Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
13 diamond drill holes targeting bulk-tonnage mineralization at its
flagship Cordero silver project (“Cordero” or “the Project”)
located in Chihuahua State, Mexico. The holes are part of an
expanded 65,000 m Phase 1 drill program that will be incorporated
in a new resource estimate and revamped PEA in the second half of
the year.
Highlight intercepts include:
- Hole
C20-375: 131.6 m averaging 118 g/t AgEq1
from 49.2 m (48 g/t Ag, 0.09 g/t Au, 0.5% Pb and 1.1% Zn) including
37.1 m averaging 223 g/t AgEq1 (119 g/t Ag, 0.22 g/t Au, 1.0% Pb,
1.2% Zn)
- Hole
C20-378: 85.6 m averaging 175 g/t AgEq1 from 406.2 m (53
g/t Ag, 0.05 g/t Au, 1.4% Pb and 1.7% Zn) including 39.9 m
averaging 308 g/t AgEq1 (93 g/t Ag, 0.08 g/t Au, 2.4% Pb, 3.0%
Zn)
- Hole
C20-373: 126.1 m averaging 103 g/t AgEq1 from 281.2 m (40
g/t Ag, 0.10 g/t Au, 0.4% Pb and 1.0% Zn)
- Hole
C20-390: 57.6 m averaging 134 g/t AgEq1 from 184.4 m (41
g/t Ag, 0.11 g/t Au, 0.3% Pb and 1.8% Zn)
Taj Singh, President and CEO, states: “We have
now expanded the higher-grade bulk-tonnage domain by 300 m
northeast along strike in the South Corridor. This area of the
deposit had seen only limited drilling historically. Our recent
drilling, including highlight intercepts in this release of 132 m
at 118 g/t AgEq and 126 m at 103 g/t AgEq, has consistently
delivered broad zones of near-surface mineralization. These results
are a positive surprise and emphasize the sheer scale of the
higher-grade mineralizing system at Cordero and show the
opportunities that lie ahead for the Project in this rising silver
price environment.”
DRILL RESULTS:
Drill holes from this release were successful in
confirming and expanding the higher-grade bulk-tonnage domain in
the South Corridor. Drilling in the northeast extension, an area
with limited historical drilling, has consistently intercepted
broad zones of galena and sphalerite mineralization in
disseminations, veinlets and stockworks predominately hosted in
rhyodacite and sedimentary rock. Our drilling has extended the
strike extent of the higher-grade bulk-tonnage domain by
approximately 300 m along strike across an estimated lateral extent
of approximately 400 m. Highlight intercepts from this area are
shown in the table below. Initial step-out holes up to 300 m
further to the northeast also returned significant intercepts (27.3
m at 91 g/t AgEq1 in hole C20-368 and 21.2 m at 96 g/t AgEq1 in
hole C20-374) demonstrating the potential for further expansion of
the bulk-tonnage domain in this direction.
Hole ID |
From (m) |
To (m) |
Width (m) |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
AgEq1 (g/t) |
Release Date |
C20-373 |
281.2 |
407.3 |
126.1 |
40 |
0.10 |
0.4 |
1.0 |
103 |
Current Release |
C20-375 |
49.2 |
180.7 |
131.6 |
48 |
0.09 |
0.5 |
1.1 |
118 |
C20-390 |
184.4 |
242.0 |
57.6 |
41 |
0.11 |
0.3 |
1.8 |
134 |
and |
258.7 |
302.1 |
43.5 |
36 |
0.06 |
0.5 |
1.0 |
100 |
|
|
|
|
|
|
|
|
|
|
C20-361 |
58.4 |
100.0 |
41.7 |
58 |
0.10 |
0.7 |
1.0 |
131 |
January 6, 2021 |
C20-367 |
156.8 |
209.9 |
53.2 |
20 |
0.11 |
0.3 |
1.8 |
113 |
|
|
|
|
|
|
|
|
|
|
C20-363 |
88.5 |
199.9 |
111.5 |
32 |
0.03 |
0.33 |
0.87 |
83 |
November 12, 2020 |
and |
268.4 |
325.5 |
57.1 |
18 |
0.01 |
0.2 |
1.0 |
69 |
|
|
|
|
|
|
|
|
|
|
C11-158 |
90.0 |
176.0 |
86.0 |
23 |
0.05 |
0.4 |
1.1 |
90 |
Historic |
and |
202.0 |
250.0 |
48.0 |
44 |
0.10 |
0.6 |
2.1 |
163 |
and |
272.0 |
294.0 |
22.0 |
108 |
0.15 |
2.4 |
4.2 |
379 |
South Corridor infill drilling also continues to
yield positive results. Hole C20-378 intercepted 85.6 m at 175 g/t
AgEq1 from 406.2 m. This intercept is approximately 80 m southwest
of the mineralized zone reported in hole C20-343 that returned
112.3 m at 247 g/t AgEq from 243.5 m (see September 14, 2020, press
release) confirming the presence of a broad high-grade zone in this
area.
Drill hole locations are shown in Figure 1 (see
links below) and detailed drill highlights of the 13 holes in this
release are provided in the table below.
PHASE 1 DRILL PROGRAM
UPDATE:
The Company has completed 49,900 m (129 holes)
as part of its expanded 65,000 m Phase 1 drill program. Assays from
26 holes are pending. There are currently four drill rigs operating
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/5635/2021-02-02-dsv-sa.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/5635/2021-02-02-dsv-nr.pdf
Hole ID |
From (m) |
To (m) |
Width (m) |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
AgEq1 (g/t) |
C20-368 |
34.7 |
61.9 |
27.3 |
43 |
0.13 |
0.4 |
0.5 |
91 |
|
|
|
|
|
|
|
|
|
C20-369 |
323.1 |
437.3 |
114.3 |
16 |
0.05 |
0.3 |
0.9 |
69 |
including |
350.5 |
383.2 |
32.7 |
27 |
0.07 |
0.5 |
1.6 |
117 |
and |
485.0 |
486.3 |
1.3 |
123 |
0.10 |
2.9 |
7.7 |
552 |
|
|
|
|
|
|
|
|
|
C20-371 |
76.0 |
126.3 |
50.3 |
36 |
0.03 |
0.5 |
1.4 |
115 |
including |
85.1 |
112.8 |
27.8 |
52 |
0.04 |
0.8 |
1.9 |
161 |
and |
220.0 |
230.0 |
10.0 |
73 |
0.11 |
0.6 |
0.4 |
122 |
|
|
|
|
|
|
|
|
|
C20-372 |
83.4 |
84.9 |
1.6 |
174 |
0.06 |
3.6 |
5.7 |
545 |
and |
88.5 |
89.0 |
0.5 |
778 |
0.14 |
6.1 |
1.0 |
1,045 |
|
|
|
|
|
|
|
|
|
C20-373 |
281.2 |
407.3 |
126.1 |
40 |
0.10 |
0.4 |
1.0 |
103 |
including |
351.5 |
380.9 |
29.4 |
55 |
0.13 |
0.9 |
1.8 |
173 |
and including |
405.3 |
406.2 |
0.9 |
733 |
2.37 |
3.5 |
1.5 |
1,113 |
|
|
|
|
|
|
|
|
|
C20-374 |
52.3 |
74.8 |
22.5 |
12 |
0.04 |
0.3 |
1.3 |
82 |
and |
338.1 |
359.3 |
21.2 |
39 |
0.02 |
0.4 |
1.0 |
96 |
|
|
|
|
|
|
|
|
|
C20-375 |
49.2 |
180.7 |
131.6 |
48 |
0.09 |
0.5 |
1.1 |
118 |
including |
143.7 |
180.7 |
37.1 |
119 |
0.22 |
1.0 |
1.2 |
223 |
and including |
155.5 |
156.8 |
1.3 |
1335 |
0.36 |
6.4 |
0.2 |
1,598 |
|
|
|
|
|
|
|
|
|
C20-377 |
20.0 |
109.9 |
89.9 |
33 |
0.07 |
0.3 |
0.4 |
67 |
and |
266.5 |
284.9 |
18.4 |
21 |
0.03 |
0.4 |
1.8 |
114 |
|
|
|
|
|
|
|
|
|
C20-378 |
244.5 |
286.7 |
42.2 |
18 |
0.06 |
0.5 |
0.9 |
78 |
and |
406.2 |
491.8 |
85.6 |
53 |
0.05 |
1.4 |
1.7 |
175 |
including |
438.8 |
478.7 |
39.9 |
93 |
0.08 |
2.4 |
3.0 |
308 |
and including |
474.5 |
476.2 |
1.7 |
478 |
0.36 |
5.5 |
30.0 |
1,946 |
|
|
|
|
|
|
|
|
|
C20-380 |
143.8 |
177.6 |
33.8 |
16 |
0.01 |
0.2 |
1.4 |
82 |
|
|
|
|
|
|
|
|
|
C20-384 |
95.6 |
125.9 |
30.3 |
29 |
0.06 |
0.5 |
0.5 |
70 |
|
|
|
|
|
|
|
|
|
C20-388 |
180.8 |
267.8 |
87.0 |
12 |
0.02 |
0.3 |
0.7 |
54 |
|
|
|
|
|
|
|
|
|
C20-390 |
91.4 |
92.1 |
0.8 |
731 |
0.06 |
10.6 |
4.8 |
1,308 |
and |
184.4 |
242.0 |
57.6 |
41 |
0.11 |
0.3 |
1.8 |
134 |
and |
258.7 |
302.1 |
43.5 |
36 |
0.06 |
0.5 |
1.0 |
100 |
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 with stockwork
mineralization were chosen based on a 25 g/t AgEq cutoff with no
more than 10 m of dilution. Intervals with vein mineralization were
based on a 100 g/t AgEq cutoff with no more than 1 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.
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 RelationsPhone: 416-613-9410Email:
forbes.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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