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Discovery Metals Corp
Symbol DSV
Shares Issued 323,051,224
Close 2021-03-12 C$ 2.14
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Discovery Metals drills 1.3m of 2,290g/t AgEq in Mexico

2021-03-15 07:09 ET - News Release

Mr. Taj Singh reports


Discovery Metals Corp. has released results from 14 diamond drill holes targeting the Josefina and Todos Santos high-grade vein trends at its flagship Cordero project located in Chihuahua state, Mexico. Multiple vein trends with a combined strike extent of more than five-kilometre flank the higher-grade bulk-tonnage domain at Cordero; the Josefina and Todos Santos vein trends currently represent approximately three km of this strike extent.

Highlight intercepts include:

Josefina vein:

  • 1.3 metres averaging 2,166 grams per tonne silver equivalent from 95.6 m (1,581 g/t silver, 0.15 g/t gold, 9.9 per cent lead and 5.4 per cent zinc) in hole C20-381;
  • 1.0 m averaging 1,826 g/t AgEq from 41.2 m (1,280 g/t Ag, 4.24 g/t Au, 1.6 per cent Pb and 3.4 per cent Zn) within an 8.9 m interval averaging 410 g/t AgEq (267 g/t Ag, 0.91 g/t Au, 0.9 per cent Pb and 0.8 per cent Zn) in hole C20-382;
  • 1.3 m averaging 2,290 g/t AgEq from 136.7 m (1,607 g/t Ag, 2.06 g/t Au, 5.2 per cent Pb and 8.0 per cent Zn) in hole C20-396.

South corridor:

  • 2.9 m averaging 1,605 g/t AgEq from 44.4 m (992 g/t Ag, 0.73 g/t Au, 12.9 per cent Pb and 2.4 per cent Zn) in hole C20-383.

Todos Santos vein:

  • 1.4 m averaging 1,107 g/t AgEq from 135.4 m (552 g/t Ag, 0.33 g/t Au, 11.0 per cent Pb and 3.4 per cent Zn) within a 4.0 m interval averaging 763 g/t AgEq (377 g/t Ag, 0.28 g/t Au, 7.1 per cent Pb and 2.7 per cent Zn) in hole C20-385;
  • 1.2 m averaging 875 g/t AgEq from 186.5 m (241 g/t Ag, 0.52 g/t Au, 4.6 per cent Pb and 10.4 per cent Zn) in hole C20-387;
  • 2.8 m averaging 670 g/t AgEq from 166.3 m (207 g/t Ag, 0.15 g/t Au, 3.7 per cent Pb and 7.7 per cent Zn) in hole C20-397.

Taj Singh, president and chief executive officer, stated: "Our confidence in the continuity of the high-grade vein trends at Cordero continues to grow. Twenty holes have now been drilled at the 1.5 km Todos Santos vein trend. Remarkably, all 20 holes have intercepted the principal vein returning an average drilled width of 2.6 m grading 635 g/t AgEq. At Josefina we continue to intercept bonanza grades along 1.5 km of strike extent including, in this release, some of the highest grades intercepted on the project to date. We will continue to systematically advance this new and exciting component of our story as we move towards the delivery of our updated resource in Q3 2021 and PEA in Q4 2021. The updated resource and PEA will focus on the bulk-tonnage domain at Cordero; we hope to add the high-grade vein component to Cordero project economics in 2022."

Josefina vein

The Josefina vein trend consists of two principal southwest-trending subparallel veins with an interpreted strike extent of approximately 1.5 km. The eight holes in this release were successful in confirming continuity of bonanza-grade mineralization along the central and northeast parts of the vein trend. Drilling has confirmed the depth continuity of veins at Josefina to approximately 370 m below surface. The vein trend is open at depth below this and along strike in both directions.

The veins along the Josefina trend dip steeply to the northwest and mineralization typically consists of semi-massive pyrite, galena and sphalerite. Further drilling is still required to accurately estimate the true width of the veins. Drill hole locations and current vein interpretations are shown in an image on the company's website and detailed drill highlights of the holes from this release at Josefina are provided in the associated table.

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

C20-379             91.1      91.4        0.4        713     0.18      5.0      8.4     1,253
and                 99.1      99.8        0.7        304     0.15      4.5     15.6     1,122
and                171.9     172.2        0.3      1,010     0.27      5.7      9.3     1,620
C20-381             95.6      96.9        1.3      1,581     0.15      9.9      5.4     2,166
including           95.9      96.4        0.5      3,750     0.26     23.3     11.5     5,067
C20-382             34.0      42.9        8.9        267     0.91      0.9      0.8       410
including           41.2      42.2        1.0      1,280     4.24      1.6      3.4     1,826
C20-386            141.3     164.0       22.7         35     0.04      0.5      1.3       111
and                197.9     199.6        1.7        333     0.41      3.3      6.2       741
and                215.9     218.5        2.7        416     0.21      5.8      6.3       899
C20-392             36.2      39.2        3.1         58     0.10      1.9      6.9       419
including           36.6      37.4        0.8         98     0.33      2.8     16.4       904
C20-394            179.8     180.8        1.1        135     0.61      3.3      6.9       588
C20-395            410.7     420.7       10.0         92     0.09      2.4      3.4       324
and                410.7     414.7        3.9        110     0.05      2.7      4.4       392
C20-396             84.2      84.6        0.4        572     0.13      7.4     11.2     1,306
and                136.7     138.0        1.3      1,607     2.06      5.2      8.0     2,290
including          136.7     137.1        0.4      3,930     5.89      8.8     14.6     5,327

Todos Santos vein

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 and depth extent of at least 300 m based on historic underground workings and drilling. In total 20 holes have been drilled at Todos Santos: nine historic holes and 11 holes drilled by Discovery (including four holes in this release). All 20 holes intercepted the Main vein returning an average drilled width of 2.6 m grading 635 g/t AgEq. Holes C20-385 (4.0 m averaging 763 g/t AgEq) and C20-387 (3.2 m averaging 576 g/t AgEq) in this release extended the drill-confirmed strike extent of the Main vein by approximately 50 m to the southwest. The Todos Santos vein trend is open along strike in both directions and at depth.

High-grade mineralization in both the Main vein and Footwall vein is typically associated with quartz-carbonate veins that dip steeply to the northwest. Mineralization typically consists of galena, sphalerite and pyrite. Further drilling is still required to accurately estimate the true width of the veins at Todos Santos. Drill hole locations and current vein interpretations are shown in an image on the company's website and detailed drill highlights of the holes drilled at Todos Santos from this release are provided in the associated table.

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

C20-385        132.9     136.8        4.0      377      0.28     7.1      2.7         763
including      135.4     136.8        1.4      552      0.33    11.0      3.4       1,107
C20-387        184.5     187.7        3.2      175      0.48     3.3      5.9         576
and            186.5     187.7        1.2      241      0.52     4.6     10.4         875
C20-391        116.2     117.7        1.5      274      0.05     4.4      2.8         551
C20-397        166.3     169.1        2.8      207      0.15     3.7      7.7         670

Additional veins

C20-383, drilled to the northwest of Josefina and in the middle of the South corridor, intercepted a previously unidentified breccia fault near surface that reported 1.7 m averaging 2,242 g/t AgEq. C20-389, drilled in the North corridor to the southwest of Todos Santos, intercepted two previously unknown veins at depth. The veins reported 2.4 m averaging 463 g/t AgEq and 0.8 m averaging 941 g/t AgEq. Evaluation of these new veins including follow-up drill targeting is continuing. Further drill highlights from these two holes are provided in the associated table.

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

C20-383        44.4     47.2        2.9       992     0.73     12.9     2.4        1,605
including      44.4     46.1        1.7     1,375     1.04     19.4     2.4        2,242
and            83.4     84.1        0.7     1,865     0.85      7.0     7.9        2,510
and           138.0    163.5       25.5        28     0.06      0.4     0.6           72
C20-389       362.7    365.2        2.4       120     0.51      3.3     4.5          463
and           367.9    368.7        0.8       416     0.10      8.8     5.0          941

(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.)/ounce Ag, $1,350 (U.S.)/oz Au, 
85 U.S. cents/pound Pb, $1 (U.S.)/lb Zn. 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 58,600 m (148 holes) as part of its expanded 65,000 m phase 1 drill program. Assays from 24 holes are pending. There are currently four drill rigs operating 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) systematic testing of the width, grade and continuity of extensive high-grade vein systems that transect the deposit. The company's immediate focus is on drilling bulk-tonnage targets for inclusion in the updated resource estimate in Q3 2021 and PEA in Q4 2021.

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.

We seek Safe Harbor.

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