Discovery Metals is making good progress on the commissioning and the ramp up of copper-silver concentrate production at its 100% owned Boseto copper project in northwest Botswana. It is designed to produce an average of some 36,000 t/y copper and 1.1 Moz silver in concentrate from 3 Mt/y of ore feed. Open pit mining production at the Zeta Deposit was 150,000 t of ore in July. The quantity of ore mined was less than planned, with the third (and last) 350 t excavator still awaiting commissioning at month end (requires electrical repairs). Operation of this excavator is necessary to allow the design mining rate (delivering 250,000 t/month of ore to the Boseto concentrator) and mining costs to be achieved.

Late commissioning of the third excavator limited ore mining to mainly transitional type ore with some oxide. At month end mining had reached the 940 level, which is approximately the top of the sulphide mineralisation zone. Mining of this zone is projected to commence from mid-August.

Waste removal is concentrating on lengthening the pit to the northeast and southwest and on the first cutback on the hanging wall side above the exposed sulphide zone.

Crushing, milling and production of copper-silver concentrate commenced at Boseto in June 2012. July results and commissioning progress included:

• About 1,440 t of copper-silver concentrate was produced in July at an average grade of 37% Cu and 630 g/t Ag
• The crushing and milling circuits each achieved over 130,000 t throughput for the month. These results are in line with the expectations of the commissioning schedule
• Commissioning of the on stream analysis (OSA) commenced
• Testing of various reagents is underway to determine which combinations are most effective for flotation performance of the various ore type
• The eighth (of 8) diesel generator is yet to be commissioned and is awaiting delivery of new parts. The other seven sets are delivering sufficient power to allow full concentrator operation.

Planned progress in August is to continue to increase the rate of processing towards the ultimate goal of 250,000 t/month, to commence processing of sulphide ore and to significantly increase the tonnage and grade of concentrate produced.

Discovery Metals’ Managing Director, Brad Sampson said “We aimed to achieve 50% of design capacity in our first full month of commissioning at Boseto and both the mine and process plant have performed at above this rate. Commissioning of the final excavator will increase ore delivery to the plant and allow a further improvement in the quantity of ore processed in August. Along with recent strong exploration results and Ore Reserves and Mineral Resources delineation at the project, Discovery Metals is establishing the foundations for long term copper production in the low sovereign risk jurisdiction of Botswana.”