MOD Resources Limited (ASX: MOD) – $0.005

04 Mar 2015

MOD Resources Limited (ASX: MOD) has made significant progress on the Mahumo Copper-Silver Project and adjacent holdings in Botswana.

 

Stage one resource drilling has continued to intersect copper and silver mineralisation within the company’s target range of 2.0% to 2.5% CuEq. Recent intersections include 1 metre at 116g/t silver from a depth of 310 metres confirming that silver forms an important component of the Mahumo mineralisation.

 

A review of drill hole data along the 2.4km long Mahumo deposit has defined two parallel shallow east plunging fold structures. The structures appear to influence the width of the mineralisation with high copper-silver grades related to steeply dipping zones. This interpretation opens up potential for resource extensions to the east of both the West Zone and East Zone (Figure 1).

 

MOD Mahumo CuAg

Figure 1. Interpreted longitudinal section of the Mahumo Project showing recent and proposed targets

 

 

A scoping study is planned for the June 2015 quarter after the Stage One resource is completed. Assuming results are positive, prefeasibility and definitive feasibility studies will follow.

 

Metallurgical test work on Mahumo sulphides continues producing concentrate grades of up to 59% copper and 1,900ppm silver from the West Zone and up to 57.2% copper and 1,550ppm silver from the East Zone. The company’s target is to achieve more than 90% recoveries of copper and silver. First results of the program are expected in the June 2015 quarter.

 

Botswana Mines Ministry has granted a two year renewal for PL’s 34-36/2010 that comprise the Ghanzi South Project. The project is located 60km south of Ghanzi Town and has a total area of 2,650km2.

 

 

For further information, visit www.modresources.com.au

 

 

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