Name and Location
Zeta underground copper mine project, Botswana.

Client
Discovery Metals.

Project Description
The Zeta underground mine project has total proved and probable ore reserves of 7.3-million tons, with a grading of 1.3% copper and 24.5 g/t silver, and total resources of 9.07-million tons, with a grading of 1.3% copper and 26.8 g/t silver.

The development plan for the Zeta underground mine – a key component of the Boseto copper mine development plan – will result in the construction of an integrated opencut and underground mine, producing an average 1.5-million tons a year – 18 000 t/y copper and 800 000 oz/y silver – over an 11-year period.

A twin-decline development from the Zeta openpit area will provide underground access.

The underground mine will extend over a strike length of 2 km beneath the Zeta openpit, between 150 m and 630 m below surface.

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

Duration
Further integration studies will be undertaken to confirm start-up and full production dates.

Latest Developments
The contract tender for the underground works is in the final stages of negotiation, with the final contract award decision on hold, pending the company’s corporate outcomes.

Further technical review of the study has been completed, with an updated Zeta underground ore reserves and mineral resource to be announced to the market shortly.

The Botswana Department of Environmental Affairs has approved the environmental and social impact statement for Zeta underground.

Preparation work is now under way to finalise presentations to the Botswana Department of Mines for final mining approval.

The development of the Zeta Underground mine is currently on hold.

Key Contracts and Suppliers
Mining Plus (definitive feasibility study).

On Budget and on Time?
None stated.

Contact Details for Project Information
Discovery Metals, tel +267 318 0751 or fax +267 318 0752.
Mining Plus, tel +61 8 9213 2600 or email info@miningplus.com.au.