Mr. Taj Singh reports
DISCOVERY INTERSECTS 258 G/T AGEQ OVER 66 M AND 120 G/T AGEQ OVER 143 M AT CORDERO
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
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 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.
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.
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.
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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