Discovery Metals Limited ("Discovery Metals" or "the Company") (ASX/BSE: "DML", AIM: "DME") is pleased to announce the agreement of a joint venture exploration programme with the Japan Oil GasBand Metals National Corporation (JOGMEC), a state controlled metal mining agency, for its 85% owned Dikoloti Nickel Project in north-east Botswana.
The Dikoloti nickel project comprises four prospecting licences covering an area of 600km2 surrounding the three nickel deposits of BCL Limited in the Selebi-Phikwe region of north-east Botswana. Discovery Metals has earned an 85% interest from Xstrata.
An Inferred Mineral Resource of 4.1Mt @ 0.7% Ni, 0.5% Cu and 1.2 g/t PGE's at a cut-off of 0.5% Ni for 28,700 tonnes of contained nickel has been reported in accordance with the guidelines of the JORC (2004) code. On completion of the contemplated exploration programme for the Dikoloti tenements, the remaining Xstrata interest will convert to a royalty on future production.
During 2007, a scoping study based upon GEOLEACHTM was completed based upon the encouraging leaching results previously reported test work. The four Dikoloti prospecting licenses were renewed in August 2009 and are subject to the next renewal in mid 2011.
The highlights of the agreement are: · The agreement provides for funding by JOGMEC of A$3 million for exploration on the Dikoloti prospecting areas; · Discovery Metals will remain operator of the joint venture during the farm in exploration period and for any future projects or operating phases; ·
The joint venture will be controlled by a joint operating committee, with representation of both JOGMEC and Discovery Metals. · A number of highly prospective exploration targets have been identified adjacent to the existing Inferred Mineral Resource; · JOGMEC has the right to earn-in a joint venture interest of up to 60%; and ·
Should the exploration programme prove successful, it would be expected that JOGMEC would assign its interest to another Japanese entity for the development and operating phases. Discovery Metals' Managing Director, Brad Sampson said: "The agreement with JOGMEC underscores the potential value of the Dikoloti nickel project.
Dikoloti was the company's first project in Botswana and, whilst our main focus has changed to the Boseto Copper Project, Dikoloti remains a very interesting nickel sulphide resource with significant upside potential. We are delighted to work with such a highly credentialed joint venture partner in JOGMEC." Source - http://www.mineweb.com/mineweb/view/mineweb/en/page1?
