Discovery Metals Limited has provided the Boseto operations update for August, which showed that the mine registered a record mill throughput of 225kt and metal production of 1,815 tonnes of contained copper and 78,891 oz of contained silver. The total ore tonnes processed of 225kt while total material movement of 2.8 Mt. The company said overall copper recovery of 75% and silver recovery of 86% with the Zeta sulphide ore recovering 87% copper and 89% silver.
According to DML, mining continued in both the Zeta and Plutus Open Pits in August. Mining production (ore plus waste) for August 2013 was 2.8 million tonnes. Total material movements over the past 5 months have generally been in line with the target rate of 3 million tonnes per month. Material movements are now planned to ramp up to 3.5 million tonnes per month by December.
“Operational changes made earlier in the year to improve drilling availability and productivity have facilitated sustained improvements in blasted stocks in the Zeta and Plutus Open Pits.
The blasted stocks at end of August contained 1.7 million tonnes waste and 97,000 tonnes ore.”
During August, 225kt of ore was processed containing 1.07% Cu and 12.7 g/t Ag. This is the most tonnes milled in a single production month at Boseto to date.
The total mill throughput consisted of: Zeta high grade sulphide ore: 100kt @ 1.29% Cu and 19 g/t Ag; Zeta low grade material: 44kt @ 0.34% Cu and 6 g/t Ag; and Plutus transitional ore: 81kt @ 1.21% Cu and 9 g/t Ag.
The average metallurgical recoveries of 75% copper and 86% silver were achieved for the month. Overall copper recovery is in line with expectations with silver recovery continuing to outperform original estimates.
Discovery said concentrate production for August was 4,642 tonnes at 39% copper and 529 g/t silver containing 1,815 tonnes of copper and 78,891 ounces of silver.
The off-take arrangement the company has in place with Transamine (100% of concentrated for the first 5 years of production) continues to work well for the Company. All concentrate is being transported from site by road to port and multiple final customers.
The company also informed its shareholders that it continues to be in discussions with interested parties in relation to a potential transaction. Further, the Company is in advanced discussions with one party in relation to a re-financing proposal.
“Shareholders are advised that there is no guarantee that an acceptable binding proposal will be forthcoming from these discussions. Additionally, the Company continues to work with lenders with a view to re-profiling its debt over a longer timeframe.”
The company and its lenders have jointly agreed to extend the date for a final board recommended offer to 30 September 2013.