Quarterly Activities Report - 1 July to 30 September 2011 - Discovery ...

20 October 2011
ASX ANNOUNCEMENT
Liebherr 9350 Excavator and Caterpillar
dump truck
ASX: DML
MARKET CAPITALISATION
Shares on Issue
Share Price
Market Cap
Gross Cash 30 Sep
Project Debt
Net Cash 30 Sep
439m
A$1.370
A$602m
US$118m
US$115m
US$3m
ABN 29 104 924 423
AIM: DME
BSE: DML
Discovery Metals Limited
QUARTERLY ACTIVITIES REPORT
1 July to 30 September 2011
Boseto Copper Project Development
Boseto Construction is 75% complete and is on schedule for commissioning
and commencement of copper silver concentrate production in the first half
of 2012.
All major components are on site.
First mining fleet commenced work in September and recruitment of the
operations personnel continues.
Construction of the Boseto project remains on time and within budget.
Zeta Underground Definitive Feasibility Study scheduled for completion in
late 2011.
Exploration
Boseto Zone (targeting production expansion / mine life extension)
o The Zeta Mineral Resource tonnage was increased by 25%.
o
o
Potential for underground mining at the Plutus Deposit was
confirmed.
resources.
This drilling is outside the current Plutus mineral
Reverse circulation and diamond drilling of 42 holes at the Selene
Prospect indicated potential for economic open pit mining with
copper‐silver mineralisation in all holes. 37 holes reported with best
results of:
• Hole SLDD1288: 5.2m @ 2.2% Cu & 10.2 g/t Ag;
• Hole SLRC1302: 7.0m @ 1.8% Cu & 45.4 g/t Ag;
• Hole SLRC1303: 5.0m @ 1.6% Cu & 22.8 g/t Ag;
• Hole SLRC1276: 5.0m @ 1.4% Cu & 30.2 g/t Ag;
• Hole SLRC1290: 7.0m @1.2% Cu @ 13.7 g/t Ag;
Including 4.0m @ 1.8% Cu & 20.3 g.t Ag.
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o
Drilling at the Mango Prospect has confirmed a new discovery of copper‐silver mineralisation
at both ends of what is believed to be a 36 kilometre prospective horizon.
Mid Kalahari Zone (targeting new standalone mining operation)
o
The seven Ghanzi district prospecting licences (first granted in 2008) have been renewed for
two years.
o Initial drill testing of Ourea, Kronos, Notus and Hemera Prospects was completed. Assay
results are anticipated to be available for release in the December quarter.
South‐west Kalahari Zone (targeting new standalone mining operations)
o
Corporate
Soil sampling continued at the Hermes target.
The project finance package was completed and US$115 million of $205 million available drawn down
in three tranches during the quarter to meet expected payments until the end of October.
The Company entered into a commodity price protection strategy by hedging 40% of forecast copper
income and 65% of forecast silver income for the period from July 2012 to March 2015 at average
future strike prices of US$4.01/lb for copper and US$36.07 for silver.
Discovery Metals had US$118 million in cash and had drawn down US$115 million of Boseto project
financing at 30 September.
1. Boseto Copper Project Development Progress (‘Boseto’ or ‘the
Project’)
The Engineering Procurement and Construction (EPC) contract to construct the 3 million tonnes per annum
Boseto processing plant and related works commenced in September 2010. Activities in the September 2011
quarter included finalisation of off‐site engineering and procurement with most items delivered to site. Onsite
works included erection of structural steelwork, installation of plant, equipment, piping and electrical
works. The construction timeline remains on schedule to allow commencement of commissioning of the
process plant in first half of 2012. Boseto project progress for the quarter was:
o Engineering and procurement neared completion;
o Toteng housing contracts awarded and works commenced;
o Delivery of mine mobile equipment (including spare parts and tyres) commenced to enable ontime
commencement of mining operations;
o Structural concrete for the process plant has been completed;
o Erection of structural steelwork for the process plant continued;
o Installation of plant, equipment, piping and electrical commenced;
o Construction of the mine offices & workshops continued;
o Pipe and power lines for the Project’s water supply progressed;
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o Delivery and commissioning of mobile equipment commenced; and
o The first two of the eight 2.5 megawatt diesel powered generators arrived on site in early
October.
Construction of the project has been significantly advanced over the quarter. Photographs included in this
release show that the primary, secondary and tertiary crushers have been installed, the screening plant is
erected, the ball mill is in place and float cells have been placed upon their concrete support structures. All
major components are on site and work has commenced on the electrical and piping packages of work.
Work continues to complete erection of the fine ore bin and the concentrate shed and work has
commenced to construct the Run Of Mine (ROM) ore pad adjacent to the primary crusher.
The latest estimate to complete the Boseto capital works project show that the project is expected to be
completed within the US$175 million approved budget. The separate estimate of US$75 million for the
procurement and delivery of the mobile mine equipment is also in line with budget estimates. The
Company has maintained progress in line with the schedule set in August 2010.
Monthly progress of the Boseto construction can be tracked pictorially on the Company’s website.
Aerial view of construction site – plant site (lower), infrastructure area (middle).
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Mine mobile plant being delivered progressively.
View from flotation cells (foreground) to fine ore bin (background).
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2. Boseto Operational Progress
Temporary operations accommodation at Toteng.
Mining operations commenced during September following successful delivery and commissioning of the
first units of the mobile plant fleet and induction of the first group of mobile plant operators. Two John
Deere scraper units have been engaged in top‐soil stripping and haul‐road construction and a Caterpillar
front end loader and truck fleet has commenced ROM stockpile pad construction.
Equipment delivered and commissioned by the end of September included:
2 John Deere scraper units;
1 Caterpillar 990 front end loader;
8 Caterpillar 777D haul trucks;
1 Caterpillar D10T bull‐dozer;
1 Caterpillar 16M grader;
2 Caterpillar 834 rubber tyred dozers;
1 Sandvik D25KS blast hole drill;
2 Terex rough terrain cranes; and
8 items of smaller auxiliary plant.
The first of three Liebherr 9350 excavators (350 tonne) was successfully delivered and assembly commenced
in late September. This unit was commissioned and commenced operation in mid‐October 2011. The
remaining mobile plant is on schedule for delivery and commissioning in late 2011 and early 2012.
Excavator and truck mining operations are planned to commence at the Zeta Deposit in the next month to
start the building of the run‐of‐mine (ROM) ore stockpile ahead of plant feed requirements. Recruitment
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and induction of mining mobile plant operators and support staff continues in alignment with the fleet
delivery schedule.
The fixed plant technical and supervisory team is largely recruited and established temporarily in Maun. The
Plant team is currently focussed on development of training modules, spares and supplies procurement and
plant management systems development. Recruitment of fixed plant operators is in progress and the first
operators are expected to commence training late in the 4 th quarter of 2011 in anticipation of commissioning
in the first half of 2012.
The site support services team is engaged with recruiting activities, regular consultation with the community,
setting up environmental systems and establishment of the Toteng accommodation village.
Overall, the operations team is being established on schedule to deliver ore and participate in plant
commissioning activities in the first half of 2012.
The first (of 3) Liebherr 350 tonne excavators and first (of 24) Caterpillar 777D 100 tonne rear dump trucks.
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Liebherr 9350 loading a Caterpillar 777D 100 tonne truck.
3. Zeta Underground Definitive Feasibility Study (DFS)
The DFS for underground mining of the Zeta Mineral Resource is on track and scheduled for completion in
late 2011 with the results expected to be released to the ASX in early 2012. Independent consultant Mining
Plus Pty Ltd (Mining Plus) is assisting with the completion of the DFS.
Snowden Mining Industry Consultants (Snowden) completed an upgrade of the Mineral Resources for the
Zeta Deposit incorporating 54 new infill holes drilled earlier this year. The Mineral Resources at Zeta
increased by 9 million tonnes (25%) to 44.1 million tonnes and this resource model will form the basis of the
Zeta underground DFS. Please refer to the updated Mineral Resource and Ore Reserves statement on the
second last page of this report.
During the quarter, Mining Plus evaluated several mine access options and geotechnical work progressed
with recommendations made for a ground support regime for haulage development and production areas. A
stope design exercise commenced together with mine sequencing and production scheduling. A
metallurgical test work programme on samples of Zeta underground material confirmed the similarity of the
Zeta underground ore with Zeta open pit material.
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The Preliminary Environmental Impact Assessment (PEIA) report for Boseto underground mining has been
accepted by the Department of Environmental Affairs (DEA). It has been agreed that an addendum to the
Boseto Environmental and Social Impact Assessment (ESIA) will be sufficient to grant permission to proceed
with the underground operations. This will ensure that all impacts and the Environmental Management Plan
are comprehensive for the entire scope of the Boseto operations. The process to select a consultant for this
role has commenced.
4. Boseto Coal Fired Power Station
Engineering, Procurement & Construction (EPC) proposals with indicative pricing for a 25MW Coal Fired
Power Station have been received from several potential EPC contractors from South Africa, Australia,
Europe, China and India. All proposals have been evaluated and a short list determined. Fully priced Front
End Engineering Design (FEED) proposals have now been received from these short listed bidders. The EPC
selection due diligence process is underway which will incorporate visits to contractor facilities and design
offices together with nominated projects recently completed or under construction. It is intended to award
a FEED contract to a preferred EPC contractor after this process has concluded. This initiative is an integral
part of the Boseto Development Plan and will allow replacement of the diesel power for the project bringing
significant operating cost savings. The funding of capital costs is planned from operating cash flows during
2013 with the commencement of operation of the coal fired power station currently scheduled for mid‐2014.
5. Kalahari Copperbelt Exploration
Discovery Metals holds 14 prospecting licences covering 8,877 square kilometres in the Kalahari copperbelt
of north‐west Botswana.
The entire prospecting licences package extends from 60 kilometres south‐west of Maun through to the
Namibian border, a distance of over 280 kilometres. The prospecting licences contain approximately 1,300
strike kilometres of favourable geology with the potential to host copper‐silver mineralisation.
Approximately 40% of this prospective horizon’s strike has been explored (soil sampled) by Discovery Metals
and approximately 13% has been drill‐tested to date. Exploration in the September quarter has also been
examining the potential for mineralisation at stratigraphic levels other than that hosting mineralisation at
Zeta and Plutus. Soil sampling has also tested about 100 km of strike length of the Ngwako Pan formation
from Kronus in the south‐west to Zeta in the north‐east at spacing of approximately two kilometres along
strike.
The seven north‐eastern prospecting licences, located in Ngamiland, have been renewed until September
2012, and the seven south‐western prospecting licences, located in the Ghanzi District, were renewed in July
for another two years, until 30 June 2013.
Page 8 of 18

Exploration in the Kalahari Copperbelt during the quarter included regional soil geochemical sampling with
drilling continuing at seven areas, utilising four drill rigs during the quarter as follows:
Deep mineralisation at Plutus has been tested for underground potential;
Mineralisation at Mango and Zeta north‐east has been drill tested; and
Geochemical anomalies at Mango, Ourea, Hemera and Notus have also been subjected to first past
drill testing.
The continuing soil sampling programme, with interpretation of the aeromagnetic surveys flown in the first
half of 2011, will assist in planning further work in the December quarter and beyond. In addition, a large
number of drilling results from work conducted earlier in the year have been received. Most of these have
been reported in separate releases during the quarter and the remaining results are currently being
reviewed and compiled for release.
The three zones showing targets, prospects and deposits for Discovery Metals’ Kalahari copperbelt
prospecting licences.
a) Boseto Zone – targets additional resources for Boseto
Zeta Underground Resource – The Zeta mineral resource was upgraded to 44.1 million tonnes @ 1.3%
copper and 22 g/t silver, an increase of 25% in tonnes over the previous mineral resource and a 16% increase
in contained metal.
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Plutus Underground Target – The results of this program were reported to the ASX in early October,
indicating continuity of both grade and thickness of mineralisation at Plutus to approximately 350 metres
below surface. Potential for underground mining was identified along at least 1,400 metres of strike length
from the 7km zone drill tested. Additional work at Plutus will be planned upon completion of current work
on the Definitive Feasibility Study for underground mining at Zeta.
Boseto Zone – additional open pit target exploration
Within the Boseto zone, exploration was focused on the Mango, Selene and the Zeta north‐east prospects.
RAB drilling has been used to identify the position of the target horizon under sand and calcrete cover, and
diamond core drilling to test mineralisation. A soil sampling programme was undertaken to test the
potential for mineralisation to be hosted by the Ngwako Pan Formation in the Zeta area.
Zeta North‐east ‐ Zeta North‐east is centred about seven kilometres north‐east of Zeta. Mineralisation has
been intersected in two historic holes and five DML drill holes completed prior to 2009. In the September
quarter, ten diamond core holes were drilled to follow up historic drill results, close‐off the mineralisation to
the north‐east and reduce the drill hole spacing to approximately 500m along strike. The results of this
drilling will be reported in the December quarter.
Selene – The assay results received for 37 drill holes at Selene (28 reverse circulation and 9 diamond) which
were part of a 42 hole programme, completed in the June quarter, were reported in July. All 42 holes
intersected copper‐silver mineralisation at depths below surface of between 25 metres and 200 metres along
a strike length of more than 7 kilometres. These results demonstrated the potential for economic open pit
mineralisation at Selene. The assay results for the remaining 5 holes drilled are now expected to be available
in the next quarter.
Rotary Air Blast (RAB) drilling began in September with the aims of extending the known mineralisation to
the north‐east, identifying the position of the mineralised horizon and determining the number of repetitions
of the mineralised horizon in the Selene area. A total of 132 holes were drilled during the quarter for 2,053
metres on nine sections. No assay results have been received from this work as yet. An initial interpretation
suggests that there may be two lines of the mineralised horizon on either side of a north‐east trending
syncline.
Nexus – Initial interpretation of the helimag survey flown earlier in the year suggests a complex structure in
the area of Nexus and Zeta with the possibility of an un‐tested limb of the Zeta Syncline at the north‐east
and south‐west extremities of the known Nexus mineralisation. Drilling will test this interpretation in the
next six months.
Mango – Drilling was conducted at the north‐east end of the Mango area in the quarter, in an area believed
to be contiguous to the Toronto Stock Exchange listed Hana Mining’s Zone 5 mineralisation. An initial six
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diamond holes were drilled over a strike length of more than one kilometre with all holes intersecting
copper‐silver mineralisation that now remains open to the south‐west and down dip. The results of these
holes were reported in September, with the most significant results as follows:
MGDD1324: 13 metres @ 1.8% Cu and 22 g/t Ag; and
MGDD1319: 11 metres @ 1.7% Cu and 19 g/t Ag.
Further drilling in this area is underway to determine the extent of the mineralisation to the south‐west.
Shallow drilling was also undertaken at the south‐west end of Mango, approximately 36 kilometres to the
south‐west of the area of initial diamond drilling conducted during the quarter. A total of 43 shallow RC
holes have been drilled to determine the position of the target horizon. The shallow drilling has been
followed by seven deeper RC holes and three diamond core holes, to test the target horizon at least 50
metres below the surface. Three of the deeper RC holes have intersected malachite and one of the diamond
core holes has intersected copper sulphides over four metres. No assays have been received as yet.
The work completed at Mango in the quarter has demonstrated that mineralisation occurs in two areas
approximately 36 kilometres apart. Planned work in the next six months is focused on determining the
continuity of mineralisation in the zones discovered to date and between the two areas drilled as well as
identifying potential parallel repetitions of the mineralised horizon at targets identified from the helimag
survey.
b) Mid Kalahari Zone – targets new standalone open pit project
Exploration in the Mid Kalahari Zone consisted of drilling in the Hemera, Notus and Ourea areas, and analysis
of results from drilling conducted in the June quarter. Soil sampling was also undertaken to test for zones of
anomalous copper at surface at stratigraphic levels both above and below the known mineralisation. Final
images of the helimag survey, flown in the first half of 2011 were received and interpretation has
commenced.
Ophion – Results from the RC and diamond drilling conducted to date at Ophion were reported during the
quarter. These results indicate a zone of potentially economic mineralisation exists with a strike length of up
to seven kilometres. No further drilling is currently planned for Ophion while a review is undertaken to rank
and then prioritise existing prospects in the mid‐Kalahari zone with respect to mineral resource definition
drilling.
A total of 3,870 soil samples were collected within the Ophion area across a previously untested and
potentially mineralised horizon. A coherent zinc and copper in soil anomaly has been identified over a strike
length of approximately eight kilometres at the contact with the Kgwebe Volcanics basement. An initial
drilling programme to test for mineralisation in this anomalous zone is planned for completion within the
next six months.
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Kronus North‐East – A total of 1,568 soil samples were collected in the Kronus area, with a weak zinc and
copper in soil anomaly, approximately eight kilometres long being defined at the contact with the Kgwebe
Formation.
Notus – One additional diamond core drill hole was completed at Notus in the quarter to finalise the planned
programme. This hole is expected to be reported in the next quarter once the assay results have been
compiled and reviewed.
Hemera – Four diamond core drill holes, for 411 metres, were completed at Hemera during the quarter,
testing copper and zinc in soil anomalism over eight kilometres of strike length of the target horizon.
Although copper sulphides were intersected in all holes, the mineralisation appears to be thin and relatively
low grade. Results from Hemera are expected to be reported in the next quarter.
Ourea – An initial ten hole diamond drilling programme at the Ourea target was completed for 893 metres.
Drilling targeted copper and zinc in soil anomalism around the north‐east hinge of a large, shallow plunging
anticline. The anomalous copper values from soil sampling in this area represented the strongest anomalous
copper results sampled by Discovery Metals to date in the Kalahari copperbelt. Initial drilling indicates that
Ourea is more structurally complex than initially believed and further drilling and reinterpretation of
magnetic imagery will be required to understand the structure in this area. Results for drilling completed to
date at Ourea are expected to be reported in the December quarter.
Gaia‐Coeus – Results from the soil sampling program undertaken in the June quarter have identified a
copper‐zinc in soil anomaly at Gaia and several zinc in soil anomalies at Coeus. Additional soil sampling has
been undertaken in both areas to extend the known anomalism and better define it prior to drilling within
the next six months. The results of the full soil sampling programme are planned to be reported in the
December quarter.
c) South‐west Kalahari Zone – targets underground resources
A total of 3,065 soil samples were collected in the Hermes area during the quarter. Analysis of these samples
were conducted by bench‐top XRF and have returned Cu assays of up to 32 ppm Cu, 59 ppm Zn and 54 ppm
Pb which are considered anomalous in the Kalahari copperbelt. Further soil sampling will be conducted to
define the anomalism, with the results to be reported in the December quarter.
6. Manganese Prospects, South Botswana (Discovery Metals 100%)
Sixteen new Prospecting Licences, covering 14,425 square kilometres in southern Botswana were granted to
Discovery Metals in January 2011. This area, known as the Kanye Basin in Botswana, is underlain by rocks of
the Transvaal Supergroup. These strata possibly represent the northwest extension of the Griqualand West
Basin of South Africa, which is host to both the Kalahari Manganese field (KMF), and the eastern Transvaal
basin which is host to a number of smaller manganese mines in South Africa.
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In the Kanye Basin in Botswana, four separate manganese deposits are known to be located in the eastern
Transvaal sequences, with historical production totalling about 224,000 tonnes of manganese from three
small mines.
There is no evidence of any exploration work targeting manganese deposits of the KMF type in Botswana.
Historical exploration data (from the early 1950s to mid‐1980s) for the entire tenement portfolio was
compiled during the quarter.
A geological desk top study is progressing to assess the available data and plan for future fieldwork.
In excess of 8,000 water boreholes drilled by farmers for water are being reviewed to provide additional
geological and regolith thickness information.
Preliminary interpretation of the regolith data shows a depth of Kalahari cover, mainly unconsolidated
sediments of sand and calcrete, progressively ranging from less than one metre in the eastern area of the
Prospecting Licences to over 50 metres in the western areas.
In addition a Landsat thematic map image interpretation of the area was completed and identified targets in
both the Eastern Transvaal Basin extension and the northwest extension of the Griqualand West Basin of
South Africa into Botswana.
Re‐interpretation of the regional aeromagnetic data from the Government archives is also in progress. An
integrated approach including aeromagnetic data from the known KMF type deposits in north‐west South
Africa has been adopted to provide a broader prospective on the target area.
The next phases of work will include completing the reprocessing of the aero‐magnetics, orientation and
regional soil geochemistry in selected areas and is expected to result in the generation of targets for drill
testing.
7. Dikoloti Nickel Project (Discovery Metals 40%)
The Dikoloti Nickel Project comprises four prospecting licences covering an area of 613 square kilometres
surrounding the nickel deposits of BCL Limited in the Selebi‐Phikwe region of north‐east Botswana.
Discovery Metals previously earned an 85% interest from Xstrata. An Inferred Mineral Resource of 4.1Mt @
0.7% Ni, 0.5% Cu and 1.2 ppm PGE’s (Pt + Pd) at a cut‐off of 0.5% Ni for 28,700 tonnes of contained nickel
has been reported in accordance with the guidelines of the 2004 Edition of the “Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
In October 2009, the Company entered a Joint Exploration Agreement with The Japan Oil, Gas and Metals
National Corporation (JOGMEC) to fund an AUD$3 million exploration programme for Dikoloti. Discovery
Metals will remain operator of the joint venture during the farm‐in exploration period and for any future
Page 13 of 18

projects or operating phases. JOGMEC has expended the required exploration funding to earn a joint
venture interest of 60%.
Drilling at Dikoloti was completed in February 2011, with an additional three holes drilled at Dikoloti North.
JOGMEC has indicated an intention to fund future drilling programmes and Discovery Metals’ current
strategy is to continue to allow its interest in Dikoloti to dilute.
Discovery Metals has submitted a renewal application to the Geological Survey Department of Botswana to
retain only the most prospective parts of the Dikoloti project area and also to significantly reduce the area of
current tenement holding.
8. Corporate Activities
Financial
The Boseto debt syndicate project finance documents were executed with the first draw down of project
debt in July 2011. The Company completed the US$80 million equity portion of the Boseto project financing
in June 2011. By the end of September 2011 a total of US$115 million of debt finance had been drawn to pay
expenditure in the quarter and in advance for October payments, where significant mine mobile fleet
expenditure is scheduled.
Total debt funding of US$180 million will be applied to the Boseto processing plant for US$115 million and
the Boseto mine mobile fleet for US$75 million with Caterpillar being the largest supplier of the mining fleet
for the Boseto operations.
In addition to project and equipment finance, the banking syndicate provides a US$25 million overrun and
working capital facility plus hedging lines for both copper and silver production.
Discovery Metals entered into a commodity price protection strategy by hedging approximately 40% of
forecast copper and 65% of forecast silver production (for the scheduled period of the loan repayment). The
hedge contracts provide downside price protection on a portion of the Boseto production. Approximately
60% of the copper production will be sold at spot market prices. The total hedged quantities are 40,000
tonnes of copper and 1,850,000 ounces of silver.
The average future strike prices attained for these hedge contracts are US$4.01 per pound (/lb) for copper
and US$36.07 per ounce (/oz) for silver. These compare very favourably to the Bankable Feasibility Study
(BFS) prices of US$3.00/lb for copper and US$17/oz for silver and the projected life of mine cash costs of
US$1.24/lb. The hedge book value was US$78 million in excess of commodity market prices at 30
September.
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As the Company’s assets and prospects are located in Botswana, the Company enjoys a stable taxation
regime including a progressive profitability based mining tax system that automatically adjusts the tax rate to
the copper price cycle – both up and down.
Approximately 2 million director and executive incentive options were exercised during the quarter for A$0.9
million.
At the end of the September quarter 2011, Discovery Metals held US$118 million in cash and had drawn
down Boseto project debt of US$115 million.
Boseto Hedging Summary
Copper‐silver production from Boseto will cash settle or receive payment from the hedging banks based on
the difference between the average monthly London Metal Exchange (LME) copper price and the following
contracted hedge prices. The positive market to market value (MTM) for each hedge period and total is also
shown below.
Hedge
Period
Copper
Hedge
Tonnes
Copper
Price
USD/t
Copper
Price
USc/lb
Silver
Hedge
Ounces
Silver
Price
US$/oz
Copper
Mark to
Market
Silver
Mark to
Market
Jul to Sep 2012 3,000 9,208 4.18 141,489 36.32 6,410,703 745,109
Oct to Dec 2012 3,759 9,148 4.15 183,240 36.29 7,761,547 963,712
Jan to Mar 2013 3,681 9,069 4.11 160,890 36.24 7,280,661 951,349
Apr to Jun 2013 3,621 8,995 4.08 161,079 36.19 6,870,668 721,488
Jul to Sep 2013 3,939 8,918 4.05 195,759 36.13 7,149,172 1,002,969
Oct to Dec 2013 4,352 8,845 4.01 218,679 36.08 7,554,477 1,113,373
Jan to Mar 2014 3,879 8,762 3.97 180,408 36.02 6,376,837 911,434
Apr to Jun 2014 3,663 8,678 3.94 167,961 35.95 5,685,394 840,529
Jul to Sep 2014 3,370 8,597 3.90 140,370 35.88 4,947,703 695,731
Oct to Dec 2014 3,240 8,511 3.86 136,140 35.82 4,474,939 665,752
Jan to Mar 2015 3,496 8,424 3.82 163,985 35.75 4,522,691 787,301
Total/ Average 40,000 8,834 4.01 1,850,000 36.07 69,034,792 9,398,746
Based on spot prices of US$6,998/t or US$3.17/lb for copper and US$31.05/oz for silver.
Further information on the Company including Mineral Resources and Ore Reserves is available on its
website: www.discoverymetals.com
For further information on this release and Discovery Metals Limited, please contact:
Brad Sampson Managing Director Ph: +61 7 3218 0200
brad@discoverymetals.com
AIM Nominated Advisor – Fairfax I.S. PLC, Contact Ewan Leggat/Laura Littley Ph: +44 20 7460 4389 or 7460 4387
UK PR – Tavistock Communications, Contact Jos Simson/Emily Fenton Ph +44 (0) 207 920 3150 or 778 855 4035
Page 15 of 18

Forward Looking Statements
This release includes certain statements that may be deemed “forward‐looking statements”. All statements in this discussion, other
than statements of historical facts, that address future activities and events or developments that Discovery Metals expects, are
forward‐looking statements. Although Discovery Metals believes the expectations expressed in such forward‐looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments
may differ materially from those in the forward‐looking statements. Factors that could cause actual results to differ materially from
those in forward‐looking statements include market prices, continued availability of capital and financing, and general economic,
market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that
actual results or developments may differ materially from those projected in forward‐looking statements.
Page 16 of 18

Mineral Resources
The total Mineral Resources and Ore Reserves for the Boseto Copper Project, reported in accordance with
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC
Code, “2004 Edition”), at a cut‐off of 0.6% Cu, are:
Mineral Resources
ZETA PLUTUS & PETRA TOTAL
Mt Cu (%) Ag (g/t) Mt Cu (%) Ag (g/t) Mt Cu (%) Ag (g/t)
Measured 4.6 1.6 23.5 0.1 1.3 11.4 4.7 1.6 23.2
Indicated 12.4 1.5 26.1 11.5 1.4 14.1 23.9 1.5 20.3
Subtotal M&I 17.0 1.5 25.4 11.6 1.4 14.1 28.6 1.5 20.8
Inferred 27.1 1.2 20.0 55.8 1.4 14.8 82.9 1.3 16.5
Total Mineral Resources 44.1 1.3 22.1 67.4 1.4 14.7 111.5 1.4 17.6
Mineral Resources are reported at a cut‐off grade of 0.6% Cu.
Please refer to Competent Persons Statement
Ore Reserves
The Mineral Resource is inclusive of High Grade Ore Reserves at a cut‐off of 0.6% Cu.
High Grade Ore Reserves
ZETA PLUTUS & PETRA TOTAL
Mt Cu (%) Ag (g/t) Mt Cu (%) Ag (g/t) Mt Cu (%) Ag (g/t)
Proved 4.0 1.6 22.1 0.2 1.3 11.7 4.2 1.6 21.6
Probable 6.5 1.5 23.5 11.1 1.3 13.7 17.6 1.4 17.3
High Grade Ore Reserves 10.5 1.5 23.0 11.3 1.3 13.7 21.8 1.4 18.2
High Grade Reserves reported at a cut‐off grade of 0.6% Cu
Please refer to Competent Persons Statement
Competent Persons Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Fred Nhiwatiwa who is a
Member of the Australasian Institute of Mining and Metallurgy (MAusIMM) and Mr Wallace Mackay who is a Member of the
Australian Institute of Geoscientists. Mr Nhiwatiwa and Mr Mackay are full‐time employees of Discovery Metals Limited. Messrs
Nhiwatiwa and Mackay have sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
The information in this report as it relates to the Zeta, Plutus and Petra Mineral Resources for the Boseto Copper Project was
reviewed by David Arnott, who is a MAusIMM. Mr Arnott is employed fulltime by Snowden Mining Industry Consultants Pty Ltd
(Snowden). Mr Arnott has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
The information in this report as it relates to the Ore Reserves is based on information reviewed by Mr Peter Myers, who is a
MAusIMM and a fulltime employee of Snowden. Mr Myers has sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the preparation of mining studies to qualify as a Competent Person as defined in the
2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
The information in this report as it relates to the Dikoloti Mineral Resource was reviewed by Mr Stefan Mujdrica of Xstract Mining
Consultants Pty Ltd. At the time of reviewing the reported Mineral Resource, Mr Mujdrica was employed by Snowden. Mr Mujdrica
is a MAusIMM and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
Messrs Nhiwatiwa, Mackay, Arnott, Myers and Mujdrica consent to the inclusion in this report of the matters based on information
provided by them and in the form and context in which it appears.
Page 17 of 18

Directory
DISCOVERY METALS LIMITED
ABN 29 104 924 423
Web site www.discoverymetals.com
Email: info@discoverymetals.com
AIM Listing:
AIM Nominated Advisor & AIM Broker
Fairfax I.S. PLC
Contact: Ewan Leggat Phone: +44 20 7460 4389
Contact: Laura Littley Phone: +44 20 7460 4387
MIA Buildings under construction
Mother and baby elephant
Primary Crusher Concrete and Steel
Work Assembly
Investor information contacts:
Brad Sampson
Managing Director
Phone: +61 7 3218 0200
Email: brad@discoverymetals.com
or
Paul Fulton
Chief Financial Officer
Phone: +61 7 3218 0218
Email: paul.fulton@discoverymetals.com
Shareholder enquiries:
Queries related to share registry matters should be directed
to:
Computershare Investor Services
117 Victoria Street
West End, Queensland 4101
Tel: 1300552270 or +61 7 3237 2100
Fax: +61 7 3237 2152
Web site: www.computershare.com
Registered Office
Level 20, 333 Ann Street, Brisbane,
Queensland 4000, Australia
Phone: +61 7 3218 0222
Fax: +61 7 3218 0233
United Kingdom investor information:
Tavistock Communications
Contact: Jos Simson/Emily Fenton
Phone +44 207 920 3150
Mobile +44 7788 554 035
Stock exchange listings
Australian Stock Exchange ‐ ASX Code: DML
Botswana Stock Exchange ‐ BSE Code: DML
Alternate Investment Market ‐ London Stock Exchange
AIM Code: DME
Issued capital
At 30 September 2011 ordinary issued capital of
Discovery Metals was 439,128,231 ordinary shares
and 4,350,000 director and executive options.
Directors
Gordon Galt – Chairman
Brad Sampson – Managing Director
Morrice Cordiner – Non‐Executive Director
Ribson Gabonowe – Non‐Executive Director
Jeremy Read – Non‐Executive Director
John Shaw – Non‐Executive Director
Company Secretary – Greg Seeto
Managing Director, Brad Sampson,
addressing staff in Gaborone
Botswana Country Office
Plot 21314, Sebele Station Road, Phakalane
Gaborone, Botswana
Phone: +267 318 0751
Fax: +267 318 0752
Page 18 of 18

Appendix 5B
Mining exploration entity quarterly report
Appendix 5B
Rule 5.3
Mining exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
DISCOVERY METALS LIMITED
ABN
Quarter ended (“current quarter”)
29 104 924 423 30 September 2011
Consolidated statement of cash flows
Cash flows related to operating activities
1.1 Receipts from product sales and related
debtors
Current quarter
$USD’000
Year to date (3
months)
$USD’000
1.2 Payments for (a) exploration & evaluation
(b) development
(c) production
(d) administration
1.3 Dividends received
1.4 Interest and other items of a similar nature
received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other (provide details if material) –
GST/VAT
Net Operating Cash Flows
‐4,975
‐74,101
‐9,801
‐4975
‐74,101
‐9,801
202 202
1,436 1,436
‐87,240 ‐87,240
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects
(b) equity investments
(c) other fixed assets
1.9 Proceeds from sale of: (a) prospects
(b) equity investments
(c) other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities
1.12 Other (provide details if material)
Net investing cash flows
1.13 Total operating and investing cash flows
(carried forward)
‐87,240 ‐87,240
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 1

Appendix 5B
Mining exploration entity quarterly report
1.13 Total operating and investing cash flows
(brought forward)
‐87,240 ‐87,240
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 1,156 1,156
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings 115,000 115,000
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other (provide details if material)
Net financing cash flows
116,156 116,156
Net increase (decrease) in cash held 28,916 28,916
1.20 Cash at beginning of quarter/year to date 88,807 88,807
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter
117,723 117,723
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the
related entities
Current quarter
USD'000
1.23 Aggregate amount of payments to the parties included in item 1.2 58
1.24 Aggregate amount of loans to the parties included in item 1.10
1.25 Explanation necessary for an understanding of the transactions
Non‐cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in
which the reporting entity has an interest
+ See chapter 19 for defined terms.
Appendix 5B Page 2 17/12/2010

Appendix 5B
Mining exploration entity quarterly report
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
USD’000
USD’000
3.1 Loan facilities 180,000 115,000
3.2 Credit standby arrangements 25,000 o
Estimated cash outflows for next quarter
USD’000
4.1 Exploration and evaluation 3,000
4.2 Development 90,000
4.3 Production
4.4 Administration 1,500
Total 94,500
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows)
to the related items in the accounts is as follows.
Current quarter
USD’000
Previous quarter
USD’000
5.1 Cash on hand and at bank 117,723 88,807
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter (item 1.22)
117,723 88,807
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 3

Appendix 5B
Mining exploration entity quarterly report
Changes in interests in mining tenements
6.1 Interests in mining
tenements
relinquished, reduced
or lapsed
Tenement
reference
Nature of interest
(note (2))
Interest at
beginning
of quarter
‐ ‐ ‐ ‐
Interest at
end of
quarter
6.2 Interests in mining
tenements acquired or
increased
‐ ‐ ‐ ‐
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
7.1 Preference
+ securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks,
redemptions
7.3 + Ordinary
securities
Total number Number quoted Issue price per
security (see note
3) (cents)
439,128,231 439,128,231
Amount paid up
per security (see
note 3) (cents)
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks
513,750
500,000
500,000
500,000
513,750
500,000
500,000
500,000
50 cents (option
exercise)
43 cents (option
exercise)
54 cents (option
exercise)
37.5 cents (option
exercise)
50 cents
43 cents
54 cents
37.5 cents
+ See chapter 19 for defined terms.
Appendix 5B Page 4 17/12/2010

Appendix 5B
Mining exploration entity quarterly report
7.5 + Convertible
debt
securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options
(description and
conversion
factor)
7.8 Issued during
quarter
7.9 Exercised
during quarter
7.10 Expired during
quarter
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
1,000,000
1,000,000
1,000,000
100,000
1,000,000
250,000
513,750
500,000
500,000
500,000
Exercise price
50 cents
35 cents
55 cents
37.5 cents
35 cents
37.5 cents
50 cents
43 cents
54 cents
37.5 cents
Expiry date
12 December 2011
12 December 2011
1 February 2013
1 November 2012
1 November 2013
1 November 2013
12 December 2011
25 March 2012
25 March 2013
1 November 2013
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 5

Appendix 5B
Mining exploration entity quarterly report
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards
acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 20 October 2011
Company Secretary
Print name:
Gregory Seeto
Notes
1 The quarterly report provides a basis for informing the market how the entity’s
activities have been financed for the past quarter and the effect on its cash
position. An entity wanting to disclose additional information is encouraged to
do so, in a note or notes attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the
reporting period. If the entity is involved in a joint venture agreement and
there are conditions precedent which will change its percentage interest in a
mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Financial Reporting Standards for foreign entities. If the standards used do not
address a topic, the Australian standard on that topic (if any) must be complied
with.
== == == == ==
+ See chapter 19 for defined terms.
Appendix 5B Page 6 17/12/2010