Ann: Trading Halt-MOD.AX, page-35

Hi Freeheel

You're right, T3 East looks like the highest priority target from the information released to me. The thrust model proposed seems reasonable, and probably has significant strike length. The challenge for MOD will be finding the sweet spots, which will not be an easy task. The IP anomaly looks good, but its risky in a sedimentary environment due to the abundance diagenetic pyrite in shales and siltstone. The best way forward now is probably to undertake a significant AC or RC drilling over the soil anomalies at wide spacings to see if they can snag another T3-style deposit. Then bring the diamond back in.

Not sure about the porphyry story, there's nothing in the magnetics to suggest a suite of porphyry intrusives. Its perfectly feasible that the copper has been remobilised from a significant position of typical kalahari-style mineralisation (like mahumo) at depth. The moly does not suggest the fluids have a porphyry-connection. There are plenty of Mo enriched sediments in the world that could provide enough Mo and concentrate to produce the grades seen at T3.

I'm confident that MOD will unveil 1Mt of Cu over time. Targeting T3-style mineralisation is a much more sensible proposition than chasing Kalahari-style mineralisation at depth.