Mr. Taj Singh reports
DISCOVERY REPORTS Q1 2021 FINANCIAL RESULTS AND UPDATE
Discovery Silver Corp. has released its financial results for the three months ended March 31, 2021, and provided a summary of key events for the quarter and subsequent to quarter-end. All amounts are presented in Canadian dollars unless otherwise stated.
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 scalability.
Highlights from Q1 2021 and subsequent events
Financial and corporate
As at March 31, 2021, the company had a cash and cash equivalents and short term investment balance of $94.7-million. The company's cash position as of the date of this release is approximately $91-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.
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.
In late March, the company was added to the VanEck Vectors Junior Gold Miners ETF (with the underlying designation as a silver pure-play company) and the ETFMG Prime Junior Silver Miners ETF.
- At Cordero, the company completed its 75,000-metre (178 holes) phase 1 drill program at the end of April. Data from phase 1 drilling will be used to support the bulk-tonnage resource update and preliminary economic assessment scheduled for the second half of the year.
- The four drill rigs on site continued uninterrupted with phase 2 drilling. Phase 2 drilling will be focused on reserve definition, resource expansion and high-grade vein delineation.
The company's phase 1 drill program began in September, 2019, and concluded at the end of April, 2021. In this campaign, the company drilled 75,000 metres delivering results that have exceeded the company's expectations and that have confirmed the excellent high-grade potential that exists within the giant 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 PEA to be completed in Q4 2021. The company's objective with the PEA is to deliver a technically robust study supported by a comprehensive data set and vetted by top-tier independent consultants that demonstrates 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, the company will remain focused on continuing to add value through its phase 2 drill program. This program 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 following selected financial data are summarized from the company's condensed interim consolidated financial statements and related notes thereto for the three months ended March 31, 2021.
Discovery's flagship project is its 100-per-cent-owned Cordero project, one of the few silver projects globally that offers margin, size and scalability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua state, Mexico, and is supported by an industry leading balance sheet with over $90-million available 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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