POSITIVE PRE-FEASIBILITY STUDY FOR BOTSWANA COPPER PROJECT

POSITIVE PRE-FEASIBILITY STUDY FOR BOTSWANA COPPER PROJECT

Discovery Metals Limited announces the completion of the PFS for its Boseto Copper Project (previously the Maun Copper Project) in north-west Botswana.  The PFS for the Boseto Copper Project (Project) commenced in October 2007 and was completed on time and on budget.

Highlighted in announcements was that the Pre-Feasibility Study (PFS) for Discovery Metals’ Boseto Copper Project (previously known as the Maun Project) demonstrates an economically and technically viable project with considerable upside.
Total mineral resource of 49Mt @ 1.2% Cu, including indicated resource of 8.9 Mt @ 1.4% Cu at Zeta deposit with the balance at inferred status in the Zeta, Plutus and Petra deposits.
PFS based on an open cut mine delivering 2Mtpa ore to a conventional flotation plant.  Average plant production 23,500 tonnes of copper and 780,000 ounces of silver per annum commencing January 2011.  Average Net Cash Costs US$1.43/lb copper after silver credits are forecast.
Project development cost estimated at US$185 million includes all infrastructure and contingency of 20%.
Economic evaluation using US$2.38/lb Cu price delivers Internal Rate of Return (IRR) of 23% with an after tax NPV of US$115 million.  NPV rises to US$220 million and IRR rises to 35% with US$3.50/lb Cu price.
Discovery Metals’ Board has also approved moving to Bankable Feasibility Study (BFS).

Discovery Metals’ Chairman Gordon Galt said, “The completion of the PFS for the Boseto Copper Project marks a significant milestone for the company.  The results of the PFS show that mining and processing will be relatively simple, infrastructure is obtainable at reasonable cost and the Project economics look encouraging based on conservative assumptions for costs and selling prices.  We will now proceed confidently into the Bankable Feasibility Study stage of the Boseto Copper Project.  It is extremely pleasing to be in this position only four years after the company was founded.”

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