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Discovery Silver Corp
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Close 2021-07-12 C$ 1.97
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Discovery Ag drills 1.1 m of 3,934 g/t AgEq at Cordero

2021-07-13 07:17 ET - News Release

Mr. Taj Singh reports


Discovery Silver Corp. has released results from 13 diamond drill holes drilled along the Josefina high-grade vein trend at its flagship Cordero 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 in the third quarter of 2021 and preliminary economic assessment in the fourth quarter of 2021. Phase 2 drilling is continuing and is focused on resource definition and expansion.

Taj Singh, president and chief executive officer, stated: "These latest drill results from Josefina have returned some of our highest-grade hits to date. With our phase 1 drilling now complete we have transformed what started as a loosely defined vein with less than one kilometre of strike extent into a prominent corridor with two well-defined veins with a total strike extent of more than 2.5 km. Our drilling has also established the presence of higher-grade bulk-tonnage-style mineralization adjacent to the Josefina veins, which suggests most of the vein trend will likely fall within the open pit. These results have exceeded our expectations and, from modest beginnings, should result in Josefina being a key value driver in the mine plan for our upcoming PEA."

Highlight intercepts include:

  • 1.1 metres averaging 3,934 grams per tonne silver equivalent from 404.8 m (1,570 g/t silver, 16.25 g/t gold, 7.0 per cent lead and 19.0 per cent zinc) in hole C21-457;
  • 1.1 m averaging 3,424 g/t AgEq from 92.2 m (1,960 g/t Ag, 0.32 g/t Au, 15.4 per cent Pb and 21.6 per cent Zn) within 28.5 m averaging 245 g/t AgEq (122 g/t Ag, 0.06 g/t Au, 1.1 per cent Pb and 1.9 per cent Zn) in hole C21-435;
  • 1.2 m averaging 2,789 g/t AgEq from 62.4 m (1,480 g/t Ag, 0.22 g/t Au, 13.1 per cent Pb and 20.0 per cent Zn) within 58.8 m averaging 157 g/t AgEq (87 g/t Ag, 0.05 g/t Au, 0.9 per cent Pb and 0.8 per cent Zn) in hole C21-437;
  • 1.4 m averaging 2,139 g/t AgEq from 288.5 m (1,385 g/t Ag, 0.49 g/t Au, 7.5 per cent Pb and 10.9 per cent Zn) in hole C21-436;
  • 4.5 m averaging 1,179 g/t AgEq from 204.5 m (385 g/t Ag, 1.15 g/t Au, 5.9 per cent Pb and 11.9 per cent Zn) in hole C21-435;
  • 1.3 m averaging 1,374 g/t AgEq from 86.0 m (420 g/t Ag, 0.32 g/t Au, 8.8 per cent Pb and 14.9 per cent Zn) in hole C21-459.

Drill results

The Josefina vein trend consists of two principal southwest-trending subparallel veins with an interpreted combined strike extent of more than 2.5 km. The holes in this release confirm continuity of bonanza-grade mineralization along the central part of the vein trend. High-grade veins were intercepted within broader zones of mineralization in the majority of holes pointing to the bulk-tonnage potential in this part of the deposit. The increased density of drilling from the phase 1 drill program will allow for the veins and bulk-tonnage mineralization to be modelled separately for the resource update to ensure a more accurate estimate of the overall grade and tonnage along the Josefina trend.

The veins along the Josefina trend dip steeply to the northwest and mineralization typically consists of semi-massive galena, sphalerite and pyrite. Drilling has confirmed the depth continuity of veins at Josefina to at least 400 m below surface. The vein trend is open at depth below this.

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 are provided in the associated table. The true width of the veins is estimated to be approximately 70 per cent of the drilled width.

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

C21-430          4.2      21.9      17.7        81       0.04      0.2       0.4           108
C21-432         66.0      86.1      20.1        98       0.06      1.6       1.3           215
and            132.3     171.0      38.7        58       0.04      0.8       1.8           162
including      150.8     152.0       1.1       723       0.16      3.7      10.9         1,319
C21-434         78.1     125.7      47.7        30       0.04      0.3       1.0            87
including      113.5     113.8       0.3     1,360       0.71     17.2      18.0         2,769
and            219.0     219.6       0.6       641       4.88      1.0       1.9         1,156
C21-435         73.5     102.0      28.5       122       0.06      1.1       1.9           245
including       92.2      93.4       1.1     1,960       0.32     15.4      21.6         3,424
and            204.5     209.0       4.5       385       1.15      5.9      11.9         1,179
C21-436        280.7     290.0       9.3       269       0.16      1.8       3.0           471
including      288.5     290.0       1.4     1,385       0.49      7.5      10.9         2,139
C21-437          4.8      63.6      58.8        87       0.05      0.9       0.8           157
including       59.8      63.6       3.8       576       0.12      5.2       8.2         1,108
including       62.4      63.6       1.2     1,480       0.22     13.1      20.0         2,789
C20-439        152.6     189.8      37.3        44       0.04      0.4       0.6            87
and            185.2     186.5       1.3       883       0.16      5.2       3.0         1,202
C21-457         53.2      53.5       0.3       639       0.27     11.1      27.0         2,172
and            404.8     405.8       1.1     1,570      16.25      7.0      19.0         3,934
C21-458         47.4      48.1       0.7       945       0.47     11.7       7.1         1,688
and            200.3     277.1      76.8        36       0.04      0.3       1.6           115
C21-459         80.4      87.4       7.0       177       0.16      3.1       5.2           515
including       86.0      87.4       1.3       420       0.32      8.8      14.9         1,374
C21-468        288.8     304.9      16.1        30       0.06      0.3       1.5           108
including      297.9     302.3       4.4        62       0.09      0.4       4.3           261

(1) All results in this news release are rounded. Assays are uncut and undiluted. As a 
guideline, intervals with disseminated mineralization were chosen based on a 25 g/t AgEq 
cut-off with no more than 10 m of dilution, and intervals with vein mineralization were based 
on a 100 g/t AgEq cut-off with no more than one m of dilution. Widths are drilled widths; the 
true width of the vein mineralization is estimated to be approximately 70 per cent of the 
drilled width. 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.)/oz Ag, $1,350 (U.S.)/oz Au, 85 U.S. cents/lb 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 17,200 m (47 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.

Supporting materials

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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