In an analyst report on Discovery Metals (AIM: DME, ASX: DML) Blackswan Equities commented on the potential of the company’s next phase of exploration. According to the Perth based stockbroker, Discovery’s new exploration expertise could unlock a second ‘Boseto-sized’ resource on the Kalahari copper belt.
Discovery’s wholly-owned Boseto copper project is located on the Kalahari copper-belt in north-west Botswana, approximately 80 km south-west of the town of Maun, within the district of Ngamiland.
The stockbroker highlighted that Discovery recently appointed a new exploration geologist, and with more expertise, they believe that the company will focus on the identification of new prospects, and pin-pointing higher grades and thicker zones.
Blackswan noted that Discovery currently has a 10,100km2 exploration package, consisting of 14 tenements along the Kalahari copper belt, and that the company and its neighbour Hana Mining (TSX-V: ) are quickly demonstrating the significant potential of the belt.
According to the broker note, the two company’s now have a combined resource base of approximately 2.5 million tonnes (Mt) of contained copper – 163.2Mt grading 1.5%.
Discovery is well aware of the need for increasing value from its regional exploration, and it is planned that two additional RC rigs will start testing many regional prospects, Blackswan stated.
In terms of the development of the flagship Boseto mine, Blackswan said that its recent site visit re-affirmed its confidence in the project, and it is comfortable about the project’s resource and development progress. In particular the broker noted the project’s resource growth and the positive scoping study regarding an underground mining operation –which would follow the open-pit operation.
Disclosure: The author holds no positions in the company
Blackswan Equities comments on Discovery Metals’ next phase of exploration on Kalahari copper-belt
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