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Business Description
- Discovery Metals (DML) consists of two mineral assets in Botswana (the Boseto copper project and the Dikoloti nickel project.)
- DML is currently focussed on its activities on the 100% owned Boseto Copper Project in north-west Botswana .
- The Boseto Project comprises fourteen prospecting licenses covering an area of over 10,100km2 within the Kalahari Copper Belt - a previously poorly explored extension of the Zambian Copper Belt.
- DML has copper mineralisation of over 1,300km to explore of which less than 5% has been explored to produce the 102.8Mt resource.
- Drilling has focused on three prospects, Zeta, Petra and Plutus, identifying a total indicated and inferred resource of 102.8 Mt @ 1.4% copper with 17.3 g/t of silver at a cut-off grade of 0.6% copper.
- Bankable Feasibility Study formally commenced August 2008 and is:
- Currently scheduled for completion in July 2010
- Continuing infill drilling program to extend existing resources
- Looking to source project financing early 2010 possibly through commercial banks, existing shareholders.
- During the June quarter of 2009, DML secured additional funding via a share placement of 31.2m shares at $0.18 per share raising $5.6m UPDATE
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Name |
Position |
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Management |
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Brad Sampson |
Managing Director |
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Paul Fulton |
CFO |
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Board of Directors |
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Gordon Galt |
Non Executive Chairman |
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Brad Sampson |
Managing Director |
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Morrice Cordiner |
Non-Executive Director |
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Ribson Gabonowe |
Non-Executive Director |
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Jeremy Read |
Non-Executive Director |
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John Shaw |
Non-Executive Director
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Description of Primary Assets
Boseto Copper Project (100%)
- Located in north west Botswana, DML commenced a pre-feasibility study in August 2007 and announced the outcomes of the study in July 2008
- Extended Pre-Feasibility Study update in January 2009.
- Open pit mine with 10 year mine life.
- 2Mtpa conventional flotation concentrator (considering 3Mtpa).
- Recoveries of 82.5% Cu and 60% Ag.
- To produce 23.2kt Cu and 725koz Ag per annum (in concentrate)
- Capex of US$131m and net cash cost US$1.06/lb
- NPV of US$103m at a copper price of US$2/lb and US$218m at US$3/lb
- Three strike zones containing 50.2Mt of Mineral Resources:
- Zeta 25.2Mt @ 1.5% Cu and 20.1g/t Ag
- Plutus 15.9Mt @ 1.6% Cu and 16.4g/t Ag
- Petra 9.1Mt @ 1.2% Cu and 14.1 g/t Ag
Dikoloti Nickel Project
- Located in north east Botswana.
- DML has recently commenced joint exploration with the Japanese government agency JOGMEC.
- Marginally economic using conventional processing techniques but heap leach bio-oxidation provides more feasible option.
- Entire project is within 45km of BCL's concentrating and smelter facility, the largest nickel processing facility in Africa.
- Resource of 4.1Mt @ 0.7% Ni, 0.5% Cu and 1.2g/t PGE.
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Market Capitalisation and Enterprise Value
| Share price1 (A$/share) |
0.75 |
| Diluted shares (m) |
301 |
| Market Capitalisation |
226 |
| Net Debt/(cash) (A$m) |
(6) |
| Enterprise value (A$m) |
## |
| Enterprise value (US$m) |
## |
Source: IRESS, company filings
Notes:
1. As of 31 May 2010
Share Price Performance
updated graph
Reserves and Resources1
| |
Mt |
% grade (Cu equiv) |
Cu equiv (kt) |
| Measured |
4.0
|
1.8%
|
-
|
| Indicated |
18.5
|
1.4%
|
86
|
| Inferred |
80.3
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1.4%
|
714
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| Total resources |
102.8
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1.4%
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| Proven |
-
|
-
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-
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| Probable |
-
|
-
|
-
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| Total Reserves |
-
|
-
|
-
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Major Shareholders
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Rank
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Name |
Shares (m) |
% |
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1.
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Macquarie Bank |
34.6 |
11.49 |
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2.
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Taurus Fund |
33.3 |
11.08 |
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3.
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Transamine |
25 |
8.3 |
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4.
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Citi Group Global Markets |
21.2 |
7.06 |
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5.
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Investec |
15.6 |
5.17 |
| 6. |
BIFM |
10.7 |
3.57 |
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7.
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RCF |
8.5 |
2.83 |
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Total
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|
148.9 |
49.5 |
Source: UBS Emerging ASX copper companies book 6 September 2009 with update by DML
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