Mod Resources : Mahumo Project - Drilling Update No 5

TABLE 1: DRILL HOLES WITH CU/AG INTERSECTIONS - Assays awaited from additional mineralised intersections

Drill Hole

ID

UTM East

UTM North

Azi

Dip

From m

To m

Width m

Cu

%

Ag

(ppm)

CuEq*

%

Comments

WEST ZONE - PIT

MO-115-D

645171

7658621

325

-60

39.6

42

2.4

1.3

36.9

1.76

MO-116-D

645167

7658628

325

-60

29

30.2

1.2

1.8

35.8

2.22

MO-118-D

645262

7658671

325

-60

41

44

3

2.6

72.7

3.55

incl 1.0m @ 5.23%

CuEq

MO-119-D

645257

7658679

325

-60

28.8

32

3.2

1.6

41.5

2.12

MO-120-D

645252

7658684

325

-60

19

22

3

1.4

25.0

1.68

MO-121-D

645351

7658719

325

-60

44.9

48

3.1

2.1

59.3

2.82

MO-122-D

645347

7658726

325

-60

33.5

36

2.5

1.6

43.8

2.15

MO-123-D

645342

7658732

325

-60

22.5

24.6

2.1

3.0

81.6

4.05

MO-124-D

645435

7658768

325

-60

40

43

3

1.6

41.0

2.1

MO-125-D

645430

7658775

325

-60

30.7

33

2.3

2.6

67.9

3.49

MO-127-D

645518

7658820

325

-60

34.3

37

2.7

1.8

39.9

2.32

MO-128-D

645513

7658827

325

-60

25.9

29

3.1

2.0

20.8

2.22

MO-129-D

645506

7658835

325

-60

19.8

22

2.2

1.9

55.2

2.57

MO-136-D

645604

7658872

325

-60

39

40

1

1.1

44.0

1.67

WEST ZONE - PANEL 1

MO-130-D

645258

7658589

325

-70

232.3

236.0

3.7

1.4

32.4

1.86

incl 1.0m @ 5.77%

CuEq

MO-131-D

645356

7658638

325

-70

219.8

223

3.2

2.1

48.4

2.69

MO-132-D

645450

7658668

325

-70

196.6

199

2.4

1.5

46.9

2.13

MO-133-D

645537

7658710

325

-70

233

236

3

1.4

37.0

1.92

MO-134-D

645637

7658757

325

-70

264

266

2

2.8

89.0

3.92

plus 1.0m @ 2.12%

CuEq

MO-139-D

645676

7658708

325

-70

320.3

323

2.7

1.6

32.0

2.05

incl 1.0m @ 4.19%

CuEq

MO-140-D

645577

7658653

325

-70

323.1

324.9

1.8

Fault Zone intersected

(NSI)

MO-141-D

645537

7658710

325

-70

301.9

304.9

3

1.8

39.9

2.29

incl 1.9m @ 3.03%

CuEq

MO-142-D

645385

7658595

325

-70

266.8

270.0

3.2

1.88

41.6

2.42

SHALLOW LG OXIDE

MO-117-D

645163

7658635

325

-60

21.2

24

2.8

0.5

3.9

0.53

MO-126-D

645425

7658782

325

-60

20.2

23

2.8

1.0

9.4

1.14

MO-137-D

645592

7658879

325

-60

32

35

3

0.4

-

0.4

MO-138-D

645592

7658887

325

-60

23

25

2

0.4

-

0.44

TABLE 2: DRILL HOLES COMPLETED TO 14 JANUARY 2015

Collar Location WGS 84 Datum Zone 34 South

Hole ID

UTM

East

UTM

North

Elevation

(m)

Azimuth

(degree)

Inclination

(degree)

E.O.H

(m)

MO-115-D

645171

7658621

1092

325

-60

60.9

MO-116-D

645167

7658628

1091

325

-60

42

MO-117-D

645163

7658635

1088

325

-60

34

MO-118-D

645262

7658671

1091

325

-60

55.6

MO-119-D

645257

7658679

1088

325

-60

42

MO-120-D

645252

7658684

1088

325

-60

32

MO-121-D

645351

7658719

1090

325

-60

56.8

MO-122-D

645347

7658726

1090

325

-60

50.4

MO-123-D

645342

7658732

1090

325

-60

36.9

MO-124-D

645435

7658768

1089

325

-60

52.8

MO-125-D

645430

7658775

1090

325

-60

48.7

MO-126-D

645425

7658782

1091

325

-60

33.0

MO-127-D

645518

7658820

1088

325

-60

50.6

MO-128-D

645513

7658827

1089

325

-60

42.4

MO-129-D

645506

7658835

1089

325

-60

234.8

MO-130-D

645258

7658589

1085

325

-70

240.9

MO-131-D

645356

7658638

1088

325

-70

234.8

MO-132-D

645444

7658670

1086

325

-70

217.3

MO-133-D

645537

7658710

1092

325

-70

245.2

MO-134-D

645637

7658757

1091

325

-70

288.5

MO-136-D

645604

7658872

1094

325

-60

52.4

MO-137-D

645592

7658879

1091

325

-60

42.4

MO-138-D

645592

7658887

1092

325

-60

35.4

MO-139-D

645676

7658708

1086

325

-70

339.3

MO-140-D

645577

7658653

1085

325

-70

356.1

MO-141-D

645537

7658710

1087

325

-70

319.7

MO-142-D

645385

7658595

1088

325

-70

285.8

MO-147-D

645747

7658621

1086

325

-70

551.1

Criteria

JORC Code explanation

Commentary

Sampling techniques

 Nature and quality of sampling (eg cut channels, random chips, or specific

specialised industry standard measurement tools appropriate to the minerals under investigation, such as

down hole gamma sondes, or handheld

XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 Aspects of the determination of mineralisation that are Material to the

Public Report.

 Drill core is logged, split by sawing and sampled by MOD personnel at site. The saw

blade is cleaned after each core box, by cutting an unmineralized clay brick to reduce the chance for contamination.

 Diamond drill core sampled are assayed at 1 meter lengths from half core, OR LESS, as

dictated by lithological contacts, and assayed

for Ag and Cu at Setpoint laboratories in

Isando, Johannesburg.

 > 10% Standards, blanks and duplicates are inserted into the sample stream for core on

site.

 The remaining half portion of drill core is retained on site in Botswana.

Drilling techniques

 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,

Bangka, sonic, etc) and details (eg core

diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

 The drilling results referred to in this release were drilled by diamond core drilling rigs.

HQ3 diameter drill core was drilled for the

shallow drill holes and NQ for the deeper drill holes.

Drill sample recovery

 Method of recording and assessing core and chip sample recoveries and results

assessed.

 Measures taken to maximise sample recovery and ensure representative nature of the samples.

 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to

loss/gain of fine/coarse material.

 Diamond drilling recorded recovery. Core recovery was good

 Triple tube drilling was used for the shallow drill holes to maximise core recovery in oxidized sediments

 Drill core was sampled in 1m intervals or as appropriate to align with the geological contacts

Logging

 Whether core and chip samples have been geologically and geotechnically logged to

a level of detail to support appropriate

Mineral Resource estimation, mining studies and metallurgical studies.

 Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

 The total length and percentage of the relevant intersections logged.

 During the core logging geologists follow

MOD's standard operating procedure for logging processes. The meter interval (from & to) is recorded and the data is described in the

core logs.

 The geological logging process documents lithological and structural information as well as geotechnical data such as RQD, recovery and specific gravity measurements.

Sub-sampling techniques and sample

preparation

 If core, whether cut or sawn and whether quarter, half or all core taken.

 If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

 For all sample types, the nature, quality and appropriateness of the sample preparation technique.

 Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

 Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance

results for field duplicate/second-half sampling.

 Whether sample sizes are appropriate to the grain size of the material being

sampled.

 All diamond core samples for the drill hole intersections were taken as half core samples.

 MOD took photos of all core samples on site.

 MOD has implemented an industry-standard

QA/QC program. Drill core is logged, split by sawing and sampled at site. Samples are bagged, labelled, sealed and shipped to the Setpoint prep- laboratories in Francistown, Botswana, by the project manager.

 Samples arriving at the lab are crushed using a jaw crusher or terminator to a particle size

less than15 mm. The resulting chips are

further crushed in a Rhino crusher to a fineness of 80% less than 2.0 mm. The total mass of sample crushed is screened at

2.0mm to check crushing efficiency.

 If the sample requires splitting, samples are split using a Jones riffle splitter. The split to be analysed is placed into a new sample bag with a clearly marked label or sample tag. The remainder of the sample (coarse reject) is returned to the original sample bag to be returned to the client.

 The split for analysis is milled to achieve a fineness of 90% less than 106 µm (or a

fineness of 80 % passing 75 µm to comply with certain clients requirements). After milling, the contents of the bowl is emptied

onto a brown paper sheet or clean sample

dish then transferred into its sample bag.

Quality of assay data and

laboratory tests

 The nature, quality and appropriateness of the assaying and laboratory procedures

used and whether the technique is considered partial or total.

 For geophysical tools, spectrometers, handheld XRF instruments, etc, the

parameters used in determining the

analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

 Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and

whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

• All samples are prepped at the Setpoint prep- lab in Francistown, Botswana. From there

the pulps are transported by the Prep-Lab

Manager, Mr. Willy Mchunu, to the Setpoint assay labs in Isando, Johannesburg.

• Analytical techniques have been chosen to best characterize total and non-sulphide copper and silver mineralization. The

following methods are utilized;

(i) Analysis for non-sulphide Cu by: M449 - The Determination of Copper by sulphuric acid leach followed by ICP- OES finish:

PROCEDURE: One gram of pulp material is digested using a dilute solution of sulphuric acid and sodium sulphite and made up to a volume of 100ml. The resulting solutions are analysed for copper, nickel, cobalt and other base metals by the technique of ICP-OES (Inductively Coupled Plasma - Optical Emission Spectrometry).

REPORTING: For the method (M449), a detection limit of

>10ppm are reported with no decimals and when the midpoint (5) between rounded off

values is reached the number is rounded up.

Below the midpoint, the number is rounded down.

(ii) Analysis for Cu and Ag by determination of Silver and Copper by 3 acid digest followed by ICP-OES finish:

PROCEDURE: One gram of pulp material is digested using a combination of three acids (HNO3, HClO4 and HCl) and made up to a volume of 100ml. The resulting solutions are analysed for metals by the technique of ICP- OES (Inductively Coupled Plasma - Optical Emission Spectrometry).

REPORTING: A detection limit of 10ppm are reported with no decimals and when the midpoint (5) between rounded off values is reached the number is rounded up. Below the midpoint, the number is rounded down.

• Currently all core samples are analyzed for total and acid soluble Cu.

• All reported results are down hole widths.

Verification of sampling and

assaying

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes.

• Documentation of primary data, data

entry procedures, data verification, data

storage (physical and electronic.

• protocols.

• Discuss any adjustment to assay data.

• 15-20% QA/QC checks are inserted in the sample stream, as lab std's, blanks and duplicates.

• Calculation of copper equivalent value

(copper plus silver) based on the reported

assay data was carried out using a formula consistent with another significant copper producer in the Kalahari Copper Belt: CuEq% = Cu% + (Ag g/t * 0.013)

Location of data points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource

estimation.

• Specification of the grid system used.

• Quality and adequacy of topographic

control.

• The collar coordinates of the drill holes referred to in this release are shown in Table

2

• Recent drilling picked up by hand held GPS in

UTM 34S coordinates and WGS 84 datum.

• Down hole surveys are taken by a DeviFlex non-magnetic electronic multishot surveying tool, inside casings and drill strings by using the wireline system. Magnetic disturbances will not influence the tool.

Data spacing and distribution

• Data spacing for reporting of Exploration

Results.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and

Ore Reserve estimation procedure(s) and

classifications applied.

• Whether sample compositing has been applied.

• Samples of half core for assaying were generally taken at 1m intervals or adjusted to geological contacts as deemed appropriate by on site geologists.

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if

material.

• All shallow drillholes drilled at -60 degrees inclination with azimuth perpendicular to the interpreted strike of the mineralized contact.

• As copper and silver mineralization occurs in veins and disseminations approx parallel to the mineralised contact there is no apparent sampling bias in the orientation of drill holes.

• Shallow drill holes were HQ3 core to increase the sample volume to reduce any sample bias.

Sample security

• The measures taken to ensure sample security.

• Sample bags were tagged, logged and transported to Setpoint prep-lab in Francistown, Botswana. From there pulps are transported by the Prep-Lab Manager, to

Setpoint assay labs in Johannesburg.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• MOD's sampling procedure is done according to standard industry practice.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding

royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to

operate in the area.

• All drilling is carried out on PL686/2009 which is a granted prospecting licence held by 100% by MOD Resources.

• MOD has been granted a two year extension of term expiring in September 2016 at which

time MOD can apply for further extension or apply for a mining licence.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• MOD has conducted substantial drilling on the Mahumo deposit on PL686/2009 since the deposit was discovered in 2011. A maiden Mineral Resource for the

surrounding Corner K deposit was

announced by MOD in September 2012.

Geology

• Deposit type, geological setting and style of mineralisation.

• The visible copper mineralization intersected in drill holes on PL686/2009 is interpreted to be a Proterozoic or early Palaeozoic age vein related sediment hosted occurrence similar

to other known deposits and mines in the central Kalahari Copper Belt.

Drill hole

Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material

drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception

depth

o hole length.

• If the exclusion of this information is

justified on the basis that the information

is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• This information is summarised in Table 2 in this announcement.

Data aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material

and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be

• Significant copper and silver intersections are reported by MOD as received from the lab.

• Weighted averages, based on sample lengths are used to calculate the intercepts.

• Calculation of copper equivalent values (for copper plus silver) is based on the reported assay data was carried out using following formula consistent with a significant copper producer in the Kalahari Copper Belt:

CuEq% = Cu% + (Ag g/t * 0.013)

Criteria

JORC Code explanation

Commentary

shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

Relationship between mineralisation widths and intercept lengths

• These relationships are particularly important in the reporting of Exploration Results.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

• MOD has reported down hole widths of mineralised intersections in this and previous announcements and has included a cross section (Figure 1) to demonstrate interpreted true widths on this section (7658725N).

• Once MOD has more drilling information to enable a meaningful interpretation of the geometry of the entire West Zone deposit at Mahumo, MOD expects to be able to report true width intersections.

Diagrams

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• An interpreted cross section and two long sections are contained in this release.

Balanced reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• MOD's exploration is focused on defining

high grade vein related Cu/Ag mineralization.

• Table 1 includes all significant vein related Cu/Ag intersections for all drill holes completed since September 2014 for which assay results are available.

Other substantive exploration data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results;

geochemical survey results; bulk samples

- size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• All substantive data is reported.

Further work

• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• A diamond drilling program is in progress to test potential for lateral and depth extensions to mineralization at the West Zone (proposed to approximately 400m depth) to assist with estimating a resource.

• Figures 1 and 2 have outlined the main areas (targets 1 to 3) proposed to be tested during the current and potentially future drilling programs.