DISCOVERY METALS LIMITED (DME) – Quarterly Results

DISCOVERY METALS LIMITED (DME) – Quarterly Results

HIGHLIGHTS:
Boseto Copper Project Bankable Feasibility Study

• The overall Bankable Feasibility Study ('BFS') is now scheduled for completion in the first quarter of 2010 to incorporate recent positive exploration results.  Other BFS work, including ore processing, infrastructure and the environmental assessment, will be completed in mid 2009 in line with the original BFS schedule.
• Based on BFS work to date and changes in the external environment, updated financial evaluation of the Boseto project shows:
• operating  costs  are expected  to  be significantly  lower  than reported in the  Pre Feasibility  Study ('PFS') with  the updated  10 year average cost of $1.06/lb vs  $1.43/lb in the PFS, due to  higher grades and  lower  site  and transport  costs  more  than  offsetting reduced metallurgical recovery and higher treatment charges.
• capital costs  should be  reduced by approximately  25% based  on current  lower  supplier  quoted  costs  for  capital  equipment  and engineering.
• overall project economics are improved, with the copper price  at which the project provides a 10% discounted cash flow rate of  return now being less than $1.50/lb (break even NPV).

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