Water Resources Report>
Water Resources Report
(Thomson Reuters ONE) - AIM RELEASE2 July 2009 Discovery Metals Limited ('Discovery Metals' or the 'Company') (AIM: DME) (ASX/BSE: DML)Water Resources Confirmed for Boseto Copper ProjectHighlights* Groundwater Resources have been confirmed for the Boseto Copper Project in Botswana* Water availability significantly exceeds the requirements of currently planned operations with more than four times the project requirement available over a 15 year period* Water production bore fields will be relatively close to the Boseto processing plant - approximately 15 kilometres* Water quality is suitable for use in the Boseto process plant* Identified water resources support consideration of mine life extension and/or expansion of production beyond the currently planned 10 year x 2Mtpa base case for BosetoWater ResourceDiscovery Metals Limited (ASX/BSE: "DML") (AIM: DME) announces thesuccessful delineation of ground- water resources which are more thansufficient to meet the processing and other operational needs ofits 100% owned Boseto Copper Project (Figure 1).The groundwater resources were defined after an extensive programwhich included the drilling of eleven water exploration boreholes(Figure 2). The water resources planned for use at Boseto (referredto as "GRA 5", and "GRA 1" - Figure 3) are contained within two ofthe five potential groundwater resource areas identified during thewater exploration program undertaken as part of the BankableFeasibility Study on the Boseto Copper Project. Borefields whichwill tap these resources will be situated within 15 km of theproposed plant site."GRA 5", and "GRA 1" are together capable of sustaining pumped flowrates of approximately 12,000 megalitres of water per annum over a15 year time frame. With the water requirement for the current basecase for the Boseto Copper Project (10 year project at 2Mtpaprocessing rate) estimated at 2,500 megalitres of water per annum,these two areas alone have the capacity to deliver more than fourtimes the annual water requirement of the Boseto Copper project forfive years longer than the currently planned project life.The main ground water resources defined to date are located insediments of the Ecca Group, a productive aquifer known to be presentacross large areas of Botswana. In the Boseto Copper Project area,the Ecca Group occurs in a 45 km long northeast - southwest trendinggraben which varies in width between 4 km in the northeast to 14 kmin the southwest. Sediments of the Ecca Group have a thickness of atleast 150 m and occur beneath 50 m of younger sediments belonging tothe Lebung and Kalahari Groups (Figure 4). Sediments of the lattertwo groups generally do not represent aquifers in the graben as theyare located largely above the water table and, in the case of theLebung, also consist predominantly of mudstone.Water contained in the aquifers of GRA1 and 5 has total dissolvedsolids content estimated to vary between 16,000 and 33,000 milligramsper litre. This water quality is suitable for process water usage atBoseto and samples of water from the Ecca Aquifer have been used toassess flotation reagent consumption and impact on metallurgicalrecoveries.The water resource contained in the Ecca Graben is not currentlybeing utilised by other parties in the area and no issues have beenidentified that might preclude Discovery Metals successfully applyingfor licences to exploit this saline water resource.Implications for Boseto ProjectDiscovery Metals' Managing Director, Brad Sampson stated, "This is animportant milestone for the Boseto Copper Project. A water resourcehas been identified with capacity to more than meet the project'soperational requirements, thus eliminating a key project risk. Inaddition, we have now demonstrated that neither the life nor scale ofthe project is likely to be constrained by water supply."Water Exploration ProgrammeThe groundwater exploration program for the Bankable FeasibilityStudy commenced in the second half of 2008, following an initialassessment during the Pre-feasibility Study. SRK Consulting providedthe technical support to discover and define the water resourcerequired for Project development. The water exploration programincluded collation and assessment of all available geology,geophysical and water resource information for the region andidentification of geological structures and formations likely to havesuitable aquifer characteristics for production well fielddevelopment.Five areas (referred to as groundwater resource areas GRA 1 to 5 inFigure 3) were identified as having potential for water supply to theproject.For each of these five groundwater resource areas, SRK Consultingassessed the storage potential, recharge potential, exploitationpotential, current discharge, groundwater balance and water qualityas well as proximity to the proposed location of the Boseto CopperProject processing facilities.Following completion of the review of the available information, apilot drilling and test pumping program was conducted. In addition,water chemistry, isotope studies and numerical modelling wereconducted to assess hydraulic connectivity with any potentiallyenvironmentally sensitive water resources in the area.The exploration program resulted in the establishment of a number ofboreholes that will form part of the well field for operationalrequirements for the Boseto Copper Project. These existing boreholesare estimated to be capable of providing approximately two thirds ofthe projected water consumption of the Boseto Copper Project.Additional boreholes are planned to be drilled in advance ofoperational requirements.Boseto Project BackgroundDiscovery Metals' Boseto Copper Project (100% owned) is located innorth-west Botswana, approximately 80 km south-west of the town ofMaun, within the district of Ngamiland. A seven tenement package wasgranted to Discovery Metals in September 2005 and fieldwork on thistenement package commenced in October 2005. The Government ofBotswana approved the Company's renewal of these tenements inSeptember 2008 and all prospective areas were retained by theCompany. In June 2008, Discovery Metals was granted an additionalseven tenements extending from the south-west boundary of theoriginal 2005 granted tenements through to the Namibian border,adding 5,700 km2 to the area held under prospecting licenses, tobring the total current tenement area to 10,100 km2. The outer limitof the exploration licence area starts approximately 60 km south-westof Maun and stretches in a south-westerly direction for approximately300 km to the Namibian border.The Boseto Copper Project is located within a belt of significantcopper-silver mineralisation that extends from the well known andmore highly developed Zambian Copper Belt across north-west Botswanaand into Namibia. The poorly explored and undeveloped portion ofthis belt in north-west Botswana is known as the Kalahari CopperBelt.Copper in the Boseto Project area occurs predominantly in chalcocite,with minor amounts of bornite and other copper sulphides present. Atshallow depths, malachite and chrysocolla exist in significantproportions within some areas of the mineral resource.The total Mineral Resource for the Boseto Copper Project, reported inaccordance with The Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves (The JORC Code, "2004Edition") at a cut off of 0.6% Cu is:50.2 Mt (at) 1.5% Cu and 17.8 g/t Ag containing 753 kt Cu metal and 29Moz silver(which consists of Indicated Mineral Resources of 4.7 Mt (at) 1.6% Cuand 24.0 g/t Ag and Inferred Mineral Resources of 45.5 Mt (at) 1.4% Cuand 17.2 g/t Ag)A Pre Feasibility Study for the Boseto Copper Project was completedon time and on budget in July 2008. Discovery Metals is currentlyundertaking a Bankable Feasibility Study for the Boseto CopperProject.Competent Persons StatementThe information in this report as it relates to the Zeta, Plutus andPetra Mineral Resources for the Boseto Copper project was compiled byMr Jason Hosken and reviewed by David Arnott, both Members of TheAustralasian Institute of Mining and Metallurgy. Mr Arnott is a fulltime employee of Snowden Mining Industry Consultants and Mr Hoskenwas a full time employee of Snowden Mining Industry Consultant at thetime the mineral resources were reported. Mr Arnott has sufficientexperience which is relevant to the style of mineralisation and typeof deposit under consideration and to the activity which he isundertaking to qualify as a Competent Person as defined in the 2004Edition of the "Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves". The information in thisreport that relates to Exploration Results is based on informationcompiled by Mr Fred Nhiwatiwa who is a Member of the AustralasianInstitute of Mining and Metallurgy. Mr Nhiwatiwa is a full-timeemployee of the Company. Mr Nhiwatiwa has sufficient experiencewhich is relevant to the style of mineralisation and type of depositunder consideration and to the activity which he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the"Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves". Mr Arnott and Mr Nhiwatiwa consent tothe inclusion in the report of the matters based on informationprovided by them and in the form and context in which it appearsNOTE: For further information contactBradSampsonManagingDirectorTel: +617 32180200Mobile: 0438 771037Email: brad(at)discoverymetals.com.auFairfax I.S. PLCEwan Leggat / Laura LittleyTel: +44 (0)20 7598 5368Conduit PRJos Simson/Emily FentonTel: +44 (0) 20 7429 6603Mobile: +44 (0)7899 870Further information on the Company is available on its website:www.discoverymetals.com.au---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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