Discovery Identifies Multiple High-grade Chimneys and Mantos at the San Jose Mine, Puerto Rico Project
Discovery Identifies Multiple High-grade Chimneys and Mantos at the San Jose
Mine, Puerto Rico Project
Highlights
• Results were received from 157 new underground channel samples taken in the San Jose mine at the Puerto
Rico Project, completing the detailed sampling program of the San Jose mine. Significant channels include:
◦ 1.2m of 46.2% Zn, 0.2% Cu (46.8% ZnEq);
◦ 2.3m of 199 g/t Ag, 6.8% Zn, 11.6% Pb, 0.3% Cu (18.5% ZnEq),
◦ 1.7m of 27 Ag, 24.0% Zn (24.9% ZnEq);
• Three strongly mineralized mantos were identified and returned average grades of 18.1%, 15.2% and 28.2%
ZnEq (32 samples). Two strongly mineralized chimneys were identified and returned average grades of
14.3% and 17.8% ZnEq (40 samples).
• Mine stope widths of 5-6m suggest substantial chimney mineralization was encountered in the past. All
chimneys sampled are open along strike and to depth. All mantos sampled are also open along strike and
down dip and suggest potential for additional stacked mantos below.
TORONTO, Aug. 23, 2018 -- Discovery Metals Corp. (TSX-V:DSV) (“Discovery” or the “Company”) is pleased to announce
the second and final batch of assay results from its detailed underground channel sampling program at the San Jose mine
(“San Jose”), one of three historic mines comprising its flagship Puerto Rico project (“Puerto Rico” or “the Project”) in northern
Coahuila State, Mexico. This follows up on the first batch of sampling results from San Jose released on July 18, 2018 (results
available at www.dsvmetals.com).
Taj Singh, P.Eng, President & CEO, states, “Puerto Rico is really coming into focus, with two of the three historic mines now
completely mapped and sampled. These new results from San Jose continue to highlight the very strong and consistent
grades at the Project. The sampling program of the third historic mine, the Puerto Rico mine, has just wrapped up and we are
awaiting assay results. The focus will now shift to drill-planning and prioritizing targets for drilling in 2H18. We are also
finalizing plans for an airborne magnetic survey at the Project which will aid in drill-targeting and will also help to identify high-
potential regional targets surrounding the historic mines’ area.”
Results & Discussion
San Jose contains approximately 630m of underground drifts and stopes over four levels (from bottom to top: the Chuyon,
Haulage, Rope and Upper levels) that span an approximate vertical extent of 50m and cover a horizontal extent of
approximately 80m by 80m. All four levels host strongly mineralized mantos, chimneys and faults. Channel samples were
collected at 3-5m intervals along both sides of the entire length of the developed workings. The first batch of assay results (71
samples) was exclusively from the Chuyon level (see news release dated July 18, 2018), while the new results released herein
are from the Haulage, Rope and Upper levels (157 samples). Sampling methodology is outlined in detail in the Technical Notes
section of this release. Sampling locations and widths were restricted to the extent of historic workings. The table below
highlights assay results of 15 of the most significant individual channels from the new batch of results sorted by ZnEq (see
References section for ZnEq and AgEq assumptions):
Sample
number
San Jose
mine Level
Width
(m)
Ag
(g/t)
Zn
(%)
Pb
(%)
Cu
(%)
AgEq
(g/t)
ZnEq
(%)
Mineralization type /
Host rock
215523 Haulage 1.2 10 46.2 0.2 0.2 2,819 46.8 manto
215532 Rope 0.4 15 42.3 0.5 0.9 2,689 44.7 chimney
215504 Haulage 0.7 154 38.2 0.6 0.1 2,493 41.4 chimney
215519 Haulage 0.5 6 37.9 0.1 0.2 2,314 38.5 manto
215525 Haulage 0.6 9 37.3 0.3 0.3 2,305 38.3 chimney
215524 Haulage 0.8 6 37.5 0.1 0.1 2,284 37.9 chimney
215509 Haulage 0.7 20 34.9 0.7 0.2 2,173 36.1 chimney
215563 Rope 1.0 18 30.2 0.1 2.6 2,159 35.9 manto
215555 Upper 0.5 294 14.3 16.9 1.0 1,944 32.3 fault
215482 Haulage 0.5 8 29.5 0.3 0.1 1,802 29.9 manto
215547 Upper 1.0 445 3.5 26.30.1 0.6 1,778 29.6 chimney
215546 Upper 1.2 47 22.9 0.5 1.9 1,668 27.7 chimney
215501 Haulage 0.9 24 26.5 0.5 0.1 1,648 27.4 chimney
215549 Upper 1.3 61 18.1 7.1 1.2 1,578 26.2 chimney
215539 Rope 1.3 129 15.9 6.5 1.7 1,554 25.8 chimney
Composite channels, composed of 2-3 contiguous individual channels were also taken during the program. The three top
composites, sorted based on width x grade, are shown below:
Sample
numbers
San Jose
mine Level
Width
(m)
Ag
(g/t)
Zn
(%)
Pb
(%)
Cu
(%)
AgEq
(g/t)
ZnEq
(%)
Mineralization type /
Host rock
215547-548 Upper 2.3 199 6.8 11.6 0.3 1,114 18.5 chimney / fault
215499-501 Haulage 1.7 27 24.0 0.4 0.1 1,505 24.9 chimney
215550-551 Upper 1.5 116 5.0 10.5 0.3 873 14.5 manto / wallrock
Key findings and interpretations:
• Ag-Pb-Zn-Cu mineralization is present in limestone-hosted mantos (parallel to bedding) and chimneys and faults
(discordant to bedding). The predominant alteration types occurring at San Jose include moderate to strong
recrystallization of limestone wallrock, calcite veining, and iron oxide alteration. These mineralized bodies have
undergone surficial oxidation, resulting in a mix of metal-bearing sulphides and oxides.
• Three mantos, two chimneys and two mineralized faults were identified. Sampled manto widths range from 0.5-1.5m
(restricted by dimensions of workings) and are open in all directions laterally (along strike and dip). Based on field
observations from the other historic mines at Puerto Rico, there is potential for additional stacked mantos below.
Sampled chimney widths range up to 2.3m but field observations suggest the potential for larger widths, as the main
part of a historic stope that mined chimney mineralization had a width of 5-6m. Both chimneys are open along strike
and to depth. Mineralized faults widths range from 0.4-1.4m, and are open along strike and to depth.
• The average grades of the chimneys, mantos and mineralized faults at San Jose is shown below:
Mineralization samples (#) Ag (g/t) Zn (%) Pb (%) Cu (%) ZnEq (%)
Manto 1 2 141 8.0 11.1 0.2 18.1
Manto 2 16 19 13.6 1.1 0.3 15.2
Manto 3 14 229 17.6 9.3 0.3 28.2
Chimney 1 20 54 10.8 2.2 0.5 14.3
Chimney 2 20 57 13.9 3.1 0.5 17.8
Minz. Fault 1 23 53 4.0 5.3 0.7 9.9
Minz. Fault 2 20 10 2.2 0.4 0.1 2.7
• In addition, the wallrock of the workings at San Jose carried significant mineralization. Average wallrock grades from all
four levels were 5.2%, 0.5%, 3.1% and 3.2% ZnEq respectively.
• Cu values were consistently significant, indicating potential proximity to an intrusive source. The highest values of Cu
were hosted within chimneys and faults.
ABOUT DISCOVERY METALS
Discovery Metals is focused on discovering and advancing high grade polymetallic deposits in a recently assembled land
package of approximately 300,000 hectares over a large and historic mining district in northern Coahuila State, Mexico. The
portfolio of seven key properties, all with shallow high-grade silver-zinc-lead mineralization, is situated in a world class CRD
belt that stretches from southeast Arizona to central Mexico. The land holdings contain numerous historical direct-ship ore
workings with approximately 4km of underground development. No modern exploration or exploration drill testing has been
carried out on the properties prior to Discovery’s time on the projects.
For further information contact:
Andreas L'Abbé
Chief Financial Officer
416-613-9410
Discovery Metals Corp.
#701 - 55 University Ave
Toronto, ON Canada M5J 2H7
On Behalf of the Board of Directors
“Taj Singh”
Taj Singh, M.Eng, P.Eng, CPA
President, Chief Executive Officer, and Director
REFERENCES
For a full table of results, maps and graphics related to this news release, please refer to:
https://dsvmetals.com/site/assets/files/5187/appendix-sj-2-final.pdf
All numbers in this news release are rounded and assays are uncut and undilute. ZnEq and AgEq calculations are based on
USD $17/oz Ag, $1.50/lb Zn, $1.00/lb Pb, $3.00/lb Cu and do not consider metallurgical recovery.
TECHNICAL NOTES
Sample analysis and QA/QC Program: The rock chip and channel samples were taken perpendicular to mineralization, with
variable length (across width of mineralization, typically 0.5m-2.5m) and a minimum channel thickness of 60mm and minimum
channel depth of 30mm. The entire volume of each chip or channel sample was transported from site by ALS and prepared at
the ALS lab facilities in Zacatecas and Chihuahua facilities, with splits of pulps shipped to the ALS lab in Vancouver for
analysis. Samples were analyzed for gold using (1) a standard fire assay with a 30-gram pulp and Atomic Absorption (AA)
finish for gold; and (2) Thirty-element inductively coupled plasma atomic emission spectrometry (“ICP-AES”). Over limit sample
values were re-assayed for: (1) values of zinc > 10%; (2) values of lead > 10%; and (3) values of silver > 100 g/t. Samples were
re-assayed using the ME-OG62 (high-grade material ICP-AES) analytical package. For values of zinc or lead greater than
30%, a third re-assay using the Zn-VOL50 or Pb-VOL50 (potentiometric titration) analytical method was used while values of
silver greater than 1,500 g/t, were re-assayed using the Ag-CON01 analytical method, a standard fire assay with 30g pulp and
gravimetric finish. Certified standards and blanks were routinely inserted into all sample shipments to ensure integrity of the
assay process.
Qualified Person: Taj Singh, M.Eng, P.Eng, President and CEO, 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.
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 the Company
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, delays in receipt of required permits, 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. We do not assume any obligation to update any forward-looking statements except as required under applicable
laws.