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ASX: MOD
RECENT DISCOVERIES IN THEKALAHARI COPPER BELT, BOTSWANA
MOD RESOURCES LTD & METAL TIGER PLC
AFRICA DOWNUNDER – 7 SEPTEMBER 2016
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Disclaimer and Forward Looking StatementsCompetent Person’s Statement
Information in this presentation which relate to mineral resources, drilling and exploration at the Botswana Copper Project is reviewed and approved by Jacques Janse vanRensburg, BSc (Hons), General Manager Exploration (Africa) for MOD Resources. He is registered as a Professional Natural Scientist with the South African Council for NaturalScientific Professions (SACNASP) No. 400101/05 and has reviewed the technical information in this report. Mr Janse van Rensburg has sufficient experience which is relevant tothe 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 ofthe Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Mr Janse van Rensburg consents to the inclusion in this presentation of thematters based on information in the form and context in which it appears.
The Competent Person responsible for the geological interpretation, Mineral Resource estimation and classification of the Mahumo Copper/Silver Project is Mr A.I. Pretorius,who is a full-time employee of Sphynx Consulting CC and registered with SACNASP (400060/91). Mr Pretorius has sufficient experience that is relevant to the style ofmineralisation 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 ‘AustralasianCode for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Forward Looking Statements
The document contains background Information about MOD Resources Limited current at the date of this presentation. The presentation is in summary form and does notpurport 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 andcompleteness of the information, statements and opinions contained in this presentation.
This presentation 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 thispresentation are conceptual in nature. There has been insufficient exploration at T3 or at other Exploration Targets mentioned in this announcement to define a MineralResource and it is uncertain if further exploration will result in the Exploration Targets being delineated as a Mineral Resource.
Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in anyjurisdiction. The presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients shouldinform 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 presentation does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances orparticular needs and the opinions and recommendations in this presentation 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 ofadverse 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 thecurrency, accuracy, reliability or completeness of any information, statements, opinion, estimates, forecasts or other representations contained in this presentation. Noresponsibility for any errors or omissions from the presentation arising out of negligence or otherwise is accepted.
This presentation may include forward-looking statements that are only predictions and are subject to risks, uncertainties and assumptions which are outside the control ofMOD Resources Limited. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients arecautioned not to place reliance on forward-looking statements in the presentation as they speak only at the date of issue of this presentation. Subject to any continuingobligations 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 forwardlooking statements in this presentation or any changes in events, conditions or circumstances on which any such forward-looking statement is based.
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BACKGROUND
Jul 2011: MOD commenced exploration in Kalahari Copper Belt, Botswana
Oct 2011: Discover high grade Copper/Silver deposit at T1 (Mahumo)
Aug 2015: MOD and MTR form JV to acquire Discovery Mines (DMI)
Feb 2016: Minister consents to transfer DMI licences to Tshukudu Metals
Mar 2016: Discover high grade Copper/Silver deposit in first drilling at T3
Aug 2016: Intersect high grade Copper/Silver grades at T2, 20km N of T3
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TSHUKUDU & MOD LICENCES
Exploring for Cu/Ag in
Ghanzi District
Adjacent Cupric Canyon
(>5Mt Cu in resources)
19 Targets (T1 to T 19)
identified for testing
Cu/Ag intersected in first
four drill targets (T1 - T4)
Applying for licence
extensions due 31 Dec16For
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BOTSWANA COPPER ADVANTAGE
Copper grade ‘niche’ – 1.3% to 2.0% Cu, plus significant silver credits
High grade (up to ~40% Cu) high quality Cu & Ag concentrates for smelting
Long established mining & processing industry, skilled work force in-country
Govt supportive of copper industry, evaluating new smelter, extend power grid
MOD funding for Botswana Project sourced from Australia and UK
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CURRENT EXPLORATION FOCUS – T1, T2 & T3
20km wide by >50km
long structural zone
with Cu soil anomalies
3 discoveries to date: T1,
T2 West, T3.
Shallow dips, regional
thrusts, vein hosted &
disseminated Cu/Ag
Bonanza Cu/Ag grades at T3
bornite & chalcopyrite veins
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T3 DEPOSIT – discovered March 2016
Cu/Ag sulphides intersected from 10m to 45m true width, along 1km strike
Sediment hosted deposit with bonanza Cu/Ag veins, Infill drilling in progress
First resource estimate (Phase 1) due end Sept Q16. Scoping study underway
Phase 1 resource (white
rectangle) complete.
Minimal other drilling
Cu/Zn soil anomalies
extend ~12kms along
interp. 25km ‘T3 Dome’
T3 occurs above Cu
‘prospective contact’
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T3 RESOURCE AREA – significant DDH intersections
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T3 – interpreted cross section and IP targets
Hosted by ~50m sequence of greensiltstones, mudstones and marls
Vein and disseminated Cu/Ag &Pb/Zn sulphides within shallowregional thrust onto T3 Dome
Minimal drilling outside resource.Drilling targeting potential for otherdeposits along 25km T3 Dome
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T3 – Local bonanza vein hosted Cu/Ag grades
T3 ‘Discovery Intersection’RC drill hole MO-G-12R:
52m @ 2.0% CuIncluding7m @ 4.2% Cu & 93.6g/t Ag
Individual 1m assays:6.9% Cu994g/t Ag2,075ppm Mo
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T3 – scoping study in progress
Scoping study to evaluate conceptual open pit & on site plant
Indicative Timeframe:
• Sept 2016: Complete Phase 1 Resource at T3
• Sept 2016: Complete Metallurgical Testwork. Target: >90% rec, >40% Cu conc
• Nov 2016: Preliminary pit, processing, environmental & social studies
• Dec 2016: Completion scoping study and decision to proceed PFS
Mineral Chemical Formula Cu Fe S
Chalcopyrite CuFeS2 34.6% 30.4% 34.9%
Bornite Cu5FeS4 63.3% 11.1% 25.6%
Chalcocite Cu2S 79.9% 20.1%
Digenite Cu9S5 78.1% 21.9%
Covellite CuS 66.5% 33.5%
Malachite Cu2(CO3)(OH)2 57.5%
Enargite Cu3AsS4 48.4% 32.6%
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T2 (West) : Up to 2.3% Cu & 42g/t Ag in shallow RC holes
Two strong soil anomalies 12km apart, either side Mahumo Stage 1 resource
12km thrust folding. Same structure hosts 2Mt Cu ‘Zone 5 Deposit’, 100km E
First RC drilling at T2 West intersected up to 2.3% Cu, 42g/t Ag (30 Aug 2016)
T2 East
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T1 – Mahumo Deposit (100% MOD)
• T1 Stage One resource 2.4km long, completely open below 300m depth
• Underground scoping study recommends: target 10Mt @ 2.0% Cu & 50g/t
• Deepest intersection 4m @ 2.8% CuEq. Drilling starts DecQ 16 for extensions
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T1 (Mahumo) – preliminary metallurgical testwork
Target Ag (minimum) :
87% Ag RECOVERY INTO>1,000ppm CONCENTRATE
Target Cu (minimum) :
93% Cu RECOVERY
INTO >40% CONCENTRATE
T1 CONCENTRATE: 51.9% Cu & 1,300ppm Agproduced from test work on sulphide ores (Refer MODprevious announcements: 6 July 2015, 31 July 2015)
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T4 – 2km Cu soil along regional shear. 2m @ 6.1% Cu & 111g/t Ag
• DecQ 16: Drilling to test Cu anomaly
• Target shear hosted Cu & IP targets
• Extend soil coverage along strike
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T5 – 10km interpreted mafic intrusion with overlying IOCG alteration
• DecQ 16: Deep drilling to test intrusion
• Only one diamond drill hole to date
• ~100m of IOCG Fe altered sediments
• Elevated Pt/Pd in Fe altered intrusion
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T7 – two domes, anomalous Cu soils on margin of Kaapvaal Craton
• DecQ 16: RC drilling test range targets
• Two interp domes on major structures
• Anomalous Cu values though sand
• Confirmation & infill sampling required
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CONCLUSIONS
1. PROSPECTIVE, UNDER EXPLORED COPPER BELT. >5Mt Cu IN RESOURCES (CUPRIC)
2. SIGNIFICANT COPPER IN 4 TARGETS (T1 – T4) DRILLED BY MOD TO DATE
3. SCOPING STUDY IN PROGRESS AT “T3” - 6 MONTHS SINCE DISCOVERY
4. POTENTIAL FOR FURTHER DISCOVERIES AROUND 25km LONG T3 DOME
5. SOIL SAMPLING AND MAGNETICS VERY EFFECTIVE EXPLORATION TOOLS
6. EXCELLENT TEST WORK RESULTS – HIGH GRADE, LOW IMPURITY CONCENTRATE
7. MOD COMMITTED TO SUPPORTING BOTSWANA GOVERNMENT INITIATIVES
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THANK YOU !
MOD RESOURCES LTD
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