Discovery Metals Limited (DML) is set to start mine development at its Boseto copper project after the government of Botswana granted the project a mining license, paving way for construction.
The 15 year license, which is a prerequisite for miners to commence construction, is a boost to the Botswana quoted company as it targets to be within 2012 commissioning schedule.
DML is developing the Boseto project, which expects to produce in excess of 35,000 tonnes of copper and 1 million ounces of silver annually.
Brad Sampson, the Managing Director of Discovery Metals, praised Botswana for giving his company the much needed license.
“We thank the Government of Botswana for their confidence in Discovery Metals and for their rapid decision making with regards to the mining license,” Sampson said.
“We and our EPC partner, Sedgman, can now focus on delivering the project into production on time,” he added.
Government, however, did not exercise option of having a stake in the project as it declined its ‘once off’ option to purchase a share of Boseto copper project. It therefore means DML retains 100 percent of the project.
DML said on its website that the extension of the license relies on the company demonstrating scheduled reserves and resources beyond the 15 years and including these in the mine plan.
The move follows the granting of surface rights by the Tawana Land Board in October 2010.
The company revealed that since the granting of surface rights, its team has built a temporary access track to the Boseto plant site and cleared topsoil from the site.
“This latest approval from the Department of Mines allows Sedgman, in the New Year, to commence excavation and foundation works in preparation for delivery of the processing plant major items, which are all on order and in progress in various locations around the world,” the company added.
Sedgman is the selected EPC contractor for Boseto. Its brief includes Front End Engineering Design (FEED) and related metallurgical testing for the copper flotation plant.
Subject to DML’s approval, the scope of works will then be expanded to include detailed design, procurement and construction of the plant and associated infrastructure, including the borefield development. The total estimated value of all works is approximately USD$85 million.