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Discovery Silver Corp
Symbol DSV
Shares Issued 325,145,725
Close 2021-06-21 C$ 2.14
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Discovery Ag drills 65.9 m of 258 g/t AgEq at Cordero

2021-06-22 07:11 ET - News Release

Mr. Taj Singh reports


Discovery Silver Corp. has released results from 12 diamond drill holes targeting bulk-tonnage mineralization at its flagship Cordero silver project located in Chihuahua state, Mexico. The holes are part of the recently completed phase 1 drill program. The results from this program will be incorporated in a new resource estimate and PEA (preliminary economic assessment) in the second half of the year. Phase 2 drilling is continuing and is focused on resource definition and expansion.

Highlight intercepts include:

  • 65.9 metres averaging 258 grams per tonne silver equivalent from 309.4 m (69 g/t silver, 0.11 g/t gold, 0.7 per cent lead and 3.7 per cent zinc) in hole C21-417;
  • 143.0 m averaging 120 g/t AgEq from 517.8 m (39 g/t Ag, 0.13 g/t Au, 0.4 per cent Pb and 1.3 per cent Zn) in hole C21-425;
  • 59.5 m averaging 153 g/t AgEq from 443.3 m (54 g/t Ag, 0.08 g/t Au, 0.9 per cent Pb and 1.5 per cent Zn) in hole C21-415;
  • 86.0 m averaging 108 g/t AgEq from 392.2 m (33 g/t Ag, 0.17 g/t Au, 0.3 per cent Pb and 1.2 per cent Zn) in hole C21-420;
  • 82.3 m averaging 136 g/t AgEq from 267.9 m (44 g/t Ag, 0.06 g/t Au, 0.7 per cent Pb and 1.5 per cent Zn) in hole C21-423;
  • 59.4 m averaging 171 g/t AgEq from 419.4 m (48 g/t Ag, 0.06 g/t Au, 1.0 per cent Pb and 2.0 per cent Zn) in hole C21-425;
  • 48.9 m averaging 159 g/t AgEq from 232.3 m (85 g/t Ag, 0.08 g/t Au, 0.6 per cent Pb and 1.1 per cent Zn) in hole C21-429.

Taj Singh, president and chief executive officer, stated: "This current set of holes, drilled in areas where there were significant gaps in previous drilling, confirm the continuity of higher-grade mineralization at depth in the South corridor. Excellent grades over broad widths were encountered on a consistent basis highlighting the potential for Cordero to emerge as one of the few multigenerational mines in the silver space. We look forward to compiling the final assay results from our phase 1 drill program for incorporation in our resource update in Q3 2021 and preliminary economic assessment in Q4 2021."

Drill results

Drill holes from this release confirm continuity of higher-grade bulk-tonnage mineralization at depth in the central part of the South corridor. Mineralization is hosted within northeast-trending domains that have been defined over a strike length of approximately 1.4 km and are open to the northeast. Hole C21-425 intercepted 143.0 m averaging 120 g/t AgEq from 517.8 m, confirming mineralization to a depth of 600 m, approximately 100 m below the pit bottom from the 2018 PEA.

Mineralization consists predominantly of galena, sphalerite and pyrite in disseminations, veinlets and stockworks hosted in breccia, rhyodacite and intervals of replacement mineralization in calcareous sediments. Higher-grade zones are typically flanked by medium- and lower-grade mineralization pointing to the scalability of the mineralized system at Cordero.

Drill hole locations are shown in an image on the company's website, and detailed drill highlights from the 12 holes in this release are provided in the associated table.

                                     DRILL HIGHLIGHTS

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

C20-415        317.4      339.9      22.5       35      0.07     0.7       1.3          120
and            400.3      420.8      20.5       23      0.09     0.1       1.5           98
and            443.3      502.8      59.5       54      0.08     0.9       1.5          153
C21-417         44.0      113.9      69.9       22      0.05     0.1       0.6           56
and            309.4      375.3      65.9       69      0.11     0.7       3.7          258
including      350.3      364.3      14.0      151      0.14     1.9       4.1          400
C21-420        392.2      478.2      86.0       33      0.17     0.3       1.2          108
C21-423        113.3      137.0      23.7       63      0.11     0.8       0.4          116
including      132.7      133.8       1.1      913      0.97    12.2       4.0        1,589
and            267.9      350.2      82.3       44      0.06     0.7       1.5          136
C21-425        182.3      203.5      21.2       46      0.09     0.8       1.1          129
and            378.9      402.4      23.6       45      0.10     0.8       1.3          136
and            419.4      478.8      59.4       48      0.06     1.0       2.0          171
and            517.8      660.8     143.0       39      0.13     0.4       1.3          120
C21-429        232.3      281.2      48.9       85      0.08     0.6       1.1          159
C20-433        360.1      379.4      19.3       28      0.09     0.1       2.4          139
and            458.2      478.5      20.3       63      0.13     1.2       2.8          231
and            554.2      593.5      39.3       44      0.06     0.9       1.5          142
and            635.2      673.6      38.4       32      0.13     0.5       2.2          152
C21-438        260.1      293.9      33.8       28      0.06     0.6       1.3          105
and            311.6      360.4      48.9       20      0.10     0.3       1.0           83
and            547.9      565.4      17.5       71      0.05     1.2       2.1          205
and            600.7      644.5      43.9       44      0.04     1.1       1.4          146
C21-441         22.5       46.3      23.8       48      0.07     0.9       0.4          103

(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.

Drill program update

Phase 1 drilling

The company's phase 1 drill program concluded at the end of April. The data from the 75,000 m of new drilling (178 holes) completed in this program, along with 133,000 m of historic drilling (292 holes), will be used to support an updated resource (Q3 2021) and PEA (Q4 2021).

Phase 2 drilling

The company has completed 11,000 m (31 holes) as part of its phase 2 drill program, which will be continuing through the remainder of the year. Phase 2 drilling will be focused on three key areas: (1) upgrading inferred resources for inclusion in a prefeasibility study; (2) resource expansion of bulk-tonnage mineralization; and (3) testing of the width, grade and continuity of the extensive high-grade vein systems that transect the deposit. There are currently four drill rigs operating on site.

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 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.

Sample analysis and quality assurance/quality control program

The true width of the veins is estimated to be approximately 70 per cent of the drilled width. 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 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 and a split of 250 grams 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 Silver, 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.

Technical notes

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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