MOD has reported infill drilling hitting 18m grading 4.3% Cu and 94g/t Ag at its 70%-owned T3 copper project.
A resource upgrade at T3 is expected late this month following the infill drilling late last year that targeted an August 2017 estimate of 36 million tonnes grading 1.14% Cu containing 409,000t of copper.
A prefeasibility study is underway at the project, while drilling is set to resume next week with eight rigs in action.
The project is currently seen as an open cut 20,000-25,000 tonne per annum copper producer, with underground potential also being flagged.
MOD aims to begin construction of the project early next year.
MOD's partner at T3 is AIM-listed Metal Tiger (LN:MTR).
The ASX-listed company started the December quarter with A$13.6 million (US$10.7 million) cash.
MOD raised $14.6 million last March by issuing new shares priced at $0.062 each.
Shares in MOD were up 10% to $0.056 in midday trade today, capitalising the company at $106 million.