Discovery Silver Corp. (TSX-V: DSV, OTCQX: DSVSF)
(“Discovery” or the “Company”) is pleased to announce results from
12 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 the
recently completed Phase 1 drill program. The results from this
program will be incorporated in a new resource estimate and PEA in
the second half of the year. Phase 2 drilling is ongoing and is
focused on resource definition and expansion.
Highlight intercepts include:
- 65.9 m
averaging 258 g/t AgEq1 from 309.4 m (69 g/t Ag, 0.11 g/t
Au, 0.7% Pb and 3.7% Zn) in hole C21-417
- 143.0 m
averaging 120 g/t AgEq1 from 517.8 m (39
g/t Ag, 0.13 g/t Au, 0.4% Pb and 1.3% Zn) in hole C21-425
- 59.5 m
averaging 153 g/t AgEq1 from 443.3 m (54 g/t Ag, 0.08 g/t
Au, 0.9% Pb and 1.5% Zn) in hole C21-415
- 86.0 m
averaging 108 g/t AgEq1 from 392.2 m (33 g/t Ag, 0.17 g/t
Au, 0.3% Pb and 1.2% Zn) in hole C21-420
-
82.3 m averaging 136 g/t AgEq1 from 267.9 m (44
g/t Ag, 0.06 g/t Au, 0.7% Pb and 1.5% Zn) in hole C21-423
-
59.4 m averaging 171 g/t AgEq1
from 419.4 m (48 g/t Ag, 0.06 g/t Au, 1.0% Pb and 2.0% Zn) in hole
C21-425
-
48.9 m averaging 159 g/t AgEq1 from 232.3 m (85
g/t Ag, 0.08 g/t Au, 0.6% Pb and 1.1% Zn) in hole C21-429
Taj Singh, President and CEO, states: “This
current set of holes, drilled in areas where there were significant
gaps in previous drilling, confirm the continuity of higher-grade
mineralization at depth in the South Corridor. Excellent grades
over broad widths were encountered on a consistent basis
highlighting the potential for Cordero to emerge as one of the few
multigenerational mines in the silver space. We look forward to
compiling the final assay results from our Phase 1 drill program
for incorporation in our resource update in Q3 2021 and preliminary
economic assessment in Q4 2021.”
DRILL RESULTS:
Drill holes from this release confirm continuity
of higher-grade bulk-tonnage mineralization at depth in the central
part of the South Corridor. Mineralization is hosted within
northeast trending domains that have been defined over a strike
length of approximately 1.4 km and are open to the northeast. Hole
C21-425 intercepted 143.0 m averaging 120 g/t AgEq1 from 517.8 m,
confirming mineralization to a depth of 600 m, approximately 100 m
below the pit bottom from the 2018 PEA.
Mineralization consists predominantly of galena,
sphalerite and pyrite in disseminations, veinlets and stockworks
hosted in breccia, rhyodacite and intervals of replacement
mineralization in calcareous sediments. Higher-grade zones are
typically flanked by medium and lower-grade mineralization pointing
to the scaleability of the mineralized system at Cordero.
Drill hole locations are shown in Figure 1 (see
links below) and detailed drill highlights from the 12 holes in
this release 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) |
C20-415 |
317.4 |
339.9 |
22.5 |
35 |
0.07 |
0.7 |
1.3 |
120 |
and |
400.3 |
420.8 |
20.5 |
23 |
0.09 |
0.1 |
1.5 |
98 |
and |
443.3 |
502.8 |
59.5 |
54 |
0.08 |
0.9 |
1.5 |
153 |
|
|
|
|
|
|
|
|
|
C21-417 |
44.0 |
113.9 |
69.9 |
22 |
0.05 |
0.1 |
0.6 |
56 |
and |
309.4 |
375.3 |
65.9 |
69 |
0.11 |
0.7 |
3.7 |
258 |
including |
350.3 |
364.3 |
14.0 |
151 |
0.14 |
1.9 |
4.1 |
400 |
|
|
|
|
|
|
|
|
|
C21-420 |
392.2 |
478.2 |
86.0 |
33 |
0.17 |
0.3 |
1.2 |
108 |
|
|
|
|
|
|
|
|
|
C21-423 |
113.3 |
137.0 |
23.7 |
63 |
0.11 |
0.8 |
0.4 |
116 |
including |
132.7 |
133.8 |
1.1 |
913 |
0.97 |
12.2 |
4.0 |
1,589 |
and |
267.9 |
350.2 |
82.3 |
44 |
0.06 |
0.7 |
1.5 |
136 |
|
|
|
|
|
|
|
|
|
C21-425 |
182.3 |
203.5 |
21.2 |
46 |
0.09 |
0.8 |
1.1 |
129 |
and |
378.9 |
402.4 |
23.6 |
45 |
0.10 |
0.8 |
1.3 |
136 |
and |
419.4 |
478.8 |
59.4 |
48 |
0.06 |
1.0 |
2.0 |
171 |
and |
517.8 |
660.8 |
143.0 |
39 |
0.13 |
0.4 |
1.3 |
120 |
|
|
|
|
|
|
|
|
|
C21-429 |
232.3 |
281.2 |
48.9 |
85 |
0.08 |
0.6 |
1.1 |
159 |
|
|
|
|
|
|
|
|
|
C20-433 |
360.1 |
379.4 |
19.3 |
28 |
0.09 |
0.1 |
2.4 |
139 |
and |
458.2 |
478.5 |
20.3 |
63 |
0.13 |
1.2 |
2.8 |
231 |
and |
554.2 |
593.5 |
39.3 |
44 |
0.06 |
0.9 |
1.5 |
142 |
and |
635.2 |
673.6 |
38.4 |
32 |
0.13 |
0.5 |
2.2 |
152 |
|
|
|
|
|
|
|
|
|
C21-438 |
260.1 |
293.9 |
33.8 |
28 |
0.06 |
0.6 |
1.3 |
105 |
and |
311.6 |
360.4 |
48.9 |
20 |
0.10 |
0.3 |
1.0 |
83 |
and |
547.9 |
565.4 |
17.5 |
71 |
0.05 |
1.2 |
2.1 |
205 |
and |
600.7 |
644.5 |
43.9 |
44 |
0.04 |
1.1 |
1.4 |
146 |
|
|
|
|
|
|
|
|
|
C21-441 |
22.5 |
46.3 |
23.8 |
48 |
0.07 |
0.9 |
0.4 |
103 |
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.
DRILL PROGRAM UPDATE:
Phase 1 drilling: The Company’s
Phase 1 drill program concluded at the end of April. The data from
the 75,000 m of new drilling (178 holes) completed in this program,
along with 133,000 m of historic drilling (292 holes), will be used
to support an updated resource (3Q 2021) and PEA (4Q 2021).
Phase 2 drilling: The Company
has completed 11,000 m (31 holes) as part of its Phase 2 drill
program which will be ongoing through the remainder of the year.
Phase 2 drilling will be focused on three key areas: (1) upgrading
inferred resources for inclusion in a prefeasibility study; (2)
resource expansion of bulk-tonnage mineralization; and (3) testing
of the width, grade and continuity of the extensive high-grade vein
systems that transect the deposit. There are currently four drill
rigs operating on site.
SUPPORTING MATERIALS:
Supporting maps and sections, drill hole locations and full
assay results can be found at the following link:
https://discoverysilver.com/site/assets/files/5688/2021-06-22-dsv-sa.pdf
A PDF of this release with supporting maps and sections included
as appendices can be found at the following link:
https://discoverysilver.com/site/assets/files/5688/2021-06-22-dsv-nr.pdf
About Discovery
Discovery’s flagship project is its 100%-owned
Cordero project, one of the few silver projects globally that
offers margin, size and scaleability. Cordero is located close to
infrastructure in a prolific mining belt in Chihuahua State,
Mexico, and is supported by an industry leading balance sheet with
over C$85 million available for aggressive exploration, resource
expansion and future development. Discovery was a recipient of the
2020 TSX Venture 50 award and the 2021 OTCQX Best 50
award. 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@discoverysilver.comWebsite:
www.discoverysilver.com
Sample analysis and QA/QC Program
The true width of the veins is estimated to be
approximately 70% of the drilled width. 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 Silver 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.
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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