AIM RELEASE
2 July 2009
Discovery Metals Limited
('Discovery Metals' or the 'Company')
(AIM: DME) (ASX/BSE: DML)
Water Resources Confirmed for Boseto Copper Project
Highlights
* Groundwater Resources have been confirmed for the Boseto
Copper Project in Botswana
* Water availability significantly exceeds the requirements
of currently planned operations with more than four times the
project requirement available over a 15 year period
* Water production bore fields will be relatively close to
the Boseto processing plant - approximately 15 kilometres
* Water quality is suitable for use in the Boseto process
plant
* Identified water resources support consideration of mine
life extension and/or expansion of production beyond the currently
planned 10 year x 2Mtpa base case for Boseto
Water Resource
Discovery Metals Limited (ASX/BSE: "DML") (AIM: DME) announces the
successful delineation of ground- water resources which are more than
sufficient to meet the processing and other operational needs of
its 100% owned Boseto Copper Project (Figure 1).
The groundwater resources were defined after an extensive program
which included the drilling of eleven water exploration boreholes
(Figure 2). The water resources planned for use at Boseto (referred
to as "GRA 5", and "GRA 1" - Figure 3) are contained within two of
the five potential groundwater resource areas identified during the
water exploration program undertaken as part of the Bankable
Feasibility Study on the Boseto Copper Project. Borefields which
will tap these resources will be situated within 15 km of the
proposed plant site.
"GRA 5", and "GRA 1" are together capable of sustaining pumped flow
rates of approximately 12,000 megalitres of water per annum over a
15 year time frame. With the water requirement for the current base
case for the Boseto Copper Project (10 year project at 2Mtpa
processing rate) estimated at 2,500 megalitres of water per annum,
these two areas alone have the capacity to deliver more than four
times the annual water requirement of the Boseto Copper project for
five years longer than the currently planned project life.
The main ground water resources defined to date are located in
sediments of the Ecca Group, a productive aquifer known to be present
across large areas of Botswana. In the Boseto Copper Project area,
the Ecca Group occurs in a 45 km long northeast - southwest trending
graben which varies in width between 4 km in the northeast to 14 km
in the southwest. Sediments of the Ecca Group have a thickness of at
least 150 m and occur beneath 50 m of younger sediments belonging to
the Lebung and Kalahari Groups (Figure 4). Sediments of the latter
two groups generally do not represent aquifers in the graben as they
are located largely above the water table and, in the case of the
Lebung, also consist predominantly of mudstone.
Water contained in the aquifers of GRA1 and 5 has total dissolved
solids content estimated to vary between 16,000 and 33,000 milligrams
per litre. This water quality is suitable for process water usage at
Boseto and samples of water from the Ecca Aquifer have been used to
assess flotation reagent consumption and impact on metallurgical
recoveries.
The water resource contained in the Ecca Graben is not currently
being utilised by other parties in the area and no issues have been
identified that might preclude Discovery Metals successfully applying
for licences to exploit this saline water resource.
Implications for Boseto Project
Discovery Metals' Managing Director, Brad Sampson stated, "This is an
important milestone for the Boseto Copper Project. A water resource
has been identified with capacity to more than meet the project's
operational requirements, thus eliminating a key project risk. In
addition, we have now demonstrated that neither the life nor scale of
the project is likely to be constrained by water supply."
Water Exploration Programme
The groundwater exploration program for the Bankable Feasibility
Study commenced in the second half of 2008, following an initial
assessment during the Pre-feasibility Study. SRK Consulting provided
the technical support to discover and define the water resource
required for Project development. The water exploration program
included collation and assessment of all available geology,
geophysical and water resource information for the region and
identification of geological structures and formations likely to have
suitable aquifer characteristics for production well field
development.
Five areas (referred to as groundwater resource areas GRA 1 to 5 in
Figure 3) were identified as having potential for water supply to the
project.
For each of these five groundwater resource areas, SRK Consulting
assessed the storage potential, recharge potential, exploitation
potential, current discharge, groundwater balance and water quality
as well as proximity to the proposed location of the Boseto Copper
Project processing facilities.
Following completion of the review of the available information, a
pilot drilling and test pumping program was conducted. In addition,
water chemistry, isotope studies and numerical modelling were
conducted to assess hydraulic connectivity with any potentially
environmentally sensitive water resources in the area.
The exploration program resulted in the establishment of a number of
boreholes that will form part of the well field for operational
requirements for the Boseto Copper Project. These existing boreholes
are estimated to be capable of providing approximately two thirds of
the projected water consumption of the Boseto Copper Project.
Additional boreholes are planned to be drilled in advance of
operational requirements.
Boseto Project Background
Discovery Metals' Boseto Copper Project (100% owned) is located in
north-west Botswana, approximately 80 km 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 2005. 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 km2 to the area held under prospecting licenses, to
bring the total current tenement area to 10,100 km2. 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:
50.2 Mt @ 1.5% Cu and 17.8 g/t Ag containing 753 kt Cu metal and 29
Moz silver
(which consists of Indicated Mineral Resources of 4.7 Mt @ 1.6% Cu
and 24.0 g/t Ag and Inferred Mineral Resources of 45.5 Mt @ 1.4% Cu
and 17.2 g/t Ag)
A Pre Feasibility Study for the Boseto Copper Project was completed
on time and on budget in July 2008. Discovery Metals is currently
undertaking a Bankable Feasibility Study for the Boseto Copper
Project.
Competent Persons Statement
The information in this report as it relates to the Zeta, Plutus and
Petra Mineral Resources for the Boseto Copper project was compiled by
Mr Jason Hosken and reviewed by David Arnott, both Members of The
Australasian Institute of Mining and Metallurgy. Mr Arnott is a full
time employee of Snowden Mining Industry Consultants and Mr Hosken
was a full time employee of Snowden Mining Industry Consultant at the
time the mineral resources were reported. 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". 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. Mr Nhiwatiwa is a full-time
employee of the Company. 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 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
NOTE: For further information contact
Brad
Sampson
Managing
Director
Tel: +617 3218
0200
Mobile: 0438 771
037
Email: brad@discoverymetals.com.au
Fairfax I.S. PLC
Ewan Leggat / Laura Littley
Tel: +44 (0)20 7598 5368
Conduit PR
Jos Simson/Emily Fenton
Tel: +44 (0) 20 7429 6603
Mobile: +44 (0)7899 870
Further information on the Company is available on its website:
www.discoverymetals.com.au
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