Discovery Metals Limited – Quarterly Report

30 Apr

Highlights

Boseto Copper Project, Exploration

In April, a new Petra Mineral Resource estimate more than doubled the size of the resource to 9.1Mt @ 1.2% Cu and 14.1g/t Ag at a cut-off grade of 0.6% Cu with silver values included in the estimate for the first time. The copper grade at Petra increased by 11% with contained copper increasing by 128%.
The Petra Mineral Resource now joins the Plutus Mineral Resource creating a continuous Mineral Resource extending for more than 10 kilometres on strike, open at depth and in both directions along strike.
At the Petra prospect, Niton (XRF) soil geochemistry extended the surface copper anomalism to a otal of 14 kilometres including the current Petra resource.
The planned infill drilling programme was completed at Zeta prospect during the quarter with drilling focus now shifted to Plutus. The current Plutus and Petra infill drilling is anticipated to be the final programme required for the BFS.
In April, DML discovered a new 11 kilometre long copper anomalous zone along the strike of the Nexus prospect as a result of its ongoing extensional exploration programme.
Following the restatement of the Petra Mineral Resource in April 2009, the total Mineral Resource at the Boseto Copper Project is now 50.2Mt @ 1.5% Cu and 17.8g/t Ag at a cut of grade of 0.6% Cu with contained metal of approximately 753,000 tonnes of copper and 29 million ounces of silver.

Boseto Copper Project, Bankable Feasibility Study

Completion of the Bankable Feasibility Study (‘BFS’) is scheduled for the first quarter of 2010.
Continued exploration success has resulted in increased mineral resources and delineation of new discoveries.

Corporate

The Company secured additional funding from an institutional investor with a share placement raising AUD$2.3 million during the quarter.
At the end of the March quarter, Discovery Metals held AUD $5.9 million in Since the end of the Quarter, further cash has been raised from share placements to UK investors (raising AUD$1.6 million) and Australian significant shareholders (raising AUD$4.0 million) in April.

The full report is available from the company website.