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Discovery Silver Corp
Symbol DSV
Shares Issued 323,922,633
Close 2021-04-28 C$ 2.31
Recent Sedar Documents

Discovery Silver loses $17.75-million in 2020

2021-04-29 12:28 ET - News Release

Mr. Taj Singh reports

DISCOVERY REPORTS Q4 2020 FINANCIAL RESULTS AND UPDATE

Discovery Silver Corp. has released its financial results for the three months and 23 months ended Dec. 31, 2020.

Discovery's flagship project is its 100-per-cent-owned Cordero project located in Chihuahua state, Mexico. The company is aggressively advancing the project through a 66,000-metre drill program in 2021 focused on delineating a high-margin silver project with size and scaleability.

Highlights from Q4 2020 and subsequent events

Financial and corporate

  • As at Dec. 31, 2020, the company had a cash and cash equivalents and short term investment balance of $82.5-million.
  • In February, the company announced that an aggregate of 31.14 million common share purchase warrants with an exercise price of $1 were exercised prior to their expiry on Feb. 17, 2021. The exercises resulted in gross proceeds of approximately $31-million, of which approximately $17.6-million was received in 2021.
  • The company's cash position as of the date of this release is approximately $94-million.
  • On March 12, 2021, the company announced the appointment of Jennifer Wagner to the company's board of directors. Ms. Wagner is a corporate securities lawyer and has extensive experience advising companies on a variety of corporate commercial transactions, governance and compliance matters. She currently serves as executive vice-president, corporate affairs and sustainability, at Kirkland Lake Gold Ltd.

COVID-19 update

The company continues to be pro-active regarding COVID-19 and continually monitors employees and contractors and remains committed to being engaged with its local stakeholders during this uncertain period. The company will continue to closely monitor the directives of all levels of government in both Mexico and Canada as well as the relevant health authorities.

Looking ahead

The company's phase 1 drill program began in September, 2019, and will conclude at the end of April, 2021. In total, the company has drilled more than 70,000 metres, delivering exceptional results that demonstrate the excellent high-grade potential that exists within the enormous mineralized footprint at Cordero. Over the coming months, the company will be busy compiling this drill data alongside its updated geological and structural models to produce a brand-new resource estimate in Q3 2021. This resource model, along with the results from the company's detailed metallurgical test work program that is continuing, will form the basis for a revamped preliminary economic assessment to be completed in Q4 2021. The company's objective with the PEA is to deliver a technically robust study demonstrating that Cordero is one of the few deposits in the silver space that offers the combination of margin, size and scaleability.

While the company is working on these major derisking milestones it will remain focused on continuing to add value through its phase 2 drill program. The company's phase 2 program will immediately follow its phase 1 program with the four drill rigs currently operating on site continuing uninterrupted. Phase 2 drilling will be focused on three key areas: (1) upgrading inferred resources to indicated for inclusion in a prefeasibility study on Cordero; (2) resource expansion of bulk-tonnage mineralization; and (3) testing of the width, grade and continuity of extensive high-grade vein systems that transect the deposit. Additionally, socio-economic and environmental baseline studies are currently under way and will continue through the year.

Selected financial data

The selected financial data in the attached table are summarized from the company's audited consolidated financial statements and related notes thereto for the year ended Dec. 31, 2020. A copy of the financial statements, and management's discussion and analysis is available on the company's website or on SEDAR.

About Discovery Silver Corp.

Discovery's flagship project is its 100-per-cent-owned Cordero project, one of the few silver projects globally that offers margin, size and scaleability. The project is located in a prolific mining belt in Chihuahua state, Mexico, and is supported by an industry-leading balance sheet with over $90-million of cash allocated for aggressive exploration, resource expansion and future development. Discovery was a recipient of the 2020 TSX Venture 50 award and the 2021 OTCQX Best 50 award.

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