Discov. Met Share Discussion Threads

[johnrxx99] 10/11/2010 09:26

Oh well, could top up on the recent dip so broad as it's long.

[dizzylizzy2] 10/11/2010 08:36

Jasper - i'm guessing that the reason is to do with LSE rules due to the fact that DME is a prospecting company and so carries more risk which PIs are supposedly not able to fully grasp. In Aussie such a rule might be much more flexible. Whatever it is it's a shame as I for one would want to participate in what is medium risk in my view.

[sagem] 10/11/2010 07:37

Share price up in OZ LOOKS GOOD FOR THE UK TODAY

[chipperfrd] 10/11/2010 01:12

Promising early results from Ophion target:

[jasper2712] 09/11/2010 17:13

Why is it that U.K. holders are not eligible to take up the rights issued to the Oz holders. This has happened before where they were called sophisticated holders which I find a bit rich !

[sagem] 09/11/2010 05:59

The rights issue is pulling the share price down especially as the UK cannot participate ?

UP 3.3% IN OZ...COULD HELP US TODAY

[andrbea] 08/11/2010 13:01

China's copper use is growing so quickly that by 2035, demand for the metal may outstrip supply by 11 million tons, according to CRU, a mining and metals consulting firm in London.

[andrbea] 08/11/2010 12:59

Nov 8

Copper Rises to 28-Month High as Chilean Strike May Curb Output

Copper prices rose to a 28-month high after workers went on strike at a mine in Chile, the world's largest producer.

[andrbea] 05/11/2010 15:03

Nov 4

Copper is the New Red Gold

Today's story in Bloomberg in which various commentators gush over the current
performance and future prospects of copper prices. The story kicks off with an anecdote about a high school coach who buys 250 shares of a copper ETF, and dispenses the following advice:

"It's the right time to buy it, the right time to stockpile it and the right time to own it."

I'm not one to take the wind out of anyone's sails casually, and certainly no offense to Coach Markovich, but I gotta ask, what does a rugby coach know about copper markets?

It goes on to say that his investment has gained 12% so far, which might be considered a big win in blue chip circles, but in junior mining, 12% is puny. Most would consider it barely a win.

The article points out that all but two of 81 new copper mining projects due to start by 2016 have not gone ahead after the financial meltdown in 2008, and concludes that the 3.5 million tonnes of capacity thereby delayed will keep demand ahead of supply for at least another two years.

[andrbea] 05/11/2010 14:41

Discovery granted surface rights at Boseto project

BSE and ASX-listed Discovery Metals has been granted surface rights at its Boseto copper project in Maun, allowing for the processing of a mining lease to proceed.

The rights cover an area of 4, 418 hectares. In a statement this week, Managing Director Brad Sampson said the Tawana Land Board had approved the granting of surface rights.

This was the last external approval required by the Department of Mines (DoM) for completing the processing of the Boseto mining lease application that was submitted on October 15.

"This approval means we can access the site as planned," Sampson said in the statement. "We remain on schedule for delivering the first production at Boseto in the first half of 2012." According to the terms of the grant, Discovery will pay a land rent of P50 a year for each hectare of the 4, 418 ha project area, resulting in a charge of A$35, 000 a year.

Discovery expects to award a mandate to a bank to lead syndication of the project funding in November. The equity portion of the project finance will also be secured in coming months. At the end of the quarter, Discovery held A$36.3m in cash and had no debt. The bankable feasibility study showed a net present value (5 years) of $251m averaging 34, 400tpa of copper production at a C1 cash cost of $1.28/lb.

Boseto development plan's net present value (15 years) was $375m averaging 36, 400tpa of copper production at a C1 cash cost of $1.23/lb. Payback for both studies is less than two years after production commences. The demonstrated economic potential for operations is to continue beyond 15 years.

An initial ore reserve statement was released of 21.8 Mt at 1.4 percent copper and 18.2g/t silver.

The Boseto project, which will be developed at a cost of about $175-million, is expected to deliver between 34, 400 tonnes per year and 36 400 t/y of copper and between one million and 1,1 million ounces of silver a year.

[andrbea] 05/11/2010 14:38

Botswana copper project construction to start in December

5th November 2010


Australian mining company Discovery Metals 
 (DML) is scheduled to start construction of its Boseto copper project, in the Kalahari Copperbelt, in northern Botswana, during December 2010, with copper production expected to start in the first quarter of 2012.

DML undertook a bankable feasibility study over the past two years, which evaluated the rapid development of an openpit mining operation at Boseto, with a throughput of three-million tons a year of copper and silver ore over five years. 
A Boseto development plan assessed longer-term mining at Boseto, and included the establishment of both openpit and underground mining for a 15-year period, says DML MD Brad Sampson.

"DML has a blueprint for a minimum of 15 years operating life at Boseto and, based on the company's development timeline and current com-modity prices, the mine will pay for itself within two years once copper production starts in 2012," he says.

The mine will also deliver long-term benefits, such as additional development in the country, significant taxes for government and an increase in employment for the people of Botswana.

Sampson says that the studies show that the Boseto deposit has ore reserves of 21,8-million tons, grading 1,4% copper and 18,2% silver. Copper in the Boseto copper project area occurs mostly as chalcocite, with small amounts of bornite and other copper sulphides present.

A significant portion of the Boseto capital expenditure (capex) will be fixed under the engineering, procurement and construction contract with 
resources sector services com-
pany Sedgman.

The capex for the Boseto copper project development is $175-million and the net present value of the develop-ment plan, over a 15-year life, is estimated at $375-million, he says.

Meanwhile, all environ-mental matters have been dealt with through an environ-mental- and social-impact assessment (ESIA) study and an associated environmental management plan.

The ESIA study was developed over a two-year period 
and included extensive con-sultations with communities within 50 km of the project site and Gaborone, and received approval from the Botswana government in June 2010, he says.

"No surface water resources will be affected by the Boseto project, and no impacts have been identified which might constitute an unacceptable level of risk," he adds.

The power source for the initial on-pit mining operations will be diesel-generated, but it is expected that this will be 
replaced with coal-fired power from mid-2013.

DML has secured offtake agreements with raw materials trading company Transamine for the mine's first five years of copper output and expects to lodge its formal mining licence application for the mine in October.

The Boseto project is DML's first project in the Kalahari Copperbelt region of Botswana.

[hertsbirder] 04/11/2010 23:14

I clearly didn't read the small print carefully enough so sorry for any disapointment caused. I see however that the company has now anounced that it has successfully completed the institutional placing raising A$51m. Not really suprising but encouraging all the same. Presumably the rights issue will be similarly successful.

The presentation also on the website makes interesting reading and underlines the potential here both with the Boseto project, but also the scope for further significant discoveries in the licence area.

[johnrxx99] 04/11/2010 08:03

That's a bit of a slap then. Dilute the UK holders and keep it for the Aussies.

[tartan_penguin2] 04/11/2010 07:36

I have an Australian address with a UK broker.... wonder how that works....

[sagem] 04/11/2010 07:32

Looks like not us in the UK

[sagem] 04/11/2010 07:31

You will be eligible to participate in the Rights Issue if you hold Shares at 7.00pm (AEDT) on the Record Date and
have a registered address in Australia, New Zealand or Botswana or are an eligible institutional shareholder to
whom the Company has decided to make offers under the Rights Issue. Rights Issue Shares will be allotted into
either ASX or BSE listed shares.
Exercise of

[johnrxx99] 04/11/2010 07:16

But will we be offered any in the UK?

[hertsbirder] 04/11/2010 00:36

Thanks Chip. Unfortunately my antiquated PC wouldn't open the link without crashing, but details of the fund raising are now out on the DME website (link below).

Underwritten Institutional Placement and Rights Issue

Headlines:

- 132m shares being issued in total to raise A$142m before costs made up of an institutional placing at A$1.12 to raise some A$51m with the balance of A$91m coming from a four for one rights issue at A$1.05 share or 65p at current exchange rate (a 16% discount to yesterday's closing price)

- rights issue open to all shareholders holding stock on 12 November with a closing date of 2 December 2010. Those shareholders who take up their rights in full can subscribe for a further 50% in an associated open offer.

Fully underwritten by UBS. Looks positive and good to have the opportunity to take part.

[chipperfrd] 03/11/2010 22:38

Here comes the fund raising to get Boseto into production:


Apparently UBS are handling the financing package according to The Australian.

[spike_1] 03/11/2010 10:45

euclid- thanks very useful -Mike

[euclid5] 03/11/2010 08:33

check out Bloomberg news today

[strollingmolby] 01/11/2010 08:50

Well, I think that safely wins the 'Earliest RNS Award' ! 4:42am !

And good news to take DME another step towards production at Boseto in 2012.

[johnrxx99] 28/10/2010 06:40

Very impressive results. Mr Market may well give a good top up opportunity over the next few weeks as well.