Discovery Returns Highest Zinc Values and Average Manto Grades to Date From Newly Sampled Zaragoza Lower Level at Puerto Rico
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Discovery Returns Highest Zinc Values and Average Manto Grades to
Date From Newly Sampled Zaragoza Lower Level at Puerto Rico
Highlights
• Positive results from 103 new channel samples from the Zaragoza mine at the Puerto
Rico project. All assays from Zaragoza have now been received;
• New results from the Zaragoza Lower level returned the highest Zn and ZnEq values
on the Puerto Rico project to date (39.6% and 45.5% respectively) and the highest
manto ZnEq average grade at the Zargoza mine, at 15.8% ZnEq (over 21 samples);
• Of the total 293 channel samples at the Zaragoza mine, 83 were from manto
mineralization and returned an average grade of 129 g/t Ag, 7.6% Zn, 4.3% Pb, 0.12%
Cu (12.8% ZnEq).
• The three known mantos at Zaragoza are open laterally in all directions , and
chimneys are open to depth, indicating potential for additional stacked mantos below.
June 20, 2018 – Discovery Metals Corp. (TSX-V: DSV) ( “Discovery” or the “Company”) is
pleased to announce the third and final batch of assay results from the detailed underground
channel sampling program taken at the Zaragoza mine (“Zaragoza”), part of its flagship Puerto
Rico p roject (“Puerto Rico” or “the Project”) in northern Coahuila State, Mexic o. The first two
batches of results were announced in news releases dated April 30 and May 24, 2018, which
are available on the Company’s website at www.dsvmetals.com.
Taj Singh, P.Eng, President & CEO states, “ The third and final batch of channel samples from
our detailed mapping and sampling program at Zaragoza were impressive, and continue to
increase our confidence in the tenor and scale of carbonate replacement mineralization at
Puerto Rico. The results will be instrumental in understanding the system locally at Zaragoza
and regionally at the Project. In addition, the results will help develop targets for our maiden drill
program at the Project, planned for Q3. We look forward to receiving results from the San Jose
and Puerto Rico mines in short order, both of which possess a larger footprint and vertical
extent than Zaragoza.”
Results & Discussion
Channel samples were collected at intervals every 3m to 5m along both sides of the entire
length of the ~250m of accessible workings, over three levels – Chica, Grande and Lower from
top to bottom , respectively. Details on sampling methodology are outlined in the “ Technical
Notes” section below. Sample locations and widths were restricted to the extent of historic
workings. The table below highlights assay results of the 15 highest-grade channels at
Zaragoza compiled from all three batches of results, including the new batch released (“N”) and
the two batches previously released (“P”):
NEWS RELEASE
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Sample
Results
(New or
Previous)
Zaragoza
Level
Width
(m)
Ag
(g/t)
Zn
(%)
Pb
(%)
Cu
(%)
ZnEq
(%)
Mineralization
Type /
Host Rock
215305 N Lower 0.4 133 39.6 4.5 0.3 45.5 manto
215107 P Grande 0.7 1859 7.6 5.7 1.0 44.5 manto
215267 N Lower 0.3 79 36.1 6.6 0.1 41.6 manto
215180 P Grande 0.9 529 19.6 18.2 0.5 41.5 andesite dike
215011 P Grande 0.5 237 13.8 33.8 0.1 40.5 manto
215269 N Lower 0.3 216 26.2 10.4 0.2 37.2 manto
215073 P Grande 0.6 1675 2.2 4.0 1.1 35.3 manto
215115 P Grande 0.8 35 33.5 1.7 0.0 35.2 manto
215154 P Grande 0.8 98 28.2 5.4 0.0 33.5 manto
215066 P Grande 0.7 46 30.2 3.0 0.0 33.0 manto
215173 P Grande 1.0 102 27.3 4.8 0.1 32.3 andesite dike
215164 P Grande 0.7 148 27.9 2.6 0.1 32.3 andesite dike
215285 N Lower 0.4 131 20.5 11.1 0.1 30.3 manto
215020 P Chica 0.6 274 8.5 24.9 0.2 30.1 manto
215065 P Grande 1.1 61 26.5 2.9 0.1 29.7 manto
Note: All numbers in this news release are rounded and assays are uncut and undiluted; ZnEq calculation based on USD $17/oz
Ag, $1.50/lb Zn, $1.00/lb, $3.00/lb Cu and does not consider metallurgical recovery.
The table below categorizes all channel samples taken at Zaragoza by level and by
mineralization type / host rock and includes the average grades from the specified number of
samples.
Zaragoza Level Mineralization Type
/ Host Rock
Average value of all samples
Samples
(#)
Ag
(g/t)
Zn
(%)
Pb
(%)
Cu
(%)
ZnEq
(%)
Chica
Manto 11 96 3.4 10.5 0.10 12.2
Chimney 11 69 1.4 5.2 0.09 6.2
Wallrock 23 12 0.6 1.0 0.08 1.6
Grande
Manto 51 159 6.8 3.1 0.11 11.7
Chimney 29 46 3.5 2.3 0.04 5.9
Wallrock 92 54 2.1 1.5 0.08 4.1
Andesite Dike 20 90 12.0 5.3 0.07 17.2
Lower
Manto 21 73 11.7 3.9 0.14 15.8
Chimney 1 56 0.7 4.5 0.04 4.7
Wallrock 34 17 1.1 1.1 0.11 2.4
Note: All numbers in this release are rounded and assays are uncut and undiluted; ZnEq calculation based on USD $17/oz Ag,
$1.50/lb Zn, $1.00/lb, $3.00/lb Cu and does not consider metallurgical recovery.
Key findings and interpretations from Zaragoza, several of which are illustrated in the table
above include:
• Ag-Pb-Zn mineralization is present in limestone- hosted flat-lying mantos and sub -vertical
chimneys;
• All levels host strongly mineralized mantos and chimneys;
• The three levels of workings span an approximate vertical extent of 30m, and cover a
horizontal extent of 100m by 80m;
• Three mantos and three chimneys were identified. Mantos range from 0.3m to 1.8m thick,
while chimneys range from 0.5m to 2.2m wide;
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• The Grande level hosts a north-striking, steeply - to moderately -dipping, and strongly
mineralized andesite dike. Th e dike extends below the workings and may be r elated to
mineralization and vector to further mineralization at depth;
• The wallrock on all levels was well mineralized . At the Grande level, where over 60% of the
total wallrock samples were taken, it averaged 4.7% ZnEq. This suggests that larger mining
widths may be possible vs. selectively mining mantos or chimneys alone;
• The mantos are open laterally in all directions, and the chimneys are open to depth, with no
information from drilling below them. The three known mantos at Zaragoza are stacked and,
based on field observations from the other historic mines at Puerto Rico and case studies on
similar systems, there is potential for additional mantos below them; and
• Zn grades in mantos increase with depth and Pb grades are higher at higher levels. This
may be a function of Zn leaching from the higher area , making the rock proportionally more
Pb-rich, with supergene enrichment in Zn at lower levels.
The Company continues to compile the geochemical sampling results with its geologic mapping
data to refine its understanding of the Zaragoza mine. Sampling of the San Jose mine area is
complete and results are expected in the coming weeks, while sampling of the Puerto Rico mine
area is s till underway. In addition to the underground mapping, t he Company’s property-wide
surface mapping program is progressing as planned and the Company is also carrying out
detailed ASTER and orthophoto / DEM analyses as part of its work. Additionally, a detailed
regional and structural analysis of the Project is underway and within the next several weeks the
Company is also planning to conduct a magnetic survey on the historic mining area of the
Project, in preparation for drilling in Q3.
References
For a full table of results, maps and graphics related to this news release, please refer to the
Company’s website at:
https://dsvmetals.com/site/assets/files/5187/dsv-nr-appendix-june20.pdf
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
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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.
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 dir ect-ship ore workings with ~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.
On Behalf of the Board of Directors
“Taj Singh”
Taj Singh, M.Eng, P.Eng, CPA
President, Chief Executive Officer, and Director
For further information contact:
#701 - 55 University Ave
Toronto, ON Canada, M5J 2H7
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 bel ieves 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.