Proactive Investors reported that Brisbane based nickel and copper developer Discovery Metals released its quarterly results, saying the bankable feasibility study of its Boseto copper project in Botswana was 60% complete and remained on schedule.
While the BFS is 60% through and on track for completion in Q1 of calendar 2010, the ESIA is now complete and is expected to be submitted to the government of Botswana following a review. The infill drilling programs for the BFS, aimed at upgrading portions of the mineral resource to indicate and measured categories, were completed on schedule in September.
The latest update from the Boseto BFS showed 10 year average operating costs of USD 1.04 per pound and capital costs of USD 150 million, while net present value range was between USD 116 million to USD 426 million at copper prices of USD 2 per pound and USD 4 per pound respectively.
Compared to the pre feasibility study, which was completed in July, the average copper grade at the project has increased 20%, the capital and average operating costs have been reduced 19% and 27% respectively. The study has also identified significant new mineral resource prospects within 15 kilometers of the plant location.
The total JORC compliant minerals resource at the Boseto gold project stood at 3.9 million tonnes at 1.6% copper and 23 grams per tonne silver in measures resource, 7.8 million tonnes at 1.5% copper and 22.8 gram per tonne silver in indicated resource and another 48.7 million tonne at 1.4% copper and 18.7 silver in the inferred category. The final assay results from the BFS final infill drilling program at the Zeta prospect within the Boseto project is expected to be announced in the December quarter.
The company has recently raised AUD 13.1 million through a placing to fund the BFS as well as allow continued exploration and provide funds to place deposits on long lead items in the future. Discovery’s cash position at the end of September was at AUD 4.8 million.
Discovery Metals launched JV with Japan Oil Gas and Metals National Corporation earlier this month for the Dikoloti nickel project in north east Botswana, which has an inferred resource of 4.1 million tonne at 0.7% nickel, 0.5% copper and 1.2 gram per tonne PGE’s at a cut off of 0.5% nickel for 28,700 tonnes of contained nickel. Discovery has earned 85% interest in Dikoloti from Xstrata. JOGMEC will provide funds of AUD 3 million for exploration of the Dikoloti prospecting areas.
(Sourced from Proactive Investors)
