Discovery Metals is focusing its activities on the Boseto Copper Project in north-west Botswana which commenced production in the first half of 2012. Annual production is planned to be approximately 36,000 tonnes of copper and more than 1 million ounces of silver per annum, for in excess of the initially evaluated mine life of 15 years. At a copper price of US$3.00/lb and silver price of US$17.00/oz the project delivers an Internal Rate of Return of 32% and will be paid back within 2 years of production commencing. An expansion plan is currently being prepared that will extend the life of the mine to 25 years and the annual production rate to 50,000 tonnes per annum of copper. The Boseto Copper Project lies within the 10,517 square kilometres of tenements the Company holds on the highly prospective Kalahari Copperbelt, providing significant scale and resource upside.
The Dikoloti Nickel Project in north-east Botswana is in a Joint Venture with The Japan Oil, Gas and Metals National Corporation (JOGMEC), who have earned a right to 72% of the project to 30 June 2013.
During 2011, Discovery Metals was granted 17 new prospecting licences covering more than 15,000 square kilometres in southern Botswana that could possibly host an extension of 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 looking to grow its exploration and project development activities within southern Africa by utilising its Botswana staff and operational capability to lever into new base metal projects within the region.