Discovery Drills 168.8 m of 207 g/t AgEq, Comprised of 70 g/t Ag, 0.10 g/t Au, 1.5% Pb & 1.9% Zn, Along North-East Extension at its Cordero Project, Mexico
Discovery Drills 168.8 m of 207 g/t AgEq, Comprised of 70 g/t Ag,
0.10 g/t Au, 1.5% Pb & 1.9% Zn, Along North-East Extension at its
Cordero Project, Mexico
May 7, 2020, Toronto, Ontario - 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 C 20-324) 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 AgEq 1 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:
NEWS RELEASE
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 r eplacement-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, 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 S EDAR 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, mark et
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.