Discovery Metals - Press Release

by oceandavid | December 10, 2007 at 08:05 am | 370 views | add comment

Discovery Metals released the following statement and resumed trading today.

ASX & BSE: DML AIM: DME
SHARE PRICE: AUD$0.62 SHARES: 128.1M Market Cap: A$79.4M
ASX RELEASE
10th December 2007
Total Copper Resources increased by
46% to 46.1m tonnes at Maun Project, Botswana
Highlights
• New inferred resource at Plutus prospect of 14.5Mt @ 1.3% copper (Cu) and 13 g/t silver (Ag) at
a 0.6% Cu cut-off
• Total Inferred Mineral Resource for the Maun Copper Project has increased overall by 46% to
46.1 Mt @ 1.3% Cu, at a 0.6% Cu cut-off
• Plutus is open to the south-west and further extension drilling is planned
• During 2007 total Inferred Mineral Resources for the Maun Project have now been increased by
130% (from an initial 20 Mt @ 1.2% Cu)
Discovery Metals Limited (ASX/BSE:“DML”) (AIM:“DME”) announces a further 46% increase in the
Total Inferred Resource within the Company’s 100% owned Maun Copper Project in North-West
Botswana.

The latest increase follows the definition of an Inferred Mineral Resource of 14.5Mt @ 1.3% Cu and
12.6 g/t Ag, at a cut-off of 0.6% Cu, at the Plutus Prospect within the Maun Project (Figure One).
It means that during 2007, the total Inferred Mineral Resources for the Maun Project have now been
increased by 130% (from an initial 20 Mt @ 1.2% Cu).

Discovery Metals’ Managing Director, Mr Jeremy Read, said today that ongoing drilling on the Maun
Project was proving to be very successful with three Inferred Mineral Resources defined from five
prospects drilled during 2007. “Drilling is yielding a high conversion rate of prospects drilled to Inferred Mineral Resources status which is highly encouraging,” Mr Read said. “ Plutus is a shallow deposit and we would expect that a significant portion of the identified resource could be mined in an open pit,” he said.
“The Zeta prospect pre-feasibility study is now well underway, our regional exploration program is
being ramped up and with the significant growth in our resource base we are looking forward to an
exciting 2008,” Mr Read said.

For further information on this release and Discovery Metals generally, please contact:
Jeremy Read MANAGING DIRECTOR
Ph: +61 7 3218 0202 + Mb: +61 409 484 322
jeremy@discoverymetals.com.au
Nominated Advisor – RFC Corporate Finance Limited, Contact Jamie Wright Ph: +61 8 9480 2508
AIM Broker – Fox-Davies Capital, Contact Richard Hail Ph: +44 20 7936 5200
UK PR- Conduit PR, Contact Jane Stacey/Jos Simson Ph +44 (0) 20 7429 6606/ + 44(0) 7922 923 306
ASX & BSE: DML AIM: DME
SHARE PRICE: AUD$0.62 SHARES: 128.1M Market Cap: A$79.4M
Plutus Prospect Inferred Mineral Resource

Discovery retained the services of Snowden Mining Industry Consultants (“Snowden”) to perform an
estimation and report tonnage and grade of the copper-silver mineralisation located at the Plutus
Prospect. The Plutus Prospect occurs along strike to the north east of the previously reported Petra
Inferred Mineral resource and contains sedimentary exhalative style copper mineralisation.
The resource estimation completed by Snowden utilised the results from 21 diamond drill holes
drilled by Discovery Metals Limited and a further seven historical diamond drill holes and one
Discovery reverse circulation (RC) drill hole (Figure Two). The collection and validation of the drill
hole data was completed by Discovery with Snowden reviewing the quality assurance and quality
control (QA/QC) data for the Discovery drilling. Snowden did not view the drill hole logs but did
review the assay certificates and QA/QC data for the Discovery drilling. Although there was no
QA/QC data for the historical drilling, Snowden observed a close correlation between the Discovery
and historical drill hole data sets and therefore considered the historical data to be adequate for
defining an inferred mineral resource.

The Discovery drill holes were drilled on sections approximately 500m apart with typically two 70m
spaced drill holes per section. Six of the historical diamond holes occur on separate cross sections
with a Discovery drill hole.

Snowden produced a 3-dimensional mineralisation interpretation based upon the drill hole
intersections. The interpretation defined a planar zone of mineralisation sub-divided into two
domains. The footwall domain is defined by the eastern geological contact of the hangingwall
siltstones and shales with the footwall sandstones and the western hangingwall boundary defined by
a 0.6% Cu cut-off. The second domain consists of mineralisation extending from the 0.6% Cu cut-off
boundary to an upper boundary at a 0.1% Cu cut-off. Surface trenching has exposed outcropping
mineralisation and therefore the interpretation extends to the surface. The interpretation extends to a
depth of 200m. The strike length of the interpreted mineralisation is 7,000m and extends 200m north
and south of the last sections of drilling.

Ordinary kriging with top cutting was used to estimate the copper and silver grades into a 100 mN by
10 mE by 10m elevation block model using search and estimation parameters defined from the
variography (Figure Three). Short range copper and silver continuity is poor due to the wide spaced
nature of the drilling conducted over the area. A dry bulk density of 2.8t/m3 was applied as a
constant to report the tonnage.

A mineral resource of 14.5Mt @ 1.3% Cu and 13 g/t Ag, using a block cut-off grade of 0.6% Cu has
been reported for the Plutus Prospect and classified as Inferred in accordance with the guidelines of
the 2004 JORC code. The grade and tonnage values listed in Table One are an accumulation of
blocks above a given cut-off within a portion of the Plutus mineral resource block model defined by
criteria based on proximity to drill holes and confidence in estimation continuity.
A second round of drilling is being considered for Plutus in order to test the extension of the
mineralisation to the south west and to conduct infill drilling with the goal of improving the
classification of Plutus mineral resource to an Indicated category.

ZP021
ZP033
ZP030
Drawn: RRM Drwg No.:
Prepared: JR Date: Dec 2007 FIGURE 3
Level 8,
410 Queen Street
Brisbane QLD 4000
Tel. +61 7 3218 0222
Fax +61 7 3218 0223 ABN 29 104 924 423
3D OBLIQUE LONG-SECTION
PLUTUS PROSPECT, MAUN COPPER PROJECT
0.6% - 1.0% Cu
<0.6% Cu
1.0% - 1.3% Cu
>1.3% Cu
N RT O H