Discovery Minerals LTD (DSCR)

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$DSCR #DSCR Highlights of Company Mining Activity :

DSCR has signed an Option agreement with Meritus Minerals on the extensive Gutain Daava gold property.

This allows the DSCR Mining Engineer to make a site inspection and become familiar with local conditions and personnel for the Mine preparation process.

Our Engineer has completed this inspection and given instructions to a qualified Firm in Kalgoorlie, West Australia to carry out a Jorc Compliance Report ( similar to the TSX report called a 43-101 ) on the reserves as are indicated by 3 separate drilling programs and surface geological mapping and sampling results. The firm commissioned to carry out this Report has had considerable Mongolian mining theatre experience and keeps their connections in the mining technical field current by regular contact and associated work.

Considerable metallurgical work has been carried out on the recovered diamond drilling core which indicates a 92% recovery of gold & silver, but further work to be carried out by DSCR may improve on that extraction recovery rate.

The Project has already been granted a 30 year mining Permit on the approximate 3,500 acres of the Permitted area. This is advantageous because of the application time saved in securing a permit for the existing operation, but also because there are two other known zones of mineralisation on this acreage that are likely to be ore zones. As stated in the May 22nd Release, a Qualified Geologist authorized publishing an excerpt from his internal Report on the estimated gold reserves of the Gutain Daava area to be 500,000 ounces minimum. Say : US$775 million in value at today’s gold price.

After the Jorc Compliance report is complete DSCR will commission a Mine Feasibility Report. We have already given instructions to a Qualified mining Economist to write the Report.
The Project Manager has already canvassed machinery & equipment providers for prices and availability of a turnkey treatment plant for the estimated 300 to 500 tons per day that will be produced from the mine. These quotes include an assay laboratory that will allow sampling and testing of surrounding prospective areas while taking care of grade control by frequent assays of production ore.
A further gold mining property on a production JV basis has been offered to DSCR in a location not far removed from Mongolia.
The Company Mining engineer will travel to this site before the end of July for a Due Diligence inspection and detailed discussions with technical personnel regarding the fastest start up program for this operation.

This particular orebody has been shown by drilling & sampling to able to be mined by open pit from the surface and has an estimated strip ratio of only 2.5 to one.
The grade has been assessed at +/- 20 grams per ton and with further drilling will be a minimum of 70,000 ozs of gold to mine in this operation. The mining & treatment phase of this operation will be approximately 2 years from startup.