Discovery Metals receives boost with 68% increase to Boseto Copper Resource

Discovery Metals (ASX: DML) has announced a significant upgrade of the Mineral Resource Estimate for the Plutus and Petra Prospects and the estimate of new Mineral Resources at South West Petra and North East Plutus at its Boseto Copper Project, following re-estimation by Snowden Mining Industry Consultants Pty Ltd.

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.

Measured and Indicated Mineral Resources at Boseto now total 22.5 Mt @ 1.5% Cu and 18.7 g/t Ag at a cut of grade of 0.6% Cu and have increased by 92% to 22.5Mt at 1.5% copper and 18.7 g/t silver.

The Total Mineral Resources for the Boseto Copper Project are estimated to be 102.8 Mt @ 1.4% Cu and 17.3 g/t Ag at a cut of grade of 0.6% Cu.

Contained copper in Mineral Resources at Boseto increased by 68% to 1.422 million tonnes and contained silver increased by 50% to 57 million ounces from September 2009.

The revised Mineral Resource Estimate incorporates all drilling results as released to the market since the last Mineral Resource estimate in October 2009.

These drilling results represent the end of the infill and strike extensional drilling campaign at Boseto, planned as part of the Bankable Feasibility Study (BFS) for the Boseto Copper Project.

This drilling campaign specifically targeted the near surface portion of the prospects at Boseto, in areas considered to be amenable to open pit mining.

Discovery Metals’ Managing Director, Brad Sampson stated “the abundance of Mineral Resources with open pit and underground potential in the vicinity of the Boseto concentrator location, creates new options to optimise the value of the Mineral Resource and the Boseto Copper Project for shareholders."

"The evaluation of these exciting options will not impede our expectation of production from Boseto in late 2011,” he added.

This revision of the Plutus and Petra Mineral Resources Estimate has resulted in a large increase in the total Mineral Resource at Boseto compared to the previous estimate.

The total Mineral Resource tonnage has increased by 20%, with contained Copper increased by 15% and contained Silver increased by 32%.

The mineralisation in the Boseto area remains open at depth and potential remains for growth in Mineral Resources, both at depth and along strike from existing Mineral Resources.

Late in 2009, a series of 5 holes were drilled to test the dip extension of the Zeta Mineral Resource.

The results of these holes are currently being reviewed and quality assured. In addition, a series of diamond drill holes have recently been completed at North East Plutus.

These holes have been designed to infill between existing diamond drill holes and to facilitate improved understanding of copper grade distribution within the North East Plutus Prospect. The results of these drill holes will be released as they become available.

The Plutus and Petra Mineral Resources comprise: Measured and Indicated Mineral Resources of 11.6Mt @1.4% Cu and 14.7 g/t Ag and Inferred Mineral Resources of 55.8 Mt @ 1.4% Cu and 21.8 g/t Ag, all at a cut off grade of 0.6% Cu.

The Total Mineral Resource for the combined Plutus and Petra (which represents a continuous zone of mineralisation) is now 67.4 Mt @ 1.4% Cu and 14.7 g/t Ag at a cut off grade of 0.6% Cu.

This represents a large improvement in the quantity of the Plutus and Petra Mineral Resources compared to the previous estimate in April 2009. Contained copper and contained silver increased by 254%.

The combined Plutus and Petra Mineral Resources (including the South West Petra and North East Plutus extensions) now cover a continuous strike length exceeding 25 kilometres and mineralisation remains open to the north east.

The copper-silver mineralisation remains open below the base of drilling along the entire mineralised strike length.

The April 2010 re-estimation of the Plutus and Petra Mineral Resources incorporates all assay results from the BFS infill and strike extension drilling programme recently completed at Boseto.

The focus of this drilling programme was to upgrade the portions of the Mineral Resources that were expected to be economically mineable via open pit methods to the Measured and Indicated Mineral Resource categories.

The company said all objectives of this infill drilling programme have been successfully delivered in line with the BFS planning.

Within the Mineral Resource areas, zones of copper grades higher than the average grades of the Mineral Resource have been defined. These higher grade zones continue to present opportunities to improve the Boseto Copper Project economics.

A series of diamond drill holes designed to intersect the dip projection of these higher grade zones is planned for completion this year. The company expects that these holes will provide additional information to commence assessment of the potential for future underground mining at Plutus and Petra.

This will complement the Zeta underground Scoping Study which was recently announced.

The large increase in Measured and Indicated Mineral Resources at the Plutus and Petra Prospects reinforces the strong continuity of mineralisation over long strike lengths at Boseto and the ability of the company to deliver Mineral Resources into the highest confidence Mineral Resource categories.

The BFS currently focuses on the open pit potential at Boseto and targets the construction of a 2 million tonne per annum throughput copper concentrator.

The current Mineral Resource base at Boseto now supports consideration of construction of a 3 Mtpa Concentrator, either at the commencement of the project or through up-scaling the project at marginal additional capital cost early in the project life. This option is currently being considered in more detail.

The management of Discovery Metals is currently reviewing technical reports received by the various consultants working on the BFS for the Boseto Copper Project.

The company has also received tenders for the shortlisted engineering companies for the Engineering, Procurement and Construction (EPC) contract for Boseto.

Additional information on the outcomes of the BFS is expected to be released as management and Board reviews are concluded late in April 2010.

Discovery Metals shares rose 11% to 83.5 cents in trading today.

http://www.proactiveinvestors.com.au/companies/news/6260/discovery-metals-receives-boost-with-68-increase-to-boseto-copper-resource-6260.html