Discovery Reports Additional Positive Results from its Feasibility Study Drill Program at Cordero
Discovery Reports Additional Positive Results from its Feasibility
Study Drill Program at Cordero
August 2, 2023, Toronto, Ontario - Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF)
(“Discovery” or the “Company”) is pleased to announce results from Feasibility Study drilling
on its flagship Cordero silver project (“Cordero” or “the Project”) located in Chihuahua State,
Mexico. These holes consist of reserve expansion and definition 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:
• 52 m averaging 105 g/t AgEq1 (51 g/t Ag, 0.19 g/t Au, 0.6% Pb and 0.9% Zn) from 102
m and 37 m averaging 171 g/t AgEq1 (79 g/t Ag, 0.09 g/t Au, 1.1% Pb and 1.5% Zn) from
276 m in hole C22-722.
• 15 m averaging 479 g/t AgEq1 (278 g/t Ag, 0.08 g/t Au, 3.1% Pb and 2.9% Zn) from 145
m in hole C22-713.
• 39 m averaging 134 g/t AgEq1 (104 g/t Ag, 0.17 g/t Au, 0.5% Pb and 0.3% Zn) from 46
m in hole C22-728.
Tony Makuch, CEO, states: “The reserve expansion and definition component of our Feasibility
Study drill program at our Cordero project is now complete. In total we have added
approximately 35,000 m of drilling in over 100 drill holes since the cut-off for the Pre-Feasibility
Study resulting in a comprehensive drill dataset supporting the Feasibility Study of
approximately 310,000 m in close to 800 drill holes. The additional drilling we have completed,
including this current set of drill results, has demonstrated the potential to further grow reserves
at what is already one of the largest silver deposits globally. Our drilling through the remainder
of the year will be focused on engineering drilling to support the Feasibility Study along with
drill testing multiple targets on our large and highly prospective land package.”
DRILL PROGRAM UPDATE:
The Company has now drilled approximately 52,000 m (164 holes) as part of its Feasibility
Study drill program (since the data cut- off for the PFS study). This includes approximately
35,000 m of reserve definition and expansion drilling, 7,000 m of condemnation drilling and
10,000 m of engineering drilling (hydrogeology and geotechnical). Engineering drilling will be
ongoing through the remainder of the year along with the property -wide drill program which
commenced last month. Property-wide drilling will initially target large chargeability anomalies
in the Sanson area (approximately 3.5 km to the northeast of Cordero) and skarn targets at
NEWS RELEASE
depth in the northeast of the deposit. Currently, 9,000m of drilling is planned in 2023. This
program may be expanded depending on the results of the initial drilling.
DRILL RESULTS:
This current set of Feasibility Study drilling consists of 22 drill holes and was focused on
reserve upgrade and expansion drilling in the southwest of the deposit. Drill results continue
to demonstrate the potential to improve grade and convert waste to ore within the reserves pit.
Hole C22-722, drilled in the southwest of the South Corridor within the reserves pit, returned
several long mineralized intervals including 51.7 m of 105 g/t AgEq 1 from 101.9 m, 82.1 m of
84 g/t AgEq1 from 165.4 m and 37.4 m of 171 g/t AgEq1 from 275.8 m. These intervals have
the potential to expand the volume of higher -grade blocks laterally and vertically. Hole C22 -
728, drilled approximately 75 m to the north of C22-722, returned 38.5 m of 134 g/t AgEq1 from
46.2 m potentially increasing estimated grades in this part of the deposit. Hole C22-725 was
drilled in the southwest of the North Corridor and returned 62.1 m of 94 g/t AgEq1 from 47.2 m
including 21.7 m of 158 g/t AgEq1 potentially increasing the depth extent of higher -grade
blocks.
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 : Release with plan map & sections . Detailed drill highlights
from this set of 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)
C22-713 145.5 160.5 15.1 278 0.08 3.1 2.9 479
C22-716 49.6 62.0 12.4 168 0.19 1.4 3.1 328
And 116.5 134.0 17.5 88 0.05 0.5 0.6 125
C22-718 58.6 65.4 6.8 71 0.12 0.3 2.2 162
and 86.9 105.9 19.0 83 0.47 0.4 1.4 155
C22-722 101.9 153.5 51.7 51 0.19 0.6 0.9 105
and 165.4 247.4 82.1 33 0.03 0.6 0.9 84
and 275.8 313.2 37.4 79 0.09 1.1 1.5 171
C22-725 47.2 109.3 62.1 48 0.25 0.6 0.6 94
including 69.5 91.1 21.7 84 0.33 1.0 1.0 158
C22-726 40.4 85.4 45.0 51 0.24 0.5 0.7 98
C22-727 8.1 41.3 33.2 66 0.13 0.1 0.1 76
C22-728 46.2 84.6 38.5 104 0.17 0.5 0.3 134
C22-729 106.9 134.9 28.0 46 0.17 0.5 0.8 94
C22-732 5.7 39.3 33.6 47 0.09 0.3 0.5 77
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
reporting metal content calculations given Ag is the dominant metal constituent as a percentage of AgEq value in approximat ely
70% of the Company’s mineralized intercepts. AgEq is calculated as Ag(g/t) + 18.39 x Au(g/t) + 30.81 x Pb(%) + 36.54 x Zn(%).
This calculation is based on metal prices of USD $22.00/oz Ag, $1,600/oz Au, $1.00/lb Pb, $1.20/lb Zn and life-of-mine average
recovery assumptions from the 2023 Pre-Feasibility Study of 87% for Ag, 22% for Au, 86% for Pb and 85% for Zn.
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.
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
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 t he
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 33 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) analy tical 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.
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 AGP Mining Consultants Inc ., Knight Piésold Ltd. and Hard Rock Consulting and is
available on Discovery’s website and on SEDAR under Discovery Silver Corp.
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. 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. Statements regarding the results of the pre-feasibility study and the anticipated capital and operating costs, sustaining
costs, net present value, internal rate of return, payback period, process capacity, average annual metal production, average
process recoveries, concession renewal, permitting of the Project, anticipated mining and processing methods, proposed pre-
feasibility study production schedule and metal production profile, anticipated construction period, anticipated mine life, expected
recoveries and grades, anticipated production rates, infrastructure, social and environmental impact studies, availability of labour,
tax rates and commodity prices that would support development of the Project. Information concerning mineral resource/reserve
estimates and the economic analysis thereof contained in the results of the pre- feasibility study are also forward- looking
statements in that they reflect a prediction of the mineralization that would be encountered, and the results of mining, if a mineral
deposit were developed and mined. Forward-looking statements are statements that are not historical facts which address events,
results, outcomes or developments that the Company expects to occur. Forward- looking statements are based on the beli efs,
estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks
and uncertainties. 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. The risks and uncertainties that may affect forward- looking
statements, or the material factors or assumptions used to develop such forward- looking information, are described under the
heading "Risks Factors" in the Company’s Annual Information Form dated March 29, 2023 , which is available under the
Company’s issuer profile on SEDAR at www.sedar.com.