Metal Tiger PLC (LON:MTR) and its joint venture (JV) partner MOD Resources (ASX:MOD) have told investors that a pre-feasibility study at the T3 copper/ silver deposit in Botswana is underway.
The PFS is expected to be completed by the middle of this year, the two parties added.
Metal has a 30% stake in the Kalahari copper project – which includes the T3 deposit – with Aussie-listed MOD claiming the other 70%.
The two have worked together to rapidly develop the T3 deposit, which it only found in March last year.
The news of the PFS follows hot on the heels of last month’s scoping study which indicated “highly encouraging project economics”.
The scoping study outlined a 2mln tonnes per annum (mtpa) open pit project producing 21,000 tonnes per annum (tpa) of copper and 665,000oz per annum of silver at a cash cost of US$1.29/lb, over a production life of 9.25 years.
“Completing the T3 resource and scoping study were key milestones in our path to becoming a long-life copper producer in Botswana,” said MOD’s managing director Julian Hanna.
“The exploration programs, metallurgical testwork, licence renewals and acquisitions during the quarter were also very important in building future growth opportunities for MOD in this highly prospective region.”
The Botswana mines minister granted two-year extensions for ten JV licences centred around the T3 project area at the end of last year.
Exploration and PFS programs will accelerate from early 2017 with the focus on the 60km-long T3 Dome using a combination of magnetics, soil sampling, 3D IP and substantial drilling programs, MOD said.
Heavy rain had delayed work at the T3 deposit earlier this month, but the bad weather has now passed and operations are progressing well.
Shares in Metal Tiger were up more than 5% to 1.86p in early deals.