Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
four diamond drill holes targeting bulk-tonnage mineralization in
the South Corridor at its flagship Cordero project (“Cordero” or
“the Project”) located in Chihuahua State, Mexico. The South
Corridor has seen significantly less drilling than the North
Corridor and will be a key area of focus for the remainder of the
55,000-metre (“m”) Phase 1 drill program. The goal of this drill
program is to define a large-scale, high-margin project with
excellent leverage to rising silver prices.
The highlight hole in this release is C20-343.
Intercepts include:
- 401.7 m averaging 134 grams
per tonne silver equivalent (“g/t AgEq1”)
from 66.9 m (49 g/t Ag, 0.07 g/t gold (“Au”), 1.0% lead (“Pb”) and
1.1% zinc (“Zn”)) including:
- 30.3 m averaging 182 g/t AgEq1 (57 g/t Ag,
0.10 g/t Au, 0.8% Pb, 2.2% Zn) from 181.2 m
- 112.3 m averaging 247 g/t AgEq1 (96 g/t Ag,
0.08 g/t Au, 2.0% Pb, 1.8% Zn) from 243.5 m
- 44.2 m averaging 241 g/t AgEq1 (84 g/t Ag,
0.10 g/t Au, 1.8% Pb, 2.0% Zn) from 413.7 m
Taj Singh, President and CEO, states: “Hole
C20-343 returned one of the best-ever intercepts at Cordero. The
fact that it came from the South Corridor, an area of the deposit
that has seen significantly less drilling, is even more
encouraging. The remarkably long intercept begins at shallow depth
and includes multiple zones of high-grade mineralization, including
an interval of 112.3 m averaging 247 g/t AgEq1.
“Initial drilling in our Phase 1 program has
been successful in defining a higher-grade bulk-tonnage domain in
the North Corridor with a strike extent of over 1.5 km. While this
domain remains open along strike and at depth, the focus of our
drill targeting for additional bulk-tonnage mineralization has now
shifted to the South Corridor. The drills are now targeting areas
of the deposit where there are significant gaps in previous
drilling in order to efficiently grow the pit-constrained
higher-grade resource at Cordero. Our initial results show
tremendous promise and we look forward to follow-up drilling in the
South Corridor.”
DRILL RESULTS:
The four holes in this release were drilled in
the South Corridor and were designed to in-fill significant gaps in
previous drilling. Hole C20-343 returned a consistent high-grade
intercept over a 401.7 m interval near-surface that averaged 134
g/t AgEq1. The down-hole drill trace was approximately 100 m west
of C20-337 (refer to press release dated July 20, 2020). C20-337
returned 258.9 m averaging 77 g/t AgEq1 (28 g/t Ag, 0.06 g/t Au,
0.4% Pb and 0.8% Zn) from 61.0 m including 44.8 m averaging 139 g/t
AgEq1 (35 g/t Ag, 0.10 g/t Au, 0.7% Pb and 1.7% Zn) and 23.6 m
averaging 186 g/t AgEq1 (82 g/t Ag, 0.09 g/t Au, 0.8% Pb and 1.7%
Zn). Mineralization in C20-343 consisted of galena and sphalerite
in disseminations, veinlets and stockworks hosted in dacite,
sedimentary rock and breccias. Higher-grade mineralization was
hosted in southwest-striking breccias and veins that dip steeply to
the northwest.
The remaining holes were drilled between 120 m
and 250 m to the northeast of C20-343. All holes returned broad
intercepts of mineralization consisting of dacite, calcareous
sediment and breccia-hosted sulphide veins, stockworks and
disseminations. Drill hole locations for all holes are shown in
Figure 1 (see links below). Detailed drill highlights 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) |
C20-341 |
55.0 |
81.0 |
26.0 |
50 |
0.18 |
0.3 |
0.5 |
98 |
and |
119.0 |
162.3 |
43.3 |
20 |
0.11 |
0.3 |
0.9 |
77 |
and |
337.0 |
371.7 |
34.7 |
20 |
0.08 |
0.6 |
0.7 |
76 |
and |
398.2 |
473.5 |
75.3 |
22 |
0.03 |
0.5 |
0.8 |
73 |
and |
486.6 |
523.7 |
37.1 |
22 |
0.04 |
0.4 |
0.6 |
64 |
and |
531.7 |
587.2 |
55.6 |
30 |
0.07 |
0.4 |
0.6 |
75 |
|
|
|
|
|
|
|
|
|
C20-343 |
66.9 |
468.6 |
401.7 |
49 |
0.07 |
1.0 |
1.1 |
134 |
including |
181.2 |
211.5 |
30.3 |
57 |
0.10 |
0.8 |
2.2 |
182 |
& including |
205.0 |
211.5 |
6.4 |
194 |
0.21 |
2.5 |
8.1 |
637 |
including |
243.5 |
355.7 |
112.3 |
96 |
0.08 |
2.0 |
1.8 |
247 |
& including |
266.5 |
281.2 |
14.7 |
420 |
0.09 |
8.1 |
4.3 |
888 |
including |
413.7 |
457.9 |
44.2 |
84 |
0.10 |
1.8 |
2.0 |
241 |
|
|
|
|
|
|
|
|
|
C20-346 |
0.0 |
82.3 |
82.3 |
31 |
0.08 |
0.1 |
0.2 |
50 |
and |
263.3 |
264.8 |
1.6 |
268 |
0.16 |
3.2 |
8.7 |
754 |
and |
357.6 |
362.7 |
5.1 |
231 |
0.21 |
2.0 |
2.6 |
427 |
|
|
|
|
|
|
|
|
|
C20-350 |
127.0 |
167.1 |
40.1 |
20 |
0.10 |
0.2 |
0.5 |
57 |
and |
273.3 |
294.2 |
20.9 |
30 |
0.08 |
0.4 |
1.5 |
111 |
and |
352.7 |
449.6 |
97.0 |
33 |
0.03 |
0.56 |
0.53 |
78 |
including |
352.7 |
368.4 |
15.7 |
111 |
0.06 |
1.7 |
0.2 |
186 |
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. Intervals for this release were
chosen based on a 10 g/t AgEq cutoff up to a maximum of 20 m of
internal dilution. Sub-intervals were chosen based on a 25 g/t AgEq
cutoff with no more than 5 m of dilution in any sub-interval. 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 $16.50/oz Ag, $1,350/oz Au, $0.85/lb Pb,
$1.00/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 2018 PEA completed on Cordero.
PHASE 1 DRILL PROGRAM
UPDATE:
The Company has completed 27,800 m (67 holes) as
part of its expanded 50,000-55,000 m Phase 1 drill program.
Assays from 15 holes are pending. Two drill rigs were added
to the project during the third week of August and there are now
four drill rigs on site. Additional drill rigs may be added when
the Company is confident that the health and safety risks related
to COVID-19 can be managed effectively.
Drilling is focused on two key concepts: (1)
targeting of bulk-tonnage mineralization within and to the east and
northeast of both mineralized corridors; and (2) testing of the
width, grade and continuity of extensive high-grade vein systems
identified in and adjacent to historical artisanal underground
workings at the Project.
Supporting maps and sections, drill hole locations and full
assay results can be found at the following link:
https://dsvmetals.com/site/assets/files/5399/20200914_appendix.pdf
A copy of this release with supporting maps and sections
included as appendices can be found at the following link:
https://dsvmetals.com/site/assets/files/5399/20200914_news.pdf
About the Cordero
ProjectCordero is located on the eastern edge of the
Sierra Madre Occidental mountains in the northern part of the
Central Mexican Silver Belt, Mexico’s premier porphyry and
carbonate replacement deposit district. Mineralization at Cordero
is similar in nature to well-known nearby bulk tonnage precious
metals mines and projects (e.g. Newmont Corporation’s Peñasquito
Mine and Orla Mining Ltd.’s Camino Rojo project). In addition to
bulk tonnage mineralization there are also multiple high-grade
silver-zinc-lead-gold sulphide vein trends as evidenced by more
than 40 historical shallow, vertical shafts and associated
underground workings.
Sample analysis and QA/QC
ProgramTrue widths of reported drill intercepts have not
been determined. 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 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) 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
PersonGernot Wober, P.Geo, VP Exploration,
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.
On Behalf of the Board of Directors,
Taj Singh, M.Eng, P.Eng, CPA, President, Chief
Executive Officer and Director
About DiscoveryDiscovery Metals
Corp. (TSX-V: DSV, OTCQX: DSVMF) is a Canadian exploration and
development company headquartered in Toronto, Canada, and focused
on historic mining districts in Mexico. Discovery’s flagship is its
100%-owned Cordero silver project in Chihuahua State, Mexico. The
35,000-hectare property covers a large district that hosts the
announced resource as well as numerous exploration targets for bulk
tonnage diatreme-hosted, porphyry-style, and carbonate replacement
deposits.
For further information contact:
Forbes Gemmell, CFAVP Corporate
Development & Investor
Relationsforbes.gemmell@dsvmetals.com
TECHNICAL NOTES & FORWARD-LOOKING
STATEMENTS:The most recent technical report for the
Cordero Project is the 2018 Preliminary Economic Assessment (PEA)
authored by M3 Engineering and Technology Corp and includes the
most recent resource estimate, completed by Independent Mining
Consultants, Inc. It is available on Discovery’s website and on
SEDAR under Levon Resources Ltd, a wholly owned subsidiary of
Discovery. The PEA assumes metallurgical recoveries of 89% for Ag,
84% for Pb, 72% for Zn and 40% for Au.
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. 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. There can be no assurance that the Private
Placement will close on the announced terms. Discovery does not
assume any obligation to update any forward-looking statements
except as required under applicable laws.
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