This week CFC accused Discovery Metals management of over stating copper resource grades and reserves at its flagship Boseto Mine as well as failure to provide vital operating costs information to shareholders. According to a statement released on Tuesday, Cathay says that it is seriously concerned that the actual reserves and grades to be mined at Boseto during the mine life could be significantly lower from those stated in the original Bankable Feasibility study (BFS).
Cathay also accuse Discovery of not providing any updated cash cost details on an industry standard, dollar per pound of copper basis, either actual or forecast. "The reported copper grade performance of the Zeta Open Pit at Boseto is over 30 percent below that the disclosed JORC Reserve copper grade and the silver grade is more than 50% below the disclosed JORC Reserve silver grade. There has been no disclosure by Discovery of any internal or third party analysis or reconciliation of the reserves and grades as compared to what are actually being mined at Boseto," read the statement.
