Discoveries flow in copper country Michael Quinn, 9 June 2011
KEEN interest will be shown in further exploration results expected this month from Discovery Metals? developing Boseto copper project in Botswana, where recent drilling offered up the possibility the company could open up a second underground mining front.
Results from the first three holes of depth extension drilling of the Plutus copper-silver deposit were all promising, with grades and widths from the mineralised horizon (hit 350m below surface), of similar tenor to the planned underground mine at Zeta.
The 11-hole program has tested 7km of strike length with visible copper mineralisation reported from every hole and remaining assays due by the end of the month.
UBS is impressed by the potential while pointing out further detailed drilling will be required to determine grade/width continuity and distribution.
?However, if proven an economic proposition, a second underground mining front at Plutus has the potential to provide significant benefits, including operational flexibility, extending mine life and/or support for plant expansion,? the investment bank said.
?Further, if grades of circa 2% copper and 30gpt silver can be proved, Plutus has the potential to add higher grade ore to the production mix.?
Boseto is set to begin production next year, first as an opencut only and then, from 2014, an underground mine as well.
UBS is impressed by Boseto and Discovery Metals? other ground period.
?Whilst construction of the 3Mtpa Boseto copper project is well underway, the exploration effort has also been stepped up and continues to provide positive news flow. Only 6% of the 9650 square kilometre-tenement package in the Kalahari Copper Belt has been drill tested to date.?
Others are evidently impressed too, with Bondi Mining ? headed by Chesser?s Dr Rick Valenta ? one company that recently acquired a ground position in Botswana.
And for its part, Discovery Metals isn?t just chaining itself to copper and silver in Botswana either, with recent additions of potential manganese ground in-country.
?We applied for ground within Botswana that we think has potential to host manganese deposits because it is in Botswana and we saw the opportunity,? managing director Brad Sampson told HighGrade early last month. ?We are progressing a review of the potential of the ground now using dedicated external resources which are not part of the Boseto or regional exploration teams. This first pass review is cheap and will give us a better idea whether the ground we have acquired has real potential.
?Does a manganese project fit with Discovery Metals? Probably not, however, we did not want to turn our backs on an opportunity on our doorstep. If we get onto something exciting it will be a good problem to have.?
DML Price at posting:
$1.27 Sentiment: Hold Disclosure: Held
