Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF)
(“Discovery” or the “Company”) is pleased to announce results from
eight diamond drill holes completed at its flagship Cordero project
(“Cordero” or “the Project”) located in Chihuahua State, Mexico.
The holes are part of a Phase 1 diamond core drilling program that
commenced in September 2019. The Phase 1 drill program was recently
expanded from 35,000-metres (“m”) to 55,000 m and has the goal of
defining a large-scale, high-margin project with excellent leverage
to rising silver prices.
Highlight intercepts include:
Todos Santos Vein
- 1.4 m averaging 1,907 grams per tonne silver equivalent
(“g/t AgEq1”) in hole C20-342 from 147.0
m (700 g/t Ag, 0.74 g/t gold (“Au”), 16.1% lead (“Pb”) and 14.0%
zinc (“Zn”)) within a 5.3 m breccia interval that averaged 653 g/t
AgEq1 (225 g/t Ag, 0.27 g/t Au, 5.1% Pb, 5.5% Zn)
Parcionera Vein
- 1.5 m averaging 1,119 g/t AgEq1 in hole
C20-338 from 149.8 m (489 g/t Ag, 0.82 g/t Au, 2.9% Pb and 11.1%
Zn) within a 4.3 m vein that averaged 651 g/t AgEq1 (365 g/t Ag,
0.55 g/t Au, 2.1% Pb, 4.0% Zn)
North-East Extension
- 120.4 m averaging 114 g/t
AgEq1 in hole C20-333 from 206.8 m (30 g/t Ag,
0.11 g/t Au, 0.4% lead Pb and 1.5% Zn)
- 134.6 m averaging 92 g/t AgEq1 in hole C20-336
from 194.6 m (23 g/t Ag, 0.05 g/t Au, 0.5% Pb and 1.1% Zn)
South Corridor
- 44.8 m averaging 139 g/t AgEq1 in hole C20-337
from 173.9 m (35 g/t Ag, 0.10 g/t Au, 0.7% Pb and 1.7% Zn)
- 0.8 m averaging 3,214 g/t AgEq1 in hole
C20-337 from 291.3 m (1,992 g/t Ag, 0.79 g/t Au, 16.1% Pb and 14.2%
Zn)
Taj Singh, President and CEO, states: “We
continue to intercept wide zones of bulk-tonnage style
mineralization along the North-East Extension at Cordero. In
addition, our understanding of the previously overlooked high-grade
vein trends on the property continues to evolve. Four of the eight
drill holes in this news release hit high-grade feeder structures,
including 1,907 g/t AgEq1 over 1.4 m in our first ever drill hole
targeting the Todos Santos vein trend, and 1,119 g/t AgEq1 over 1.5
m at the Parcionera vein trend. These two vein trends have a
current combined strike length of over 1.5 kilometres based on
historical underground workings. With a second drill rig now
operational, we look forward to testing both the strike length and
depth continuity of these and other extensive feeder structures
alongside our bulk-tonnage breccia-hosted targets.”
DRILL RESULTS:Todos
Santos Vein: Hole C20-342 was drilled under a historic
mine working on the north-east extent of the Todos Santos vein
trend and intercepted a high-grade sulphide vein approximately 140
m below surface that returned 1.4 m averaging 1,907 g/t AgEq1 (700
g/t Ag, 0.74 g/t Au, 16.1% Pb and 14.0% Zn). Vein
mineralization is semi-massive pyrite (20%), galena (15%) and
sphalerite (15%). The Todos Santos vein trend is currently
interpreted to be 1.2 kilometres (“km”) long, has a south-west
strike and dips steeply to the north-west, based on the alignment
of six historic workings and eight pierce points from historic
drill holes.
Parcionera Vein: The current
350 m strike and 255 m proven depth extent of this vein trend is
defined by two of the larger historical mine workings as well as
pierce points from six historical drill holes. Hole C20-338,
drilled under the NE trend of the historical workings, intercepted
4.3 m of high-grade vein material from 149.8 m averaging 651 g/t
AgEq1 (365 g/t Ag, 0.55 g/t Au, 2.1% Pb, and 4.0% Zn) including
1.5m of 1,119 g/t AgEq1 (489 g/t Ag, 0.82 g/t Au, 2.9% Pb, and
11.1% Zn). Vein mineralization is dominantly coarse-grained pyrite
(40%) in bands 20-50cm wide with intercalations and 2-3cm bands or
veinlets of red-brown sphalerite (4-5%) and coarse-grained galena
(2-3%).
North-East Extension: Five of
the eight holes in this current release were drilled to the
north-east of the core Pozo de Plata zone in areas where there were
significant gaps in previous drilling. Four of these drill holes
intercepted multiple broad zones of stockwork and/or breccia-hosted
mineralization including hole C20-333, drilled 650 m north-east of
Pozo de Plata, which intercepted 120.4 m averaging 114 g/t AgEq1
(30 g/t Ag, 0.11 g/t Au, 0.3% Pb and 1.5% Zn) of stockwork
mineralization in calcareous siltstone and mudstone. Hole C20-336,
drilled 700 m north-east of Pozo de Plata intercepted 134.6 m
averaging 92 g/t AgEq1 (23 g/t Ag, 0.05 g/t Au, 0.5% Pb and 1.1%
Zn) of stockwork mineralization hosted in dacite and dacite
breccia.
South Corridor: Hole C20-337,
drilled along the South Corridor, intercepted 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). These stockwork mineralized intervals are hosted in calcareous
siltstone and mudstone. The deeper interval also encountered a
previously unidentified feeder vein that returned 0.8 m averaging
3,214 g/t AgEq1 (1,992 g/t Ag, 0.79 g/t Au, 16.1% Pb and 14.2% Zn).
The South Corridor, which is separated from the core Pozo de Plata
zone by the main Cordero fault, has seen significantly less
drilling in comparison to the North Corridor and will be a key area
of focus for drilling over the remainder of the Phase 1 drill
program.
Drill hole locations for all holes are shown in
Figure 1 (see links below). Further 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) |
Location
|
C20-333 |
206.8 |
327.2 |
120.4 |
30 |
0.11 |
0.4 |
1.5 |
114 |
NE Extension |
including |
251.0 |
251.6 |
0.6 |
449 |
0.24 |
5.4 |
3.7 |
812 |
including |
326.7 |
327.2 |
0.5 |
269 |
0.38 |
5.0 |
15.9 |
1,136 |
|
|
|
|
|
|
|
|
|
|
C20-334 |
14.0 |
39.0 |
25.0 |
41 |
0.09 |
0.4 |
0.4 |
76 |
SW Extension |
and |
127.3 |
138.0 |
10.7 |
59 |
0.03 |
0.9 |
1.0 |
135 |
|
|
|
|
|
|
|
|
|
|
C20-335 |
42.0 |
147.5 |
105.5 |
16 |
0.05 |
0.3 |
0.6 |
55 |
NE Extension |
|
|
|
|
|
|
|
|
|
|
C20-336 |
194.6 |
329.1 |
134.6 |
23 |
0.05 |
0.5 |
1.1 |
92 |
NE Extension/ Parcionera Vein |
including |
290.6 |
295.0 |
4.4 |
126 |
0.08 |
3.4 |
14.5 |
857 |
|
|
|
|
|
|
|
|
|
|
C20-337 |
63.3 |
64.6 |
1.3 |
405 |
0.42 |
2.6 |
4.8 |
727 |
South Corridor |
and |
173.9 |
218.7 |
44.8 |
35 |
0.10 |
0.7 |
1.7 |
139 |
and |
278.1 |
301.7 |
23.6 |
82 |
0.09 |
0.8 |
1.7 |
186 |
including |
291.3 |
292.0 |
0.8 |
1,992 |
0.79 |
16.1 |
14.2 |
3,214 |
|
|
|
|
|
|
|
|
|
|
C20-338 |
32.0 |
62.3 |
30.4 |
29 |
0.02 |
0.5 |
0.2 |
55 |
NE Extension / Parcionera Vein |
and |
149.8 |
154.1 |
4.3 |
365 |
0.55 |
2.1 |
4.0 |
651 |
including |
149.8 |
151.3 |
1.5 |
489 |
0.82 |
2.9 |
11.1 |
1,119 |
|
|
|
|
|
|
|
|
|
|
C20-339 |
48.4 |
54.2 |
5.8 |
202 |
0.08 |
1.0 |
0.0 |
245 |
Parcionera Vein |
|
|
|
|
|
|
|
|
|
|
C20-342 |
143.8 |
149.2 |
5.3 |
225 |
0.27 |
5.1 |
5.5 |
653 |
Todos Santos Vein |
including |
147.0 |
148.4 |
1.4 |
700 |
0.74 |
16.1 |
14.0 |
1,907 |
* Refer to Technical Notes & References
section below for details on assumptions and calculations. Full
assay results can be found at the link in the next section
below.
PHASE 1 DRILL PROGRAM
UPDATE:The Company recently expanded its Phase 1 drill
program by 20,000 m to 50,000-55,000 m. 19,440 m (49 holes)
from this program have been completed to date. Assays from five
holes are pending. The Company added a second drill rig during the
first week of July. Further drill rigs will be added when the
Company is confident health and safety risks related to COVID-19
can be managed effectively.
Drilling will be focused on two key areas: 1)
Targeting of broad zones of breccia-hosted mineralization in the
east and north-east 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 during the early history of 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/5391/20200720-plan-map.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/5391/20200720-pr-cordero.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
the 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.
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 & REFERENCES:
1 All 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. Composites for this release were
chosen at a 25 g/t AgEq cutoff, whereby no more than 5m of
below-cutoff material is included in any composite 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 note two below for metallurgical recoveries
assumed in the 2018 PEA completed on Cordero.
2 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. The PEA assumes metallurgical
recoveries of 89% for Ag, 84% for Pb, 72% for Zn and 40% for
Au.
Sample
analysis and QA/QC
Program: True 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
Person: Gernot 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.
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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