,700 tonnes of copper and 14.6 million ounces of silver.
“There are a number of outstanding operational and financial outcomes of the feasibility study; however, several stand out when compared to other emerging global copper developers and producers,” MOD Managing Director Julian Hanna said in a statement.
“Due to the very favorable geometry, 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.”
MOD expects pre-strip activities to begin in 2020’s first half, with ore from the open pit’s first stage to be processed in 2021’s first quarter. With a 19-month design, construction and commissioning gameplan, the company is targeting first concentrate production before the end of 2021’s first quarter.
MOD’s share price grew 9.68 percent on the ASX on Thursday (March 28), ending the day at AU$0.34.
As of Wednesday (March 27), copper was trading at US$6,338 per tonne on the London Metal Exchange.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.