Name and Location
Boseto copper operation, Botswana.

Client
Discovery Metals Limited (DML).

Project Description
The Boseto copper operation is located on one of 18 prospecting licences, covering about 13 500 km² within the Kalahari Copperbelt – previously a poorly explored extension of the Zambian Copperbelt.

The project consists of two main prospects – Zeta and Plutus.

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 current openpit and pending underground operations will 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 Operation.

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

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

Tender submissions were received in the quarter ended June for the provision of mining services for the Zeta underground mine project. The tenderers have been shortlisted and detailed discussions are being held with the shortlisted candidates, with the final award of the contract expected by the end of the September quarter.

Finalised construction designs for the initial two years of development for the Zeta project are on track for completion in the March quarter of 2015.

Key Contracts and Suppliers
Transamine (concentrate offtake agreement) 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.