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Discovery Silver Corp
Symbol DSV
Shares Issued 325,155,725
Close 2021-08-24 C$ 1.74
Recent Sedar Documents

Discovery Silver drills 217m of 194 g/t AgEq at Cordero

2021-08-25 07:18 ET - News Release

Mr. Taj Singh reports

DISCOVERY INTERSECTS 194 G/T AGEQ OVER 217 M IN FINAL DRILLING FOR UPCOMING RESOURCE ESTIMATE AT CORDERO

Discovery Silver Corp. has released results from the final drill holes that will be used to support the new resource estimate on its flagship Cordero silver project located in Chihuahua state, Mexico. The resource update is scheduled for completion toward the end of this quarter and will be followed by an updated preliminary economic assessment in the fourth quarter of 2021.

Taj Singh, president and chief executive officer, stated: "The results from our first drill program at Cordero, including further exceptional results in this release, have exceeded our expectations. We have not only confirmed the size and scaleability of Cordero, but also highlighted the excellent margin potential of the project too. The large volume of drill data we have added, totalling 91,000 metres in 223 holes, has also significantly derisked the project. This new drilling, which will be complemented by our reinterpretation of the geological and structural controls of the deposit, provides a strong platform on which the upcoming resource and PEA will be based."

Highlight intercepts include:

  • 217.3 metres averaging 194 grams per tonne silver equivalent from 39.3 m (75 g/t silver, 0.45 g/t gold, 1.1 per cent lead and 1.0 per cent zinc) in hole C21-481, including:
    • 81.9 m averaging 254 g/t AgEq (99 g/t Ag, 0.54 g/t Au, 1.5 per cent Pb and 1.4 per cent Zn);
  • 25.5 m averaging 404 g/t AgEq from 147.2 m (236 g/t Ag, 0.55 g/t Au, 1.2 per cent Pb and 1.9 per cent Zn) in hole C21-482, including:
    • 1.5 m averaging 3,763 g/t AgEq (2,552 g/t Ag, 2.33 g/t Au, 13.3 per cent Pb and 13.3 per cent Zn);
  • 56.8 m averaging 139 g/t AgEq from 358.7 m (40 g/t Ag, 0.05 g/t Au, 0.7 per cent Pb and 1.7 per cent Zn) in hole C21-442;
  • 52.5 m averaging 128 g/t AgEq from 214.8 m (42 g/t Ag, 0.08 g/t Au, 0.7 per cent Pb and 1.3 per cent Zn) and 54.9 m averaging 133 g/t AgEq from 392.8 m (39 g/t Ag, 0.06 g/t Au, 0.9 per cent Pb and 1.3 per cent Zn) in hole C21-493.

Drill results

The final drill holes for the updated resource estimate were from multiple zones in both the North and South corridors. Drilling in the South corridor along the Josefina vein trend continues to intercept high-grade veins within broader zones of disseminated mineralization. Highlight intercepts include 25.5 m of 404 g/t AgEq from 147.2 m (C21-482), 21.0 m of 197 g/t AgEq from 121.5 m (C21-474) and 23.7 m of 195 g/t AgEq from 24.8 m (C21-516).

Infill drilling within the central part of the South corridor was also successful in confirming continuity of mineralization within the higher-grade bulk-tonnage domain. Highlight intercepts include 52.5 m of 128 g/t AgEq and 54.9 m of 133 g/t AgEq (C21-493) and 51.0 m at 107 g/t AgEq and 69.2 m of 121 g/t AgEq (C21-504). Drilling in the South corridor in the far northeast returned mixed results suggesting limited potential to extent the high-grade bulk-tonnage domain in this part of the deposit.

In the North corridor, hole C20-481 confirmed the excellent starter pit potential of the Pozo de Plata zone returning 217.3 m of 194 g/t AgEq. The mineralized zone sits partially within a higher-grade breccia unit more than 150 m wide and started near surface (39.3 m downhole) and consistently reported excellent grades through the entire plus 200 m interval.

Drill hole locations are shown in an image on the company's website and detailed drill highlights from the 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)

C21-481               39.3       256.6       217.3          75        0.45         1.1         1.0         194
including            110.8       192.7        81.9          99        0.54         1.5         1.4         254
C21-482              147.2       172.7        25.5         236        0.55         1.2         1.9         404
including            168.1       169.6         1.5       2,552        2.33        13.3        13.3       3,763
C21-485               87.6        88.6         1.1       1,057        0.19         7.4         8.4       1,681
and                  110.0       110.7         0.7         691        0.04         3.2         9.7       1,209
C21-474              121.5       142.5        21.0          79        0.10         1.2         1.6         197
including            127.6       128.9         1.3         418        0.24         5.2         6.1         871
and including        135.6       137.1         1.5         434        0.08         7.5         5.3         923
C21-475              126.6       164.0        37.5          76        0.05         1.2         1.5         185
including            126.6       127.3         0.7       1,320        0.21        11.0        10.8       2,169
and                  134.3       135.9         1.6         597        0.16        12.2        11.7       1,522
C20-480               63.1       115.5        52.5          34        0.03         0.5         0.9          94
including             90.3        91.2         1.0         554        0.28         4.6        10.0       1,154
C21-499               89.6       128.6        39.0          79        0.08         1.4         3.4         276
and                   90.8        99.9         9.1         221        0.23         3.6        10.2         786
C21-516               24.8        48.5        23.7          75        0.15         0.7         2.1         195
C21-442              358.7       415.5        56.8          40        0.05         0.7         1.7         139
and                  435.3       459.7        24.4          43        0.06         0.9         1.7         150
C21-493              153.5       181.6        28.1          29        0.07         0.5         1.5         115
and                  214.8       267.3        52.5          42        0.08         0.7         1.3         128
and                  392.8       447.6        54.9          39        0.06         0.9         1.3         133
C21-504               96.6       147.6        51.0          42        0.16         0.5         0.8         107
and                  301.7       370.9        69.2          43        0.05         0.8         1.1         121
C21-501              339.8       360.4        20.6          92        0.06         1.5         3.8         305
C21-443              323.7       334.8        11.2          28        0.01         0.7         2.5         157
C21-446              130.5       145.8        15.4          43        0.04         0.6         1.2         116
and                  186.7       212.4        25.7          37        0.09         0.5         0.8          95
C21-449              244.8       331.0        86.2          27        0.06         0.2         0.5          59
                                                                                                  
(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. 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. 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 lead and $1 (U.S.)/lb zinc. 
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 below for metallurgical 
recoveries assumed in the 2018 PEA completed on Cordero.
 
  

Drill program update

Resource drilling

All assays from drilling that will support the updated resource have now been received. This drilling, totalling 91,000 m (223 holes), will supplement the 133,000 m (292 holes) of historic drilling completed on the project. The resource update is scheduled for completion later this quarter and will be followed by an updated PEA in the fourth quarter of 2021.

Phase 2 drilling

The company has completed 10,000 m (21 holes) as part of its phase 2 drill program (excluding drill metres used to support the updated resource), 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

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 $80-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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