Boseto Near Mine Exploration Update. North East Plutus, South West Petra and Nexus Propsects
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1 12 March 2010 Discovery Metals Limited ( Discovery Metals or the Company ) (AIM: DME) (ASX/BSE: DML) Boseto Near Mine Exploration Update North East Plutus, South West Petra and Nexus Propsects Highlights: Drill results highlight continuation of Plutus Petra mineralisation for 15 km beyond the current 11 km strike length boundary of the existing mineral resources Strong potential to add a significant amount of mineral resources to the Boseto Copper Project Plutus targeting north east strike extension o 15 km of strike diamond drilled at 1km spacing; mineralisation found over entire strike length. Petra targeting south west strike extension o 7 diamond holes drilled with all holes intersecting copper silver mineralisation. Nexus testing previously identified mineralisation o 4 diamond holes drilled with all holes intersecting copper silver mineralisation. Significant assay results include: o o o o o Hole PSDD % Cu & 29.8 g/t Ag NE Plutus prospect Hole PSDD % Cu & 25.8 g/t Ag NE Plutus Prospect Hole NXDD % Cu & 32.3 g/t Ag SW Nexus Prospect Hole PTDD % Cu & 16.4 g/t Ag SW Petra Prospect Hole PTDD % Cu & 29.4 g/t Ag SW Petra Prospect
2 Exploration Drill Holes: Discovery Metals Limited (ASX/BSE: DML ) (AIM: DME ) announces the assay results from the latest 26 diamond drill holes at the Plutus, Petra and Nexus Prospects at the Company s 100% owned Boseto Copper Project located in north west Botswana (Figure 1). The Plutus and Petra Prospects form part of the Mineral Resource base for the Boseto Copper Project Bankable Feasibility Study. The Petra Prospect remains open along strike to the south west and the Plutus Prospect remains open along strike to the north east. A series of step out diamond drill holes were completed to partially test the strike extent of copper mineralisation. The Nexus Prospect sits within the Boseto Copper Project area. The portions of the Nexus Prospect drilled to date have revealed the presence of relatively thin copper silver mineralisation. Four diamond holes were drilled to further test the area of known mineralisation at Nexus. Details for all 26 drill holes are reported in Table 1 and a selection of results are displayed in plan in Figures 3 and 6 and in section in Figures 4, 5, 7, 8 and 9. The Plutus Prospect currently contains an Inferred Mineral Resource of % Cu and 16.4 g/t Ag and the Petra Prospect contains an Indicated and Inferred Mineral Resource of % Cu and 14.1 g/t Ag, both at a cut off grade of 0.6% Cu (Figure 2). No mineral resource has been reported to date at the Nexus Prospect. The recently upgraded total mineral resource for the Boseto Copper Project, reported in accordance with the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore reserves (the JORC Code, 2004 Edition ) is: % Cu and 19.5 g/t Ag at a cut off grade of 0.6% Cu containing approximately 846 kt Cu metal and 38 Moz silver. Implications for Boseto Project: These drill results highlight that the Plutus Petra mineralisation continues to the north west for some 14 kilometres beyond the boundary of the mineral resources reported to date at the Plutus Prospect. This strike extension of Plutus displays potential to add a significant amount of mineral resource to the existing mineral resources at the Boseto Copper Project. The Company will immediately commence investigations to determine what further work is required to upgrade this area to allow for the reporting of mineral resources along this strike extension. The Plutus Prospect still remains open to the north east, with the last drill hole (PSDD 1000) of this series of holes intersecting 4 metres at 2.2% Cu. The strike extension of Petra continues to the south west of the existing Plutus mineral resources for approximately 8.4 kilometres, before seeming to connect with the Nexus mineralisation at a fold nose (Figure 6). These drill results suggest that strong potential remains to develop additional mineral resources along the Petra strike length that may contribute to increasing the mineral resource base at the Boseto Copper Project.
3 The Nexus mineralisation is located approximately 2 kilometres to the west of the Zeta Prospect. The potential for mining of the Nexus mineralisation will be followed up during the operational phase of the Boseto Copper Project. All existing mineral resources at Boseto remain open along strike and down dip. These results confirm expectations that potential remains to significantly increase the resource base for the Boseto Copper Project. Discovery Metals Managing Director, Brad Sampson commented, As the Bankable Feasibility Study for the Boseto Copper Project nears completion, we are now refocussing our exploration efforts on both near mine opportunities such as have been announced today and on the opportunities elsewhere within our prospecting licences to discover the next Boseto project. Boseto Project Background: Discovery Metals Boseto Copper Project (100% owned) is located in north west Botswana, approximately 80 kilometres south west of the town of Maun, within the district of Ngamiland. A seven tenement package was granted to Discovery Metals in September 2005 and fieldwork on this tenement package commenced in October The Government of Botswana approved the Company s renewal of these tenements in September 2008 and all prospective areas were retained by the Company. In June 2008, Discovery Metals was granted an additional seven tenements extending from the south west boundary of the original 2005 granted tenements through to the Namibian border, adding 5,700 km 2 to the area held under prospecting licenses, to bring the total current tenement area to 10,100 square kilometres. The outer limit of the exploration licence area starts approximately 60 km south west of Maun and stretches in a south westerly direction for approximately 300 km to the Namibian border. The Boseto Copper Project is located within a belt of significant copper silver mineralisation that extends from the well known and more highly developed Zambian Copper Belt across north west Botswana and into Namibia. The poorly explored and undeveloped portion of this belt in north west Botswana is known as the Kalahari Copper Belt. Copper in the Boseto Project area occurs predominantly in chalcocite, with minor amounts of bornite and other copper sulphides present. At shallow depths, malachite and chrysocolla exist in significant proportions within some areas of the mineral resource. The total Mineral Resource for the Boseto Copper Project, reported in accordance with The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2004 Edition ) at a cut off of 0.6% Cu is: % Cu and 19.5 g/t Ag containing 846 kt copper metal and 38 Moz silver consisting of: Measured Resources of % Cu and 23.0g/t Ag; Indicated Resources of % Cu and 22.8g/t Ag; and Inferred Resources of % Cu and 18.7g/t Ag
4 A Pre Feasibility Study for the Boseto Copper Project was completed on time and on budget in July Discovery Metals is currently undertaking a Bankable Feasibility Study for the Boseto Copper Project which is planned for completion at the end of March Further information on the Company 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. The information in this report as it relates to the Zeta, Plutus and Petra Mineral Resources for the Boseto Copper Project was reviewed by David Arnott, who is a MAusIMM. Mr Arnott is employed fulltime by Snowden Mining Industry Consultants Pty Ltd. Mr Arnott 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 Arnott and Mr Nhiwatiwa consent to the inclusion in the report of the matters based on information provided by them and in the form and context in which it appears. For further information on this release and Discovery Metals Limited generally, please contact: Brad Sampson MANAGING DIRECTOR Ph: or Mob: brad@discoverymetals.com.au AIM Nominated Advisor/Broker Fairfax I.S. PLC, Contact Ewan Leggat/Laura Littley Ph: UK PR Conduit PR, Contact Jos Simson/Emily Fenton Ph / ASX & BSE: DML AIM: DME SHARE PRICE: A$0.76 SHARES: 231M Market Cap: A$176M
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7 PSDD N PSDD999 no significant mineralisation Line of cross-section N.E. PLUTUS COPPER PROSPECT DRILLING RESULTS Prepared: Date: December 2009 Drawn: RRM Drwg No.: FIGURE % Cu, 29.8 g/t Ag % Cu, 5.0 g/t Ag PSDD PSDD % Cu, 25.8 g/t Ag N.E. PLUTUS PROSPECT % Cu, 1.0 g/t Ag PSDD993 PSDD % Cu, 8.1 g/t Ag and % Cu, 2.0 g/t Ag % Cu, 8.5 g/t Ag PSDD % Cu, 19.7 g/t Ag PSDD % Cu, 10.8 g/t Ag PSDD990 PSDD % Cu, 6.6 g/t Ag including % Cu, 10.7 g/t Ag PSDD % Cu, 1.7 g/t Ag including % Cu, 1.5 g/t Ag % Cu, 7.8 g/t Ag including % Cu, 22.0 g/t Ag PSDD915 PSDD913 no significant mineralisation PSDD899 PSDD N % Cu, 9.5 g/t Ag including % Cu, 41.0 g/t Ag % Cu, 6.2 g/t Ag including % Cu, 26.0 g/t Ag PLUTUS PROSPECT ABN Level Queen Street Brisbane QLD 4000 Tel Fax Historic drill hole DML drill hole, with assay results DML drill hole, already reported 0 1,000 2,000 3,000 m UTM Projection. Zone 34S. WGS84 Datum.
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10 ZG01 GRC ZETA PROSPECT S.W. NEXUS & S.W. PETRA COPPER PROSPECTS DRILLING RESULTS Prepared: Date: December 2009 Drawn: RRM Drwg No.: FIGURE PTDD869 PETRA PROSPECT % Cu, 13.5 g/t Ag GD PTDD809 GD009 S.W. PETRA PROSPECT PTDD % Cu, 18.3 g/t Ag ZG PTDD NEXUS PROSPECT PTDD % Cu, 29.4 g/t Ag 30550N ZG ZG % Cu, 13.8 g/t Ag S.W. PETRA PROSPECT % Cu, 12.0 g/t Ag % Cu and % Cu, 16.4 g/t Ag % Cu, 4.0 g/t Ag 23500N PTDD876 PTDD875 NXDD1004 PTDD873 PTDD874 NXDD1001 NXDD N NXDD1003 S.W. NEXUS PROSPECT % Cu, 14.0 g/t Ag % Cu, 1.0 g/t Ag % Cu, 5.0 g/t Ag and % Cu, 32.3 g/t Ag S.W. Nexus & S.W. Petra Prospects drilling DML drill hole Historic drill hole Other Prospect drilling DML drill hole Cu in soils geochemical anomaly Defined Resource Undefined Resource Line of cross-section % Cu, 3.0 g/t Ag and % Cu, 19.5 g/t Ag and % Cu, 5.2 g/t Ag ABN Level Queen Street Brisbane QLD 4000 Tel Fax ,000 2,000 3,000 4,000 5,000 metres UTM Projection. Zone 34S. WGS84 Datum.
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12 NW SE Depth 0 PTDD % Cu % Cu & 16.4 g/t Ag 50 Hangingwall siltstone / mudstone Footwall Sandstone / Grits inferred boundary m Map Area Drill hole showing Cu & Ag intersection Footwall Sandstone / Grits Copper / Silver Mineralisation Hangingwall siltstone / mudstone S.W. PETRA PROSPECT, BOSETO COPPER PROJECT DRILL HOLE CROSS-SECTION N Prepared: Drawn: RRM ABN Level 8, 410 Queen Street Brisbane QLD 4000 Tel Fax Date: Jan 2009 Drwg. No.: FIGURE 8
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14 Table 1: Drill Holes HoleID Prospect ID Northing WGS84 SUTM34 Easting WGS84 SUTM34 Section Dip/Azi Total Depth Min. From Min. To Geochemical Results over down hole thickness (0.3% Cu Cut off) % Cu & 6.2 g/t Ag PSDD899 NE Plutus N 60 to including % Cu & 26.0 g/t Ag % Cu & 9.5 g/t Ag PSDD905 NE Plutus N 60 to including % Cu & 41.0 g/t Ag PSDD913 NE Plutus N 60 to no significant intercept % Cu & 4.0 g/t Ag PSDD915 NE Plutus N 60 to % Cu & 7.8 g/t Ag including % Cu & 22.0 g/t Ag PSDD921 NE Plutus N 60 to % Cu & 1.7 g/t Ag including % Cu & 1.5 g/t Ag PSDD989 NE Plutus N 60 to % Cu & 6.6 g/t Ag including % Cu & 10.7 g/t Ag PSDD990 NE Plutus N 60 to % Cu & 10.8 g/t Ag PSDD991 NE Plutus N 60 to % Cu & 19.7 g/t Ag PSDD994 NE Plutus N 60 to % Cu & 8.5 g/t Ag % Cu & 8.1 g/t Ag PSDD993 NE Plutus N 60 to % Cu & 2.0 g/t Ag PSDD996 NE Plutus N 60 to % Cu & 1.0 g/t Ag PSDD997 NE Plutus N 60 to % Cu & 25.8 g/t Ag PSDD998 NE Plutus N 60 to % Cu & 5.0 g/t Ag PSDD999 NE Plutus N 60 to no significant intersection PSDD1000 NE Plutus N 60 to % Cu & 29.8 g/t Ag PTDD876 Petra N 60 to % Cu & 4.0 g/t Ag % Cu. Insignificant Ag PTDD875 Petra N 60 to % Cu & 16.4 g/t Ag PTDD874 Petra N 60 to % Cu & 12.0 g/t Ag PTDD873 Petra N 60 to % Cu & 13.8 g/t Ag PTDD871 Petra N 60 to % Cu & 29.4 g/t Ag PTDD870 Petra N 60 to % Cu & 18.3 g/t Ag PTDD869 Petra N 60 to % Cu & 13.5 g/t Ag
15 HoleID ProspectID Northing WGS84 SUTM34 Easting WGS84 SUTM34 Section Dip/Azi Total Depth NXDD1004 Nexus N 60 to NXDD1001 Nexus N 60 to Min. From Min. To Geochemical Results over down hole thickness (0.3% Cu Cut off) % Cu & 3.0 g/t Ag % Cu & 19.5 g/t Ag % Cu & 5.2 g/t Ag % Cu & 5.0 g/t Ag % Cu & 32.3 g/t Ag NXDD1002 Nexus N 60 to % Cu & 1.0 g/t Ag NXDD1003 Nexus N 60 to % Cu & 14.0 g/t Ag
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