Discovery Metals Limited (ASX/BSE: DML) (Discovery Metals, DML or the Company) is pleased to announce that it has received approval from the Ministry of Minerals, Energy and Water Resources of the Republic of Botswana to amend Mining Licence No. 2010/99L to include the Zeta Underground Mine into the Boseto Copper Project.

 
This approval is an important step for Discovery Metals’ strategic direction to unlock underground potential. The CEO of Discovery Metals, Mr Bob Fulker, commented that “These are exciting times at Discovery Metals, with the Recapitalisation Proposal with Montsant Partners LLC and now this approval for amendment to Mining Licence No. 2010/99L. This approval will allow the development of our underground mining programme to progress and is consistent with the new overall strategic direction of the Company to develop our underground mineral resources.”

 
Discovery Metals thanks the Minister of Minerals, Energy and Water Resources for this approval and looks forward to continuing and strengthening its relationship with the Republic of Botswana. The development of the Zeta Underground Mine will present additional employment opportunities for the people of Botswana. Local communities and businesses will also benefit from the extension of the life of the Boseto Operation.

 
Discovery Metals’ strategic direction, unlocking underground potential

 
This approval is the commencement of Discovery Metals’ strategic direction to change focus into underground mining. It allows for:

• The establishment of the Zeta Underground Mine which will significantly lengthen the life of the Boseto Operation while also providing a longer and consistent access to high quality mineralisation. There is also potential for two more underground mines (North-East Mango 2 and Zeta North-East);

• Access to higher grade mineralisation together with improved copper recovery, which will result in much higher copper and silver production;

• The use of leading underground mining contractors with customary KPIs to provide for reduced operational risk management with low owner administration costs; and

• Feasibility work on an additional underground mine to progress while supplementary feed is obtained from open pits.

The Company’s ultimate objective to be able to supply sufficient ore from the three planned underground mines to be able to keep the 3.2mtpa Boseto concentrator running at maximum throughput and efficiency.

At steady state production levels, the planned Zeta Underground Mine will produce 1.5 Mt at 1.3% Cu per annum. This information was prepared and first disclosed under the JORC Code 2012 in the ‘Minerals Resources and Ore Reserves Update’ dated 22 July 2013. The Company confirms that it is not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning the estimate continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified.