The Dikoloti Nickel Project in north-east Botswana is a joint venture with The Japan Oil, Gas and Metals National Corporation (JOGMEC), who have earned a right to 72% of the project to 31 December 2013. JOGMEC will provide funding for the exploration programme to 2014 and therefore Discovery Metals’ share of the project is expected to continue to dilute as it focuses on the development and potential expansion of the Boseto Copper Project.
The Dikoloti Nickel Project currently comprises three prospecting licences covering an area of 283 square kilometres surrounding four nickel-copper deposits with a combined historic resource of 182 Mt @ 0.8% Ni & 0.88% Cu that is owned by Bamangwato Concessions Limited (BCL) in the Selebi-Phikwe region of north-east Botswana. The Company recently received an extension of the prospecting licences that involved some relinquishing of land, however, the reduced licence area covers all the areas of interest to the Company.
In March 2014, DML and JOGMEC announced a new joint venture programme with BCL. Under the terms of the new agreement BCL have been granted the exclusive right to acquire a 51% interest in the Dikoloti Project if BCL are able to convert the prospecting licences into mining licences under applicable Botswana law. If BCL earn the participating interest, the interests of JOGMEC and DML will be reduced accordingly, and BCL will be the "Operator" of the joint venture.
JOGMEC was established on 29 February 2004 as a merger of several Japanese government agencies. JOGMEC’s charter incorporates that of the former Metal Mining Agency of Japan, which was in charge of ensuring a stable supply of nonferrous metal and mineral resources.
BCL Limited own and operate a nickel-copper mine and smelter located in the Selebi-Phikwe town, which lies approximately 410 kilometres north of Gaborone, Botswana. The mine’s annual production is 2.8 million tonnes (Mt) of ore, with the smelter operating since 1980 at an annual rate of approximately 50,000 tonnes of a nickel copper matte.