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Discovery Metals Corp
Symbol DSV
Shares Issued 299,790,390
Close 2020-10-13 C$ 1.82
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Discovery Metals drills 3.4m of 1,150g/t AgEq in Mexico

2020-10-14 07:16 ET - News Release

Mr. Taj Singh reports

DISCOVERY REPORTS 1,150 G/T AGEQ OVER 3.4 M AND EXTENDS STRIKE OF THE TODOS SANTOS VEIN TREND AT CORDERO

Discovery Metals Corp. has released results from four diamond drill holes targeting the Todos Santos high-grade vein trend at its flagship Cordero project located in Chihuahua state, Mexico. Todos Santos flanks the higher-grade bulk-tonnage domain to the northeast and now has a minimum strike extent of at least 1.5 kilometres based on historic underground workings and new drilling. The current holes are part of the first-ever drill program of the Todos Santos vein trend.

Highlight intercepts include:

  • Hole C20-349: 3.4 metres averaging 1,150 grams per tonne silver equivalent (AgEq) from 145.6 m (412 g/t silver, 0.42 g/t gold, 8.0 per cent lead and 10.0 per cent zinc) within a 5.0 m interval averaging 962 g/t AgEq (331 g/t Ag, 0.35 g/t Au, 6.3 per cent Pb and 9.2 per cent Zn);
  • Hole C20-351: 2.0 m averaging 1,207 g/t AgEq from 224.8 m (532 g/t Ag, 0.38 g/t Au, 8.8 per cent Pb and 8.1 per cent Zn) within a 49.7 m interval averaging 146 g/t AgEq (38 g/t Ag, 0.09 g/t Au, 0.6 per cent Pb and 1.9 per cent Zn);
  • Hole C20-352: 3.3 m averaging 572 g/t AgEq from 228.2 m (152 g/t Ag, 0.71 g/t Au, 2.2 per cent Pb and 6.9 per cent Zn) within a 21.0 m interval averaging 188 g/t AgEq (59 g/t Ag, 0.19 g/t Au, 0.9 per cent Pb and 2.0 per cent Zn);
  • Hole C20-354 : 1.0 m averaging 1,729 g/t AgEq from 380.1 m (433 g/t Ag, 0.23 g/t Au, 9.3 per cent Pb and 22.9 per cent Zn) within a 6.9 m interval averaging 466 g/t AgEq (133 g/t Ag, 0.10 g/t Au, 2.9 per cent Pb and 5.4 per cent Zn).

Taj Singh, president and chief executive officer, stated: "These current drill holes, along with the relogging of historical drill core in this part of the deposit, now suggest that the Todos Santos vein trend extends well beyond the footprint of historical underground workings and beyond the limit of the mega pit in the 2018 PEA. This recent work also confirmed for the first time through drilling the existence of a parallel footwall vein in the northeast of the Todos Santos trend. This footwall vein returned high-grade intercepts of 2.0 m averaging 1,207 g/t AgEq and 1.0 m averaging 1,729 g/t AgEq. We look forward to follow-up drilling focused on confirming and extending the vein potential along the Todos Santos vein trend as we advance this new and exciting component of the Cordero story that could add significant value to the higher-grade open-pit project."

Drill results

The four holes in this release were successful in establishing and expanding continuity both along strike and at depth of the Todos Santos vein trend. All four holes returned high-grade vein intercepts from both the Main vein along the Todos Santos trend as well as a previously unidentified Footwall vein. High-grade mineralization in both the Main vein and Footwall vein is typically associated with quartz-carbonate veins with galena, sphalerite and pyrite mineralization. A number of these vein intercepts lie within broader zones of disseminated sulphide mineralization hosted in brecciated dacite and sedimentary wall rock.

The Todos Santos vein trend, consisting of the Main vein and Footwall vein, has an interpreted southwest strike extent of at least 1.5 km based on historic underground workings and drilling, with veins dipping steeply to the northwest. The drill-confirmed portion of the Main vein along the Todos Santos trend has a strike extent of 800 m and a downdip extent of 300 m and is open along strike in both directions and at depth. The Footwall vein has a drill-confirmed strike extent of 400 m and is open to the northeast and at depth.

                              DETAILED DRILL HIGHLIGHTS 

Hole ID         From       To    Width       Ag        Au       Pb       Zn    AgEq (1)
                 (m)      (m)      (m)    (g/t)     (g/t)      (%)      (%)       (g/t)

C20-349        128.4    153.4     25.0       92      0.14      1.6      3.1         289
including      145.6    150.6      5.0      331      0.35      6.3      9.2         962
including      145.6    149.0      3.4      421      0.42      8.0     10.0       1,150
and            254.3    276.4     22.1       38      0.07      0.7      0.9         102
including      272.0    272.7      0.7      480      1.31      7.8      1.9         944
C20-351        138.0    139.5      1.5       32      0.04      0.4      2.0         137
and            169.7    199.1     29.5       39      0.04      0.7      0.8         100
and            210.4    260.1     49.7       38      0.09      0.6      1.9         146
including      224.8    226.8      2.0      532      0.38      8.8      8.1       1,207
and            296.2    316.0     19.8       21      0.03      0.3      2.5         137
C20-352        123.3    124.6      1.3      113      0.25      3.4      5.3         475
and            222.3    243.3     21.0       59      0.19      0.9      2.0         188
including      228.2    231.5      3.3      152      0.71      2.2      6.9         572
including      228.2    229.0      0.8      236      0.27      5.7      9.2         840
C20-354        283.8    285.3      1.5      220      0.27      5.0      4.6         609
and            376.0    382.9      6.9      133      0.10      2.9      5.4         466
including      380.1    381.1      1.0      433      0.23      9.3     22.9       1,729
C20-342        143.8    149.2      5.3      225      0.27      5.1      5.5         653
including      147.0    148.4      1.4      700      0.74     16.1     14.0       1,907
C20-344        171.1    175.8      4.7      635      0.15     12.3      5.3       1,299
including      171.1    173.0      1.9    1,035      0.06     20.0      6.4       2,007
C20-347        121.8    127.3      5.6      135      0.18      2.7      1.6         312
including      125.7    126.2      0.5      629      0.33     13.0      4.4       1,293

(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.

Intervals with stockwork mineralization were chosen based on a 25 g/t AgEq cut-off with no more than 10 m of dilution. Intervals with vein mineralization were based on a 100 g/t AgEq cut-off with no more than one m of dilution. 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 per cent of the company's mineralized intercepts. AgEq calculations for reported drill results are based on $16.50 (U.S.) per ounce Ag, $1,350 (U.S.)/oz Au, 85 U.S. cents per pound lead and $1 (U.S.)/lb zinc. The calculations assume 100-per-cent metallurgical recovery and are indicative of gross in situ metal value at the indicated metal prices. Refer to technical notes for metallurgical recoveries assumed in the 2018 PEA completed on Cordero.

Phase 1 drill program update

The company has completed 32,400 m (84 holes) as part of its expanded 55,000 m phase 1 drill program. Assays from 22 holes are pending. There are currently four drill rigs operational 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 that traverse the project.

About Discovery Metals Corp.

Discovery Metals 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-per-cent-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.

Sample analysis and quality assurance/quality control 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 40 kilometres 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 per cent passing minus two millimetres, a split of 250 g is taken and pulverized to better than 85 per cent passing 75 microns. Samples are analyzed for gold using standard fire assay-AAS (atomic absorption spectroscopy) techniques (Au-AA24) from a 50 g pulp. Overlimits are analyzed by fire assay and gravimetric finish. Samples are also analyzed using 33-element inductively coupled plasma method (ME-ICP61). Overlimit sample values are reassayed for: (1) values of zinc greater than 1 per cent; (2) values of lead greater than 1 per cent; and (3) values of silver greater than 100 g/t. Samples are reassayed using the ME-OG62 (high-grade material ICP-AES (inductively coupled plasma atomic emission spectroscopy) analytical package. For values of silver greater than 1,500 g/t, samples are reassayed 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 QA/QC issues were noted with the results reported herein.

Qualified person

Gernot Wober, PGeo, vice-president, exploration, Discovery Metals, 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 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 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 per cent for Ag, 84 per cent for Pb, 72 per cent for Zn and 40 per cent for Au.

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