Discovery Intercepts 328 g/t AgEq over 46 m Outside Current Resource at Cordero
Discovery Intercepts 328 g/t AgEq over 46 m Outside Current
Resource at Cordero
March 31, 2022, Toronto, Ontario - Discovery Silver Corp. (TSX-V: DSV, OTCQX: DSVSF)
(“Discovery” or the “Company”) is pleased to announce results from 17 holes from its Phase 2
drill program on its flagship Cordero silver p roject (“Cordero” or “the Project”) located in
Chihuahua State, Mexico. This current set of results was predominantly targeting the
expansion of the open pit and the resource in the northeast of the deposit.
Highlight intercepts include:
• C21-575 intercepted a high-grade zone outside the current resource that returned 45.6 m
averaging 328 g/t AgEq1 from 327.0 m (125 g/t Ag, 0.54 g/t Au, 2.0% Pb and 2.7% Zn)
including 17.4 m averaging 674 g/t AgEq1 (254 g/t Ag, 0.94 g/t Au, 4.0% Pb & 6.1% Zn)
• C21-573 intercepted 38.6 m averaging 189 g/t AgEq1 from 191.8 m (91 g/t Ag, 0.11 g/t
Au, 1.3% Pb and 1.3% Zn) beneath the PEA pit
• C21-538 intercepted near -surface mineralization on the margins of the PEA pit that
returned 32.3 m averaging 142 g/t AgEq1 from 28.5 m (70 g/t Ag, 0.12 g/t Au, 0.8% Pb
and 1.0% Zn)
Taj Singh, President and CEO, states: “This current set of drill results highlights the excellent
growth potential that exists at Cordero beyond the 16-year mine life outlined in our 2021 PEA.
Of note, hole C21-575 intercepted a broad zone of mineralization that returned 45.6 m of 328
g/t AgEq. This zone sits outside the current resource and is an area of the deposit that has
seen little in the way of previous drilling. Follow up drilling along strike and at depth will be
completed to test the potential extensions of this high-grade zone.”
DRILL RESULTS:
This current set of Phase 2 drill holes was focused on expansion of the open pit and the
resource in the northeast of Cordero, an area of the deposit that has seen significantly less
drilling. The results will be incorporated in a resource update and Pre -Feasibility Study
scheduled for completion in the fourth quarter of this year.
NEWS RELEASE
Hole C21-575 was drilled beneath the resource pit outline in the northeast of the North Corridor
to target potential resource expansion at depth. Drilling intercepted a broad zone of stockwork
and vein mineralization approximately 100 m below the resource pit that returned 45.6 m of
328 g/t AgEq1. Hole C21-573, drilled 100 m along strike of this hole to the southwest, returned
38.6m of 189 g/t AgEq1 from 191.8 m, representing the potential extension of the high-grade
zone encountered in C21-575.
The Company’s first deep drilling in the northeast of the deposit encountered green skarn
alteration with sulphides. This new style of alteration was intercepted well below the existing
resource, starting at a vertical depth of approximately 600 m , and across a strike length of at
least 450 m. Highlight intervals from this drilling include 177.4 m averaging 74 g/t AgEq1 (C21-
567), 32.9 m averaging 123 g/t AgEq1 (C21-569), 41.6 m averaging 86 g/t AgEq1 (C21-572)
and 18.7 m averaging 109 g/t AgEq1 (C21-566). Results from this initial drilling highlight the
significant depth extent of the mineralizing fluid conduits at Cordero and will be reviewed along
with subseq uently completed drill holes to vector towards areas of more intense skarn
alteration that have the potential to host high-grade mineralization.
Drill hole locations are shown in Figure 1 (see links below) and detailed drill highlights from the
holes in this release are provided in the tables below.
Resource Expansion (intercepts outside of the resource pit constraint)
Hole ID From
(m)
To
(m)
Width
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
AgEq1
(g/t) Area
C21-566 399.5 419.7 20.3 44 0.16 0.7 1.3 125 NE – North
Corridor and 705.9 724.6 18.7 10 0.04 0.0 2.5 109
C21-567 729.9 907.2 177.4 27 0.03 0.1 1.1 74 NE – North
Corridor including 729.9 801.5 71.7 25 0.03 0.2 2.0 106
C21-569 689.2 722.2 32.9 19 0.01 0.2 2.6 123 NE – North
Corridor and 910.1 941.8 31.8 5 0.02 0.0 1.7 70
C21-572 690.9 732.4 41.6 12 0.03 0.0 1.9 86 NE – North
Corridor including 697.5 718.6 21.1 17 0.03 0.0 2.8 125
C21-575 327.0 372.6 45.6 125 0.54 2.0 2.7 328 NE - South
Corridor including 327.0 344.4 17.4 254 0.94 4.0 6.1 674
C21-549 355.7 400.2 44.5 20 0.03 0.1 2.2 106 NE – South
Corridor
C21-562 324.0 334.7 10.7 32 0.05 0.6 1.5 112 NE - South
Corridor
C21-570 142.7 159.0 16.3 23 0.04 0.6 1.1 86 NE - South
Corridor and 576.7 591.0 14.3 27 0.07 0.3 1.6 100
Open Pit Expansion (intercepts within the resource pit constraint but outside the 2021 PEA pit)
Hole ID From
(m)
To
(m)
Width
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
AgEq1
(g/t) Area
C21-563 242.1 248.2 6.1 84 0.14 1.5 2.3 226 NE – North
Corridor
C21-565 205.3 234.4 29.1 25 0.03 0.5 0.6 65 NE – North
Corridor
C21-566 86.8 104.4 17.6 87 0.10 1.4 1.8 205 NE – North
Corridor and 118.9 197.5 78.6 8 0.06 0.1 1.4 69
C21-571 53.3 111.5 58.2 11 0.06 0.1 1.6 76 NE – North
Corridor including 70.8 107.6 36.8 15 0.06 0.1 2.1 101
C21-573 191.8 230.4 38.6 91 0.11 1.3 1.3 189 NE – North
Corridor
C21-549 153.3 183.5 30.3 23 0.07 0.2 0.6 58 NE - South
Corridor
C21-559 210.9 229.8 18.9 16 0.02 0.5 1.0 67 NE - South
Corridor
C21-538 28.5 60.8 32.3 70 0.12 0.8 1.0 142
SW - South
Corridor including 37.2 40.1 2.9 479 0.20 5.6 2.6 768
and 214.4 266.0 51.7 12 0.01 0.3 1.3 69
C21-542 157.6 175.2 17.7 68 0.03 0.3 0.4 94 SW - South
Corridor and 295.0 349.7 54.7 8 0.01 0.1 0.9 48
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.
SUPPORTING MATERIALS:
Supporting maps and sections, drill hole locations and full assay results can be found at the
following link:
https://discoverysilver.com/site/assets/files/5866/20220331_sections_assays.pdf
A PDF of this release with supporting maps and sections included as appendices can be
found at the following link:
https://discoverysilver.com/site/assets/files/5866/20220331_cordero_pr_w_sections.pdf
DRILL PROGRAM UPDATE:
The Company has now completed 59,000 m (176 holes) as part of its Phase 2 drill program
(excluding drill metres used to support the 2021 Mineral Resource Estimate). Phase 2 drilling
will continue through the remainder of the year and will be focused on three key areas: (1) Pre-
Feasibility Study drilling consisting of reserve definition and engineering drilling; (2) resource
expansion in the northeast of the deposit and at depth; and (3) initial drill testing of five property-
wide targets on the Company’s extensive land package.
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$65 million.
On Behalf of the Board of Directors,
Taj Singh, M.Eng, P.Eng, CPA
President, Chief Executive Officer and 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.
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 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.