07:32:59 EDT Thu 28 Oct 2021
Enter Symbol
or Name

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Discovery Silver Corp
Symbol DSV
Shares Issued 325,155,725
Close 2021-08-26 C$ 1.67
Recent Sedar Documents

Discovery Ag has cash position of $87.95M at June 30

2021-08-26 10:25 ET - News Release

Mr. Taj Singh reports


Discovery Silver Corp. has released its financial results for the three months ended June 30, 2021 (Q2 2021), and has 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. It 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 scaleability.

Highlights from Q2 2021 and subsequent events:


As at June 30, 2021, the company had a cash, cash equivalents and short-term investment balance of $88-million. The company's cash position as of the date of this release is approximately $83.6-million.


At Cordero, the company has now received all assays that will be used to support the bulk-tonnage resource update scheduled for release later this quarter. These new drill data, totalling 91,000 metres (223 holes), will supplement the historical drilling completed on the property. The preliminary economic assessment (PEA) remains on schedule for delivery in Q4 2021.

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.

PEA update

The company announced during the quarter that the PEA will be led by Ausenco, an industry leader in cost-effective process design and construction, with input from specialists across all key mining disciplines. The overarching objective is to deliver a technically robust study that outlines one of the largest producing primary silver operations in the industry with manageable upfront development capex (capital expenditure) and operating costs in the bottom half of the industry cost curve.

Support work for the study is progressing well. A comprehensive metallurgical test work program is now complete with results expected to be received later this quarter. Process design work as well as development of capex and operating cost inputs for processing and mining continues to be advanced. Knight Piesold and Co. (U.S.) are close to completing their assessment of pit wall stability based on two dedicated geotechnical drill holes in the North corridor and a review of drill core in the South corridor. Knight Piesold have also completed preliminary work on the overall site layout including the potential location of the tailings storage facility.

Bulk-tonnage drilling

The company's recent drilling has expanded the higher-grade bulk-tonnage domain by more than 250 metres northeast, along strike in the South corridor. This domain has now been defined over a strike length of approximately 1.4 kilometres and drilled to a depth of 500 metres and remains open below this. Higher-grade zones of mineralization are typically flanked by medium and lower-grade mineralization pointing to the scalability of the mineralized system at Cordero.

Select drill highlights during Q2 2021 and subsequent to quarter-end from the company's bulk-tonnage targets include:

  • 217.3 metres averaging 194 grams per tonne silver equivalent from 39.3 metres (75 grams per tonne Ag, 0.45 gram per tonne gold, 1.1 per cent lead and 1 per cent zinc) in hole C21-481 including 81.9 metres averaging 254 grams per tonne AgEq (99 grams per tonne Ag, 0.54 gram per tonne Au, 1.5 per cent Pb and 1.4 per cent Zn);
  • 132.6 metres averaging 260 grams per tonne AgEq from 204.7 metres (78 grams per tonne Ag, 0.11 gram per tonne Au, 1.7 per cent Pb and 2.8 per cent Zn) in hole C21-479 including 46.3 metres averaging 448 grams per tonne AgEq (110 grams per tonne Ag, 0.10 gram per tonne Au, 2.4 per cent Pb and 5.9 per cent Zn) and 21.5 metres averaging 748 grams per tonne AgEq (194 grams per tonne Ag, 0.12 gram per tonne Au, 4.2 per cent Pb and 9.6 per cent Zn);
  • 86.2 metres averaging 192 grams per tonne AgEq from 312.5 metres (51 grams per tonne Ag, 0.09 gram per tonne Au, 1.2 per cent Pb and 2.2 per cent Zn) in hole C21-476 including 36.5 metres averaging 372 grams per tonne AgEq (97 grams per tonne Ag, 0.16 gram per tonne Au, 2.3 per cent Pb and 4.3 per cent Zn);
  • 65.9 metres averaging 258 grams per tonne AgEq from 309.4 metres (69 grams per tonne Ag, 0.11 gram per tonne Au, 0.7 per cent Pb and 3.7 per cent Zn) in hole C21-417;
  • 128.2 metres averaging 165 grams per tonne AgEq from 312.4 metres (65 grams per tonne Ag, 0.05 gram per tonne Au, 1.2 per cent Pb and 1.3 per cent Zn) including 26.1 metres averaging 263 grams per tonne AgEq (109 grams per tonne Ag, 0.06 gram per tonne Au, 2 per cent Pb and 1.9 per cent Zn) in hole C20-405.

High-grade vein drilling

The company continues to demonstrate the excellent potential of the high-grade vein systems that transect the deposit. At Josefina it has consistently intercepted bonanza grades along 1.5 kilometres of strike extent. At the 1.5-kilometre Todos Santos vein trend it continues to expand the drill-confirmed strike extent with recent stepout holes 250 metres to the southwest and 250 metres to the northeast from its previous drilling intercepting high-grade vein mineralization.

Select drill highlights from these veins during Q2 2021 and subsequent to quarter end include:

Josefina vein trend:

  • 4.1 metres averaging 1,043 grams per tonne AgEq from 304.5 metres (520 grams per tonne Ag, 0.11 gram per tonne Au, 3 per cent Pb and 9.8 per cent Zn) in hole C21-421;
  • 1.1 metres averaging 3,934 grams per tonne AgEq from 404.8 metres (1,570 grams per tonne Ag, 16.25 grams per tonne Au, 7 per cent Pb and 19 per cent Zn) in hole C21-457;
  • 1.1 metres averaging 3,424 grams per tonne AgEq from 92.2 metres (1,960 grams per tonne Ag, 0.32 gram per tonne Au, 15.4 per cent Pb and 21.6 per cent Zn) within 28.5 metres averaging 245 grams per tonne AgEq (122 grams per tonne Ag, 0.06 gram per tonne Au, 1.1 per cent Pb and 1.9 per cent Zn) in hole C21-435.

Todos Santos vein trend:

  • 2.2 metres averaging 403 grams per tonne AgEq from 157.5 metres (163 grams per tonne Ag, 0.17 gram per tonne Au, 2.8 per cent Pb and 3.1 per cent Zn) in hole C20-404;
  • One metre averaging 589 grams per tonne AgEq from 258.1 metres (160 grams per tonne Ag, 0.39 gram per tonne Au, 3.8 per cent Pb and 6.4 per cent Zn) in hole C21-409;
  • 2.1 metres averaging 558 grams per tonne AgEq from 73.3 metres (160 grams per tonne Ag, 0.27 gram per tonne Au, 3.3 per cent Pb and 6.3 per cent Zn) in hole C21-418.

For drill results noted above, refer to news releases dated April 20, May 26, June 22, July 13, Aug. 5 and Aug. 25, 2021, for further details.


Despite the increased risk that the Delta variant poses to future exploration at the project, all the drilling required to complete the updated resource has now been completed and the company remains on track to deliver it by the end of Q3 and an updated PEA in Q4. To date, health and safety protocols and the efforts of employees and contractors to manage COVID-19 have been effective and the company continues drilling with four diamond core rigs.

Looking ahead:

The company is looking forward to releasing its updated resource estimate later this quarter. The resource will be supported by updated geological and structural models and data from approximately 200,000 metres of drilling from more than 500 drill holes. The resource update will be followed by a revamped PEA in Q4 2021. The PEA will consider staged expansions to reduce upfront capex and an elevated cut-off grade strategy and effective use of stockpiling to accelerate the payback period. The study will be vetted by industry leading consultants and supported by a comprehensive dataset including three rounds of metallurgical test work.

It is already planning for next year with its continuing phase 2 drill program focused on reserve definition for an expected prefeasibility study on the project for 2022. Alongside this infill drilling it will remain focused on potential resource expansion of bulk-tonnage mineralization as well as continuing testing of the grade and continuity of the high-grade veins that transect the deposit. Its property-wide mapping and sampling program also continues to progress well with targets expected to be finalized through the remainder of the year ahead of initial drill testing early next year.

It is also close to completing the company's inaugural ESG (environmental, social and governance) report which it expects will be published in Q4 2021. The report will provide a framework of its ESG pillars and principles and is reflective of its commitments to operate in a safe and responsible manner and to have a positive impact on local communities as it diligently advances Cordero toward a construction decision over the coming years.

Selected financial data

The following selected related financial data are summarized from the company's condensed interim consolidated financial statements and related notes thereto for the three months ended June 30, 2021.

A copy of the financial statements and management discussion and analysis are available on the company website or on SEDAR.

Net loss                                               Q2 2021           Q2 2020
(a) Total                                      $   (8,709,519)    $  (1,747,677) 
(b) Basic and diluted per share                $        (0.03)    $       (0.01) 
Net (loss) and total comprehensive (loss)      $   (8,736,684)    $  (1,936,075) 

                                                       June 30, 2021      Dec. 31, 2020 

Cash, cash equivalents and short-term investments     $   87,955,295     $   82,547,897 
Total assets                                          $  116,923,661     $  111,564,881 
Total current liabilities                             $    1,825,301     $      982,260 
Total liabilities                                     $    1,842,299     $    1,023,349 
Working capital                                       $   86,871,096     $   82,435,046 
Total shareholders' equity                            $  115,081,362     $  110,541,532 

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 approximately $84-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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