Name and Location
Boseto copper project, Botswana.

Client
Discovery Metals Limited (DML).

Project Description
The Boseto copper project is located on one of 14 prospecting licences, covering 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-tonne-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-tonne-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
The Boseto mine cost $175-million to develop.

Capital expenditure to first ore production at Zeta is estimated at $26.8-million. The definitive feasibility study on the project expects that the development of the mine will be financed using cash flows from the Boseto openpit operations.

Duration
First copper/silver concentrate from Boseto was sold in June 2012.

Underground mining is expected to start from the Zeta prospect in 2014, with production expected in 2015.

Latest Developments
DML has been granted government approval for the development of the Zeta underground mine, at the Boseto copper project.

The Ministry of Minerals, Energy and Water Resources has amended the mining licence at Boseto to include the Zeta underground mine.

The establishment of the Zeta underground mine will significantly lengthen the life of the Boseto operation, while also providing longer and consistent access to the high-quality mineralisation.

DML’s ultimate objective was to supply sufficient ore from three planned underground mines to keep the 3.2-million-tonne-a-year Boseto concentrator at maximum throughput and efficiency.

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.