Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
eight 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. Drill holes for this
current release (C20-317 through C20-324) were focused on defining
and extending the higher-grade mineralized footprint to the
north-east and south-west of the previously defined limits of the
Pozo de Plata zone.
Taj Singh, President and CEO, states: “These
drill results continue to illustrate the strongly mineralized
footprint at Cordero. Hole C20-319, the furthest north-east hole
drilled by Discovery for which assays have been received,
intercepted 168.8 m of 207 g/t AgEq1 (70 g/t Ag, 0.10 g/t Au, 1.5%
Pb and 1.9% Zn). Hole C20-317, the Company’s furthest south-west
hole drilled to date, intercepted 79.0 m of 159 AgEq1 g/t (90 g/t
Ag, 0.22 g/t Au, 0.9% Pb and 0.5% Zn). In total there is
approximately 1,250 m of strike extent between these two holes.
This not only demonstrates the sheer scale of the mineralized
system but the broad widths and excellent grades near-surface also
highlight the high-margin potential that exists at Cordero.”
DISCUSSION:
48 holes totaling 17,500 m have been completed
to date at Cordero. Assays from 16 holes are pending. All holes
have been drilled roughly perpendicular to the main structural
north-east trend of higher-grade mineralization.
Initial drilling from the Phase 1 drill program
was focused on understanding the mineralizing controls in the
Cordero system. Drill holes for this current release were focused
on testing and defining the mineralization potential to the
north-east and the south-west of the core Pozo de Plata zone. Drill
hole locations of these holes are shown in Figure 1 (see Supporting
Materials section).
North-East Extension
Drilling north-east of Pozo de Plata confirmed
broad zones of silver-rich breccia mineralization across a strike
length along this extension of approximately 600 m. Hole C20-319,
the northeastern-most hole drilled by the Company for which assay
results have been received, intercepted 168.8 m of 207 g/t AgEq1
(70 g/t Ag, 0.10 g/t Au, 1.5% Pb and 1.9% Zn). The remaining
holes in this news release drilled along this north-east trend also
intercepted wide zones of breccia-hosted mineralization. Subsequent
drilling has targeted mineralization further north-east of hole
C20-319. Drill highlights from the north-east extension 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) |
Distance North-East of Pozo de Plata |
C20-319 |
77.0 |
108.2 |
31.2 |
51 |
0.07 |
0.9 |
0.8 |
122 |
600 m |
and |
140.0 |
308.8 |
168.8 |
70 |
0.10 |
1.5 |
1.9 |
207 |
including |
264.8 |
292.5 |
27.7 |
103 |
0.20 |
2.2 |
4.4 |
378 |
and including |
275.1 |
292.5 |
17.4 |
123 |
0.24 |
2.6 |
6.0 |
484 |
and including |
302.4 |
307.8 |
5.4 |
294 |
0.25 |
6.8 |
6.6 |
826 |
and |
389.2 |
420.1 |
30.9 |
28 |
0.05 |
0.5 |
1.6 |
118 |
|
|
|
|
|
|
|
|
|
|
C20-320 |
84.9 |
115.7 |
30.8 |
45 |
0.26 |
0.7 |
0.4 |
107 |
300 m |
and |
132.5 |
174.0 |
41.5 |
75 |
0.25 |
1.7 |
1.1 |
201 |
and |
213.1 |
250.4 |
37.3 |
67 |
0.24 |
1.5 |
0.7 |
166 |
including |
214.2 |
217.5 |
3.3 |
588 |
0.58 |
12.4 |
1.7 |
1,141 |
|
|
|
|
|
|
|
|
|
|
C20-322 |
104.7 |
124.6 |
19.9 |
72 |
0.41 |
1.2 |
1.4 |
205 |
100 m |
including |
111.3 |
115.3 |
4.1 |
270 |
1.45 |
4.7 |
5.5 |
780 |
|
|
|
|
|
|
|
|
|
|
C20-324 |
105.1 |
227.0 |
121.9 |
34 |
0.07 |
0.6 |
0.8 |
93 |
500 m |
and |
290.2 |
301.7 |
11.5 |
45 |
0.09 |
1.1 |
2.1 |
176 |
* Refer to Technical Notes & References
section below for details on assumptions & calculations
South-West Extension
Four holes were drilled to test the
mineralization continuity to the south-west of Pozo de Plata. Hole
C20-317, drilled 400 m south-west of Pozo de Plata, intercepted
79.0 m of 159 g/t AgEq1 (90 g/t Ag, 0.22 g/t Au, 0.9% Pb and 0.5%
Zn) from surface, confirming the extension and continuation of near
surface breccia-hosted mineralization in this direction. Drill
highlights from the four holes drilled along the south-west
extension 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) |
Distance South-West of Pozo de Plata |
C20-317 |
0.0 |
79.0 |
79.0 |
90 |
0.22 |
0.9 |
0.5 |
159 |
400 m |
including |
35.0 |
35.5 |
0.5 |
1,500 |
0.33 |
22.7 |
6.7 |
2,608 |
|
|
|
|
|
|
|
|
|
|
C20-318 |
8.4 |
30.6 |
22.2 |
40 |
0.08 |
0.5 |
0.4 |
79 |
400 m |
|
|
|
|
|
|
|
|
|
|
C20-321 |
195.0 |
206.3 |
11.3 |
8 |
0.00 |
0.3 |
2.4 |
120 |
300 m |
|
|
|
|
|
|
|
|
|
|
C20-323 |
197.0 |
217.5 |
20.5 |
53 |
0.02 |
1.6 |
3.0 |
236 |
350 m |
and |
226.6 |
243.5 |
16.9 |
25 |
0.01 |
0.6 |
2.9 |
167 |
* Refer to Technical Notes & References
section below for details on assumptions & calculations
Supporting Materials
Supporting maps and sections, drill hole locations and full
assay results can be found at the following link:
https://dsvmetals.com/site/assets/files/5187/20200507_sections_assays.pdf
A copy of this release with supporting maps and sections
included as appendices can be found at the following link:
https://dsvmetals.com/site/assets/files/5187/20200507_drill_results.pdf
DRILL UPDATE:
The Company announced on March 31, 2020, that it
had temporarily suspended all exploration activities at its Mexican
operations due to the increased health and safety risks associated
with the growing number of COVID-19 cases in the country. The
shutdown is expected to last until at least May 30, 2020, as per
the most recent administrative order from the Federal Government of
Mexico suspending all non-essential business activities until that
date. The Company has put in place business continuity plans so
that exploration activity can quickly ramp up once it is deemed
safe to do so.
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).
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 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, 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. 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, and assume 100% metallurgical recovery. Refer to note
two below for metallurgical recoveries assumed in the 2018 PEA
completed on Cordero.
2 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. The PEA assumes metallurgical
recoveries of 89% for Ag, 84% for Pb, 72% for Zn and 40% for
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.
Discovery Silver (TSXV:DSV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Discovery Silver (TSXV:DSV)
Historical Stock Chart
From Apr 2023 to Apr 2024