Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF)
(“Discovery” or the “Company”) is pleased to announce results from
its Feasibility Study (“FS”) metallurgical test program from its
Cordero project (“Cordero” or “the Project”) located in Chihuahua
State, Mexico. Highlights from the test work include:
- Increased silver
recoveries of up to 7% to the precious metals concentrate where
higher payabilities are received.
- Significant
reductions in reagent consumption while achieving improved
metallurgical performance than outlined in the Preliminary
Feasibility Study (“PFS”)
- Excellent
metallurgical performance achievable for oxide-sulphide blending of
up to 15% oxides (the PFS assumed a cap of up to 10% oxides).
- Primary grind
sensitivity confirmed a coarse grind size of 200 micron passing p80
is the optimal grind size (unchanged from the PFS).
- Blasting study
showed run-of-mine material to be smaller than previously estimated
allowing for a smaller primary crusher.
Tony Makuch, CEO, states: “Our Feasibility Study
test work demonstrates the exceptional metallurgical
characteristics of our Cordero deposit. Previous test work
established excellent recoveries for different mining phases and
variable grade profiles to generate clean, saleable concentrates.
This current program was focused on optimization and was successful
in significantly increasing silver recoveries to the precious
metals concentrate, where higher payabilities are received, and
significantly reducing reagent consumption. The program also
established that co-processing of oxides can be increased to up to
15% oxides allowing for flexibility for mine planning and
potentially extending the 18-year mine life that was outlined in
the PFS. Meanwhile, our other feasibility study work programs
continue to advance well and we remain on track for delivering our
study in the first quarter of next year.”
PFS METALLURGICAL TEST
PROGRAM
Summary: the Company’s two
previous metallurgical test programs were primarily focused on
variability testwork. Results from these programs established
excellent recoveries for all major rock types, rock type blends,
different mining phases, variable grade profiles and for
oxide-sulphide blending of up to 10% oxides. The FS metallurgical
test program was focused on optimizing metallurgical performance
for a run-of-mine composite with process variables such as reagent
dosage and type, grind size and the testing of oxide-sulphide
blends with oxides above 10%.
In total 12 locked cycles test were completed.
Optimization testwork was completed on a master composite
representing a blend of rock types consistent with the life-of-mine
average and an oxide-sulphide blend of 10% oxides and 90%
sulphides. The grade of this composite was approximately 35 g/t Ag,
0.5% Pb and 0.7% Zn. Local treated water and well water were also
used in select locked cycle tests to confirm that local water
quality would not impact metal recoveries. The testwork was
conducted by Blue Coast Research Ltd. (“Blue Coast”), an
independent third party, with oversight from Libertas Metallurgy
Ltd. (“Libertas”), Chris Martin (Independent Consulting
Metallurgist) and Ausenco Engineering Canada Inc. (“Ausenco”).
Recoveries: silver recoveries
to the precious metals (“PM”) concentrate increased by up to 7% in
comparison to the PFS testwork through reagent optimization.
Payabilities for silver in the PM concentrate of 95% are
significantly higher than payabilities for silver in the zinc
concentrate of 70% after a deduction of three silver ounces per
tonne. Silver recoveries into the zinc concentrate were
approximately 4% lower resulting in an increase in overall silver
recoveries of up to 3%. Recoveries for lead were slightly higher
than the PFS testwork while zinc recoveries were slightly lower. A
comparison of the FS and PFS test results, which were based on the
same composite sample, are summarized in the table below.
Sample |
Recoveries |
Concentrate Grades |
Ag |
Pb |
Zn |
PM con |
Zn con |
PM con |
Zn con |
Total |
Ag |
Pb |
Ag |
Zn |
(%) |
(%) |
(%) |
(%) |
(%) |
(g/t) |
(%) |
(g/t) |
(%) |
FS composite – ground water |
79 |
6 |
85 |
86 |
84 |
2,717 |
47 |
183 |
52 |
FS composite – treated water |
81 |
6 |
87 |
86 |
83 |
3,033 |
47 |
170 |
53 |
PFS master composite |
74 |
10 |
84 |
84 |
86 |
3,522 |
56 |
328 |
52 |
Reagents: the FS testwork was
successful in achieving improved recoveries as outlined above at
significantly reduced consumption of key reagents. Consumption of
MIBC and CuSO4, the two most expensive reagents as per the PFS, was
lowered by 88% and 16% respectively. Material reductions were also
achieved for NaCN and Aero 5100. Test results including the costs
that each reagent represented in the PFS are summarized in the
table below.
Reagent |
Consumption (g/t) |
% change |
PFS Cost |
FStestwork |
PFStestwork |
$/tprocessed |
US$M(LOM) |
CuSO4 |
130 |
155 |
-16 |
% |
$ |
0.33 |
$ |
103 |
MIBC |
16 |
133 |
-88 |
% |
$ |
0.23 |
$ |
71 |
Lime |
1,907 |
1,597 |
19 |
% |
$ |
0.22 |
$ |
68 |
ZnSO4 |
150 |
150 |
0 |
% |
$ |
0.20 |
$ |
61 |
X5000 |
17 |
17 |
0 |
% |
$ |
0.14 |
$ |
42 |
NaCN |
30 |
50 |
-40 |
% |
$ |
0.13 |
$ |
38 |
Aero 5100 |
16 |
14 |
-13 |
% |
$ |
0.09 |
$ |
27 |
Comminution: an additional 10
bond work index (“BWI”) tests and 15 SAG mill comminution (“SMC”)
tests were completed to increase the previous data set and increase
confidence in the process design assumptions for the comminution
circuit. Locked cycle flotation tests were completed on the
run-of-mine composite with primary grind sizes of 150 µm, 200 µm
and 230 µm. Regrind sensitivity testing and energy input per tonne
assessment work was also completed. Results from this testwork were
consistent with the process design assumptions for the PFS,
including confirmation that a coarse grind size of 200 µm is the
optimal primary grind size for the Project.
Oxide-sulphide blends: locked
cycle tests were completed on blends of 15% oxides / 85% sulphides
and 20% oxides / 80% sulphides. Results demonstrate that excellent
metallurgical performance can be achieved with blending of up to
15% oxides (the PFS assumed a cap of 10% oxides). At a blend of up
to 20% oxides, recoveries for lead and zinc start to become less
economic.
Increasing the blend to up to 15% oxides offers
more flexibility for mine planning purposes and has the potential
to increase the mine life given there was approximately 30 million
tonnes of unprocessed stockpiled oxide material above cut-off in
the PFS mine plan.
Sample |
Recoveries |
Concentrate Grades |
Ag |
Pb |
Zn |
PM con |
Zn con |
PM con |
Zn con |
Total |
Ag |
Pb |
Ag |
Zn |
(%) |
(%) |
(%) |
(%) |
(%) |
(g/t) |
(%) |
(g/t) |
(%) |
FS – 15% Ox / 85% Sx |
77 |
6 |
83 |
82 |
85 |
3,231 |
50 |
198 |
53 |
FS – 20% Ox / 80% Sx |
75 |
6 |
81 |
78 |
81 |
2,948 |
43 |
209 |
50 |
PFS – 10% Ox / 90% Sx |
74 |
10 |
84 |
84 |
86 |
3,522 |
56 |
328 |
52 |
PROCESS DESIGN
The process design for the FS will consist of
conventional flotation with staged expansions, consistent with the
PFS approach. The first phase consists of a conventional grinding
circuit made up of a primary crusher, SAG mill and ball mill,
followed by a flotation circuit. The planned throughput rate of
this initial phase is expected to be approximately 25,500 tonnes
per day (“tpd”).
The second phase of the plant expansion will
include the addition of a parallel circuit consisting of a SAG mill
and a ball mill and a duplicate flotation circuit. The planned
throughput rate of this expanded phase is expected to be
approximately 51,000 tpd.
The proposed process design for the FS is a
conventional, well-proven flowsheet that is capital-efficient,
robust and delivers comparatively reasonable operating costs with
reliability of operations. The design is effectively the same as
what was assumed for the PFS with the main change being the
incorporation of a smaller primary crusher. This change was based
on results from an ore blasting study that demonstrated run-of-mine
material to be delivered to the plant is smaller than what was
assumed in the PFS.
About Discovery
Discovery’s flagship project is its 100%-owned
Cordero project, one of the world’s largest silver deposits. The
PFS completed in January 2023 demonstrates that Cordero has the
potential to be developed into a highly capital efficient mine that
offers the combination of margin, size and scalability. Cordero is
located close to infrastructure in a prolific mining belt in
Chihuahua State, Mexico.
On Behalf of the Board of Directors,
Tony Makuch, P.EngPresident, CEO &
Director
For further information contact:
Forbes Gemmell, CFAVP Corporate
DevelopmentPhone: 416-613-9410Email:
forbes.gemmell@discoverysilver.comWebsite:
www.discoverysilver.com
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Regulation S under the 1933 Act) unless registered under the 1933
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This news release contains “forward-looking
information” and “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of the applicable
Canadian and U.S. securities legislation. All statements, other
than statements of historical fact, are forward-looking statements
and are based on expectations, estimates and projections as at the
date of this news release. Any statement that involves discussion
with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions, future events or performance
(often, but not always using phrases such as “plans”, “expects”,
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certain actions, events or results “may”, “could”, “would”, “might”
or “will” be taken, occur or be achieved) are not statements of
historical fact and may be forward-looking statements. In this news
release, forward-looking statements relate, among other things, to:
the anticipated use of the net proceeds from the Offering;
anticipated advancement of mineral properties or programs; future
operations; future growth potential of Discovery; and future
development plans.
These forward-looking statements, and any
assumptions upon which they are based, are made in good faith and
reflect our current judgment regarding the direction of our
business. Management believes that these assumptions are
reasonable. Forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information. Such factors include, among others: risks related to
the speculative nature of the Company’s business; the Company’s
formative stage of development; the impact of COVID19 on the timing
of exploration and development work; the Company’s financial
position; possible variations in mineralization, grade or recovery
rates; actual results of current exploration activities;
conclusions of future economic evaluations; fluctuations in general
macroeconomic conditions; fluctuations in securities markets;
fluctuations in spot and forward prices of gold, precious and base
metals or certain other commodities; fluctuations in currency
markets; change in national and local government, legislation,
taxation, controls regulations and political or economic
developments; risks and hazards associated with the business of
mineral exploration, development and mining (including
environmental hazards, industrial accidents, unusual or unexpected
formation pressures, cave-ins and flooding); inability to obtain
adequate insurance to cover risks and hazards; the presence of laws
and regulations that may impose restrictions on mining; employee
relations; relationships with and claims by local communities and
indigenous populations; availability of increasing costs associated
with mining inputs and labour; the speculative nature of mineral
exploration and development (including the risks of obtaining
necessary licenses, permits and approvals from government
authorities); and title to properties. Such factors are described
in detail in the Prospectus Supplement and the documents
incorporated by reference therein.
Forward-looking statements contained herein are
made as of the date of this news release and the Company disclaims
any obligation to update any forward-looking statements, whether as
a result of new information, future events or results, except as
may be required by applicable securities laws. There can be no
assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements and there may
be other factors that cause results not to be anticipated,
estimated or intended. Accordingly, readers should not place undue
reliance on forward-looking information.
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