Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
ten diamond drill holes completed at its flagship Cordero project
(“Cordero” or “the Project”) located in Chihuahua State, Mexico.
The holes are part of a 30,000-35,000 metre (“m”) Phase 1 drill
program that commenced in September 2019. The goal of this program
is to define a high-margin project with scale that retains
excellent leverage to rising metal prices. As previously announced
on March 31, 2020, exploration activity at Cordero has been
temporarily suspended in response to concerns relating to COVID-19.
Business continuity plans have been put in place so the Phase 1
drill program can ramp up quickly once current risks subside.
Taj Singh, President and CEO, states: “These
drill results are particularly positive for two reasons. First,
they confirm that higher-grade breccia-hosted Ag-Au-Pb-Zn
mineralization extends to the north-east beyond the previously
defined limits of the Pozo de Plata zone. Second, drilling along
the southernmost vein trend intercepted multiple sulfide veins that
returned kilogram per tonne silver-equivalent intercepts. The
first-ever drill test of veins highlights the excellent potential
that may exist within this and other vein trends on the property.
Follow-up drilling that targets expansion of higher-grade
resources, is planned on both the north-east extension and the vein
targets, as soon as exploration resumes at Cordero.”
HIGHLIGHTS1 (best intercepts
are bolded)
Hole ID |
From (m) |
To (m) |
Width(m) |
Ag (g/t) |
Au (g/t) |
Pb (%) |
Zn (%) |
AgEq2(g/t) |
Mineralization |
C19-307 |
17.5 |
19.5 |
2.0 |
700 |
0.06 |
1.33 |
2.05 |
837 |
Vein/Stockwork |
and |
155.3 |
156.1 |
0.8 |
1,175 |
0.22 |
7.41 |
4.53 |
1,642 |
Vein |
and |
202.7 |
204.0 |
1.3 |
516 |
0.05 |
5.65 |
6.94 |
1,007 |
Vein |
|
|
|
|
|
|
|
|
|
|
C19-308 |
3.6 |
17.6 |
14.0 |
185 |
0.02 |
0.05 |
0.13 |
194 |
Breccia |
and |
128.5 |
128.9 |
0.3 |
645 |
0.14 |
7.16 |
17.25 |
1,624 |
Vein |
|
|
|
|
|
|
|
|
|
|
C19-309 |
59.1 |
60.3 |
1.3 |
673 |
0.26 |
10.13 |
3.73 |
1,205 |
Vein/Fault Breccia |
|
|
|
|
|
|
|
|
|
|
C20-310 |
51.1 |
52.3 |
1.2 |
904 |
0.08 |
5.40 |
8.08 |
1,436 |
Vein/Fault Breccia |
and |
137.0 |
137.9 |
0.9 |
576 |
0.06 |
1.64 |
3.99 |
805 |
Vein/Stockwork |
|
|
|
|
|
|
|
|
|
|
C20-311 |
3.0 |
74.0 |
71.1 |
18 |
0.15 |
0.24 |
0.19 |
46 |
Breccia |
|
|
|
|
|
|
|
|
|
|
C20-312 |
3.0 |
127.1 |
124.1 |
46 |
0.03 |
0.23 |
0.54 |
79 |
Breccia & Vein |
including |
76.7 |
81.9 |
5.3 |
273 |
0.16 |
0.85 |
5.53 |
546 |
Breccia & Vein |
including |
81.3 |
81.9 |
0.6 |
1,500 |
0.87 |
3.24 |
30.00 |
2,929 |
Vein |
|
|
|
|
|
|
|
|
|
|
C20-313 |
214.1 |
224.1 |
10.0 |
15 |
0.00 |
0.63 |
1.58 |
103 |
Vein Breccia |
|
|
|
|
|
|
|
|
|
|
C20-314 |
135.0 |
241.0 |
106.1 |
51 |
0.37 |
0.97 |
0.56 |
139 |
Breccia |
Including |
164.1 |
168.9 |
4.8 |
355 |
2.08 |
6.62 |
4.54 |
946 |
Breccia |
|
|
|
|
|
|
|
|
|
|
C20-315 |
136.6 |
150.6 |
14.0 |
31 |
0.01 |
0.23 |
1.18 |
89 |
Multiple Veins |
including |
146.4 |
148.2 |
1.8 |
66 |
0.00 |
0.48 |
4.28 |
261 |
Vein |
|
|
|
|
|
|
|
|
|
|
C20-316 |
163.1 |
190.7 |
27.7 |
119 |
0.55 |
2.02 |
0.28 |
247 |
Breccia |
including |
166.4 |
167.4 |
1.0 |
1,255 |
1.10 |
20.00 |
2.49 |
2,153 |
Breccia |
and including |
181.0 |
182.5 |
1.5 |
721 |
2.30 |
12.71 |
1.89 |
1,435 |
Breccia |
and |
222.3 |
285.0 |
62.8 |
79 |
0.58 |
1.19 |
1.15 |
217 |
Breccia |
including |
240.5 |
250.4 |
10.0 |
212 |
1.14 |
3.45 |
2.29 |
522 |
Breccia |
and including |
256.8 |
268.7 |
11.9 |
151 |
0.75 |
2.30 |
3.09 |
422 |
Breccia |
* Complete assay results for holes C19-307
through C20-316 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:
Gernot Wober, VP Exploration, comments: “We have
made significant strides in our geological understanding of Cordero
since we acquired the Project last year. Our starting point was a
very large polymetallic system with over one billion tonnes of
mineralized rock containing Ag, Pb, Zn and Au minerals (see 2018
Levon resource estimate), and it is becoming clear that the large
size of this system is a reflection of robust and long-lived
structures that transported the mineralizing fluids. It seems that
these structures define the dominant north-east trends of the
historically mined veins and the higher grade breccias. The
critical opportunity for the Company, and the focus of our Phase 1
drill program, lies in the delineation of the higher-grade
mineralization along these trends.”
Prior to the temporary suspension of exploration
drilling activities at Cordero on March 31, 2020, 48 holes totaling
17,500 m had been completed. Assays from 24 holes are pending. All
holes have been drilled roughly perpendicular to the northeast
trend of higher-grade blocks outlined in the Levon Resources Ltd
(“Levon”)3 resource model.
Holes C19-307 through C20-316 comprise the third
set of drill results released by Discovery. Drill hole locations
relating to the current release are shown in Figure 1.
Five holes drilled in the corridor to the north
of the main Cordero Fault (the “North Corridor” in Figure 1) all
intercepted silver-rich breccia mineralization. Two of the holes,
located along the northeast extension of the well-mineralized Pozo
de Plata zone, both returned higher-grade intervals with excellent
continuity: Hole C20-314 intercepted 106.1 m of 139 g/t AgEq2; and
Hole C20-316 intercepted 62.8 m of 217 g/t AgEq2. Follow-up
drilling is planned to test the potential of the north-east
extension of the North Corridor when exploration activities
resume.
The other five holes were drilled on the margin
of the Southern Corridor into the previously untested southernmost
vein trend. All holes intercepted Ag-Pg-Zn rich vein
mineralization. The objective of these holes was to improve the
Company’s understanding of the structural and geological controls
on the sulphide veins. These early results are very encouraging;
highlight intercepts include 1.2 m of 1,436 g/t AgEq2 in Hole
C20-310 and 0.6 m of 2,929 g/t AgEq2 in hole C20-312. These results
will be reviewed in conjunction with a survey of historical
underground workings ahead of a planned ramp-up of drilling of the
vein targets when exploration activity at Cordero resumes.
Supporting maps and sections, drill hole locations and full
assay results can be found at the following link:
https://dsvmetals.com/site/assets/files/5366/20200407_sections.pdf
A copy of this press release with supporting maps and sections
included as appendices can be found at the following link:
https://dsvmetals.com/site/assets/files/5366/20200407_pr.pdf
About the Cordero Project
Discovery acquired the Cordero project through
the acquisition of Levon Resources Ltd. (“Levon”) in August 2019.
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 (highlighted below). 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 |
TotalContainedAg (Mozs) |
TotalContainedAgEq3 (Moz) |
Class |
Tonnes (M) |
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
shallow, vertical shafts and associated workings identified 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 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, 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.
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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