Discovery Metals Limited Quarterly Report 1st April to 30th June 2009

Discovery Metals Limited Quarterly Report 1st April to 30th June 2009

HIGHLIGHTS
Boseto Copper Project Bankable Feasibility Study

  • The Bankable Feasibility Study is 50% complete and remains on track for completion in the March quarter of 2010.  Progress included completion of the Zeta in-fill drilling programme and mine geotechnical assessment and continuation of the concentrator design.
  • A Ground Water Resource for the project was delineated with an estimated capacity to supply more than four times the project’s planned water requirement for more than 15 years - located within 15 km of the proposed plant site. 
  • A series of community feedback sessions was conducted as part of the Environmental Impact Assessment. The EIA Documentation is expected to be finalised in the third quarter of 2009.
  • Archaeological approval was obtained for the proposed Boseto project site together with the route for the power line and pipe line from the bore field and site access road.


Exploration & Infill Drilling

  • At the Petra Prospect, soil geochemistry extended the surface copper anomaly to a total of 14 kilometres inclusive of the current Petra resource.
  • The infill drilling programme at the Zeta Prospect was completed. The Plutus/Petra infill drilling programme is expected to be completed in September 2009.
  • A new 11 kilometre long anomalous copper zone along the strike of the Nexus Prospect has been discovered as a result of the ongoing extensional exploration programme.
  • Soil geochemical sampling programmes have been initiated at north-east extensions of Zeta, Nexus and Plutus.


Corporate

  • The Company secured additional funding, with the share placement of 31.2 million shares at 18 cents per share raising AUD$5.6 million during the quarter.  The placements had attaching options entitlements, exercisable at 30 cents and expiring in May 2010.
  • Shareholder approval for the placement was granted at the General Meeting held in June.
  •  At the end of June, Discovery Metals held AUD $8.7 million in cash.

Boseto Copper Project Bankable Feasibility
The Boseto Copper Project Bankable Feasibility Study was progressed throughout the quarter and is now approximately 50% complete.  Completion of the BFS remains on schedule for the end of the first quarter 2010.  This timetable is driven by the need to complete the infill drilling programme, which has significantly extended existing resources (with higher grade and additional tonnages).
The infill drilling programme at Boseto continued as planned to focus on the portions of the current Mineral Resource which are being considered for open pit mining.  The infill drilling is designed to improve confidence in portions of the Zeta, Plutus and Petra Inferred Mineral Resources and upgrade them from Inferred Mineral Resource to Indicated Mineral Resource status.

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