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The Dikoloti Nickel Project comprises four prospecting licences covering an area of 612km2, surrounding the three nickel deposits of BCL Limited in the Selebi-Phikwe region of NE Botswana. The entire project is within 45km of BCL's concentrating and smelter facility, which is the largest nickel processing facility in Africa. Outside of the immediate environment of BCL's operating mines, little to no modern exploration had been conducted prior to the exploration activities of Discovery Metals.
Discovery Metals has recently commenced joint exploration with the Japanese government agency JOGMEC.
Discovery Metals has completed helibourne VTEM over entire Prospecting License area.
16 VTEM anomalies followed up with Fixed Loop TEM.
Drill program proposed to target 10 Fixed Loop TEM anomalies commencing July 2010.
Dikoloti currently has an Inferred Resource of 4.1Mt @ 0.7%Ni, 0.5% Cu and 1.5g/t PGE's at a cut-off of 0.5% Ni. With the sustained high in nickel prices, Snowden Mining Industry Consultants were engaged to re-evaluate the project economics of Dikoloti in November 2006. The Dikoloti nickel project shows positive economics at nickel prices above US$5/lb or US$10,000.
Through 2007 test work by Geobiotics, LLC, Discovery Metals has found the Dikoloti nickel mineralisation is amenable to heap leach bio-oxidation processing using the GEOLEACHTM process. Greater than 74% nickel extraction from the ore was achieved after 160 days and 99% of the extracted nickel can be recovered from the bio-oxidation solution as a nickel sulphide, by use of sodium sulphide precipitation. The heap leach approach using GEOLEACHTM should have capital and operating costs which are significantly lower than conventional flotation processing.
Discovery Metals has earned an interest in the Dikoloti Nickel Project from Xstrata, who will dilute to a Net Smelter Return (royalty) payment when the project is brought into production.
The company renewed the leases in July 2009 for a further 2 years and expects to complete a further exploration programme to add to the mineral resource to enable a project life of ten (10) years - which is expected will lead to the development of the project.
African Office Enquiries
Discovery Metals (Botswana) Pty Ltd
Unit 2 Ipelo House Plot 103, Gaborone International Commerce Park
Gaborone
Botswana
Post Net Kgali View
Private Bag 149
Suite 108
Ph +267 318 0751
Fax +267 318 0752
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