AIM RELEASE
7 December 2007
ASX PRICE QUERY
Discovery Metals Limited (AIM:DME) advises that on 6 December 2007,
the Company received a Price Query letter from the Australian Stock
Exchange ('ASX) noting a price change and increase in the volume of
trading of the Company's securities.
A pdf version of the ASX Price Query letter is attached to this
announcement and it is also available on the Company's website. The
following text is the Company's response to the ASX Price Query
letter.
6 December 2007
Frances Finucan
ASX Limited
Level 5
Riverside Centre
123 Eagle Street
Brisbane QLD 4000
By email: frances.finucan@asx.com.au
Dear Frances
Thank you for your letter of 6 December 2007.
Using the numbering in your letter, we respond as follows:
1. The Company is not aware of any information concerning it that
has not been announced which, if known, could be an explanation for
recent trading in the securities of the Company, particularly the
price and volume increase on the 5th & 6th December 2007. However,
as you are aware, the Company has requested today that its securities
be placed in a trading halt pending the release of an announcement.
2. This question is not applicable given our response to Question
1.
3. On 26 November 2007, the Company released its AGM presentation
which included (Slide 28) a 'Peer Comparison' between the Company and
African Copper Plc and the market may now be recognising some
similarities between Discovery Metals and African Copper. In
addition, we understand that there has been broker interest (based
on the information disclosed to the market) and analyses of the 2
companies and their Projects that may explain the price change and
increase in trading volume. The Company however is not aware of any
reports, their content or any information being circulated about the
Company by any third party or if this is in fact occurring.
4. I confirm that the Company is in compliance with the Listing
Rules and, in particular, Listing Rule 3.1.
In confirming this, I advise that the Company's external consultants,
Snowden Mining Industry Consultants ("Snowden"), are preparing a new
resource estimation in respect of the Company's Plutus Prospect on
the Maun Copper Project in North West Botswana. This estimation work,
though well advanced, is not yet complete. In regard to this
estimation work, all drill hole assay data being used has been
previously released to the market.
The Company has regularly kept the market informed of progress with
its projects and drill results including:-
* On 25 September 2007, the Company released to the market
information regarding the prospect of further expanding the total
resources at Discovery Metal's 100% owned Maun Copper Project by
more encouraging results from drilling at the Plutus Prospect.
* On 30 October 2007, the Company released to the market
information regarding new drill results from the Plutus Prospect
and the engagement of external consultants to complete a resource
assessment.
* On 31 October 2007, this information was again contained
in the Company's Quarterly Activities Report.
* On 26 November 2007, the AGM Presentation, and in
particular Slide 20, details the Plutus Prospect and drill results.
Yours faithfully
Roslynn Shand
Company Secretary
Discovery Metals Limited
NOTE: For further information contact
Jeremy Read
Managing Director
Tel: +617 3218 0202
Mobile: 0409 484322
Email: jeremy@discoverymetals.com.au
Jamie Wright
RFC Corporate Finance Ltd (Nomad)
Tel: +618 9480 2508
Email: Jamie.Wright@rfc.com.au
Richard Hail
Fox-Davies Capital Ltd (AIM Broker)
Telephone: +44(0) 20 7936 5200
Email: Richard.Hail@fdcap.com
Further information on the Company is available on its website:
www.discoverymetals.com.au
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