Discovery finds latest results encouraging

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THE DRILL SERGEANT: Discovery Metals has been encouraged by recent drilling results obtained from the first five diamond drill holes of a 12 hole program currently underway at the company’s Zeta North East prospect.

The targeted prospect is situated within the company’s 100 per cent-owned Prospecting Licences in the Kalahari Copperbelt in north west Botswana.

 

Source: Company announcement

 

Discovery said the drilling had confirmed higher grade copper-silver mineralisation at the Zeta North East prospect, identifying a mineralised strike length exceeding 3 kilometres that remains open at depth.

Recent diamond drilling intercepts include:

–    6.9 metres at 2.8 per cent copper and 5 grams per tonne silver;

–    7.6m at 1.4 per cent copper and 27g/t silver;

–    3.3m at 1.8 per cent copper and 22g/t silver; and

–    5.9m at 1.9 per cent copper and 42g/t silver.

Discovery said it has further resource delineation drilling scheduled to commence in January 2012.

The company intends using the results from this campaign to provide sufficient data for the estimation of an Inferred Mineral Resource in the September quarter of 2012.

“These new high grade copper-silver assays successfully add to the initial drilling results from the follow up 12 hole program at Zeta North East and further highlight the potential for this prospect to develop into a Mineral Resource and contribute to a larger and longer life Boseto Copper project,” Discovery Metals managing director Brad Sampson said in the company’s announcement to the Australian Securities Exchange.

“Delineation of a higher grade deposit at Zeta North East has potential to not only enhance project cash flows in the early years, but also boost copper and silver production and reduce forecast cash production costs.”

 The Zeta North East Prospect is located in the Boseto Zone and is situated approximately 11 kilometres from the Boseto copper project concentrator.

The Boseto copper project is currently under construction and is scheduled to commence production in the first half of 2012.

Planned production is approximately 36,000 tonnes of copper and more than one million ounces of silver per annum over an initial evaluated mine life of 15 years.