Botswana focused copper and nickel exploration and development company, Discovery Metals, announced that Taurus SM Holding Limited, had increased its holding from approximately 10.67 million shares (8.2%) to 14.3 million shares (9.5%) in the Company.
Discovery Metals recently announced positive results from a pre-feasibility study on the Bosteng Copper Project, and the commencement of a full feasibility study.
The study was based on the assumption of building an open-cut mine, which would process 2 million tonnes of ore per annum from 2011, producing 23,500 tonnes of copper and 780,000 ounces of silver, annually, for 10 years. Project development is estimated to be $185 million, including all infrastructure and a 20% contingency fund.
The plant would source ore from pits at Zeta, Plutus and Petra, where Discovery already has already outlined an inferred and indicated resource of 49 million tonnes grading 1.2% copper, including an inferred resource of 8.9 million tonnes grading 1.4% copper at Zeta.
Assuming a long-term copper price of US$2.38/pound for copper suggests an internal rate of return (IRR) of 23%, with a post-tax net present value (NPV) of US$115 million and pay back of 3.5 years; move the copper price up to US$3.50 and those numbers change to an IRR of 35%, an NPV of $220 million and payback of 2.25 years.