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

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
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