Discovery Metals

HOLD

13/08/2010 Robert Tyerman

Discovery Metals has established an initial copper reserve of 313,300 tonnes at its Boseto project in Botswana.

The AIM-quoted company, based in Brisbane, Australia, says mining consultant Snowden has estimated a reserve of 24.1m tonnes of ore holding 1.3% copper, with silver also present at 16.7 grammes of silver per tonne of ore.

Steered by managing director Brad Sampson, Discovery says it plans to mine ore from this reserve in a bankable feasibility study on Boseto, whose results should become public by the end of this month. The established initial reserve is only part of an estimated potential measured, indicated and inferred resource of 1.4m tonnes of copper at 1.4% and 57m oz of silver at 17.3 grammes a tonne. 

Highlighted by Growth Company Investor at 15.50p last year and again at 37p in February, Discovery shares peaked at 55.75p and now stand at 45.25p, up 2.25p this morning. As long as the results continue to be encouraging and copper retains its fans, they stand to make further medium-term progress.

Tags: AIM, Commodities, Emerging markets

Sector: Mining

Companies: Discovery Metals

Market cap: £136.7m

PE Forecast: n/a

Share price: 45.25p