Discovery Drills 105.9 Meters of 188 G/T Silver Equivalent at Its Cordero Project, Mexico
DISCOVERY DRILLS 105.9 METERS OF 188 G/T SILVER EQUIVALENT AT
ITS CORDERO PROJECT, MEXICO
February 12, 2020, Toronto, Ontario - Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from the second set of diamond drill
holes completed at its flagship Cordero project (“Cordero” or “the Project”) located in Chihuahua State,
Mexico. Discovery acquir ed Cordero through the acquisition of Levon Resources Ltd. (“Levon”) in
August 2019. The holes are part of the previously announced 30,000-35,000 metre (“m”), Phase 1 drill
program planned for completion in 2020. The focus of this program is to define and delineate areas of
higher-grade mineralization within the existing Cordero resource.
Taj Singh, President and CEO, states: “We are pleased with this second set of drill results, as it further
validates the near-surface high-grade potential at Cordero. Drilling completed to-date clearly shows that
there is excellent continuity and higher grades within the breccia-hosted mineralization. With the addition
of two new drill rigs in January, we are excited to now have four drill rigs turning at Cordero and we look
forward to the results from this increase in drill activity over the next few quarters.”
HIGHLIGHTS1:
Hole ID From
(m)
To
(m)
Width
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
AgEq2
(g/t) Mineralization
C19-297 272.9 274.0 1.1 522 0.21 6.6 18.3 1,533 Vein
and 285.5 286.1 0.6 931 0.09 6.0 10.1 1,569 Vein
C19-299 43.4 101.2 57.8 24 0.21 0.3 0.6 78 Breccia
including 61.2 81.6 20.4 32 0.26 0.5 1.2 122 Breccia
C19-301 63.5 157.8 94.3 30 0.21 0.4 0.3 75 Breccia
including 88.9 126.0 37.2 58 0.32 0.9 0.5 135 Breccia
C19-302 14.0 80.5 66.6 33 0.16 0.4 0.4 77 Breccia
including 32.0 55.0 23.1 62 0.28 0.8 0.7 142 Breccia
C19-303 125.5 125.9 0.5 1,035 0.11 5.1 12.6 1,743 Vein
and 246.6 267.6 21.1 60 0.10 0.2 0.5 94 Breccia
C19-304 76.8 182.7 105.9 74 0.38 1.1 1.1 188 Breccia
including 76.8 102.8 26.0 104 0.41 1.5 1.4 250 Breccia
including 115.1 145.7 30.6 78 0.42 1.1 0.9 185 Breccia
including 153.9 175.0 21.1 110 0.52 1.8 2.1 302 Breccia
C19-305 0.6 65.6 65.0 74 0.05 0.5 0.5 113 Breccia
including 49.6 65.6 16.0 122 0.12 1.6 1.5 249 Breccia
NEWS RELEASE
Hole ID From
(m)
To
(m)
Width
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
AgEq2
(g/t) Mineralization
C19-306 58.4 78.8 20.5 39 0.17 0.6 0.5 95 Breccia
and 103.0 165.1 62.1 35 0.21 0.5 0.4 84 Breccia
including 132.7 141.0 8.3 109 0.43 1.6 1.2 251 Breccia
and 347.2 422.5 75.3 24 0.01 0.3 1.9 114 Breccia
including 388.3 401.3 13.1 42 0.01 0.6 3.9 185 Breccia
* Complete assay results for holes C19-297 through C19-306 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:
Discovery’s focus at Cordero is on upgrading the economic potential of the Project through
understanding the nature of the higher -grade zones within the larger mineralized system. Based on
Discovery’s review of previous work and the re- logging of core from historic drilling, higher -grade
mineralization is currently understood to be predominantly associated with two styles of mineralization:
(1) sulphide mineralization within a breccia host; and (2) discrete sulphide veins. The goal of the Phase
1 program is to gain an understanding of the geology, geometry (strike, dip, orientation) and controls on
these styles of mineralization in order to define and delineate the higher-grade zones.
Twenty-three holes totaling 8,214 m have been completed to-date, with assays from 15 holes pending.
All holes were drilled in the southwest portion of the resource area as defined by Levon3 and were drilled
roughly perpendicular to the northeast trend of higher -grade blocks outlined in the Levon resource
model.
Holes C19-297 through C19-306 comprise the second set of drill results released by Discovery (see
January 8, 2020 press release for the results of holes C19-293 through C19-296). Seven of the ten holes
were successful in targeting higher-grade sulphide mineralization within a breccia host. In several holes,
mineralization was also intercepted in dacite and sedimentary rocks adjacent to the mineralized
breccias. Sulphide mineralization consists predominantly of sphalerite, galena and pyrite as breccia
matrix fill within dacite clast-dominated breccias.
Holes C19-297 and C19- 303 intercepted sulphide vein- style mineralization with highlight intercepts
including 1.1 m of 1,533 g/t AgEq2 and 0.6 m of 1,569 g/t AgEq2. The Company will conduct mapping of
historical underground workings to improve its understanding of the structural and geological controls
on the sulphide veins. Drilling of the vein targets will ramp up during Q2 once the initial phase of the
mapping program is complete.
Supporting maps and sections, drill hole locations and full assay results can be found at the link below:
https://dsvmetals.com/site/assets/files/5187/20200212_pr_plan_map_sections_assays.pdf
A full version of this press release with supporting maps and sections can be found at the link below:
https://dsvmetals.com/site/assets/files/5361/2020-02-12-dsv-nr.pdf
2020 EXPLORATION PROGRAM:
The Phase 1 drill program will encompass 30,000–35,000 m of drilling. Approximately 6,000 m of the
drill program was completed in 2019. The remainder of the drill program is expected to be completed
during the first three quarters of 2020. The majority of the drilling in 2020 will be focused on higher-grade
breccia mineralization, with the remainder targeting sulphide vein mineralization. The results from Phase
1, in conjunction with the ongoing relogging program of historical drill core, will be incorporated in an
updated resource estimate for Cordero, targeted for completion in early 2021.
In addition to this work, the Company anticipates the completion of metallurgical test work in the second
half of 2020. Discovery also expects to advance reconnaissance targets on the large 35,000 hectare
Cordero property package to drill-ready status in 2020, through mapping, sampling and interpretation of
a recently completed, property-wide geophysical survey.
The total exploration budget at Cordero for 2020 is C$11.0 million. The Company is well positioned to
fund this exploration program given a cash balance as of January 1, 2020, of approximately C$24.0
million.
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). 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. 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 Total
Contained
Ag (Mozs)
Total
Contained
AgEq3 (Moz) Class M
(tonnes)
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 identified shallow, vertical shafts and associated workings 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, CFA
VP Corporate Development & Investor Relations
416-613-9414
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). 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.