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Discovery-Corp, Scramble release NewFind drill results

2023-05-29 11:46 ET - News Release

Mr. Iain Brown reports

DISCOVERY-CORP AND SCRAMBLE REPORT DRILL RESULTS CONFIRMING NEAR-SURFACE MINERALIZATION AT NEWFIND, INCLUDING 21.70 G/T AU OVER 1.00 M AND PROVIDE TRANSACTION UPDATE

Discovery-Corp Enterprises Inc. and Scramble Resources Corp. have released encouraging results from the confirmation drill program completed at the NewFind gold project. The 500-metre (m) Clifford target was confirmed to host high-grade gold mineralization within a multimetre anomalous gold-bearing halo associated with increasing silica, sericite and disseminated sulphide mineral content. The Clifford target was evaluated across three drill fences roughly spaced 250 m apart and evaluated to an average depth of approximately 50 to 60 m below surface; the target is open along strike and down dip.

Highlights:

  • Mid confirmation drill fence hole 21LNDD005 intersected two anomalous structures, one 2.95 m anomalous interval with 0.48 m of 57.75 grams per tonne gold and another 3.60 m interval hosting one m of 21.70 g/t gold.
  • South confirmation drill fence hole 21LNDD009 intersected a 5.15 m anomalous gold interval hosting a high-grade core of 0.78 m at 31.40 g/t gold.
  • Clifford target confirmed to be gold-bearing with strong grades within lower-grade halo located on the inferred northeastern sheared fold limb with the southwestern sheared fold limb exhibiting a yet-to-be-evaluated 2,000 m gold-in-soil anomaly.

"We are excited to get some subsurface geological feedback confirming our initial ideas on the Clifford structure," commented Paul Koros, president and chief financial officer of Scramble. He further stated, "The team looks forward to being able to expand our exploration thesis at Clifford and across the rest of the target pipeline of priority targets at the NewFind gold project."

Discovery's CFO, Iain Brown, commented, "We note that these successful results support our initial internal review of the promise of the NewFind gold project that the Scramble team identified as a significant exploration area with multiple high-quality, high-potential targets."

Exploration summary

The initial drill program on the NewFind gold project was a confirmation or due-diligence-type program on the most advanced target, the historic Mt. Clifford mine, a 500 m long section of the Clifford structure. This work was undertaken to determine the style(s) and tenure of mineralization that could be expected within large-scale gold-in-soil anomalies on major structures in the area associated with mapped folds. Previous work at Clifford included small-scale underground mining, and rotary air blast (RAB) and reverse circulation (RC) drilling. As this is a structurally controlled gold target, diamond drilling (DD) was used to better identify lithology, alteration, structure and mineralization styles controlling the values in the historical results.

The confirmation drill program evaluated three fences across the Clifford target each separated by approximately 250 m. The program, designed to test and step out from select historical drill hole locations, was successful in its objective; returning consistent, and in some cases better, results than previous drilling, and providing confidence in continuity of mineralization. Additional drilling will be required to follow up the potential extent of the Clifford target mineralization, as well as drill testing of the full pipeline of targets that were developed, based on thorough geological investigation using field mapping, geophysical surveys and geochemical surveys across the core area of the tenements.

The Clifford Mid confirmation drill fence consisted of three holes, 21LNDD005, 006 and 010. All holes cut a strongly deformed, folded and sheared package of mixed sedimentary units and ultramafic rocks. Elevated gold values (up to 57.75 g/t Au) are associated with quartz-carbonate veined, carbonate-albite-silica-sericite altered volcaniclastics interfolded with pyritic black shales within or adjacent to parasitic fold hinges in high-strain zones. In this section, an approximately 3.5 m interval of disseminated sulphide-bearing (pyrite-arsenopyrite-pyrrhotite) porphyry cut by late extensional quartz-carbonate veining yielded a section grading 3.60 g/t Au. 21LNDD005 confirmed the high-grade interval in WILRC9712 and identifies continuity of two other zones in historic drill hole RC055. 21LNDD006 confirmed the intervals within historic hole RC055 and 21LNDD010 stepped approximately 40 m down dip and intercepted the target zone and the upper sections of the drill hole indicate potential for a new mineralized zone developing.

The Clifford South confirmation drill section consisted of three holes, 21LNDD007 to 009, all cutting the corridor of strongly deformed mixed sedimentary and ultramafic rock units. As with the other sections, the best grades are associated with quartz-carbonate veining and disseminated sulphides within an alteration zone of in silica-carbonate-sericite (plus or minus albite). More specifically, the best intervals are closely associated with the high-strain zones exhibiting inferred mylonitic breccia and parasitic fold hinges. Hole 21LNDD008 confirmed the mineralization in historical hole WILRC9709; however, the diamond drilling indicates the mineralized zones are more discreet. Hole 21LNDD009, an approximate 25 m undercut of 21LNDD008, intercepts a wider section of anomalous gold-bearing stratigraphy; the mineralization appears to be down dip and trending to the southeast.

The Clifford North confirmation drill section consisted of four drill holes, 21LNDD001 to 004. Three of four holes intersected the structural zone of interest. Elevated gold values appear to be associated with very fine-grained disseminated pyrite and arsenian pyrite within strong silica-sericite-carbonate altered and stockwork veined folded volcaniclastic sedimentary sequence with local sheared quartz-carbonate veining. This alteration and mineralization appear to be spatially associated with porphyritic intrusive units and associated with folds within higher-strain portions of the structural corridor.

Transaction status

As previously announced, Discovery and Scramble entered into an arrangement agreement dated Oct. 13, 2022, with respect to a proposed reverse takeover of Discovery by Scramble, which is intended to constitute a reverse takeover of Discovery under the rules and policies of the TSX Venture Exchange.

As described in the news release dated April 3, 2023, Discovery has submitted a draft joint management information circular and related initial documentation to the TSX-V for approval in connection with the transaction. The transaction remains subject to the continuing review and approval of the TSX-V, which will include a concurrent financing, the details of which are in the process of being arranged. The parties to the transaction continue to work diligently toward receiving conditional approval of the transaction from the TSX-V and will continue to provide further details in respect of the transaction in due course by way of news release. Pursuant to the rules and policies of the TSX-V, Discovery's shares will remain halted from trading.

The dates of the annual and special meetings of each of Scramble and Discovery will be announced once the transaction has received conditional approval from the TSX-V. For additional information relating to Discovery, Scramble, the resulting issuer and the transaction, please see the news release dated Oct. 13, 2022, under the company's profile on SEDAR.

About the NewFind gold project

The NewFind project was first identified by Scramble in late 2019 after reviewing numerous projects across a number of jurisdictions. Recognition of significant gold-bearing structures with a series of multimillion-ounce deposits already in production along with a number of historical small gold mines along the same corridor. Scramble has 100-per-cent ownership interest in four tenements comprising 379 hectares (ha), and has the right to 100-per-cent interest in two additional land packages of 1,078 ha, that all together comprise the 1,456 ha NewFind gold project. NewFind lies along the same structural corridor as, and between two of the top 20 gold deposits in Australia. In a December, 2022, property visit Mr. Koros remarked: "I am encouraged by how well endowed the region is. Driving the 275 kilometres north from the mining centre of Kalgoorlie, you can see mine after mine not far from the hard-surfaced well-travelled highway. Walking on our property, repeated quartz blowouts can be seen at regular intervals. I was also struck by the many historical workings across the NewFind gold project, where the old-timers followed high-grade mineralization, but were stopped by the water table at very shallow levels. We fully expect the structurally controlled mineralization to extend below the water table."

Technical disclosure

The scientific and technical information contained in this news release has been reviewed and approved by Darren Lindsay, PGeo, a qualified person within the meaning of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. This review included the verification of the data disclosed, including sampling, analytical and test data underlying the information contained in this news release.

All drill core samples were dispatched to Bureau Veritas for off-site sample preparation and analysis. Samples were assigned a unique sample ID. Core is sawn in half with half retained in the core box while the other half becomes the sample. Certified reference materials are inserted into all sample dispatches. Samples are collected by Des Taylor Services Leonora and dispatched to Bureau Veritas in Canning Vale, Western Australia. Samples were prepared by Bureau Veritas by crushing and pulverization (PR001, PR103, PR302) followed by 40-gram fire assay gold analysis with inductively coupled plasma (ICP) quantification (FA002) and select intervals (drill holes 21LNDD001 and 004) were also analyzed for multielements using a mixed acid digest with ICP mass spectrometer quantification (MA102).

The drilling program for the NewFind gold project and compilation of results employ a strict quality assurance and quality control program consistent with NI 43-101 and industry best practices.

It should be noted that the potential quantity and grade of the exploration targets disclosed in this news release are conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource as per the NI 43-101 reporting standards.

About Discovery-Corp Enterprises Inc.

Discovery-Corp is a junior exploration company based in Vancouver, Canada, that is focused on finding high-quality gold and copper properties. Discovery's properties include the Galaxy, located in the New Afton camp in Kamloops, B.C., and the Rock Creek Ranch, located in north-central Nevada at the intersection of the Getchell and Battle Mountain-Eureka gold trends.

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