AIM RELEASE
1 September 2008
Boseto Copper Project Bankable Feasibility Study Progress Report
Ø Appointment of Resource Consultant and Engineering Partner
Ø Acceptance of Terms of Reference for EIA
Discovery Metals (ASX,BSE; DML: AIM; DME) has made key appointments
of groups who will assist in completing the Bankable Feasibility
Study (BFS) for the Boseto Copper Project (Project) and has received
the terms of reference for the completion of the Environmental Impact
Assessment for the Project.
The appointments of the Resource Consultant and Engineering Partner
follow a competitive tender process with submissions received from a
field of international companies. The successful companies are:
Resource & Mining Consultant:
Internationally recognised Snowden Mining Industry Consultants
(Snowden) has been appointed to undertake Resource Modelling,
Geotechnical and Mining Engineering components for the Project.
Snowden is very familiar with the Boseto Copper Project, having
completed the initial resource modelling work and provided the
independent review of the Project's Pre Feasibility Study.
Engineering Partner:
GRD Minproc has been engaged to undertake the engineering package for
the BFS. GRD Minproc has extensive and relevant experience in the
design and construction of similar-sized copper plants, as well as
recent experience in copper feasibility studies. They have relevant
development experience in Sub-Saharan Africa.
Both GRD Minproc and Snowden will support the BFS through staff based
in both Australia and Southern Africa. The appointment of both firms
continues Discovery Metals approach to appointing high calibre groups
to augment the fast tracking of the development of the Boseto Copper
Project.
Environmental Impact Study Terms Of Reference:
The Environmental Impact Assessment (EIA) for the Boseto Copper
Project commenced in the first half of 2008. As part of the process,
Discovery Metals was required to formally agree a Terms of Reference
with the Botswana Department of Environmental affairs. This step has
now been
completed. The EIA is being progressed by a team of consultants from
Botswana and South Africa under the direction of SRK Consultants.
Discovery Metals' Managing Director, Brad Sampson said "I am
confident that the groups who will support us in completing the BFS
will deliver outcomes that are robust and optimised. Our strategy of
partnering with highly experienced industry professionals should give
shareholders great confidence in the quality of the BFS outcomes.
Agreement on the Terms of Reference for the EIA is also a significant
step. We are on track to complete the EIA at the end of 2008 - well
ahead of this becoming a critical path item in the completion of the
BFS."
"The BFS will be completed in mid 2009 and is a key step in Discovery
Metal's goal to produce and sell copper concentrate to the world
market from early 2011."
Mr Sampson added "At the same time, we are continuing infill drilling
of the existing deposits and anticipate further expansion of the
Boseto Copper Project resource base."
Background:
The Boseto Copper Project, located in north west Botswana (Figure 1)
currently has a total mineral resource of 49.1Mt @1.2% Cu (Figure
2). It is anticipated that further drilling being undertaken will
result in an increase in this resource base.
The Pre Feasibility Study for the Project was completed in July 2008
and demonstrated that the Project had an economically-viable base
case, with significant upside potential. In July 2008, the Board of
Discovery Metals approved the commencement of the Bankable
Feasibility Study (BFS) for the Project, targeting first copper
concentrate production in early 2011. A 2Mtpa operation is currently
envisaged to produce 23,500 tonnes of copper and 780,000 oz of silver
annually.
The BFS, scheduled for completion mid 2009, will include:
§ mineral resource and reserve evaluation (in compliance with the
guidelines of the JORC code) on three of the Boseto Copper Project's
resources prospects - Zeta, Plutus and Petra;
§ mine design , pit optimisation and production scheduling;
§ process plant design and associated infrastructure studies;
§ BFS study level capital and operating cost estimate;
§ marketing and concentrate off take agreements and;
§ financial evaluation & modelling based on the results of the BFS.
Notes to Editors
Discovery Metals Limited was formed as Discovery Nickel Limited in
May 2003, changing its name in 2006. Discovery Metals is focused on
developing its Boseto Copper Project in north western Botswana. The
company aims to create shareholder wealth through discovery and
development of economic mineral deposits.
The company's major assets are the Boseto Copper Project in North
West Botswana and the Dikoloti Nickel Project in north east
Botswana.
The tenement package consists of 14 prospecting licences covering an
area of 12,100 km² within the Kalahari Copper Belt. The Boseto Copper
Project is situated within a large area of significant copper-silver
mineralisation, which potentially occurs over hundreds of strike
kilometres.
There are three smaller Australian projects, two of which are joint
ventured, with joint venture partners potentially earning in a 51
percent equity.
The information in this report as it relates to the Plutus and Petra
Mineral Resources for the Boseto Copper Project was compiled by Mr
Stefan Mujdrica and Mr Jason Hosken, who are Members of The
Australasian Institute of Mining and Metallurgy. Mr Mujdrica and Mr
Hosken are full time employees of Snowden Mining Industry
Consultants. Mr Mujdrica has sufficient experience which is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2004 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". The information in this report as it
relates to the Zeta Mineral Resources for the Boseto Copper Project
was compiled by Mr Ferdinando Camisani, who is an Honorary Life
Fellow of The South African Institute of Mining and Metallurgy, a
recognised overseas professional organisation. Mr Camisani is an
Associate of A&B Global Mining. Mr Camisani has sufficient
experience which is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004
Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Mr Mujdrica and Mr
Camisani consent to the inclusion in the report of the matters based
on information provided by them and in the form and context in which
it appears.
Information on the company is available on its website:
www.discoverymetals.com.au
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| For further information on this release and Discovery Metals |
| generally, please contact: |
| Brad Sampson Managing Director |
| Ph: +61 7 3218 0200 Mob: +61 438 771 037 |
| brad@discoverymetals.com.au |
| Nominated Advisor - RFC Corporate Finance Limited, Contact Rob |
| Adamson Ph: +61 2 9250 0000 |
| AIM Broker - Fox-Davies Capital, Contact Richard Hail Ph: +44 20 |
| 7936 5200 |
| Australian PR - BBS, Contact Gerard Reilly Ph +61 (7) 3221 6711 |
| Email greilly@bbspr.com.au |
| UK PR- Conduit PR, Contact Jane Stacey/Jos Simson Ph +44 (0)20 |
| 7429 6606/ +44(0)79 2292 3306 |
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NOTE: For further information contact
Brad Sampson
Managing Director
Tel: +617 3218 0200
Mobile: 0438 771 037
Email: brad@discoverymetals.com.au
Rob Adamson
RFC Corporate Finance Ltd (Nomad)
Tel: +612 9250 0000
Email: Rob.Adamson@rfc.com.au
Richard Hail
Fox-Davies Capital Ltd (AIM Broker)
Telephone: +44(0) 20 7936 5200
Email: Richard.Hail@fdcap.com
Further information on the Company is available on its website:
www.discoverymetals.com.au
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