Wednesday, July 24, 2024

Discovery Metals extends its resource base hunt

The Australian-Botswana Stock Exchange listed junior miner, Discovery Metals Limited, extended its exploration scope at Maun project buoyed by latest results that showed better than expected results.
Discovery Metals? Managing Director, Jeremy Read, told The Sunday Standard Thursday that phase one drilling had defined a ?high grade copper zone grading 1.6-2.4 percent over mineable widths of a strike length of 1900 mm.?

Speaking from his office in Australia, Read said they are emboldened by the move and now are looking at the phase two drilling exercise which would target ?the immediate north-eastern extension of Zeta Resource.?

High copper grade at the just completed phase one drilling stretches 1600m south of the current southern limit of Zeta Resource. However, the new site falls within a 4 kilometers gap of no drilling and the next closest historical hole intersected 3.5m at 3.3 percent copper.

?Currently, the Zeta Copper Inferred Resource covers a strike length of 3.2 km and has an average grade of 1.2 percent cu. over a strike length of nearly 2 km within the resource mine of the eleven holes for which we have results to date intersected copper mineralization grading 1.6-2.4percent copper over mineable width,? he said.

He added: ?External consultants are currently revisiting the Zeta Resource to take in account the results of both the infill and extension drilling.?
The phase one Zeta extension is composed of 14 holes covering an area the size of 2,800m of the south-western extension of the Zeta Resource on 400m spaced drill section. But the phase two drilling programme will be made out of ten holes spaced on 800m section covering 4000 m of the north-eastern of the Zeta Resource.

Last month, two Botswana asset management companies, Investec Botswana and Fleming Assets Management invested heavily into the company as its finds promise to be one of the biggest in the recent history of the country. Both of them pumped in over US $ 2 million to acquire shares in the company.

The Australian Stock Exchange and Botswana Stock Exchange listed company is emboldened by its finds 80 kilometres from Maun and Dikoloti ? near Tobane in the Bobirwa area.

The move comes at a time when nickel prices have gone up 308 percent from 2001 and largely powered by the booming Chinese economy as producers are failing to meet the demands.
Analysts from the Standard Bank pointed out in August this year that there might be a global nickel deficit triggered by disruptions in other parts of the world.

The Kalahari Copper Belt ? which is near Maun ?is an extension of the Zambia Copperbelt which stretches into some parts of Botswana going as far as the Ghanzi area. The area was previously prospected by other mining and prospecting mining outfits such as Anglo-Vaal and US Steel International who were looking for giant mining operations in excess of 200 million tones of medium and low grades.

However, at the time, it turned out that the deposits could not require the operation of that size ? due to technology that was used then ? and that the area?s infrastructural development was seen wanting.

Discovery Metals has said that it is looking at the prospect of an open pit mine in the areas which will later extend into an underground mine as the finds area is greater than originally thought. It also stated that the current infrastructural development is of higher standard and the area is easily accessible to labour in the neighbouring countries.

?Significantly, world copper prices have improved and changed dramatically since the 1990s when the majority of the earlier work and assessments were undertaken. There have also been improvements to local infrastructure (roads and power) which could significantly enhance the current economics of any mining operation in the region,? the company said.
?In recent years, new geological models have been developed for the formation of Zambian style copper mineralization and, in particular, better understanding has developed as what controls the higher grade sections of these copper deposits,? the company said.

Regarding the Dikoloti project, Discovery Nickel said it has discovered ?a thickened and wide range of nickel mineralization in the northern section of the inferred resource and, at the same time, Snowden was retained as a consultant.

Last month, the company said recent results from heap-leach option for nickel mineralization from Dikoloti inferred nickel resource of 4.1 metric tonnes at 0.7 percent Nu at 0.5 Ni curt-off are under investigation.

?The positive outcome indicated from Dikoloti Preliminary Mining Assessment indicated that infill drilling within the defined inferred nickel resource was warranted,? it added. ?Samples of disseminated nickel mineralization and massive nickel mineralization were submitted for a range of floatation tests in order to determine if product of similar character to that of BCL Limited?s nearby concentrator facility could be produced.?


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