Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
seven diamond drill holes targeting bulk-tonnage mineralization in
the South Corridor at its flagship Cordero project (“Cordero” or
“the Project”) located in Chihuahua State, Mexico. The South
Corridor has seen significantly less drilling than the North
Corridor and will be a key area of focus for the remainder of the
55,000 metre (“m”) Phase 1 drill program. The goal of this drill
program is to delineate a high-margin silver project with size and
scaleability.
Highlight intercepts include:
- Hole
C20-348:
139.1 m averaging
138 grams per tonne silver
equivalent (“g/t AgEq1”) from 196.2 m (47
g/t Ag, 0.07 g/t gold (“Au”), 0.6% lead (“Pb”) and 1.6% zinc
(“Zn”)) including 19.0 m
averaging 357 g/t AgEq1
(112 g/t Ag, 0.17 g/t Au, 1.8% Pb, 4.0% Zn)
-
Hole C20-353:
26.6 m averaging
108 g/t AgEq1 from 99.5 m (56 g/t
Ag, 0.09 g/t Au, 0.4% Pb and 0.7% Zn) and 29.6 m averaging
119 g/t AgEq1 from 278.1 m (52 g/t Ag,
0.07 g/t Au, 0.8% Pb, 0.8% Zn)
-
Hole C20-359:
62.2 m averaging
86 g/t AgEq1 from 149.0 m (38 g/t
Ag, 0.07 g/t Au, 0.4% Pb and 0.7% Zn)
Taj Singh, President and CEO, states: “Our drill
targeting approach in the South Corridor is guided by ongoing
iterations of our internal model in order to identify areas that
are classified as waste due to a lack of drilling. Considering all
seven holes in this release intercepted broad zones of
mineralization in such areas bodes well for the conversion of waste
to ore in this part of the deposit. This obviously has positive
implications for not only increasing the size of the
pit-constrained resource but also for reducing the overall strip
ratio of the deposit and clearly demonstrates that we continue to
add value through the drill bit through our proactive and focused
exploration approach.”
DRILL
RESULTS:
The seven holes in this release were drilled
along approximately 700 m of strike extent of the South Corridor
and were designed to in-fill significant gaps in previous drilling.
All holes intercepted broad zones of galena and sphalerite
mineralization in disseminations, veinlets and stockworks
predominantly hosted in dacite and sedimentary rock.
The highlight hole in this release was C20-348,
drilled in the central part of the South Corridor. C20-348
intercepted multiple broad zones of higher-grade mineralization
including an intercept of 139.1 m averaging 138 g/t AgEq from 196.2
m (47 g/t Ag, 0.07 g/t Au, 0.6% Pb and 1.6% Zn) including 19.0 m
averaging 357 g/t AgEq1 (112 g/t Ag, 0.17 g/t Au, 1.8% Pb, 4.0%
Zn). The remaining holes were drilled up to 250 m to the southwest
and up to 450 m to the northeast of C20-348. Drill hole locations
for all holes are shown in Figure 1 (see links below) and detailed
drill highlights are provided in the table below.
Hole ID |
From (m) |
To (m) |
Width (m) |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
AgEq1 (g/t) |
C20-348 |
77.6 |
148.8 |
71.2 |
18 |
0.06 |
0.2 |
0.7 |
59 |
including |
144.0 |
144.8 |
0.8 |
495 |
0.42 |
7.2 |
3.1 |
913 |
and |
196.2 |
335.3 |
139.1 |
47 |
0.07 |
0.6 |
1.6 |
138 |
including |
273.2 |
276.1 |
2.9 |
471 |
0.21 |
4.2 |
3.8 |
793 |
& including |
292.5 |
311.5 |
19.0 |
112 |
0.17 |
1.8 |
4.0 |
357 |
and |
388.0 |
420.2 |
32.3 |
44 |
0.08 |
0.7 |
1.3 |
127 |
|
|
|
|
|
|
|
|
|
C20-353 |
99.5 |
126.1 |
26.6 |
56 |
0.09 |
0.4 |
0.7 |
108 |
including |
118.7 |
119.7 |
1.0 |
849 |
0.37 |
4.5 |
5.8 |
1,281 |
and |
207.1 |
226.5 |
19.4 |
41 |
0.06 |
0.5 |
1.2 |
115 |
and |
278.1 |
307.7 |
29.6 |
52 |
0.07 |
0.8 |
0.8 |
119 |
|
|
|
|
|
|
|
|
|
C20-355 |
4.5 |
63.3 |
58.9 |
29 |
0.06 |
0.4 |
0.4 |
66 |
and |
64.6 |
156.7 |
92.1 |
27 |
0.05 |
0.2 |
0.4 |
56 |
and |
288.7 |
321.0 |
32.4 |
72 |
0.07 |
0.3 |
0.1 |
95 |
|
|
|
|
|
|
|
|
|
C20-356 |
122.8 |
161.2 |
38.4 |
36 |
0.04 |
0.6 |
0.7 |
90 |
and |
380.5 |
414.1 |
33.6 |
25 |
0.03 |
0.3 |
0.6 |
65 |
|
|
|
|
|
|
|
|
|
C20-359 |
107.1 |
141.0 |
33.9 |
30 |
0.07 |
0.5 |
0.6 |
79 |
and |
149.0 |
211.2 |
62.2 |
38 |
0.07 |
0.4 |
0.7 |
86 |
including |
195.7 |
197.3 |
1.6 |
530 |
0.42 |
2.5 |
3.5 |
800 |
and |
228.2 |
231.5 |
3.3 |
152 |
0.71 |
2.2 |
6.9 |
572 |
including |
228.2 |
229.0 |
0.8 |
236 |
0.27 |
5.7 |
9.2 |
840 |
|
|
|
|
|
|
|
|
|
C20-363 |
268.4 |
325.5 |
57.1 |
18 |
0.01 |
0.2 |
1.0 |
69 |
|
|
|
|
|
|
|
|
|
C20-364 |
366.7 |
424.3 |
57.6 |
19 |
0.03 |
0.3 |
0.7 |
61 |
1All results in this news release are rounded.
Assays are uncut and undiluted. Widths are drilled widths, not true
widths, as a full interpretation of the actual orientation of
mineralization is not complete. Intervals were chosen based on a 20
g/t AgEq cutoff with no more than 10 m of dilution. AgEq
calculations are used as the basis for total metal content
calculations given Ag is the dominant metal constituent as a
percentage of AgEq value in approximately 70% of the Company’s
mineralized intercepts. AgEq calculations for reported drill
results are based on USD $16.50/oz Ag, $1,350/oz Au, $0.85/lb Pb,
$1.00/lb Zn. The calculations assume 100% metallurgical recovery
and are indicative of gross in-situ metal value at the indicated
metal prices. Refer to Technical Notes below for metallurgical
recoveries assumed in the 2018 PEA completed on Cordero.
PHASE 1 DRILL PROGRAM
UPDATE:
The Company has completed 39,950 m (105 holes)
as part of its expanded 55,000 m Phase 1 drill program. Assays from
27 holes are pending. There are currently four drill rigs
operational on site. Additional drill rigs may be added when the
Company is confident that the health and safety risks related to
COVID-19 can be managed effectively.
Drilling is focused on two key concepts: (1)
targeting of bulk-tonnage mineralization within and to the east and
northeast of both mineralized corridors; and (2) testing of the
width, grade and continuity of extensive high-grade vein systems
that transect the deposit.
Supporting maps and sections, drill hole locations and full
assay results can be found at the following link:
https://dsvmetals.com/site/assets/files/5407/20201112_dsv_nrm.pdf
A PDF of this release with supporting maps and sections included
as appendices can be found at the following link:
https://dsvmetals.com/site/assets/files/5407/20201112_dsv_nr.pdf
About DiscoveryDiscovery’s
flagship project is its 100%-owned Cordero silver project in
Chihuahua State, Mexico. Our drill results to date show that
Cordero is developing all the attributes of a tier 1 project –
grade, scale, significant organic growth opportunities and well
located in one of Mexico’s premier mining belts. The project is
supported by an industry leading balance sheet with over C$80
million of cash allocated for aggressive exploration, resource
expansion and future development.
Sample analysis and QA/QC ProgramTrue widths of
reported drill intercepts have not been determined. Assays are
uncut except where indicated. All core assays are from HQ drill
core unless stated otherwise. Drill core is logged and sampled in a
secure core storage facility located at the project site 40km north
of the city of Parral. Core samples from the program are cut in
half, using a diamond cutting saw, and are sent to ALS
Geochemistry-Mexico for preparation in Chihuahua City, Mexico, and
subsequently pulps are sent to ALS Vancouver, Canada, which is an
accredited mineral analysis laboratory, for analysis. All samples
are prepared using a method whereby the entire sample is crushed to
70% passing -2mm, a split of 250g is taken and pulverized to better
than 85% passing 75 microns. Samples are analyzed for gold using
standard Fire Assay-AAS techniques (Au-AA24) from a 50g pulp. Over
limits are analyzed by fire assay and gravimetric finish. Samples
are also analyzed using thirty three-element inductively coupled
plasma method (“ME-ICP61”). Over limit sample values are re-assayed
for: (1) values of zinc > 1%; (2) values of lead > 1%; and
(3) values of silver > 100 g/t. Samples are re-assayed using the
ME-OG62 (high-grade material ICP-AES) analytical package. For
values of silver greater than 1,500 g/t, samples are re-assayed
using the Ag-CON01 analytical method, a standard 30 g fire assay
with gravimetric finish. Certified standards and blanks are
routinely inserted into all sample shipments to ensure integrity of
the assay process. Selected samples are chosen for duplicate assay
from the coarse reject and pulps of the original sample. No QAQC
issues were noted with the results reported herein.
Qualified
PersonGernot Wober, P.Geo, VP Exploration,
Discovery Metals Corp., is the Company's designated Qualified
Person for this news release within the meaning of National
Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI
43-101”) and has reviewed and validated that the information
contained in this news release is accurate.
On Behalf of the Board of Directors,
Taj Singh, M.Eng, P.Eng, CPA, President, Chief
Executive Officer and Director
For further information contact:
Forbes Gemmell, CFAVP Corporate
Development & Investor
Relationsforbes.gemmell@dsvmetals.com
TECHNICAL NOTES
& FORWARD-LOOKING
STATEMENTS:
The most recent technical report for the Cordero
Project is the 2018 Preliminary Economic Assessment (PEA) authored
by M3 Engineering and Technology Corp and includes the most recent
resource estimate, completed by Independent Mining Consultants,
Inc. It is available on Discovery’s website and on SEDAR under
Levon Resources Ltd, a wholly owned subsidiary of Discovery. The
PEA assumes metallurgical recoveries of 89% for Ag, 84% for Pb, 72%
for Zn and 40% for Au.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release is not for distribution to United States
newswire services or for dissemination in the United States.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy nor shall there be any
sale of any of the securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful, including any of the
securities in the United States of America. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the “1933 Act”) or any state securities
laws and may not be offered or sold within the United States or to,
or for account or benefit of, U.S. Persons (as defined in
Regulation S under the 1933 Act) unless registered under the 1933
Act and applicable state securities laws, or an exemption from such
registration requirements is available.
Cautionary Note Regarding Forward-Looking
Statements
This news release may include forward-looking
statements that are subject to inherent risks and uncertainties.
All statements within this news release, other than statements of
historical fact, are to be considered forward looking. Although
Discovery 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 described
in forward-looking statements. Factors that could cause actual
results to differ materially from those described in
forward-looking statements include fluctuations in market prices,
including metal prices, continued availability of capital and
financing, and general economic, market or business conditions.
There can be no assurances that such statements will prove accurate
and, therefore, readers are advised to rely on their own evaluation
of such uncertainties. There can be no assurance that the Private
Placement will close on the announced terms. Discovery does not
assume any obligation to update any forward-looking statements
except as required under applicable laws.
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