C O M P A N Y O V E R V I E W
New Era for Discovery Metals Written by: Laura Close Produced by: Anthony Munatswa
3
D I S C O V E R Y M E TA L S
Brad Sampson with President
Board members at the
Seretse Khama Ian Khama
Official Opening
Boseto Concentrator
Discovery Metals financial stabilisation has opened the door to underground mining for the company
4
D
iscovery Metals Limited is a copper and silver concentrate producer from its 100 percent owned major asset, the Boseto Copper Project in northwest Botswana. The company was founded in 2003, and work at Boseto began in 2005. The past five years have seen Discovery Metals evolve from an explorer to a copper-silver producer. Its last financial year was very successful—the company produced 18,000 tonnes of copper, and are looking to produce between 24 and
MINING
Key Personnel
Jeremy Read Executive Chairman
Traditional dancers perform for community and employee guests
25 thousand in the next few years. Although Discovery Metals hasn’t always been as stable as it has been for the past year or so, moving forward the increased production in Boseto, exploration and production in underground mines and the company’s continuing expectation for a safe and effective company culture will guide Discovery Metals into a new era of mining in Africa.
Jeremy Read has 23 years domestic and international minerals exploration experience and was previously the Manager of BHP’s Australian Exploration Team. He has extensive exploration experience for nickel and copper sulphides and played a critical role in the discovery of Kabanga North Nickel Deposit in Tanzania. Jeremy was the founding managing director of Discovery Metals from its incorporation in May 2003, until his appointment as a non-executive director on 1 February 2008. Mr Read secured the Boseto Copper Project for the Company and was responsible for all Discovery Metals’ fund raising activities and for listing Discovery Metals on the Australian Securities Exchange, Botswana Stock Exchange and the Alternative Investment Market in London.
Boseto Boseto is a long-life mine with an initial evaluated w w w. d i s c o v e r y m e t a l s . c o m
5
DR
D com Sub Sa DTH a
W
Head Office: T: +27 14 573 3444 • F: +27 14 573 3555 • E: info@discoverydrilling.co.za Botswana: T: +26 7 261 5870 • F: +26 7 261 5775 • E: louw@discoverydrilling.co.bw
RILLING DYNAMICS DONE DEEPER
Discovery drilling is one of the leading diamond drilling mpanies in South Africa, drilling any where south of the ahara. Drilling from BQ to T6-146 size core. We also do and RC drilling and we manufacture our own drill rigs.
We are big enough to matter and small enough to care.
www.discoverydrilling.co.za
SUPPLIER PROFILE
DISCOVERY DRILLING CONTRACTORS
Established: 1999 Industry: We are proud to present Discovery Drilling Contractors as the complete solution for exploration drilling needs. Our service is solid, based on experience and quality of both management and field personnel, as well as rugged, safe and dependable drilling equipment. Services: Discovery drilling is one of the leading diamond drilling companies in South Africa, drilling any where south of the Sub Sahara. Drilling from BQ to T6-146 size core. We also do DTH and RC drilling and we manufacture our own drill rigs. We are big enough to matter and small enough to care. Ongoing Projects: Keeping to our standards and maintaining momentum in development and delivery of excellent service is the key for a promising future. Although Discovery Drilling already is a sizeable drilling venture, it will not be allowed to slide into an oversized, clumsy entity. Our short to medium term planning is to expand drilling operations into sub-Saharan Africa.I, as the director of Discovery Drilling Contractors want to assure you of our professional service and loyalty towards your company. Website: www.discoverydrilling.co.za
D I S C O V E R Y M E TA L S
MINING
mine life of 15 years. Because the mine has been so lucrative, Discovery Metals is currently developing a plan to increase the life of the mine to 25 years. Boseto is part of the Kalahari Copperbelt Prospecting Licence, which covers over 10,500 square kilometres from Zambia in the northeast of Botswana down to the southwest of the country. The Kalahari Copperbelt is underdeveloped and has a lot of potential, so the company will be investing more time and effort into exploration and eventual production. “The backbone and the positive thing for us is that we have inherently concentrated or we’re the only operation within the Kalahari
“The backbone and the positive thing for us is that we have inherently concentrated or we’re the only operation within the Kalahari Copper Built” – Bob Fulker, CEO
Updated mineral resources and ore reserves map
w w w. d i s c o v e r y m e t a l s . c o m
9
D I S C O V E R Y M E TA L S
Ore moving through the crushing circuit
Video links
10
Copper Built,” said Bob Fulker, chief executive and operating officer. “We’re the first company to develop an operating mine. There are a lot of others out there that are trying to do what we’ve done. They are still exploring, still trying to get their projects approved or funded.” The main ore bodies on Boseto are Zeta, Plutus and Northeast Mango Two. There are also Zeta Northeast, Mango, and Northeast Mango One. Within the Kalahari Copperbelt, the company also has 10,000 square kilometres of exploration leases.
MINIG GLOBAL
Storage shed
Underground Future Currently, Discovery Metals is out in the market with the goal to raise equity from current shareholders and a few potential new shareholders to proceed into underground development operations. The company wants to start exploration in the beginning of the calendar year 2015. “The money raised will fund the first of those underground developments,” said Fulker. “The cash flow to be generated for that underground development will then be put back into
“We’re the first company to develop an operating mine. There are a lot of others out there that are trying to do what we’ve done.” – Bob Fulker
w w w. d i s c o v e r y m e t a l s . c o m
11
EMS Mining a contract mining company executing specialised mining services both surface and underground mining projects. We have the operational ability, track record and the necessary resources to execute a safe, professional and successful project, incorporating our various disciplines and key skills.
Providing
quality market leading mining services
■ Mine design and planning ■ Vertical shaft sinking ■ High speed trackless development ■ Raise boring ■ Underground production drilling ■ Surface drilling and blasting
Tel: +27 (0) 11 234 7054
Cell: +27 (0) 82 352 0222
Email: info@emsmining.co.za
P.O Box 21659, Maun | Office No1 Mogobe Complex, Maun
Tailor-made Solutions through Smart Partnerships 24/7 support services High and Low voltage installations Engineering sales Site support
LOYAL SINCE 1923
LC Packaging is one of the largest packaging experts in Big Bags, delivering more than 13 million bags annually in the world. In every delivery of our FIBCs (big bags) you receive the same high quality, with the same specifications.
www.lc-packaging.co.za jleclef@lcpackaging.com
www.onetrackengineering.com T: +267 686 4347 | F: +267 680 0760 | Cel: +267 76 805 700 E: info@onetrackengineering.com
Keeps your industry going
D I S C O V E R Y M E TA L S
MINING
subsequent underground development.” The planned underground development is expected to wield enough to get Discovery Metals’ copper output above 36,000 tonnes per year. This is a long term goal, with multiple underground operations eventually feeding the mill. Once the underground mines are established, mill expansion will follow. The site at Mango 2 is the highest prospective for another underground site, but the company still has drilling and some in-hill resource analysis planned. With the leap into underground mining, Discovery Metals is also considering an upgrade in technology. The aim of this upgrade is faster development cycle that will give the company the ability to access the ore quicker. The new technology is planned to keep track of employees while on the job and provide better communication and data transfer. “It’s not new technology,” admitted Fulker, “but it’s not a widely used set of tech that underground fraternity uses. There’s a need to be able to track your people from a safety perspective and from a blast clearance perspective. Anything that can help in those areas will improve our safety culture, which is something that we’ve been working hard on in the last 12 and 18 months.”
Key Personnel
Bob Fulker CEO Bob Fulker is a highly experienced mining engineer with more than 20 years senior leadership experience in the minerals industry in both operational and technical roles. He has a broad foundation of experience in metalliferous, coal and ferrous commodities in underground and open pit operations and focuses on improving mining business efficiency. Bob’s most recent role was as Asset President at BHP’s Cannington Mine.
Community Relationships Discovery Metals employs predominantly local employees. Much of the workforce lives directly w w w. d i s c o v e r y m e t a l s . c o m
13
D I S C O V E R Y M E TA L S
Tailings Dam
“We’ll always have open pits in the area as long as there is pittable material. But I think underground is the future.”” – Bob Fulker
14
Zeta Mining Pit
around the mines, with the rest coming from other parts of Botswana and a core of ex-patriots from South Africa, Zimbabwe, Ghana and Australia. All of the company’s front-line operators are local and well as several of the superintendents and six site managers. To support their employees, Discovery Metals provides workers with two camps and two mess halls. The entire workforce eats together—three meals a day are provided for all employees, and the rest of the accommodations are relatively generic for a mining work site. The company also employs a dedicated community relations officer, who is intimately involved in the community in the region and in a broader scope in Botswana. The community relations officer and the HR manager have created community programs for each of the mine’s
MINING
Company Information INDUSTRY
Mining HEADQUARTERS
Brisbane, Australia FOUNDED
2003
Road from Zeta Mining Pit
EMPLOYEES
surrounding villages that the chief in each village runs. This connection the community allows the company to continue to attract their workforce, all while providing services to the region.
400
Stabilisation Leading To A New Era As Discovery Metals moves forward with their plans to venture into underground mining, the stabilisation of the company on multiple levels is what is that got them this far. “In the last 6 to 12 months, we’ve stabilized operations and we’ve stabilised the company,” commented Fulker. “We’ve taken time to consider how to do that. Eventually we’ll position the company to start operations in a new era for us in discovery. We’ll always have open pits in the area as long as there is pittable material. But I think underground is the future.”
PRODUCTS/ SERVICES
REVENUE
AUS $60m
Copper and silver concentrate
w w w. d i s c o v e r y m e t a l s . c o m
15
DISCOVERY METALS LIMITED Level 22, 333 Ann Street, Brisbane, Queensland, Australia, 4000 Tel. +61 7 3218 0222 Fax. +61 7 3218 0233 info@discoverymetals.com www.discoverymetals.com