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 Phase 1 diamond core drilling 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 were
focused on defining and extending the higher-grade mineralized
footprint in the northern corridor along the north-east trend.
Highlight intercepts include:
- 0.7 metres (“m”) averaging 2,489 grams per tonne
(“g/t”) silver equivalent (“AgEq”)1 in hole C20-326 from
303.1 m (comprised of 2,470 g/t Ag, 0.02 g/t gold (“Au”), 0.0% lead
(“Pb”) and 0.4% zinc (“Zn”))
- 51.9 m averaging 197 g/t AgEq1 in hole C20-328
from 79.2 m (comprised of 69 g/t Ag, 0.13 g/t Au, 1.1% Pb and 1.9%
Zn)
- 62.2 m averaging 174 g/t AgEq1 in hole C20-328
from 239.8 m (comprised of 62 g/t Ag, 0.22 g/t Au, 1.2% Pb and 1.3%
Zn)
- 85.5 m averaging 112 g/t
AgEq1 in hole C20-330 from 134.3 m (comprised of
38 g/t Ag, 0.16 g/t Au, 0.8% Pb and 0.8% Zn)
Taj Singh, President and CEO, states: “We are
very encouraged that we continue to intercept broad zones of
mineralization with excellent grades along the north-east trend in
areas where there are significant gaps in previous drilling. We are
also excited to announce, based on the excellent exploration
results we have achieved to date, we are expanding our Phase 1
drill program by approximately 20,000 metres. With over C$40
million cash on our balance sheet we are very well positioned to
not only complete this expanded program, along with an updated
resource and PEA, but also to advance and drill test our
property-wide targets at Cordero.”
EXPANDED DRILL PROGRAM:
The initial Phase 1 Cordero drill program was
planned for 30,000-35,000 m of core drilling. Forty-eight holes
totaling 17,500 m have been completed to date. Based on the strong
results thus far, and following the closing of a C$25 million
private placement on June 8, 2020, the Company is expanding its
Phase 1 drill program to 50,000-55,000 m. The additional metres
will be focused on two key areas: 1) Targeting of broad zones of
breccia-hosted mineralization in the east and north-east of both
mineralized corridors and 2) Testing of the width, grade and
continuity of extensive high-grade vein systems identified in and
adjacent to historical artisanal underground workings during the
early history of the Project.
Following a shutdown of exploration activities
due to COVID-19, drilling activity is expected to commence by the
end of the month with one drill rig. Further drill rigs will be
added when the Company is confident that health and safety risks
can be managed effectively.
DRILL RESULTS:
Initial drilling from the Phase 1 drill program
was focused on understanding the mineralizing controls in the
Cordero system. The eight drill holes in this current release
(C20-325 through C20-322) were focused on testing and defining
mineralization to the northeast of the core Pozo de Plata zone. All
holes have been drilled roughly perpendicular to the main
north-east trend of higher-grade mineralization. Assays from an
additional eight holes are pending. Drill hole locations for all
holes are shown in Figure 1 (see Supporting Materials section).
Drilling to the north-east of the Pozo de Plata
zone continues to intercept broad zones of breccia-hosted
mineralization. Hole C20-328, drilled 560 m north-east of Pozo de
Plata, intercepted 51.9 m averaging 197 g/t AgEq1 (69 g/t Ag, 0.13
g/t Au, 1.1% Pb and 1.9% Zn) and 62.2 m averaging 174 g/t AgEq1 (62
g/t Ag, 0.21 g/t Au, 1.2% Pb and 1.3% Zn), confirming the extension
and continuation of near surface mineralization in this direction.
Further 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 |
C20-326 |
126.7 |
151.8 |
25.2 |
18 |
0.15 |
0.3 |
0.6 |
66 |
100 m |
and |
303.1 |
303.8 |
0.7 |
2,470 |
0.02 |
0.0 |
0.4 |
2,489 |
|
|
|
|
|
|
|
|
|
|
C20-327 |
222.5 |
235.7 |
13.2 |
123 |
0.53 |
3.6 |
3.0 |
418 |
320 m |
and |
350.1 |
369.7 |
19.6 |
20 |
0.04 |
0.4 |
1.1 |
84 |
|
|
|
|
|
|
|
|
|
|
C20-328 |
79.3 |
131.2 |
51.9 |
69 |
0.13 |
1.1 |
1.9 |
197 |
560 m |
including |
105.9 |
107.2 |
1.3 |
1,060 |
0.50 |
15.9 |
26.9 |
2,777 |
and |
239.8 |
302.0 |
62.2 |
62 |
0.22 |
1.2 |
1.3 |
174 |
including |
260.6 |
272.6 |
12.0 |
159 |
0.49 |
3.1 |
2.2 |
398 |
|
|
|
|
|
|
|
|
|
|
C20-329 |
168.7 |
181.0 |
12.3 |
130 |
0.08 |
2.3 |
3.9 |
380 |
660 m |
and |
345.8 |
438.0 |
92.2 |
16 |
0.04 |
0.3 |
0.6 |
53 |
and |
542.6 |
594.1 |
51.4 |
30 |
0.06 |
1.0 |
1.2 |
119 |
|
|
|
|
|
|
|
|
|
|
C20-330 |
134.3 |
219.8 |
85.5 |
38 |
0.16 |
0.8 |
0.8 |
112 |
240 m |
and |
271.2 |
292.0 |
20.9 |
32 |
0.08 |
0.7 |
0.8 |
95 |
|
|
|
|
|
|
|
|
|
|
C20-331 |
131.5 |
150.4 |
19.0 |
14 |
0.01 |
0.3 |
1.0 |
65 |
350 m |
and |
242.2 |
244.4 |
2.2 |
118 |
0.05 |
2.4 |
8.8 |
573 |
including |
242.2 |
242.8 |
0.6 |
177 |
0.08 |
3.7 |
27.1 |
1,437 |
and |
314.2 |
314.8 |
0.6 |
353 |
2.25 |
6.3 |
16.5 |
1,441 |
|
|
|
|
|
|
|
|
|
|
C20-332 |
132.0 |
167.5 |
35.5 |
26 |
0.06 |
0.4 |
0.9 |
83 |
560 m |
* 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/5385/2020-06-18-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/5385/2020-06-18-dsv-nr.pdf
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). In addition to
the bulk tonnage mineralization there are also multiple high-grade
silver-zinc-lead-gold sulphide vein trends as evidenced by more
than 40 historical shallow, vertical shafts and associated
underground workings.
On Behalf of the Board of Directors,
Taj Singh, M.Eng, P.Eng, CPA,
President, Chief Executive Officer, and Director
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.
For further information contact:
Forbes Gemmell, CFAVP Corporate
Development & Investor
Relationsforbes.gemmell@dsvmetals.com
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. The calculations assume 100% metallurgical recovery
and are indicative of gross in-situ metal value at the indicated
metal prices. 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.
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