Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
the first four diamond drill holes completed at its flagship
Cordero project (“Cordero” or “the Project”) located in Chihuahua
State, Mexico. Discovery acquired Cordero through the acquisition
of Levon Resources Ltd. (“Levon”) in August 2019. The results
released here are part of a 30,000-35,000m Phase 1 drill program
that Discovery plans to complete in 2020. The focus of Phase 1 is
to: (1) delineate, expand and then re-domain areas of higher-grade
mineralization within the existing Cordero resource; and (2) test
new high priority targets outside the current resource, including
targets on the large 35,000 hectare property package that surrounds
Cordero.
Taj Singh, President and CEO, states: “These
first results from Cordero are very encouraging and support our
thesis that within the very large resource area exists a shallow,
higher-grade component that could redefine the Project entirely and
vastly improve its economics. The presence of higher-grade gold in
the most strongly mineralized areas is also positive. Cordero has
many attractive features: open-pittable, good metallurgy and
excellent surrounding infrastructure. We look forward to completing
the exploration in 2020 required to re-scope and optimize this very
exciting property.”
HIGHLIGHTS:
Hole ID |
From |
To |
Width (m) |
Ag g/t |
Au g/t |
Pb % |
Zn % |
AgEq2 g/t |
C19-295 |
55.4 |
136.6 |
81.2 |
63 |
0.35 |
0.9 |
0.9 |
159 |
including |
115.1 |
119.2 |
4.1 |
517 |
1.32 |
7.6 |
5.7 |
1,132 |
|
157.8 |
225.9 |
68.1 |
117 |
1.96 |
1.7 |
1.1 |
361 |
including |
163.3 |
197.9 |
34.7 |
200 |
3.04 |
2.9 |
1.6 |
617 |
including |
165.6 |
169.2 |
3.7 |
512 |
21.52 |
6.9 |
0.2 |
2,524 |
and |
173.7 |
185.2 |
11.5 |
284 |
0.88 |
4.1 |
2.8 |
617 |
and |
186.4 |
188.4 |
1.9 |
222 |
0.83 |
3.5 |
2.2 |
505 |
and |
193.3 |
194.6 |
1.3 |
191 |
1.64 |
3.0 |
3.3 |
569 |
|
|
|
|
|
|
|
|
|
C19-296 |
101.1 |
148.2 |
47.1 |
71 |
0.45 |
1.0 |
1.2 |
191 |
including |
103.5 |
146.2 |
42.7 |
77 |
0.48 |
1.1 |
1.3 |
206 |
including |
105.4 |
109.5 |
4.1 |
167 |
0.76 |
2.6 |
3.0 |
444 |
|
155.0 |
216.5 |
61.6 |
42 |
0.39 |
0.6 |
0.4 |
112 |
including |
165.5 |
192.7 |
27.2 |
77 |
0.50 |
1.1 |
0.7 |
188 |
including |
176.0 |
179.9 |
3.9 |
268 |
0.59 |
4.2 |
1.6 |
529 |
|
199.3 |
200.9 |
1.6 |
152 |
2.13 |
2.4 |
1.7 |
482 |
|
260.2 |
261.7 |
1.5 |
221 |
0.95 |
3.7 |
2.3 |
524 |
|
|
|
|
|
|
|
|
|
C19-294 |
86.0 |
180.3 |
94.3 |
47 |
0.27 |
0.7 |
0.6 |
121 |
including |
88.0 |
101.8 |
13.9 |
88 |
0.41 |
1.4 |
1.2 |
218 |
and |
109.9 |
118.8 |
8.9 |
115 |
0.40 |
1.7 |
1.3 |
263 |
including |
117.4 |
118.8 |
1.5 |
285 |
0.58 |
4.7 |
2.0 |
582 |
|
155.5 |
166.3 |
10.8 |
93 |
0.46 |
1.3 |
1.2 |
225 |
|
|
|
|
|
|
|
|
|
C19-293 |
473.6 |
533.5 |
59.9 |
37 |
0.06 |
0.9 |
1.5 |
136 |
including |
473.6 |
500.8 |
27.2 |
48 |
0.09 |
1.3 |
2.1 |
189 |
including |
492.4 |
497.4 |
5.0 |
69 |
0.13 |
2.1 |
3.1 |
282 |
|
508.2 |
512.4 |
4.3 |
111 |
0.10 |
2.2 |
2.9 |
317 |
* Complete assay results for holes C19-293
through C19-296 can be found at the link in the Discussion section
below. Also, refer to the Technical Notes section below for details
on assumptions, calculations, etc.
DISCUSSION:
Since acquiring Cordero in August 2019,
Discovery’s focus has been on understanding the nature of the
higher-grade zones within the larger mineralized system with the
objective of upgrading the economic potential of the Project. Based
on Discovery’s review of previous work and the re-logging of core
from historic drilling, higher-grade mineralization is currently
understood to be predominantly associated with two styles of
mineralization: (1) sulphide mineralization within a breccia host;
and (2) discrete sulphide veins. The goal of the current drill
program is to gain an understanding of the geology, geometry
(strike, dip, orientation) and controls on these styles of
mineralization to define and delineate the higher-grade zones.
Seventeen holes totaling 5,940 metres have been
completed to-date. All the holes were drilled within the existing
resource area as defined by Levon3. All holes were drilled roughly
perpendicular to the northeast trend of higher-grade blocks
outlined in the current resource model.
Holes C19-293 through C19-296 are the first four
drilled by Discovery. All holes were successful in targeting the
first style of higher-grade mineralization: sulphide mineralization
within a breccia host. Sulphide mineralization consists
predominantly of sphalerite, galena and pyrite in veinlets and
disseminations and is typically hosted within dacite
clast-dominated breccias. All four holes confirmed the northeast
trend of the high-grade mineralized zones within the existing
resource area and, in several cases, suggest the possible expansion
of the mineralization beyond the current block model. The current
drilling has returned intervals that are among the best with
respect to width and grade drilled to-date on the project.
Pending holes targeted both breccia-hosted
sulphide mineralization as well as discrete sulphide veins. The
presence of high-grade discrete sulphide veins at Cordero is well
documented through prospecting and small-scale mining. However,
these veins were never a focus of Levon’s prior exploration.
Discovery believes that definition of these veins has the potential
to significantly enhance the high-grade component of the
deposit.
Maps and sections with assays showing the drill
hole locations and full analytical results are available at
https://dsvmetals.com/site/assets/files/5344/2020-01-08-dsv-nr-appendix.pdf.
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 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). The bulk tonnage potential of
the Cordero deposit was first recognized by Levon in 2009 and the
resource was defined by 132,000m of drilling in 292 holes. The most
recent resource3 was released in 2018 (available on Discovery’s
website and Levon’s SEDAR profile) and is shown below at various
cut-off grades:
AgEq3 (g/t)Cutoff |
Tonnage & Grade within Mineral Resources Pit
Shell |
TotalContainedAg Mozs |
TotalContainedAgEq3 Moz |
Class |
M tonnes |
AgEq1g/t |
Ag g/t |
Zn % |
Pb % |
Au g/t |
15(used in PEA) |
Indicated |
990 |
32 |
13 |
0.4 |
0.2 |
0.04 |
408 |
1,022 |
Inferred |
282 |
56 |
21 |
0.8 |
0.3 |
0.04 |
188 |
513 |
25 |
Indicated |
467 |
46 |
19 |
0.5 |
0.3 |
0.06 |
278 |
686 |
Inferred |
183 |
77 |
28 |
1.0 |
0.4 |
0.05 |
163 |
451 |
50 |
Indicated |
99 |
95 |
40 |
1.0 |
0.6 |
0.11 |
128 |
303 |
Inferred |
100 |
112 |
41 |
1.5 |
0.7 |
0.06 |
131 |
360 |
This table shows that a large portion of the
resource remains at significantly higher cutoff grades than the 15
g/t AgEq cutoff used in the 2018 Preliminary Economic Assessment
(“PEA”) completed by Levon. Since acquiring the project in August
2019, Discovery’s main focus has been on gaining a better
understanding of the higher-grade mineralization within the
footprint of the deposit, namely the 50 g/t AgEq cutoff material
shown in the table above.
Historical mine workings and prospects at
Cordero date back to the 17th century. There are currently about 40
identified shallow, vertical shafts and associated workings at
Cordero, generally developed along outcropping, southwest-striking,
high-grade silver-zinc-lead-gold sulphide veins as well as
high-grade skarn mineralization. Local artisanal miners report most
of the past and recent production was direct shipping ore, which
was hand-sorted, shipped, and processed in the nearby town of
Parral. The La Luz mine was the largest mine and was active in the
1940s. Remnants of a small six-cell flotation mill built by ASARCO
remain at La Luz mine. Despite a long history of mining, these
veins have never been explored by drilling, and may add
significantly to the high-grade mineral endowment at Cordero.
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. In addition, Discovery is also exploring multiple
high-grade carbonate replacement-style silver-zinc-lead showings in
a land package of approximately 150,000 hectares in Coahuila State,
Mexico. The land holdings contain numerous historical direct-ship
ore workings and significant underground development, but no
drill-testing has ever been carried out on them.
For further information contact:
Forbes Gemmell, CFAVP Corporate Development
& Investor
Relationsforbes.gemmell@dsvmetals.com416-613-9414
On Behalf of the Board of Directors,
Taj Singh, M.Eng, P.Eng, CPA, President, Chief
Executive Officer, and Director
TECHNICAL NOTES & REFERENCES:
1 All results in this news release are rounded.
Assays are uncut and undiluted. Widths are drilled widths (not true
widths). 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. For subintervals, a 50 g/t AgEq
cutoff was used, whereby no more than 3m of below-cut-off material
is included in any composite interval.
2 AgEq calculations for reported drill
results are based on USD $16.50/oz Ag, $1,350/oz Au, $0.85/lb Pb,
$1.00/lb Zn, and assume 100% metallurgical recovery.
3 PEA by M3 Engineering, Resource by IMC, Mar.
1, 2018 (available on Discovery’s website and on Levon’s SEDAR
profile). Resource commodity prices used ($US): $17.14/oz Ag,
$1.11/lb Zn, $0.96/lb Pb, $1,262/oz Au; Mine plan uses a subset of
Indicated and Inferred Resources at 15 g/t AgEq cutoff. PEA
assumes recoveries of 89% Ag, 84% Pb, 72% Zn, 40% 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, V.P. 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.
Cautionary Note Regarding Forward-Looking
Statements
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.
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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