Getting up to 300Mt would be nice but that will not affect the NPV as much as increasing the grade of the deposit. The Maun resource DML has is 46Mt @ 1.4% Cu equivalent (adding in the value for the silver mineralisation). Many of their recent drilling announcements had copper grades over 2% Cu. When they announce the new resource for Maun what I am looking for is the grade to go up. Even a 0.1% Cu increase to the overall grade has a very significant impact on the NPV. If DML can get their mineable resource up by 0.2-0.3% Cu that would be a major boost for the project. Already it is higher grade than what most of the Aussie Copper hopefuls have (most of their resoures are sub 1% Cu). Add in to this the fact that Mac Bank today raised their copper price forecasts up to US$2.5/lb in 2011 and it all looks good for DML.
DML Price at posting:
0.0¢ Sentiment: None Disclosure: Held