MOD Resources plans to double its exploration budget at the Botswana copper project to $10 million.
The exploration company has increased its budget for the 12 months from October in recognition of the “substantial untested potential” within its licences.
Around $7.5 million of the budgeted expenditure represents MOD’s share of the joint venture drilling program with AIM-listed partner, Metal Tiger.
MOD has also budgeted around $2.5 million to accelerate exploration at its 100 per cent owned exploration licences.
Managing director Julian Hanna said the company needed to scale up exploration with a 50 per cent rise in the copper price during the past year, improving market sentiment and the rapidly evolving understanding of the copper belt in Botswana.
“While MOD’s first major discovery, T3, has substantial upside and will remain our primary focus to bring into production, it may be just the beginning of a much larger story. Numerous other targets hold excellent potential, particularly along the same structural corridor which hosts T3 and other substantial resources already defined within the eastern Kalahari copper belt,” Hanna said.
He added the immediate focus would be on drill testing many of the 19 airborne targets along the 50km axis of the T3 dome.
“We expect the doubling of the exploration budget will help us unlock and realise the potential of this completely under-explored copper belt. The number of drill holes planned on regional targets is more than double what we have drilled at T3 to date which reflects our confidence in the potential of the wider region,” Hanna said.