Discovery Metals Quarterly Report - Exerpt

Quarterly Report - 1 July to 30 September 2007

 

Maun Copper Project

 

<?xml:namespace prefix = o /> • A report prepared by Snowden Mining Industry Consultants (“Snowden”) in July 2007 indicatesthat due to an increase in the average grade of the Inferred mineral resources, the Maun CopperProject has the potential to be economically viable at copper prices of US$1.50/lb and

above;

 

 • Snowden has completed an updated assessment of the potential for the development of an openpit mining operation which has showed that for copper prices varying between US$2.00/lb andUS$2.50/lb, and based upon the currently defined Inferred mineral resources at the Zeta andPetra Prospects only, the potential Net Present Value (NPV) of an open cut mine ranges fromUS$80 million to US$210 million. This assessment does not allow for the ongoing explorations; 

 

• Two strike kilometres of potentially open pittable copper-silver mineralisation has been identified at the North East Zeta Prospect; • Drilling completed at the Plutus Prospect has confirmed historical drill results with coppersilvermineralisation grading 1 - 2.5% Cu being intersected over 5km of strike and this mineralisation is potentially amenable to open pit extraction;

 

 • Initial results from the new metallurgical test work on the Maun copper-silver mineralisation haveconfirmed historical metallurgical results and indicate a premium quality copper concentrate

grading in the range of 35-42% Cu is capable of being produced;

 

 • Copper recoveries on copper-silver mineralisation from the main Zeta Prospect at Maun are

excellent at 95% and previous work has shown that silver recoveries are 80%.

 

For photos of the exploration site and story of my visit click An Investors Dream.