Name and Location
Boseto copper project, Botswana.

Client
Discovery Metals. The company recently became the takeover target of a Chinese bidder, which was offering shareholders A$824-million for their shares in the company.

Project Description
The Boseto copper project is located on one of 14 prospecting licences, covering an area of about 10 100 km² within the Kalahari Copperbelt –previously a poorly explored extension of the Zambian Copperbelt.

The project consists of three main prospects – Zeta, Plutus and Petra.

A bankable feasibility study (BFS) has indicated that the resources and reserves can support a three-million-ton-a-year copper/silver operation over a five-year life-of-mine.

The development plan includes the establishment of openpit and underground mining operations to feed a three-million-ton-a-year concentrator for 15 years. Yearly production is forecast at more than 35 000 t of copper and one-million ounces of silver.

Value
$175-million.

Duration
Steady-state production is expected in the second quarter of 2012. Underground mining is expected to start from the Zeta prospect in 2014, with production expected in 2015.

Latest Developments
Progress continued on the ramp-up of production at Boseto during January 2013. Processing of predominantly sulphide ore enabled concentrate production to increase significantly during the month to 3 281 t, containing 1 262 t copper and 52 786 oz gold. This compares with the December 2012 concentrate production of 2 345 t, containing 925 t copper and 41 513 oz gold.

Mining material movements were adversely affected by exceptionally heavy rainfall. However, ore mining was able to advance into the sulphide zone, enabling milling of better quality ore. Copper recovery was 80%.

The concentrator achieved 95% of its design production rate for the 17 days it operated. Operating time was reduced, owing to a mill gearbox repair and insufficient ore from the mine.

Mine production, concentrator feed and concentrate production are expected to increase in February and in the future towards design rates.

Initiatives for improving mining performance, particularly over the next few months, are focussed on drilling to increase penetration rates and improve drill maintenance;  blasting – to increase waste blasted per shot in the waste removal area, and limit ore heave to reduce dilution and ore loss in the ore mining area;  and truck loading cycles – to ensure three-pass truck loading with the larger buckets.

Key Contracts and Suppliers
Sedgman (engineering procurement and construction management); Transamine (concentrate offtake agreement); GRD Min-proc (BFS) and Standard Bank Chartered, Standard Bank, Credit Suisse and Caterpillar Finance (banking syndicate lead financial arrangers).

On Budget and on Time?
Yes.

Contact Details for Project Information
Discovery Metals, tel +61 7 3218 0222, fax +61 7 3218 0233 or email info@discoverymetals.com.au; or Discovery Metals Botswana, tel +267 318 0751 or fax +267 318 0752.