Discovery Drills 34.7 Meters of 617 G/T Silver Equivalent, Including 3.7 Meters of 2,524 G/T Silver Equivalent , at Its Cordero Project
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DISCOVERY DRILLS 34.7 METERS OF 617 G/T SILVER EQUIVALENT,
INCLUDING 3.7 METERS OF 2,524 G/T SILVER EQUIVALENT , AT ITS
CORDERO PROJECT
January 8, 2020, Toronto, Ontario - Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from the first four diamond drill holes
completed at its flagship Cordero project (“Cordero” or “the Project”) located in Chihuahua State, Mexico.
Discovery acquired Cordero through the acquisition of Levon Resources Ltd. (“Levon”) in August 2019.
The results released here are part of a 30,000 -35,000m Phase 1 drill program that Discovery plans to
complete in 2020. The focus of Phase 1 is to: (1) delineate, expand and then re-domain areas of higher-
grade mineralization within the existing Cordero resource; and (2) test new high priority targets outside
the current resource, including targets on the large 35,000 hectare property package that surrounds
Cordero.
Taj Singh, President and CEO, states: “These first results from Cordero are very encouraging and
support our thesis that within the very large resource area exists a shallow, higher -grade component
that could redefine the Project entirely and vastly improve its economics. The presence of higher-grade
gold in the most strongly mineralized areas is also positive. Cordero has many attractive features: open-
pittable, good metallurgy and excellent surrounding infrastructure. W e look forward to completing the
exploration in 2020 required to re-scope and optimize this very exciting property.”
HIGHLIGHTS:
Hole ID From To Width (m) Ag g/t Au g/t Pb % Zn % AgEq2 g/t
C19-295 55.4 136.6 81.2 63 0.35 0.9 0.9 159
including 115.1 119.2 4.1 517 1.32 7.6 5.7 1,132
157.8 225.9 68.1 117 1.96 1.7 1.1 361
including 163.3 197.9 34.7 200 3.04 2.9 1.6 617
including 165.6 169.2 3.7 512 21.52 6.9 0.2 2,524
and 173.7 185.2 11.5 284 0.88 4.1 2.8 617
and 186.4 188.4 1.9 222 0.83 3.5 2.2 505
and 193.3 194.6 1.3 191 1.64 3.0 3.3 569
C19-296 101.1 148.2 47.1 71 0.45 1.0 1.2 191
including 103.5 146.2 42.7 77 0.48 1.1 1.3 206
including 105.4 109.5 4.1 167 0.76 2.6 3.0 444
155.0 216.5 61.6 42 0.39 0.6 0.4 112
including 165.5 192.7 27.2 77 0.50 1.1 0.7 188
including 176.0 179.9 3.9 268 0.59 4.2 1.6 529
199.3 200.9 1.6 152 2.13 2.4 1.7 482
260.2 261.7 1.5 221 0.95 3.7 2.3 524
C19-294 86.0 180.3 94.3 47 0.27 0.7 0.6 121
NEWS RELEASE
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Hole ID From To Width (m) Ag g/t Au g/t Pb % Zn % AgEq2 g/t
including 88.0 101.8 13.9 88 0.41 1.4 1.2 218
and 109.9 118.8 8.9 115 0.40 1.7 1.3 263
including 117.4 118.8 1.5 285 0.58 4.7 2.0 582
155.5 166.3 10.8 93 0.46 1.3 1.2 225
C19-293 473.6 533.5 59.9 37 0.06 0.9 1.5 136
including 473.6 500.8 27.2 48 0.09 1.3 2.1 189
including 492.4 497.4 5.0 69 0.13 2.1 3.1 282
508.2 512.4 4.3 111 0.10 2.2 2.9 317
* Complete assay results for holes C19-293 through C19-296 can be found at the link in the Discussion section below. Also,
refer to the Technical Notes section below for details on assumptions, calculations, etc.
DISCUSSION:
Since acquiring Cordero in August 2019, Discovery’s focus has been on understanding the nature of the
higher-grade zones within the larger mineralized system with the objective of upgrading the economic
potential of the Project. 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 current drill program is to gain an understanding of the geology, geometry (strike,
dip, orientation) and controls on these styles of mineralization to define and delineate the higher-grade
zones.
Seventeen holes totaling 5,940 metres have been completed to-date. All the holes were drilled within
the existing resource area as defined by Levon3. All holes were drilled roughly perpendicular to the
northeast trend of higher-grade blocks outlined in the current resource model.
Holes C19-293 through C19 -296 are the first four drilled by Discovery. All holes were successful in
targeting the first style of higher -grade mineralization: sulphide mineralization within a breccia host .
Sulphide mineralization consist s predominantly of sphaleri te, galena and pyrite in veinlets and
disseminations and is typically hosted within dacite clast -dominated breccias. All four holes confirmed
the northeast trend of the high-grade mineralized zones within the existing resource area and, in several
cases, suggest the possible expansion of the mineralization beyond the current block model. The current
drilling has returned intervals that are among the best with respect to width and grade drilled to-date on
the project.
Pending holes targeted both breccia-hosted sulphide mineralization as well as discrete sulphide veins.
The presence of high-grade discrete sulphide veins at Cordero is well documented through prospecting
and small-scale mining. However, these veins were never a focus of Levon’s prior exploration. Discovery
believes that definition of these veins has the potential to significantly enhance the high- grade
component of the deposit.
Maps and sections with assays showing the drill hole locations and full analytical results are available
at https://dsvmetals.com/site/assets/files/5344/2020-01-08-dsv-nr-appendix.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
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district. Mineralization at Cordero is similar 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 resource3 was released in
2018 (available on Discovery’s website and Levon’s SEDAR profile) and is shown below at various cut-
off grades:
AgEq3 (g/t)
Cutoff
Tonnage & Grade within Mineral Resources Pit Shell Total
Contained
Ag Mozs
Total
Contained
AgEq3 Moz Class M tonnes AgEq1g/t Ag g/t Zn % Pb % Au g/t
15
(used in PEA)
Indicated 990 32 13 0.4 0.2 0.04 408 1,022
Inferred 282 56 21 0.8 0.3 0.04 188 513
25 Indicated 467 46 19 0.5 0.3 0.06 278 686
Inferred 183 77 28 1.0 0.4 0.05 163 451
50 Indicated 99 95 40 1.0 0.6 0.11 128 303
Inferred 100 112 41 1.5 0.7 0.06 131 360
This table shows that a large portion of the resource remains at significantly higher cutoff grades than
the 15 g/t AgEq cutoff used in the 2018 Preliminary Economic Assessment (“PEA”) completed by Levon.
Since acquiring the project in August 2019, Discovery’s main focus has been on gaining a better
understanding of the higher -grade mineralization within the footprint of the deposit, namely the 50 g/t
AgEq cutoff material shown in the table above.
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 arti sanal 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. The
La Luz mine was the largest mine and was active in the 1940s. Remnants of a small six -cell flotation
mill built by ASARCO remain at La Luz mine . Despite a long history of mining, these veins have never
been explored by drilling, and may 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
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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. For subintervals, a 50 g/t AgEq
cutoff was used , whereby no more than 3m of below -cut-off 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, $1.00/lb Zn, and assume 100% metallurgical recovery.
3 PEA by M3 Engineering, Resource by IMC, Mar. 1, 2 018 (available on Discovery’s website and on
Levon’s SEDAR profile). Resource commodity prices used ($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 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, V.P. 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.
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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 (t he “1933 Act”) or any state
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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, includin g metal prices, continued
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the Private Placement will close on the announced terms. Discovery does not assume any obligation to update any forward-looking statements
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