Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
14 diamond drill holes targeting the Josefina and Todos Santos
high-grade vein trends at its flagship Cordero project (“Cordero”
or “the Project”) located in Chihuahua State, Mexico. Multiple vein
trends with a combined strike extent of more than 5 km flank the
higher-grade bulk-tonnage domain at Cordero; the Josefina and Todos
Santos vein trends currently represent approximately 3 km of this
strike extent.
Highlight intercepts include:
Josefina Vein
- 1.3 m averaging 2,166 g/t
AgEq¹ from 95.6 m (1,581 g/t Ag, 0.15 g/t Au, 9.9% Pb
and 5.4% Zn) in hole C20-381
- 1.0 m averaging 1,826 g/t
AgEq¹ from 41.2 m (1,280 g/t Ag, 4.24 g/t Au, 1.6% Pb
and 3.4% Zn) within an 8.9 m interval averaging 410 g/t
AgEq¹ (267 g/t Ag, 0.91 g/t Au, 0.9% Pb, 0.8% Zn) in hole
C20-382
- 1.3 m averaging 2,290
g/t AgEq¹ from 136.7 m (1,607 g/t
Ag, 2.06 g/t Au, 5.2% Pb and 8.0% Zn) in hole C20-396
South Corridor
- 2.9 m
averaging 1,605 g/t AgEq¹ from 44.4
m (992 g/t Ag, 0.73 g/t Au, 12.9% Pb and 2.4% Zn) in hole
C20-383
Todos Santos Vein
- 1.4 m averaging 1,107 g/t
AgEq¹ from 135.4 m (552 g/t Ag, 0.33 g/t Au, 11.0% Pb
and 3.4% Zn) within a 4.0 m interval averaging 763 g/t
AgEq¹ (377 g/t Ag, 0.28 g/t Au, 7.1% Pb, 2.7% Zn) in hole
C20-385
- 1.2 m averaging 875 g/t
AgEq¹ from 186.5 m (241 g/t Ag, 0.52 g/t Au, 4.6% Pb
and 10.4% Zn) in hole C20-387
- 2.8 m averaging 670 g/t
AgEq¹ from 166.3 m (207 g/t Ag, 0.15 g/t Au, 3.7% Pb
and 7.7% Zn) in hole C20-397
Taj Singh, President and CEO, states: “Our
confidence in the continuity of the high-grade vein trends at
Cordero continues to grow. 20 holes have now been drilled at the
1.5km Todos Santos vein trend. Remarkably, all 20 holes have
intercepted the principal vein returning an average drilled width
of 2.6m grading 635 g/t AgEq. At Josefina we continue to intercept
bonanza grades along 1.5km of strike extent including, in this
release, some of the highest grades intercepted on the project to
date. We will continue to systematically advance this new and
exciting component of our story as we move towards the delivery of
our updated resource in 3Q 2021 and PEA in 4Q 2021. The updated
resource and PEA will focus on the bulk-tonnage domain at Cordero;
we hope to add the high-grade vein component to Cordero project
economics in 2022.”
JOSEFINA VEIN:
The Josefina vein trend consists of two
principal southwest-trending subparallel veins with an interpreted
strike extent of approximately 1.5 km. The eight holes in this
release were successful in confirming continuity of bonanza grade
mineralization along the central and northeast parts of the vein
trend. Drilling has confirmed the depth continuity of veins at
Josefina to approximately 370 m below surface. The vein trend is
open at depth below this and along strike in both directions.
The veins along the Josefina trend dip steeply
to the northwest and mineralization typically consists of
semi-massive pyrite, galena and sphalerite. Further drilling is
still required to accurately estimate the true width of the veins.
Drill hole locations and current vein interpretations are shown in
Figure 1 (see links below) and detailed drill highlights of the
holes from this release at Josefina 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) |
C20-379 |
91.1 |
91.4 |
0.4 |
713 |
0.18 |
5.0 |
8.4 |
1,253 |
and |
99.1 |
99.8 |
0.7 |
304 |
0.15 |
4.5 |
15.6 |
1,122 |
and |
171.9 |
172.2 |
0.3 |
1,010 |
0.27 |
5.7 |
9.3 |
1,620 |
|
|
|
|
|
|
|
|
|
C20-381 |
95.6 |
96.9 |
1.3 |
1,581 |
0.15 |
9.9 |
5.4 |
2,166 |
including |
95.9 |
96.4 |
0.5 |
3,750 |
0.26 |
23.3 |
11.5 |
5,067 |
|
|
|
|
|
|
|
|
|
C20-382 |
34.0 |
42.9 |
8.9 |
267 |
0.91 |
0.9 |
0.8 |
410 |
including |
41.2 |
42.2 |
1.0 |
1,280 |
4.24 |
1.6 |
3.4 |
1,826 |
|
|
|
|
|
|
|
|
|
C20-386 |
141.3 |
164.0 |
22.7 |
35 |
0.04 |
0.5 |
1.3 |
111 |
and |
197.9 |
199.6 |
1.7 |
333 |
0.41 |
3.3 |
6.2 |
741 |
and |
215.9 |
218.5 |
2.7 |
416 |
0.21 |
5.8 |
6.3 |
899 |
|
|
|
|
|
|
|
|
|
C20-392 |
36.2 |
39.2 |
3.1 |
58 |
0.10 |
1.9 |
6.9 |
419 |
including |
36.6 |
37.4 |
0.8 |
98 |
0.33 |
2.8 |
16.4 |
904 |
|
|
|
|
|
|
|
|
|
C20-394 |
179.8 |
180.8 |
1.1 |
135 |
0.61 |
3.3 |
6.9 |
588 |
|
|
|
|
|
|
|
|
|
C20-395 |
410.7 |
420.7 |
10.0 |
92 |
0.09 |
2.4 |
3.4 |
324 |
and |
410.7 |
414.7 |
3.9 |
110 |
0.05 |
2.7 |
4.4 |
392 |
|
|
|
|
|
|
|
|
|
C20-396 |
84.2 |
84.6 |
0.4 |
572 |
0.13 |
7.4 |
11.2 |
1,306 |
and |
136.7 |
138.0 |
1.3 |
1,607 |
2.06 |
5.2 |
8.0 |
2,290 |
including |
136.7 |
137.1 |
0.4 |
3,930 |
5.89 |
8.8 |
14.6 |
5,327 |
¹For full supporting technical disclosure please
refer to footnote 1 under the table of Additional Veins
results.
TODOS SANTOS VEIN:
The Todos Santos vein trend, consisting of the
Main Vein and Footwall Vein, has an interpreted southwest strike
extent of at least 1.5 km and depth extent of at least 300 m based
on historic underground workings and drilling. In total 20 holes
have been drilled at Todos Santos; 9 historic holes and 11 holes
drilled by Discovery (including four holes in this release). All 20
holes intercepted the Main Vein returning an average drilled width
of 2.6m grading 635 g/t AgEq¹. Holes C20-385 (4.0 m averaging 763
g/t AgEq¹) and C20-387 (3.2 m averaging 576 g/t AgEq¹) in this
release extended the drill-confirmed strike extent of the Main Vein
by approximately 50 m to the southwest. The Todos Santos vein trend
is open along strike in both directions and at depth.
High-grade mineralization in both the Main Vein
and Footwall Vein is typically associated with quartz-carbonate
veins that dip steeply to the northwest. Mineralization typically
consists of galena, sphalerite and pyrite. Further drilling is
still required to accurately estimate the true width of the veins
at Todos Santos. Drill hole locations and current vein
interpretations are shown in Figure 1 (see links below) and
detailed drill highlights of the holes drilled at Todos Santos from
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) |
C20-385 |
132.9 |
136.8 |
4.0 |
377 |
0.28 |
7.1 |
2.7 |
763 |
including |
135.4 |
136.8 |
1.4 |
552 |
0.33 |
11.0 |
3.4 |
1,107 |
|
|
|
|
|
|
|
|
|
C20-387 |
184.5 |
187.7 |
3.2 |
175 |
0.48 |
3.3 |
5.9 |
576 |
and |
186.5 |
187.7 |
1.2 |
241 |
0.52 |
4.6 |
10.4 |
875 |
|
|
|
|
|
|
|
|
|
C20-391 |
116.2 |
117.7 |
1.5 |
274 |
0.05 |
4.4 |
2.8 |
551 |
|
|
|
|
|
|
|
|
|
C20-397 |
166.3 |
169.1 |
2.8 |
207 |
0.15 |
3.7 |
7.7 |
670 |
¹For full supporting technical disclosure please
refer to footnote 1 under the table of Additional Veins
results.
ADDITIONAL VEINS:
C20-383, drilled to the northwest of Josefina
and in the middle of the South Corridor intercepted a previously
unidentified breccia-fault near-surface that reported 1.7 m
averaging 2,242 g/t AgEq¹. C20-389, drilled in the North Corridor
to the southwest of Todos Santos, intercepted two previously
unknown veins at depth. The veins reported 2.4 m averaging 463 g/t
AgEq¹ and 0.8 m averaging 941 g/t AgEq¹. Evaluation of these
new veins including follow-up drill targeting is ongoing. Further
drill highlights from these two holes 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) |
C20-383 |
44.4 |
47.2 |
2.9 |
992 |
0.73 |
12.9 |
2.4 |
1,605 |
including |
44.4 |
46.1 |
1.7 |
1,375 |
1.04 |
19.4 |
2.4 |
2,242 |
and |
83.4 |
84.1 |
0.7 |
1,865 |
0.85 |
7.0 |
7.9 |
2,510 |
and |
138.0 |
163.5 |
25.5 |
28 |
0.06 |
0.4 |
0.6 |
72 |
|
|
|
|
|
|
|
|
|
C20-389 |
362.7 |
365.2 |
2.4 |
120 |
0.51 |
3.3 |
4.5 |
463 |
and |
367.9 |
368.7 |
0.8 |
416 |
0.10 |
8.8 |
5.0 |
941 |
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.
PHASE 1 DRILL PROGRAM
UPDATE:
The Company has completed 58,600 m (148 holes)
as part of its expanded 65,000 m Phase 1 drill program. Assays from
24 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) systematic testing
of the width, grade and continuity of extensive high-grade vein
systems that transect the deposit. Our immediate focus is on
drilling bulk-tonnage targets for inclusion in the updated resource
estimate in 3Q 2021 and PEA in 4Q 2021.
Supporting maps and sections, drill hole
locations and full assay results can be found at the following
link:
https://dsvmetals.com/site/assets/files/5645/20210315_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/5645/20210315_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. The project is located in a
prolific mining belt in Chihuahua State, Mexico, and is supported
by an industry leading balance sheet with over C$95 million of cash
allocated 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.
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.
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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