Discovery Intercepts 124 g/t AgEq over 96m and 126 g/t over 77 m in Feasibility Study Drilling at Cordero
Discovery Intercepts 124 g/t AgEq over 96m and 126 g/t over 77 m
in Feasibility Study Drilling at Cordero
November 21, 2022, Toronto, Ontario - Discovery Silver Corp. (TSX-V: DSV, OTCQX:
DSVSF) (“Discovery” or the “Company”) is pleased to announce results from the first 15
Feasibility Study drill holes on its flagship Cordero silver project (“Cordero” or “the Project”)
located in Chihuahua State, Mexico. These holes consisted of upgrade and expansion drilling
of the proposed open pit and were drilled subsequent to the data cut-off date for the Pre -
Feasibility Study (“PFS”). The Pre-Feasibility Study is progressing well and remains on track
to be delivered in early 2023.
Highlight intercepts from this current set of drill holes include:
• 77 m averaging 126 g/t AgEq1 (46 g/t Ag, 0.08 g/t Au, 0.7% Pb and 1.4% Zn) from 218
m and 22 m averaging 265 g/t AgEq1 (83 g/t Ag, 0.10 g/t Au, 1.8% Pb and 3.2% Zn) from
374 m in hole C22-656.
• 96 m averaging 124 g/t AgEq1 (33 g/t Ag, 0.03 g/t Au, 0.7% Pb and 1.8% Zn) from 464
m including 36 m averaging 190 g/t AgEq1 (44 g/t Ag, 0.04 g/t Au, 0.9% Pb and 3.1% Zn)
in hole C22-654.
• 43 m averaging 179 g/t AgEq1 (62 g/t Ag, 0.11 g/t Au, 1.4% Pb and 1.7% Zn) from 228
m in hole C22-648.
• 52 m averaging 139 g/t AgEq1 (49 g/t Ag, 0.07 g/t Au, 0.8% Pb and 1.7% Zn) from 224
m in hole C22-653.
Tony Makuch, Interim CEO, states: “Results from o ur first set of drill holes to increase the
confidence level of the resource model continues to demonstrate the excellent continuity of
mineralization within the open pit at Cordero and supports the mineral resource estimation.
Drilling on the margins of the pit also outlines the opportunity to expand the size of the pit
laterally and at depth as we proactively target value-creation opportunities.
Meanwhile we continue to make excellent progress on our Pre-Feasibility Study. Geotechnical
evaluation work has confirmed favourable ground conditions of the proposed locations of key
infrastructure, including the rock storage facility and the tailings storage facility. Mine design
has been focused on the optimisation of mine phasing including targeting a reduction in the
volume of pre -strip during the development period. T he process design has been improved
and incorporates a conventional flowsheet with silver production and operating costs expected
to benefit from better metallurgical recoveries and mill throughput rates that are approximately
25% higher than what was assumed in the PEA. Other scope areas are progressing well and
we remain on schedule to deliver this major milestone in early 2023.”
NEWS RELEASE
DRILL RESULTS:
This initial set of Feasibility Study drill holes was focused on two key areas: 1) further upgrading
the resource classification within the PEA pit and 2) expanding and upgrading resource blocks
between the PEA pit and the Resource constraining pit shells. Detailed drill highlights from the
holes in this release are provided in the tables below. Supporting maps and sections, drill hole
locations and full assay results can be found at the following link: Plan map, sections & assays
A PDF of this release with supporting maps and sections included as appendices can be
found at the following link: Press release with plan map & sections
In the South Corridor, hole C22-654 intercepted 95.7 m of 124 g/t AgEq1 on the margins of the
PEA pit and at a vertical depth of approximately 450 m . Hole C22-656, drilled to upgrade the
resource in the central part of the South Corridor, returned a number of strong intervals
including 77.1 m of 126 g/t AgEq1 from 131.1 m and 21.7 m of 265 g/t AgEq1 from 374.3 m.
In the North Corridor, hole C22-648 intercepted 27.4 m of 86 g/t AgEq1 from 166.2 m and 42.6
m of 179 g/t AgEq1 from 228.3 m, confirming the continuity of higher-grade mineralization within
the core of the PEA pit. Hole C22-647, drilled to improve the data density on the western edge
of the pit, returned 25.6 m of 99 g/t AgEq1 from 174.1 m and 18.7m of 147 g/t AgEq1 from 264.8
m. Both intervals were outside of the PEA pit limit demonstrating the potential to laterally
expand future pit extents.
Detailed drill highlights from the initial feasibility study drill holes 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)
C22-646 189.0 235.8 46.8 28 0.06 0.2 1.2 84
and 271.6 299.7 28.1 17 0.02 0.2 2.6 124
C22-647 174.1 199.7 25.6 32 0.05 0.6 1.2 99
and 264.8 283.5 18.7 48 0.12 0.8 1.7 147
C22-648 166.2 193.5 27.4 38 0.05 0.7 0.6 86
and 228.3 270.9 42.6 62 0.11 1.4 1.7 179
C22-649 412.0 460.2 48.2 24 0.04 0.3 1.3 85
and 730.9 802.5 71.6 33 0.04 0.6 1.1 97
and 812.0 837.9 25.9 21 0.15 0.5 3.9 195
C22-651 276.2 305.3 29.1 65 0.04 1.0 1.6 158
and 405.3 435.5 30.3 50 0.02 0.8 0.9 110
C22-652 231.7 357.5 125.8 17 0.10 0.3 1.0 68
and 272.6 296.0 23.4 27 0.07 0.5 1.4 101
C22-653 42.0 107.1 65.1 46 0.10 0.1 0.3 70
and 224.3 276.0 51.7 49 0.07 0.8 1.7 139
1All 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. As a guideline, intervals with disseminated mineralization
were chosen based on a 25 g/t AgEq cutoff with no more than 10 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 $ 22.00/oz Ag, $1, 600/oz Au,
$1.00/lb Pb, $1.20/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 20 21 PEA completed on
Cordero.
DRILL PROGRAM UPDATE:
The Company has now completed approximately 17,000 m (52 holes) as part of its Feasibility
Study drill program. Feasibility study drilling will consist of engineering drilling, resource
upgrade drilling and drilling targeting the expansion of the PFS open pit. The total metres to
be drilled in the feasibility s tudy drill program will be finalised following the completion of the
PFS scheduled for early 2023. Total metres supporting the PFS is summarized below:
Drill Program Period Drill Metres Drill Holes
Historic 2009 – 2017 132,000 m 292
Discovery Silver – Phase 1 2019 – 2021 92,000 m 225
Discovery Silver – Phase 2 2021 – 2022 69,000 m 218
TOTAL 293,000 m 735
About Discovery
Discovery’s flagship project is its 100%-owned Cordero project, one of the world’s largest silver
deposits. The PEA completed in November 2021 demonstrates that Cordero has the potential
to be developed into a highly capital efficient mine that offers the combination of margin, size
and scaleability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua
State, Mexico. Continued exploration and project development at Cordero is supported by a
strong balance sheet with cash of approximately C$55 million.
Hole ID From
(m)
To
(m)
Width
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
AgEq1
(g/t)
C22-654 188.9 217.4 28.5 38 0.05 0.7 1.2 109
and 300.4 322.7 22.3 27 0.13 0.3 1.5 103
and 464.3 560.1 95.7 33 0.03 0.7 1.8 124
including 464.3 500.4 36.1 44 0.04 0.9 3.1 190
C22-656 131.1 194.7 63.6 20 0.05 0.3 0.9 66
and 218.2 295.3 77.1 46 0.08 0.7 1.4 126
and 374.3 396.0 21.7 83 0.10 1.8 3.2 265
C22-657 0.0 53.4 53.4 57 0.09 0.2 0.2 76
On Behalf of the Board of Directors,
Tony Makuch, P.Eng
Interim CEO
For further information contact:
Forbes Gemmell, CFA
VP Corporate Development
Phone: 416-613-9410
Email: [email protected]
Website: www.discoverysilver.com
Sample analysis and QA/QC Program
The true width of the veins is estimated to be approximately 70% of the drilled width. 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 th e 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 ar e 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 Silver 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.
TECHNICAL NOTES & FORWARD-LOOKING STATEMENTS:
The most recent technical report for the Cordero Project is the 2021 Preliminary Economic
Assessment (PEA) . The PEA was completed by Ausenco Engineering Canada Inc. with
support from AGP Mining Consultants Inc. and Knight Piésold and Co. (USA). The full technical
report supporting the PEA is available on Discovery’s website and on SEDAR under Discovery
Silver Corp.
The PEA assumed average life-of-mine recovery assumptions for sulphide material of 84% for
Ag, 19% for Au, 86% for Pb and 85% for Zn. The PEA assumed oxide recovery assumptions
of 56% for Ag and 63% for Au for crushed feed and 36% for Ag and 35% for Au for uncrushed
ROM feed.
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 an y 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 statements. Forward-
looking statements including, but not limited to Discovery ’s future plans and objectives regarding the Cordero Project and the
prospect of further d iscoveries there, which constitute forward-looking information that involve various risks and uncertainties .
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. Discovery does not
assume any obligation to update any forward-looking statements except as required under applicable laws.