DISCOVERY METALS LTD – BOSETO COPPER PROJECT

In Brief
The new Plutus inferred mineral resource of 15.9Mt @ 1.6% copper (Cu) and 16.4 g/t silver (Ag) delivers more than a 35% increase in contained metal, with a tonnage increase of 10%, a copper grade increase of 25% and a silver grade increase of 30%

Average milled grade over the Boseto Copper Project life improves by more than 10% compared to that used in the recently announced pre-feasibility study (PFS) economics,

The 10% grade increase alone improves Boseto Copper Project base case economics – Project Net Present Value (NPV) increases by US$33 million to US$148 million; with a new Internal Rate of Return (IRR) of 27% (was 23%) using US$2.38/lb as the long term copper price.

• The total project resource is 50.4 million tonnes @1.3% copper and 17.6 g/t silver containing 655,000 tonnes of copper and 26 million ounces of silver.
• Additional upside identified at the Plutus prospect includes:

An extensive shallow mineralised zone at greater than 2% copper. This provides potential for a high grade starter pit for the open cut mining operation,

A low grade mineralised zone in the hanging wall of the main mineralisation. This provides potential to increase the mining reserve and/or extend the life of processing operations.

Brad Sampson, Managing Director of Discovery Metals said “The increases in copper and silver grades will go straight to the bottom line of the Boseto Copper Project economics,”
“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%.
“The modelling at the Plutus prospect has also identified a number of upsides which are exciting. Firstly, we have confirmed an extensive shallow depth mineralised zone at greater than 2% copper grade which will allow us to consider a high grade starter pit for the open pit mining operation (Figure 2). Secondly, we have established the existence of a significant amount of mineralised material at between 0.2% and 0.6% copper grade in the hanging wall of the main mineralised zone. This material is currently included in the PFS open cut schedule as waste rock but we now know that it can have value as ore. We will make sure that the material is stockpiled for future processing.”