Discovery Metals ups tonnage and grade of Boseto Copper Project
Discovery Metals reported a new inferred mineral resource of 15.9 million tonnes with an average grade of 1.6% copper and 16.4 grams per tonne silver using a 0.6% copper cut-off. The new resource represented an increase of 10% on the tonnage, but far more encouraging for the company, a 25% increase in the copper grade and a 30% increase in the silver grade.
"The increases in copper and silver grades will go straight to the bottom line of the Boseto Copper Project economics," noted Discovery Metals' MD, Brad Sampson.
The new Plutus resource increased the total Boseto Copper Project resource to 50.4 million tonnes @ 1.3% copper and 17.6 grams per tonne silver, containing 655,000 tonnes of copper and 26 million ounces of silver.
“The 10% grade increase alone improves Boseto Copper Project base case economics - Project Net Present Value increases by US$33 million to US$148 million; with a new Internal Rate of Return of 27% using US$2.38/lb as the long term copper price,” the company said.
"Our previous sensitivity analysis indicated that a 10% increase in both copper and silver grade would improve the NPV of the base case economics by approximately 30%.
Discovery Metals further announced two additional developments at Boseto. First, that drilling had now confirmed an ‘extensive’ shallow depth zone of copper grading more than 2% which could become a high grade starter pit. And second, that the hanging wall of the main mineralised zone, which was previously considered waste rock, is in fact grading between 0.2% and 0.6% copper and would be stockpiled for processing.
"We expect more good news as our bankable feasibility study exploration continues, with the likelihood that the mineralisation zone between the Plutus and Petra prospects will be continuous".
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