Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
four diamond drill holes targeting extensive vein trends at its
flagship Cordero project (“Cordero” or “the Project”) located in
Chihuahua State, Mexico. The holes are part of a 55,000-metre (“m”)
Phase 1 diamond core drilling program that commenced in September
2019. The goal of this drill program is to define a large-scale,
high-margin project with excellent leverage to rising silver
prices.
Highlight intercepts include:
Todos Santos Vein
- Hole C20-344: 1.9 m averaging 2,007 grams per tonne
silver equivalent (“g/t AgEq1”) from
171.1 m (1,035 g/t Ag, 0.06 g/t gold (“Au”), 20.0% lead (“Pb”) and
6.4% zinc (“Zn”)) within a 4.7 m breccia-vein interval averaging
1,299 g/t AgEq1 (635 g/t Ag, 0.15 g/t Au, 12.3% Pb, 5.3% Zn)
- Hole C20-347: 0.5 m averaging 1,293 g/t AgEq1
from 125.7 m (629 g/t Ag, 0.33 g/t Au, 13.0% Pb and 4.4% Zn) within
a 5.6 m interval averaging 312 g/t AgEq1 (135 g/t Ag, 0.18 g/t Au,
2.7% Pb, 1.6% Zn)
Parcionera Vein
- Hole C20-340: 1.3 m averaging 1,073 g/t AgEq1
from 69.6 m (587 g/t Ag, 0.67 g/t Au, 9.4% Pb and 2.4% Zn)
South Corridor
- HoleC20-345: 2.0 m averaging 966 g/t AgEq1
from 66.0 m (846 g/t Ag, 0.33 g/t Au, 2.6% Pb and 0.1% Zn)
- Hole C20-345: 0.7 m averaging 785 g/t AgEq1
from 228.4 m (433 g/t Ag, 0.12 g/t Au, 1.4% Pb and 7.1% Zn)
Taj Singh, President and CEO, states: “When we
acquired Cordero a year ago, we identified more than 5 km strike
extent of historic underground workings on veins as a distinct
exploration target that had the potential to impact the Project.
Our initial holes targeting these vein trends show significant
promise and we have now made the decision to present results from
these veins separately from drill hole results targeting the
bulk-tonnage resource. With four drill rigs now active on site, we
are focused on both expanding the higher-grade bulk-tonnage core of
the deposit and systematically assessing the extensive vein
trends.”
DRILL RESULTS:
Todos Santos Vein: Hole C20-344
intercepted a high-grade fault-fill vein that returned 1.9 m
averaging 2,007 g/t AgEq1 from 171.1 m. The intercept was
approximately 50 m down dip from the vein intercepted in hole
C20-342, which returned 1.4 m averaging 1,907 g/t AgEq1 in a banded
massive sulphide vein (see Discovery press release dated July 20,
2020), confirming the depth continuity of the high-grade vein in
this area. Hole C20-347 was drilled approximately 100 m along
strike from hole C20-344 and intercepted 5.6 m averaging 312 g/t
AgEq1 including a high-grade sulphide vein that returned 0.5 m
averaging 1,293 g/t AgEq1. The Todos Santos vein trend has a known
south-west strike extent of at least 1.2 kilometres (“km”) based on
historic underground workings with veins dipping steeply to the
north-west.
Parcionera Vein: Hole C20-340
intercepted a high-grade vein that returned 1.3 m averaging 1,073
g/t AgEq1 from 69.6 m. The intercept was adjacent to an old mine
opening that is approximately two metres wide and was 40 m along
strike to the north-east of hole C20-338 which intercepted 1.5 m
averaging 1,119 g/t AgEq1 from 149.8 m (see Discovery press release
dated July 20, 2020). The Parcionera vein trend is interpreted to
have a 350 m west-southwest strike and dips steeply to the north,
as defined by two of the larger historical mine workings, pierce
points from six historical drill holes and five Discovery drill
holes. Vein mineralization is dominantly coarse-grained pyrite
(40%) in bands with intercalations and bands or veinlets of
red-brown sphalerite (4-5%) and coarse-grained galena (2-3%).
South Corridor: Hole C20-345
intercepted two previously unidentified veins that returned 2.0 m
averaging 966 g/t AgEq1 from 66.0 m and 0.7 m averaging 785 g/t
AgEq1 from 228.5m. These intervals are approximately 80 m to the
north-east of hole C20-337, which intercepted a similar style vein
that returned 0.8 m averaging 3,214 g/t AgEq1 (see Discovery press
release dated July 20, 2020). Additional drilling to test the
continuity of these possible feeder veins is underway.
Drill hole locations for all holes are shown in
Figure 1 (see links below). Further 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) |
Location
|
C20-340 |
69.6 |
70.9 |
1.3 |
587 |
0.67 |
9.4 |
2.4 |
1,073 |
Parcionera Vein |
|
|
|
|
|
|
|
|
|
|
C20-344 |
171.1 |
175.8 |
4.7 |
635 |
0.15 |
12.3 |
5.3 |
1,299 |
Todos Santos Vein |
Including: |
171.1 |
173.0 |
1.9 |
1,035 |
0.06 |
20.0 |
6.4 |
2,007 |
|
|
|
|
|
|
|
|
|
|
C20-347 |
121.8 |
127.3 |
5.6 |
135 |
0.18 |
2.7 |
1.6 |
312 |
Todos Santos Vein |
Including: |
125.7 |
126.2 |
0.5 |
629 |
0.33 |
13.0 |
4.4 |
1,293 |
|
|
|
|
|
|
|
|
|
|
C20-345 |
55.7 |
74.6 |
19.0 |
108 |
0.06 |
0.4 |
0.1 |
130 |
South Corridor |
including |
66.0 |
68.0 |
2.0 |
846 |
0.33 |
2.6 |
0.1 |
966 |
and |
228.4 |
229.1 |
0.7 |
433 |
0.12 |
1.4 |
7.1 |
785 |
* Refer to Technical Notes & References
section below for details on assumptions and calculations. Full
assay results can be found at the link in the next section below.
Widths are drilled widths, not true widths, as a full
interpretation of the actual orientation of mineralization is not
complete.
PHASE 1 DRILL PROGRAM
UPDATE:
The Company has completed 22,600 m (62 holes) as
part of its recently expanded 50,000-55,000 m Phase 1 drill
program. Assays from six holes are pending. The Company added two
drill rigs during the third week of August and now has four drill
rigs 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 broad zones of breccia-hosted mineralization in the
east and north-east of both mineralized corridors; and (2) testing
of the width, grade and continuity of extensive high-grade vein
systems identified in and adjacent to historical artisanal
underground workings at the Project.
Supporting maps and sections, drill hole locations and full
assay results can be found at the following link:
https://dsvmetals.com/site/assets/files/5395/2020-08-19-dsv-pmsa.pdf
A copy of this release with supporting maps and sections
included as appendices can be found at the following link:
https://dsvmetals.com/site/assets/files/5395/2020-08-19-dsv-nr.pdf
On Behalf of the Board of Directors,
Taj Singh, M.Eng, P.Eng, CPA, President, Chief
Executive Officer and Director
About the Cordero ProjectCordero is located on
the eastern edge of the Sierra Madre Occidental mountains in the
northern part of the Central Mexican Silver Belt, Mexico’s premier
porphyry and carbonate replacement deposit district. Mineralization
at Cordero is similar in nature to well-known nearby bulk tonnage
precious metals mines and projects (e.g. Newmont Corporation’s
Peñasquito Mine and Orla Mining Ltd.’s Camino Rojo project). In
addition to the bulk tonnage mineralization there are also multiple
high-grade silver-zinc-lead-gold sulphide vein trends as evidenced
by more than 40 historical shallow, vertical shafts and associated
underground workings.
About DiscoveryDiscovery Metals
Corp. (TSX-V: DSV, OTCQX: DSVMF) is a Canadian exploration and
development company headquartered in Toronto, Canada, and focused
on historic mining districts in Mexico. Discovery’s flagship is its
100%-owned Cordero silver project in Chihuahua State, Mexico. The
35,000-hectare property covers a large district that hosts the
announced resource as well as numerous exploration targets for bulk
tonnage diatreme-hosted, porphyry-style, and carbonate replacement
deposits.
For further information contact:
Forbes Gemmell, CFAVP Corporate
Development & Investor
Relationsforbes.gemmell@dsvmetals.com
TECHNICAL NOTES & REFERENCES:
1 All 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. Composites for this release were
chosen at a 25 g/t AgEq cutoff, whereby no more than 5m of
below-cutoff material is included in any composite interval. 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 note two below for metallurgical recoveries
assumed in the 2018 PEA completed on Cordero.
2 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.
Sample
analysis and QA/QC
Program: True 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
Person: Gernot 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.
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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