Discovery Metals is a copper and silver concentrate producer from its 100% owned major asset, the Boseto Copper Project in north-west Botswana. The Company is also evaluating a number of Boseto expansion scenarios. Discovery Metals is creating further shareholder wealth through the continued development of and exploration around the Boseto area.
Boseto is a long life mine with an initial evaluated mine life of 15 years. This delivered a project Internal Rate of Return of 32% (using US$3 per pound for copper and US$17 per ounce for silver) and Discovery Metals is currently developing a plan to increase the life of the mine to 25 years and increase copper production from 36,000 to 50,000 tonnes per annum.
The total Mineral Resources and Ore Reserves for the Boseto Copper Project are substantial and can be found on our Mineral Resources and Ore Reserves page.
The Kalahari Copperbelt Prospecting Licence area including Boseto covers 10,517 square kilometres. The Boseto Copper Project is located approximately 90 km south-west of the town of Maun, within a belt of significant copper-silver mineralisation that extends from the well-known and more highly developed Zambian Copperbelt across north-west Botswana and into Namibia. The previously poorly explored and undeveloped portion of this belt is known as the Kalahari Copperbelt.
The operations at the Boseto Project have not displaced any local population, with the nearest village approximately 20 kilometres away. The Project is in close proximity to major roads and an international airport at Maun. Environmental approval was granted in October 2010 and the Boseto Mining Licence was granted in December 2010 for the full development of Boseto and construction commenced in January 2011. The project was delivered on time and on budget in June 2012.
The Company also manages the Dikoloti Nickel Project (28% at 30 June 2013) in north-east Botswana under a Joint Exploration Agreement with The Japan Oil, Gas & Metals National Corporation (JOGMEC). Discovery Metals have recently signed a joint venture agreement with BCL Limited to assist with converting the prospecting licences into mining licences.
During 2011, Discovery Metals was granted 17 prospecting licences of more than 15,000 square kilometres in southern Botswana that may host an extension to the world-class Kalahari Manganese Field. Studies have shown that the manganese is likely to be located at depth and will be costly to explore and develop. One of the prospecting licences may also host gold deposits as an extension of the Kraaipan gold area in South Africa and Discovery Metals is proceeding with evaluation of this opportunity.
Discovery Metals is socially and environmentally focused with a 8 year commitment to Botswana to date. Botswana is a stable, transparent and mining friendly democracy with an ‘A’ credit rated economy and an attractive profit based tax system.
Discovery Metals is listed on the Botswana Stock Exchange (BSE:DML) and the Australian Securities Exchange (ASX:DML).