Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
the second set of 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 holes are
part of the previously announced 30,000-35,000 metre (“m”), Phase 1
drill program planned for completion in 2020. The focus of this
program is to define and delineate areas of higher-grade
mineralization within the existing Cordero resource.
Taj Singh, President and CEO, states: “We are
pleased with this second set of drill results, as it further
validates the near-surface high-grade potential at Cordero.
Drilling completed to-date clearly shows that there is excellent
continuity and higher grades within the breccia-hosted
mineralization. With the addition of two new drill rigs in January,
we are excited to now have four drill rigs turning at Cordero and
we look forward to the results from this increase in drill activity
over the next few quarters.”
HIGHLIGHTS1:
Hole ID |
From (m) |
To (m) |
Width (m) |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
AgEq2 (g/t) |
Mineralization |
C19-297 |
272.9 |
274.0 |
1.1 |
522 |
0.21 |
6.6 |
18.3 |
1,533 |
Vein |
and |
285.5 |
286.1 |
0.6 |
931 |
0.09 |
6.0 |
10.1 |
1,569 |
Vein |
|
|
|
|
|
|
|
|
|
|
C19-299 |
43.4 |
101.2 |
57.8 |
24 |
0.21 |
0.3 |
0.6 |
78 |
Breccia |
including |
61.2 |
81.6 |
20.4 |
32 |
0.26 |
0.5 |
1.2 |
122 |
Breccia |
|
|
|
|
|
|
|
|
|
|
C19-301 |
63.5 |
157.8 |
94.3 |
30 |
0.21 |
0.4 |
0.3 |
75 |
Breccia |
including |
88.9 |
126.0 |
37.2 |
58 |
0.32 |
0.9 |
0.5 |
135 |
Breccia |
|
|
|
|
|
|
|
|
|
|
C19-302 |
14.0 |
80.5 |
66.6 |
33 |
0.16 |
0.4 |
0.4 |
77 |
Breccia |
including |
32.0 |
55.0 |
23.1 |
62 |
0.28 |
0.8 |
0.7 |
142 |
Breccia |
|
|
|
|
|
|
|
|
|
|
C19-303 |
125.5 |
125.9 |
0.5 |
1,035 |
0.11 |
5.1 |
12.6 |
1,743 |
Vein |
and |
246.6 |
267.6 |
21.1 |
60 |
0.10 |
0.2 |
0.5 |
94 |
Breccia |
|
|
|
|
|
|
|
|
|
|
C19-304 |
76.8 |
182.7 |
105.9 |
74 |
0.38 |
1.1 |
1.1 |
188 |
Breccia |
including |
76.8 |
102.8 |
26.0 |
104 |
0.41 |
1.5 |
1.4 |
250 |
Breccia |
including |
115.1 |
145.7 |
30.6 |
78 |
0.42 |
1.1 |
0.9 |
185 |
Breccia |
including |
153.9 |
175.0 |
21.1 |
110 |
0.52 |
1.8 |
2.1 |
302 |
Breccia |
|
|
|
|
|
|
|
|
|
|
C19-305 |
0.6 |
65.6 |
65.0 |
74 |
0.05 |
0.5 |
0.5 |
113 |
Breccia |
including |
49.6 |
65.6 |
16.0 |
122 |
0.12 |
1.6 |
1.5 |
249 |
Breccia |
|
|
|
|
|
|
|
|
|
|
C19-306 |
58.4 |
78.8 |
20.5 |
39 |
0.17 |
0.6 |
0.5 |
95 |
Breccia |
and |
103.0 |
165.1 |
62.1 |
35 |
0.21 |
0.5 |
0.4 |
84 |
Breccia |
including |
132.7 |
141.0 |
8.3 |
109 |
0.43 |
1.6 |
1.2 |
251 |
Breccia |
and |
347.2 |
422.5 |
75.3 |
24 |
0.01 |
0.3 |
1.9 |
114 |
Breccia |
including |
388.3 |
401.3 |
13.1 |
42 |
0.01 |
0.6 |
3.9 |
185 |
Breccia |
* Complete assay results for holes C19-297
through C19-306 can be found at the link in the “Discussion”
section below. Please, refer to the “Technical Notes” section below
for details on assumptions & calculations. Grams per tonne is
abbreviated as “g/t”, silver equivalent is abbreviated as
“AgEq”.
DISCUSSION:
Discovery’s focus at Cordero is on upgrading the
economic potential of the Project through understanding the nature
of the higher-grade zones within the larger mineralized system.
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 Phase 1
program is to gain an understanding of the geology, geometry
(strike, dip, orientation) and controls on these styles of
mineralization in order to define and delineate the higher-grade
zones.
Twenty-three holes totaling 8,214 m have been
completed to-date, with assays from 15 holes pending. All holes
were drilled in the southwest portion of the resource area as
defined by Levon3 and were drilled roughly perpendicular to the
northeast trend of higher-grade blocks outlined in the Levon
resource model.
Holes C19-297 through C19-306 comprise the
second set of drill results released by Discovery (see January 8,
2020 press release for the results of holes C19-293 through
C19-296). Seven of the ten holes were successful in targeting
higher-grade sulphide mineralization within a breccia host. In
several holes, mineralization was also intercepted in dacite and
sedimentary rocks adjacent to the mineralized breccias. Sulphide
mineralization consists predominantly of sphalerite, galena and
pyrite as breccia matrix fill within dacite clast-dominated
breccias.
Holes C19-297 and C19-303 intercepted sulphide
vein-style mineralization with highlight intercepts including 1.1 m
of 1,533 g/t AgEq2 and 0.6 m of 1,569 g/t AgEq2. The Company will
conduct mapping of historical underground workings to improve its
understanding of the structural and geological controls on the
sulphide veins. Drilling of the vein targets will ramp up during Q2
once the initial phase of the mapping program is complete.
Supporting maps and sections, drill hole locations and full
assay results can be found at the link below:
https://dsvmetals.com/site/assets/files/5187/20200212_pr_plan_map_sections_assays.pdf
A full version of this press release with supporting maps and
sections can be found at the link below:
https://dsvmetals.com/site/assets/files/5361/2020-02-12-dsv-nr.pdf
2020 EXPLORATION PROGRAM:
The Phase 1 drill program will encompass
30,000–35,000 m of drilling. Approximately 6,000 m of the drill
program was completed in 2019. The remainder of the drill program
is expected to be completed during the first three quarters of
2020. The majority of the drilling in 2020 will be focused on
higher-grade breccia mineralization, with the remainder targeting
sulphide vein mineralization. The results from Phase 1, in
conjunction with the ongoing relogging program of historical drill
core, will be incorporated in an updated resource estimate for
Cordero, targeted for completion in early 2021.
In addition to this work, the Company
anticipates the completion of metallurgical test work in the second
half of 2020. Discovery also expects to advance reconnaissance
targets on the large 35,000 hectare Cordero property package to
drill-ready status in 2020, through mapping, sampling and
interpretation of a recently completed, property-wide geophysical
survey.
The total exploration budget at Cordero for 2020
is C$11.0 million. The Company is well positioned to fund this
exploration program given a cash balance as of January 1, 2020, of
approximately C$24.0 million.
About the Cordero Project
Cordero 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). 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 resource estimate3 as shown in the table
below was released in 2018 (technical report available on
Discovery’s website and Levon’s SEDAR profile) and was based on a
base case cutoff grade of 15 g/t AgEq. The table includes a
sensitivity analysis that also shows tonnage and grade estimates at
higher AgEq cutoff grades within the resource shell.
AgEq3 (g/t) Cutoff |
Tonnage & Grade within Mineral Resources Pit
Shell |
Total Contained Ag (Mozs) |
Total Contained AgEq3 (Moz) |
Class |
M (tonnes) |
AgEq3 (g/t) |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
15 |
Indicated |
990 |
32 |
13 |
0.04 |
0.2 |
0.4 |
408 |
1,022 |
Inferred |
282 |
56 |
21 |
0.04 |
0.3 |
0.8 |
188 |
513 |
25 |
Indicated |
467 |
46 |
19 |
0.06 |
0.3 |
0.5 |
278 |
686 |
Inferred |
183 |
77 |
28 |
0.05 |
0.4 |
1.0 |
163 |
451 |
50 |
Indicated |
99 |
95 |
40 |
0.11 |
0.6 |
1.0 |
128 |
303 |
Inferred |
100 |
112 |
41 |
0.06 |
0.7 |
1.5 |
131 |
360 |
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. Despite a long history of mining, these veins have never
been explored by drilling, and have the potential to add
significantly to the high-grade mineral endowment at Cordero.
About Discovery
Discovery 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.
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. Refer to note four
below for metallurgical recoveries assumed in the 2018 PEA
completed on Cordero.
3 Refer to the ‘About the Cordero Project’
section of this release for details on the most recent resource
estimate for Cordero. Resource commodity prices used for the
resource estimate were (USD): $17.14/oz Ag, $1.11/lb Zn, $0.96/lb
Pb, $1,262/oz Au. Further information on the resource estimate is
available on Discovery’s website.
4 A PEA was completed by M3 Engineering,
Resource by IMC, Mar. 1, 2018 (available on Discovery’s website).
Resource commodity prices used ($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
metallurgical 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, 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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