Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
four diamond drill holes targeting the Todos Santos high-grade vein
trend at its flagship Cordero project (“Cordero” or “the Project”)
located in Chihuahua State, Mexico. Todos Santos flanks the
higher-grade bulk-tonnage domain to the northeast and now has a
minimum strike extent of at least 1.5 kilometres (“km”) based on
historic underground workings and new drilling. The current holes
are part of the first-ever drill program of the Todos Santos vein
trend.
Highlight intercepts include:
- Hole C20-349: 3.4
m averaging 1,150 grams
per tonne silver equivalent (“g/t AgEq1”)
from 145.6 m (412 g/t Ag, 0.42 g/t gold (“Au”), 8.0% lead (“Pb”)
and 10.0% zinc (“Zn”)) within a 5.0 m interval averaging 962 g/t
AgEq1 (331 g/t Ag, 0.35 g/t Au, 6.3% Pb, 9.2% Zn)
- Hole C20-351: 2.0
m averaging 1,207 g/t
AgEq1 from 224.8 m (532 g/t Ag, 0.38 g/t Au, 8.8% Pb and
8.1% Zn) within a 49.7 m interval averaging 146 g/t AgEq1 (38 g/t
Ag, 0.09 g/t Au, 0.6% Pb, 1.9% Zn)
- Hole C20-352:
3.3 m averaging
572 g/t AgEq1 from 228.2 m (152
g/t Ag, 0.71 g/t Au, 2.2% Pb and 6.9% Zn) within a 21.0 m interval
averaging 188 g/t AgEq1 (59 g/t Ag, 0.19 g/t Au, 0.9% Pb, 2.0%
Zn)
- Hole
C20-354:
1.0 m averaging
1,729 g/t AgEq1 from
380.1 m (433 g/t Ag, 0.23 g/t Au, 9.3% Pb and 22.9% Zn) within a
6.9 m interval averaging 466 g/t AgEq1 (133 g/t Ag, 0.10 g/t Au,
2.9% Pb, 5.4% Zn)
Taj Singh, President and CEO, states: “These
current drill holes, along with the relogging of historical drill
core in this part of the deposit, now suggest that the Todos Santos
vein trend extends well beyond the footprint of historical
underground workings and beyond the limit of the mega pit in the
2018 PEA. This recent work also confirmed for the first time
through drilling the existence of a parallel footwall vein in the
northeast of the Todos Santos trend. This footwall vein returned
high-grade intercepts of 2.0 m averaging 1,207 g/t AgEq and 1.0 m
averaging 1,729 g/t AgEq. We look forward to follow-up drilling
focused on confirming and extending the vein potential along the
Todos Santos vein trend as we advance this new and exciting
component of the Cordero story that could add significant value to
the higher-grade open pit project.”
DRILL
RESULTS:
The four holes in this release were successful
in establishing and expanding continuity both along strike and at
depth of the Todos Santos vein trend. All four holes returned
high-grade vein intercepts from both the Main Vein along the Todos
Santos trend as well as a previously unidentified Footwall Vein.
High-grade mineralization in both the Main Vein and Footwall Vein
is typically associated with quartz-carbonate veins with galena,
sphalerite and pyrite mineralization. A number of these vein
intercepts lie within broader zones of disseminated sulphide
mineralization hosted in brecciated dacite and sedimentary wall
rock.
The Todos Santos vein trend, consisting of the
Main Vein and Footwall Vein, has an interpreted southwest strike
extent of at least 1.5 km based on historic underground workings
and drilling, with veins dipping steeply to the northwest. The
drill-confirmed portion of the Main Vein along the Todos Santos
trend has a strike extent of 800 m and a down-dip extent of 300 m
and is open along strike in both directions and at depth. The
Footwall Vein has a drill-confirmed strike extent of 400 m and is
open to the northeast and at depth.
Drill hole locations for all holes are shown in
Figure 1 (see links below). Detailed drill highlights 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) |
Notes |
Release Date |
C20-349 |
128.4 |
153.4 |
25.0 |
92 |
0.14 |
1.6 |
3.1 |
289 |
Stkw |
Current Release |
including |
145.6 |
150.6 |
5.0 |
331 |
0.35 |
6.3 |
9.2 |
962 |
MV |
including |
145.6 |
149.0 |
3.4 |
421 |
0.42 |
8.0 |
10.0 |
1,150 |
and |
254.3 |
276.4 |
22.1 |
38 |
0.07 |
0.7 |
0.9 |
102 |
Stkw |
including |
272.0 |
272.7 |
0.7 |
480 |
1.31 |
7.8 |
1.9 |
944 |
FW |
|
|
|
|
|
|
|
|
|
|
|
C20-351 |
138.0 |
139.5 |
1.5 |
32 |
0.04 |
0.4 |
2.0 |
137 |
MV |
Current Release |
and |
169.7 |
199.1 |
29.5 |
39 |
0.04 |
0.7 |
0.8 |
100 |
Stkw |
and |
210.4 |
260.1 |
49.7 |
38 |
0.09 |
0.6 |
1.9 |
146 |
Stkw |
including |
224.8 |
226.8 |
2.0 |
532 |
0.38 |
8.8 |
8.1 |
1,207 |
FW |
and |
296.2 |
316.0 |
19.8 |
21 |
0.03 |
0.3 |
2.5 |
137 |
Stkw |
|
|
|
|
|
|
|
|
|
|
|
C20-352 |
123.3 |
124.6 |
1.3 |
113 |
0.25 |
3.4 |
5.3 |
475 |
MV |
Current Release |
and |
222.3 |
243.3 |
21.0 |
59 |
0.19 |
0.9 |
2.0 |
188 |
Stkw |
including |
228.2 |
231.5 |
3.3 |
152 |
0.71 |
2.2 |
6.9 |
572 |
FW |
including |
228.2 |
229.0 |
0.8 |
236 |
0.27 |
5.7 |
9.2 |
840 |
|
|
|
|
|
|
|
|
|
|
|
C20-354 |
283.8 |
285.3 |
1.5 |
220 |
0.27 |
5.0 |
4.6 |
609 |
MV |
Current Release |
and |
376.0 |
382.9 |
6.9 |
133 |
0.10 |
2.9 |
5.4 |
466 |
FW |
including |
380.1 |
381.1 |
1.0 |
433 |
0.23 |
9.3 |
22.9 |
1,729 |
|
|
|
|
|
|
|
|
|
|
|
C20-342 |
143.8 |
149.2 |
5.3 |
225 |
0.27 |
5.1 |
5.5 |
653 |
MV |
July 20, 2020 |
including |
147.0 |
148.4 |
1.4 |
700 |
0.74 |
16.1 |
14.0 |
1,907 |
|
|
|
|
|
|
|
|
|
|
|
C20-344 |
171.1 |
175.8 |
4.7 |
635 |
0.15 |
12.3 |
5.3 |
1,299 |
MV |
August 19, 2020 |
including |
171.1 |
173.0 |
1.9 |
1,035 |
0.06 |
20.0 |
6.4 |
2,007 |
|
|
|
|
|
|
|
|
|
|
|
C20-347 |
121.8 |
127.3 |
5.6 |
135 |
0.18 |
2.7 |
1.6 |
312 |
MV |
August 19, 2020 |
including |
125.7 |
126.2 |
0.5 |
629 |
0.33 |
13.0 |
4.4 |
1,293 |
|
|
|
|
|
|
|
|
|
|
|
Notes: Stkw – Stockwork
mineralization, MV – Main Vein, FW – Footwall Vein
1All 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. Intervals with stockwork
mineralization were chosen based on a 25 g/t AgEq cutoff with no
more than 10 m of dilution. Intervals with vein mineralization were
based on a 100 g/t AgEq cutoff with no more than 1 m of dilution.
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 Technical Notes below for metallurgical
recoveries assumed in the 2018 PEA completed on Cordero.
PHASE 1 DRILL PROGRAM
UPDATE:
The Company has completed 32,400 m (84 holes) as
part of its expanded 55,000 m Phase 1 drill program. Assays from 22
holes are pending. There are currently four drill rigs operational
on site. Additional drill rigs may be added when the Company is
confident that the health and safety risks related to COVID-19 can
be managed effectively.
Drilling is focused on two key concepts: (1)
targeting of bulk-tonnage mineralization within and to the east and
northeast of both mineralized corridors; and (2) testing of the
width, grade and continuity of extensive high-grade vein systems
that traverse the Project.
Supporting maps and sections, drill hole locations and full
assay results can be found at the following link:
https://dsvmetals.com/site/assets/files/5404/20201014-dsv-sa.pdf
A PDF of this release with supporting maps and sections included
as appendices can be found at the following link:
https://dsvmetals.com/site/assets/files/5404/20201014-dsv-nr.pdf
About DiscoveryDiscovery’s
flagship project is its 100%-owned Cordero silver project in
Chihuahua State, Mexico. Our drill results to date show that
Cordero is developing all the attributes of a tier 1 project –
grade, scale, significant organic growth opportunities and well
located in one of Mexico’s premier mining belts. The project is
supported by an industry leading balance sheet with over C$80
million of cash allocated for aggressive exploration, resource
expansion and future development.
Sample analysis and QA/QC
ProgramTrue 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
PersonGernot 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.
On Behalf of the Board of Directors,
Taj Singh, M.Eng, P.Eng, CPA, President, Chief
Executive Officer and Director
For further information contact:
Forbes Gemmell, CFAVP Corporate
Development & Investor
Relationsforbes.gemmell@dsvmetals.com
TECHNICAL
NOTES &
FORWARD-LOOKING
STATEMENTS: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, a wholly owned
subsidiary of Discovery. The PEA assumes metallurgical recoveries
of 89% for Ag, 84% for Pb, 72% for Zn and 40% for Au.
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 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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