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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (44626)	10/6/2009 10:35:46 PM
From: LoneClone	Read Replies (1) \| Respond to of 196401

Discovery Metals remains bullish about Boseto Copper Project proactiveinvestors.co.uk Emerging copper producer Discovery Metals (ASX/BSE: DML, AIM: DME) has provided investors with more detail on the Bankable Feasibility Study for its Boseto Copper Project. The Discovery Metals share price rose 3.7% in Australia on the news, rewarding investors. However, longer term investors have performed even better, gaining a 203% return on their money since January 2009 - and the year is still not over. Brad Sampson managing director DML said: “we remain very bullish about the prospects for our Boseto Copper Project." Importantly, "the extensive ongoing feasibility work has resulted in a slight decrease in the estimated cash operating costs to an average US$1.04/lb," Sampson said. He said the BFS remains on track for completion in March 2010. Final BFS resource model is timed for January 2010, ensuring strong news pipeline for investors. The updated financial parameters of DML indicated payback is expected within 2 years of production commencing. Operating costs will still be in the middle of the copper producer costs curve at the average cost of US$1.04/lb (January 2009 - US$1.06/lb). Capital costs have increased to US$150 million (January 2009 - US$131 million), based on allowing a higher contingency for capital component price changes. However, overall project economics have improved despite including additional capital contingency and exploration expenditure. Break-even copper price at which the project provides a 10% discounted cash flow rate of return is now less than US$1.53/lb. Production from Boseto copper concentrator is planned to (average) 25,000 tonnes of copper and nearly 700,000 ounces of silver per annum, contained in a high grade concentrate. With industry estimates of a looming large copper supply deficit after 2011, Discovery's Boseto copper project has timing on its side. In addition, production from it will only satisfy a small part of the copper supply shortage, with analyst estimates generally agreed on likelihood of higher copper prices from 2010.