24 December 2010
Discovery Metals Limited
('Discovery Metals' or 'Company')
HIGH GRADES PERSIST IN SECOND SET OF RESULTS FROM ZETA UNDERGROUND INFILL
* New Zeta Underground Infill drill intercepts (240 to 330m depth) confirm
significant widths of copper and silver grades better than the average
assumed in the Boseto Development Plan (1.4% Cu and 23.1g/t Ag)
* The best intercepts include:
11.7m @ 2.0 % Cu & 42.4 g/t Ag from 274 metres
10.0m @ 2.0 % Cu & 35.9 g/t Ag from 223 metres
7.9m @ 2.0 % Cu & 40.2 g/t Ag from 267 metres
7.0m @ 2.2 % Cu & 48.1 g/t Ag from 322 metres
6.0m @ 2.2 % Cu & 45.4 g/t Ag from 276 metres
4.8m @ 2.2 % Cu & 45.5 g/t Ag from 240 metres
* Results will update the Zeta Mineral Resource for the Zeta Underground
Definitive Feasibility Study which is on target for completion in H2/2011.
Discovery Metals Limited announces results for the second set of drill holes
from the infill drilling program at Zeta Underground, beneath the area planned
for open pit mining. The Zeta deposit is a part of the 100% owned Boseto copper
project (Figures 1 and 2) which is being developed to commence copper production
in early 2012. Planned production is 36,000 tonnes of copper and 1 million
ounces of silver per annum over a minimum 15 year mine life.
Discovery Metals' Managing Director, Brad Sampson, commented "These drill holes
continue to impress, with intersections being thicker and with higher grades
than previously allowed for. Further drilling is required before the Zeta
Mineral Resource can be updated, but these results provide further encouragement
for our planned underground development at Zeta."
The 13 holes are the second set of drill results reported to date from the
planned 50 hole in-fill programme (approximately 13,000 metres of drilling).
Results from the set of holes above the current reported data (approximately
200m depth) were reported on 28 October 2010.
The current reported holes intersected the target mineralised horizon at a
vertical depth of between 250 and 300 metres at approximately 100 metre
intervals along a strike length in excess of 1,000 metres.
The remainder of the current drill programme, which is scheduled for completion
in Q1, 2011, will concentrate on gathering further data from below the current
set of reported data, where previous deep drilling has shown that mineralisation
at the Zeta prospect remains open to at least a vertical depth 600 metres below
surface. The drilling of the next set of holes designed to intersect the ore
horizon at a further 50 metres down-dip is almost completed and should be
reported in January 2011.
A second high grade zone, along strike to the southwest, has still to be tested,
and some data from this zone is expected to be obtained in the current Q1/2011
Implications for the Boseto Project
The successful Scoping Study for the proposed Zeta underground mine (announced
in March 2010) was based on a preliminary resource of 25Mt at 1.4% copper and
23.1g/t silver. All results from the current drilling program confirm that the
grade and thickness of the Zeta mineralisation extends to depth, with good
continuity and indications that the grade of ore which will eventually be mined
at Zeta Underground may exceed the currently allowed parameters.
The current drill results will be used to update the Zeta Mineral Resource,
which will be the basis of the Zeta Underground Definitive Feasibility Study
(DFS). The DFS remains on target for completion in second half of 2011.
The results reinforce the potential value of underground mining at Boseto.
Increased grades at Zeta Underground will have a particularly high impact on the
value of the overall Boseto Project, with economic analysis indicating that an
additional 0.1% copper grade will add US$46m to the NPV of the project assuming
a copper price of $3/lb. Further explanation of the role and value of
underground mining at Boseto was given in the announcement of 28 October 2010.
Boseto Project Background
Discovery Metals is an ASX/AIM/BSE listed copper exploration and development
company focused on the emerging Kalahari Copperbelt in northwest Botswana. The
Company is currently developing its 100% owned Boseto copper project towards
production in the first half of 2012.
The Kalahari Copperbelt sediment-hosted mineralisation of the Boseto copper
project is similar in style to the well-known and large deposits of the Central
African Copperbelt of Zambia and the Democratic Republic of the Congo.
Discovery Metals has prospecting licences covering 9,656 km(2) along the
Further information on the Company including Mineral Resources and Ore Reserves
is available on its website:
Competent Persons Statement
The information in this report that relates to Exploration Results is based on
information compiled by Mr Fred Nhiwatiwa who is a Member of the Australasian
Institute of Mining and Metallurgy (MAusIMM). Mr Nhiwatiwa is a full-time
employee of Discovery Metals Limited. Mr Nhiwatiwa has sufficient experience
which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr
Nhiwatiwa consents to the inclusion in this report of the matters based on
information provided by him and in the form and context in which it appears.
Forward Looking Statements
This release includes certain statements that may be deemed "forward-looking
statements". All statements in this discussion, other than statements of
historical facts, that address future activities and events or developments that
Discovery Metals expects, are forward-looking statements. Although Discovery
Metals believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ materially from
those in the forward-looking statements. Factors that could cause actual
results to differ materially from those in forward-looking statements include
market prices, continued availability of capital and financing, and general
economic, market or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and that actual results or
developments may differ materially from those projected in forward-looking
For further information contact:
Discovery Metals Limited
Tel: +617 3218 0200
Fairfax I.S. PLC
Ewan Leggat / Laura Littley
Tel: +44 (0)20 7598 5368
Jos Simson/Emily Fenton
Tel: +44 (0) 20 7429 6603
Mobile: +44 (0)7899 870 450
Further information on the Company is available on its website:
Zeta High Grades Figures:
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Discovery Metals Limited via Thomson Reuters ONE