successful nickel recovery tests at dikoloti

Sydney - Monday - November 12: (RWE Australian Business News) -
Discovery Metals Ltd (ASX:DML) has completed a comprehensive study into
the most cost-effective way to process ore from its Dikoloti nickel
deposit in northeast Botswana, using a state-of-the-art heap leach
bio-oxidation process.
The study was based on GeoBiotics LLC's proprietary GEOLEACH
process, which has been developed as a method to recover base metals
from sulphide ores as an alternative to stirred tank leaching and other
competing technologies.
Following the positive results of the study, Discovery has
contracted Snowden Mining Industry Consultants to revise the Dikoloti
scoping study financial model as the bio-oxidation process has the
potential to lower capital and operating costs for development of the
project, in comparison to traditional flotation processing techniques.
Highlights from new metallurgical test work:
* the Dikoloti nickel mineralisation is amenable to heap leach
bio-oxidation processing using the GEOLEACH process;
* greater than 74pc nickel extraction from the ore was achieved
after 160 days;
* 99pc of the extracted nickel can be recovered from the
bio-oxidation solution as a nickel sulphide, by use of sodium sulphide
precipitation; and
* the heap leach approach using GEOLEACH should have capital
and operating costs which are significantly lower than conventional
flotation processing.

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Discovery Metals managing director Mr Jeremy Read today said the
metallurgical test work using the GEOLEACH process had shown that
bio-oxidation was a technically feasible method for processing the
Dikoloti nickel-copper mineralisation.
"The positive results from the GEOLEACH bio-oxidation test work
are a big step forward for the project.
"We have now identified a processing technique which could lead
to Dikoloti being developed as a stand-alone operation," Mr Read said.
"We are currently having the scoping study financial model for
Dikoloti revised, based upon a biooxidation heap leap operation.
"Once the results of this financial review are known, we will
make a final decision on how to progress Dikoloti to the next project
development phase," he said.