Discov. Met Share Discussion Threads

[explosivetips] 23/7/2010 07:42

If DME breaks the 43p-45p range it would of broken out of the downward trend.This could Rocket to £1 plus very quick.

[jack brent] 23/7/2010 07:32

Up another 7% in Oz.

[sagem] 23/7/2010 06:59

TAKEN FROM OZ BULLETIN BOARD

DML has a large resource at 100mt @ 1.4% Cu + Ag. This will increase further this year. They are still drilling out this area and future resource increases are a given.

This resource is enough for just one plant with a mine life of 15 years (from memory)at this stage.

But they have the potential to define enough mineraliastion to set up another 4 plants possibly. They have done a huge amount of testing of soil samples, plus some historic drill results which has given them virtually a 100% hit rate in drilling. So the chances of 4 Plants is very real imo. Just look at their neighbour (Hanna Mining) to see how good the area is.

The registrar is tightly held and Botsanna is of a low soverign risk along with a very competitive tax regime. Considering whom is on the registrat and the demand for Copper any raising should be no problem.

As I said at the top Im biased, but DMLs future potential is huge and I dont think the market has really woken up to it yet.

[explosivetips] 22/7/2010 20:32

very interesting chart and stock looks to be heading higher,could Rocket very soon.

[explosivetips] 22/7/2010 15:58

very interesting chart and stock looks to be heading higher,could Rocket very soon.

[sagem] 22/7/2010 06:38

up 9.4% in oz looking good for today in the uk.

[chipperfrd] 10/7/2010 23:14

Just in case anyone has doubts about the secular nature of the resources bull market!

[sagem] 07/7/2010 20:24

SHARE CRAZY

TODAY'S HOT BROKER TIPS

Fox-Davies Capital continues to rate Discovery Metals as a buy but reduces its target price from 140p to 90p after a company meeting

Click here to read the Broker Recommendations archive

[chipperfrd] 06/7/2010 17:04

UJ,

As Hana is around 2 years behind DML, I had not seriously considered it.

I am not worried about a long-term hold. I have already decided to do just that with DML.
Chip

[uncle john] 06/7/2010 16:37

Yes Chip. I hope that by getting a summary that folk can read we might attract more attention. Overall it should be a good longterm investment without too much angst along the way.
Have you been following the Hana story? I know some analsyt types that reckon Hana will be the better investment of the two. As hana is not easy to trade you hav to commit to a long term hold.

[chipperfrd] 06/7/2010 16:02

Cheers UJ, that is pretty much how I understand the position as well, although it is good to get further confirmation.
Chip

[uncle john] 06/7/2010 15:54

DME 6 July
Hi All I am just back from a presentation from Brad Sampson the managing director of DME.
They are quite happy with the way things are going. They are very relaxed and confident.

They said very little about the project that has not been said before. In the Q&A session they explained that:

The share price declined recently for three main reasons.
· The BFS was delayed from May/June because the mgt increased the capacity from 2million tonnes to 3mt per annum. Initially the plant was to have been a modular 2mill extendable to 3 mtpa, but they decided to go for 3m from the off working on a 15 year mine life going underground in year 5.
· Consequential revision of the calculations and re quote from the manufacturers of the kit. A further BFS will be produced for the deep mine
· There have been rumours in the market of an upcoming fundraising first in May then July to coincide with the BFS and the start of construction. This rumour was false. Many holders took their profits in readiness for the fundraising discount.
· When the new tax plans were announced all ASX miners were sold off without discrimination between those affected and those like DME that were not.

The BFS will now be published in August after being presented to the board in July. There will be no fund raising until after the BFS probably late this year. The company has about A$40million cash to fund continued exploration.

Construction will start late 2010 aiming at production of first concentrate 12 months later.
The open pit will be to 200m approx depth. Top layers of low grade ground will be stripped and left for processing at the end of mine life. Work will be planned to dig higher grade ore early. Mineralisation to 600m below surface.

Take off agreement with Transamine for mine concentrate, they have taken an 8% holding. No fixed amounts and spot prices to be paid.
Exploration:- Budgets are being worked on currently for another two diamond drilling teams.

Water: deep aquifers discovered and certified by SRK that will give 2x-required volume. Water is saline so will not rob local communities who are drawing water from shallow sweet sources.

Power: Diesel generators at start of project. Options later may be the existing enhanced grid or a local coal fired power station for the area in which DME may make an investment. There are other projects in early stages and it is a tourist region.

One question I asked was about the presence of Hana mining. Not surprisingly it was denied that there would be any advantage in DME taking over HANA.
The preference is for DME to develop another Boseto of similar size within the licences that are already owned.
In my opinion DME can probably expand to 3x its size within it's own land or extensions.

GLA

[hiijinx] 04/7/2010 12:49

thanks chip & jonny. i am surprised that there has not been much development of the kalahari copper belt especially when you consider just how much copper has come out of zambia and the congo.

[chipperfrd] 04/7/2010 02:30

hiijinx,

The above article (Mmegi.bw) states an exploration budget of US$55m.

[scottishfield] 02/7/2010 14:47

many more buys today than sells, a good sign even if the share price is not behaving itself. Continuing to hold.

[hiijinx] 01/7/2010 22:08

thanks for the link chip. is there any indication of the type and cost of exploration activity outside of boseto thats scheduled for 2010/2011 ?

[chipperfrd] 01/7/2010 02:48

New presentation:



Slide 9 puts the long-term upside potential into perspective when you compare it with slide 10 (the current resource)!

BFS this month
production at 38kt Cu and 1.2m oz Ag per annum.
commissioning Dec 2011
looking for next Boseto over next 12 months
interesting tax comparison chart
EV/lb (cu) = A$0.05

[jhanson] 30/6/2010 10:18

I think we need a bit of positive news here to stop the drift down. It appears their will be a quarterly report possibly the end of July.

I think the other concern is China,s economy slowing down since they are and will remain the biggest user of copper and other commodities, this may explain the drop in stock piles. I,m holding but if it does drop much more i maybe tempted to halve my holding.

[jasper2712] 28/6/2010 19:24

Don't see why the share price is falling as all the indicators a looking in our favour

"Stockpiles of copper tracked by the LME fell for a seventh day to 453,175 tons, the lowest level since Dec. 7. Bookings to remove metal from warehouses jumped for a third day to 31,900 tons, the highest since March 3. Copper stockpiles monitored by the Shanghai Futures Exchange declined 8.8 percent last week to 123,939 tons, the bourse said on June 25."

[chipperfrd] 28/6/2010 11:42

So the net result of the Chairman's transactions are:

Exercised 1m options @ 30c, cost A$300,000
Exercised 0.8m options @ 35c, cost A$280,000

Total = 1.8m shares added at cost of A$580,000

Sold total of 447,010 shares for proceeds of A$340,981

Therefore gained 1.353m shares for net cost of A$239,019 (hence average net price of A$0.177/share) - nice work if you can get it!

[jasper2712] 25/6/2010 10:54

Seems to go with the Japan results

"Indicating solid demand for copper, the latest data showed LME
copper stocks fell 1,725 tonnes to 454,700 tonnes, their lowest
since early December 2009. Stocks have been falling consistently
from a peak of 555,025 in February this year."

Looking good . now all we need is the BFS due soon and someone might start to show an interest.

[jasper2712] 24/6/2010 16:25

They have to buy it somewhere so why not from DME

"Japan's output of rolled copper products rose to 72,627 tonnes in May on a seasonally adjusted basis, up 50.4 percent from a year earlier, preliminary data showed on Thursday.


Appetite for copper, used in goods including utensils, construction materials and computer chips, is often seen as a gauge of economic activity.


The figure represents a 2.7 percent increase from April, the Japan Copper and Brass Association said."