Scoping work has shown open cut mining and a 2 million tonne processing plant would annually produce about 21,800 tonnes of copper in concentrate (and 665,000 ounces of silver) at a cash cost of $US1.29 per pound of copper.

The indicative capital cost would be $135 million (including $18 million for pre-stripping and a similar amount for contingencies), with annual pre-tax cashflows of $44 million, a net present value of $180 million and an internal rate of return of 31%.

MOD has a 70% interest in the project, with AIM-listed Metal Tiger a 30% stake.

While MOD didn’t outline any study and development timeframes, assuming all goes to plan first production could conceivably occur sometime in 2019.

MOD managing director Julian Hanna will now be likely hitting the road in search of funding.

MOD had cash at the start of the current quarter of $A1.85 million.

The company has a long standing debt that currently totals $1.5 million with an entity controlled by MOD director Simon Lee. 

At a recent share price of 3.2c, MOD was capitalised at $45 million.