Discovery Intercepts 241 g/t AgEq over 39 m in Feasibility Study Drilling at Cordero
Discovery Intercepts 241 g/t AgEq over 39 m in Feasibility Study
Drilling at Cordero
March 22, 2023, Toronto, Ontario - Discovery Silver Corp. (TSX: DSV, OTCQX: DSVS F)
(“Discovery” or the “Company”) is pleased to announce results from Feasibility Study drill holes
on its flagship Cordero silver project (“Cordero” or “the Project”) located in Chihuahua State,
Mexico. These holes consist of reserve and resource expansion drilling and will be
incorporated in a Feasibility Study in conjunction with a resource update planned for the first
half of 2024.
Highlight intercepts from this current set of drill holes include:
• 32 m averaging 158 g/t AgEq1 (77 g/t Ag, 0.16 g/t Au, 0.7% Pb and 1.3 % Zn) from 108
m and 39 m averaging 241 g/t AgEq1 (124 g/t Ag, 0.09 g/t Au, 1.2 % Pb and 1.9% Zn)
from 185 m within the reserves pit in the South Corridor in hole C22-677.
• 36 m averaging 126 g/t AgEq1 (35 g/t Ag, 0.06 g/t Au, 0.7% Pb and 1.7% Zn) from 481
m and 27 m averaging 133 g/t AgEq1 (25 g/t Ag, 0.06 g/t Au, 0.6% Pb and 2.2% Zn) from
555 m in hole C22-687; these intervals were toward the bottom and beneath the reserves
pit in an area previously modelled as waste.
• 15 m averaging 370 g/t AgEq1 (137 g/t Ag, 0.05 g/t Au, 3.1% Pb and 3.5% Zn) from 50
m and 23 m averaging 141 g/t AgEq1 (55 g/t Ag, 0.04 g/t Au, 0.9% Pb and 1.5% Zn) from
143 m in hole C22-671; these intervals were approximately 1.5 km northeast of the
reserves pit.
Tony Makuch, CEO, states: “Our recent Pre-Feasibility Study outlined the potential for Cordero
to become a top three primary silver mine globally based on average annual production of 33
Moz AgEq over an 18-year mine life. Our follow up drilling since this study demonstrates there
is further growth potential still to be realized within our upcoming Feasibility Study. Drilling has
returned a number of higher -grade intercepts within and below the reserves pit in areas that
were previously modeled as low -grade or waste demonstrating the potential to further lower
the strip ratio through converting waste to ore within the pit and to expand the pit at depth.
We are also excited about the district-scale potential on our large land package. At Sanson,
located 3.5 km northeast of Cordero, and Dos Mil Diez, 1.5 km to the southeast, we have
identified large chargeability anomalies with similar intensity to the ore body at Cordero.
Surface mapping at both targets has established intense alteration with anomalous levels of
pathfinder elements. We look forward to the commencement of drilling at these targets over
the coming months.”
NEWS RELEASE
DRILL RESULTS:
This current set of Feasibility Study drilling consists of 30 drill holes and was focused on two
key areas: 1) expansion of reserves within and beneath the Pre-Feasibility Study open pit and
2) upgrading and expansion of the resource in the far northeast of the deposit. Supporting
maps and sections, drill hole locations and full assay results can be found here: Plan map,
sections & assays. A PDF of this release with supporting maps and sections included as
appendices can be found here: Press release with plan map & sections.
Reserves Expansion Drilling
Drilling has been focused on expanding reserves through the conversion of waste to ore within
the reserves pit and through the expansion at depth of the reserves pit. In the northeast of the
deposit, C22-675 intercepted 83.7 m of 83 g/t AgEq1 at the bottom of the reserves pit and 38.2
m of 64 g/t AgEq1 approximately 50 m below the reserves pit. Also in the northeast, C22-683
intercepted 27.6 m of 148 g/t AgEq 1 approximately 100 m below the reserves pit. All three
intervals were within areas predominantly modelled as waste.
In the central part of the deposit, C22 -687 intercepted 35.6m of 126 g/t AgEq1 toward the
bottom of the reserves pit and 27.4 m of 133 g/t AgEq1 directly beneath the pit in areas
modelled as waste. In the southwest of the deposit, C22 -677 intercepted 31.7m of 158 g/t
AgEq1 from 107.8 m and 38.5 m of 241 g/t AgEq1 from 184.9 m. Both intervals were within the
reserves pit in zones previously modeled as low to medium grade highlighting the potential to
increase the grade profile in this part of the deposit.
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)
C22-673 159.9 202.4 42.5 30 0.02 0.6 0.8 79
C22-675 74.7 83.2 8.5 67 0.14 1.0 3.4 236
and 179.2 262.9 83.7 31 0.04 0.5 1.0 83
and 294.1 332.4 38.3 36 0.06 0.3 0.3 64
C22-677 107.8 139.5 31.7 77 0.16 0.7 1.3 158
and 184.9 223.4 38.5 124 0.09 1.2 1.9 241
C22-678 42.8 120.9 78.2 10 0.16 0.1 1.0 61
and 201.3 216.9 15.6 84 0.10 1.1 2.0 198
C22-683 181.3 198.7 17.4 64 0.21 0.2 0.5 105
and 495.0 522.6 27.6 47 0.03 0.3 2.4 148
C22-686 162.2 242.4 80.2 28 0.04 0.1 1.3 84
and 309.0 329.0 20.0 43 0.04 1.0 1.8 145
C22-687 196.3 246.5 50.3 14 0.09 0.2 1.3 75
and 480.5 516.1 35.6 35 0.06 0.7 1.7 126
and 555.0 582.4 27.4 25 0.06 0.6 2.2 133
1See supporting technical disclosure underneath the second table below.
Far Northeast Drilling
Drilling in 2022 outlined low grade mineralization with a number of discrete high-grade zones
in the far northeast of the deposit, more than 1 km beyond the limits of the reserves pit. Most
of this mineralization is within 100 m of surface and is included within the resource pit constraint
as part of the January 2023 resource update. 15 follow up drill holes have been completed
testing the lateral depth and strike extent of mineralization within this zone.
Hole C22-671 returned intervals of 14.8 m of 370 AgEq1 from 49.7 m and 23.1 m of 141 AgEq1
from 142.7 m in hole C22-671. This hole was drilled on section approximately 60 m to the
southeast of C22-611 that returned 36.4 m of 94 AgEq1 from 142.7 m and 14.6 m of 124 AgEq1
from 186.8 m representing the potential lateral expansion of this zone. C22-662 intercepted
10.4m of 94 AgEq 1 from 273.0 m. This represents the potential lateral expansion of the
mineralization intercepted in C22-609 drilled on section approximately 60 m to the northwest
that returned 33.1 m of 150 AgEq1 from 233.7 m and 17.7 m of 115 AgEq1 from 198.2 m (see
July 13, 2022, press release).
The follow up drilling in the far northeast confirms the presence of a broad mineralized fracture
system in the area. The orientation of mineralization does not appear to be consistent with the
dominant northeast orientation evident in the main part of the Cordero deposit. A more detailed
review of fracture orientation along with further drilling is required to develop a better
understanding of the main controls of mineralization in this part of the deposit.
Detailed drill highlights from drilling in the far northeast include:
Hole ID From
(m)
To
(m)
Width
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
AgEq1
(g/t)
C22-690 106.2 183.5 77.4 28 0.05 0.5 1.2 89
C22-692 514.5 550.1 35.7 12 0.08 0.1 1.7 85
and 610.8 641.1 30.3 43 0.05 0.5 0.8 92
and 669.2 698.9 29.7 26 0.04 0.5 1.2 91
Hole ID From
(m)
To
(m)
Width
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
AgEq1
(g/t)
C22-661 81.0 86.9 5.8 279 1.85 0.9 1.9 516
and 130.8 132.5 1.7 165 0.08 6.7 7.5 657
C22-662 273.0 283.4 10.4 59 0.05 1.5 2.3 194
C22-669 58.2 67.6 9.3 49 0.04 1.2 2.3 175
C22-670 320.3 335.4 15.1 26 0.04 0.5 0.5 64
C22-671 49.7 64.5 14.8 137 0.05 3.1 3.5 370
and 142.7 165.8 23.1 55 0.04 0.9 1.5 141
C22-674 259.3 269.3 10.0 25 0.02 0.2 2.0 109
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 2021 PEA completed on
Cordero.
DRILL PROGRAM UPDATE:
The Company has now completed 39,000 m (131 holes) as part of its Feasibility Study drill
program (since the data cut-off for the PFS study ). Feasibility study drilling consists of
engineering drilling, resource upgrade drilling and drilling targeting the expansion of the PFS
open pit. An additional 12,000 m is still to be drilled in this drill program and will be ongoing in
the first half of this year.
Significant target generation work on the Company’s large, highly -prospective land package
was completed in 2022. In addition to mapping and sampling work, 125 line-km’s of induced
polarization (IP) surveys were completed during 2022 and early 2023 at the Molino de Viento,
La Perl a, Sanson, Dos Mil Diez targets and at the site of the proposed tailings storage
facility. The surveys identified large chargeability anomalies at Molino de Viento and in the
eastern portion of Sanson. These anomalies reported a similar level of chargeability intensity
to those in the main Cordero resource area. Drill testing of these anomalies is scheduled to
commence in the middle of the year with initial drilling focused on Sanson. Currently, 9,000m
of drilling is planned for property wide drilling in 2023. This program may be expanded
depending on the results of the initial drilling.
About Discovery
Discovery’s flagship project is its 100%-owned Cordero project, one of the world’s largest silver
deposits. The PFS published in February 2023 demonstrates that Cordero has the potential to
be developed into a highly capital -efficient mine that offers the combination of margin, size ,
and scalability. 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$40 million.
On Behalf of the Board of Directors,
Tony Makuch, P.Eng
CEO & Director
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 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 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 dupli cate 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.
The most recent technical report for the Cordero Project is the 2023 Preliminary Feasibility
Study for the Company’s Cordero project. The report was completed by Ausenco with support
from by AGP, Knight Piésold and Hard Rock and is available on Discovery’s website and on
SEDAR under Discovery Silver Corp. The PFS assumed average life-of-mine recovery
assumptions for of 87% for Ag, 22% for Au, 86% for Pb and 85% for Zn.
FORWARD-LOOKING STATEMENTS:
Neither TSX Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX 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 statements. Forward-looking
statements including, but not limited to Discovery's future plans and objectives regarding the Cordero Project and the prospect of
further discoveries 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.