Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
10 diamond drill holes targeting the Parcionera and Josefina
high-grade vein trends at its flagship Cordero project (“Cordero”
or “the Project”) located in Chihuahua State, Mexico. Multiple vein
trends with a combined strike extent of more than 5 km flank the
higher-grade bulk-tonnage domain at Cordero; the Parcionera and
Josefina vein trends currently represent approximately 2 km of this
strike extent.
Highlight intercepts include:
Parcionera Vein Trend
- Hole C20-362: 4.4 m
averaging 524 grams per tonne silver equivalent (“g/t
AgEq1”) from 53.9 m (246 g/t Ag, 0.39 g/t gold
(“Au”), 6.5% lead (“Pb”) and 0.4% zinc (“Zn”)) within a 37.1 m
interval averaging 113 g/t AgEq1 (47 g/t Ag, 0.09 g/t Au, 1.1% Pb,
0.4% Zn)
- Hole
C20-360: 0.5 m averaging 1,765 g/t AgEq1 from 100.9 m (665
g/t Ag, 0.58 g/t Au, 13.8% Pb and 13.7% Zn)
Josefina Vein Trend
- Hole
C20-361: 3.3 m averaging 612 g/t AgEq1 from 64.2 m (196
g/t Ag, 0.17 g/t Au, 5.6% Pb and 4.9% Zn) within a 41.7 m interval
averaging 131 g/t AgEq1 (58 g/t Ag, 0.10 g/t Au, 0.7% Pb and 1.0%
Zn)
- Hole
C20-367: 1.6 m averaging 544 g/t AgEq1 from 175.6 m (75
g/t Ag, 1.42 g/t Au, 1.6% Pb and 7.1% Zn) within a 53.2 m interval
averaging 113 g/t AgEq1 (20 g/t Ag, 0.11 g/t Au, 0.3% Pb and 1.8%
Zn)
Taj Singh, President and CEO, states: “We
continue to confirm and expand the strike extent of the high-grade
vein systems at Cordero. Step out holes at Parcionera have doubled
the drill-confirmed strike extent to at least 1 km with clear
potential for further expansion to the northeast. A review of
historic drill core also indicates that Parcionera has a depth
extent of at least 470 m. Drilling at the Josefina vein trend
intercepted high-grade veins, several of which were within broader
zones of disseminated mineralization. This opens the possibility of
expanding the higher-grade bulk-tonnage domain to the east,
potentially incorporating sections of the Josefina vein trend. We
look forward to the results of follow-up drilling targeting this
potential expansion.”
PARCIONERA VEIN:
The Parcionera vein trend consists of multiple
southwest-trending veins and vein splays. The four holes in this
release were successful in establishing and extending the strike
continuity of the vein trend to the northeast. Based on drilling
and historic underground workings the Parcionera vein trend now has
an interpreted strike extent of at least 1 km and depth extent of
at least 470 m and is open along strike and at depth.
The veins at Parcionera dip steeply to the
northwest and vein mineralization typically consists of
semi-massive pyrite, galena and sphalerite. Vein interpretations
and drill hole locations are shown in Figure 1 (see links below)
and detailed drill highlights of the four holes drilled at
Parcionera 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) |
C20-357 |
96.0 |
119.8 |
23.9 |
21 |
0.02 |
0.4 |
0.3 |
50 |
including |
107.7 |
108.5 |
0.8 |
215 |
0.33 |
3.6 |
0.3 |
383 |
and |
359.4 |
391.3 |
31.9 |
20 |
0.01 |
0.2 |
1.0 |
69 |
|
|
|
|
|
|
|
|
|
C20-360 |
77.9 |
103.4 |
25.5 |
28 |
0.03 |
0.7 |
0.5 |
74 |
including |
90.9 |
92.2 |
1.4 |
145 |
0.06 |
4.0 |
0.5 |
313 |
and including |
99.0 |
101.4 |
2.4 |
137 |
0.12 |
0.1 |
3.0 |
372 |
including |
100.9 |
101.4 |
0.5 |
665 |
0.58 |
13.8 |
13.7 |
1,765 |
|
|
|
|
|
|
|
|
|
C20-362 |
48.4 |
85.5 |
37.1 |
47 |
0.09 |
1.1 |
0.4 |
113 |
including |
53.9 |
58.2 |
4.4 |
246 |
0.39 |
6.5 |
0.4 |
524 |
|
|
|
|
|
|
|
|
|
C20-365 |
6.0 |
26.3 |
20.3 |
22 |
0.20 |
0.1 |
1.0 |
84 |
and |
50.6 |
51.1 |
0.5 |
145 |
0.13 |
2.6 |
5.8 |
486 |
and |
83.0 |
98.5 |
15.5 |
35 |
0.04 |
0.7 |
0.6 |
89 |
including |
84.6 |
85.9 |
1.3 |
203 |
0.28 |
4.5 |
2.2 |
476 |
1 For full supporting technical disclosure
please refer to footnote 1 under the table of Josefina vein
results.
JOSEFINA VEIN:
The Josefina vein trend consists of multiple
southwest-trending subparallel veins. The six holes in this release
were successful in establishing approximately 1 km of strike
continuity along the Josefina trend based on drilling and historic
underground workings. Several of the high-grade veins were
intercepted within broader zones of disseminated mineralization
including holes C20-361 (41.7 m averaging 131 g/t AgEq1) and
C20-367 (53.2 m averaging 113 g/t AgEq1). Historic drill hole
C11-158 (48.0 m averaging 163 g/t AgEq1 and 22.0 m averaging 379
g/t AgEq1) also confirms the depth continuity of the Josefina veins
and disseminated mineralization intercepted in C20-361 to at least
300 m below surface. Further drilling to test the potential eastern
expansion of the higher-grade bulk-tonnage domain to the
northeastern section of the Josefina vein trend is ongoing.
The veins along the Josefina trend dip steeply
to the northwest and mineralization typically consists of
semi-massive pyrite, galena and sphalerite. Disseminated
mineralization surrounding the veins consists of galena and
sphalerite in disseminations, veinlets and stockworks hosted in
dacite, sedimentary rock and breccias. Vein interpretations and
drill hole locations are shown in Figure 1 (see links below) and
detailed drill highlights of the six holes drilled at Josefina 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) |
C20-358 |
286.1 |
287.3 |
1.1 |
432 |
0.28 |
3.5 |
9.3 |
964 |
and |
329.4 |
330.0 |
0.6 |
1,450 |
7.00 |
4.3 |
7.8 |
2,500 |
|
|
|
|
|
|
|
|
|
C20-361 |
58.4 |
100.0 |
41.7 |
58 |
0.10 |
0.7 |
1.0 |
131 |
including |
64.2 |
67.5 |
3.3 |
196 |
0.17 |
5.6 |
4.9 |
612 |
|
|
|
|
|
|
|
|
|
C20-366 |
85.7 |
131.3 |
45.6 |
25 |
0.11 |
0.2 |
0.5 |
62 |
and |
299.0 |
309.8 |
10.9 |
24 |
0.01 |
0.6 |
2.5 |
147 |
including |
299.6 |
301.6 |
1.9 |
70 |
0.01 |
2.1 |
6.7 |
424 |
|
|
|
|
|
|
|
|
|
C20-367 |
156.8 |
209.9 |
53.2 |
20 |
0.11 |
0.3 |
1.8 |
113 |
including |
175.6 |
177.2 |
1.6 |
75 |
1.42 |
1.6 |
7.1 |
544 |
|
|
|
|
|
|
|
|
|
C20-370 |
51.2 |
105.4 |
54.2 |
33 |
0.05 |
0.4 |
0.9 |
85 |
including |
87.7 |
100.4 |
12.7 |
85 |
0.10 |
1.0 |
1.4 |
186 |
and |
419.9 |
420.4 |
0.6 |
130 |
0.50 |
1.8 |
2.0 |
320 |
|
|
|
|
|
|
|
|
|
C20-376 |
157.3 |
158.7 |
1.5 |
318 |
0.03 |
1.9 |
3.8 |
544 |
and |
194.7 |
195.1 |
0.4 |
386 |
0.09 |
5.7 |
11.3 |
1,062 |
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. 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 45,400 m (116 holes)
as part of its expanded 55,000 m Phase 1 drill program. Assays from
39 holes are pending. There are currently four drill rigs 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 transect the deposit.
Supporting maps and sections, drill hole locations and full
assay results can be found at the following link:
https://dsvmetals.com/site/assets/files/5623/2021-01-06-dsv-nrsa.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/5623/2021-01-06-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 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
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 RelationsPhone: 416-613-9410Email:
forbes.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 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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