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Discovery Metals drills 168.8 m of 207 g/t AgEq

2020-05-07 14:11 ET - News Release

Mr. Taj Singh reports

DISCOVERY DRILLS 168.8 M OF 207 G/T AGEQ, COMPRISED OF 70 G/T AG, 0.10 G/T AU, 1.5% PB & 1.9% ZN, ALONG NORTH-EAST EXTENSION AT ITS CORDERO PROJECT, MEXICO

Discovery Metals Corp. has released results from eight diamond drill holes completed at its flagship Cordero project located in Chihuahua, Mexico. The holes are part of a 30,000-metre to 35,000-metre phase 1 drill program that commenced in September, 2019. The goal of this program is to define a high-margin project with scale that retains excellent leverage to rising metal prices. Drill holes for this current release (C20-317 through C20-324) were focused on defining and extending the higher-grade mineralized footprint to the northeast and southwest of the previously defined limits of the Pozo de Plata zone.

Taj Singh, president and chief executive officer, states: "These drill results continue to illustrate the strongly mineralized footprint at Cordero. Hole C20-319, the furthest northeast hole drilled by Discovery for which assays have been received, intercepted 168.8 m of 207 g/t AgEq (70 g/t Ag, 0.10 g/t Au, 1.5 per cent Pb and 1.9 per cent Zn). Hole C20-317, the company's furthest southwest hole drilled to date, intercepted 79 m of 159 AgEq g/t (90 g/t Ag, 0.22 g/t Au, 0.9 per cent Pb and 0.5 per cent Zn). In total there is approximately 1,250 m of strike extent between these two holes. This not only demonstrates the sheer scale of the mineralized system but the broad widths and excellent grades near-surface also highlight the high-margin potential that exists at Cordero."

Discussion

Forty-eight holes totalling 17,500 metres have been completed to date at Cordero. Assays from 16 holes are pending. All holes have been drilled roughly perpendicular to the main structural northeast trend of higher-grade mineralization.

Initial drilling from the phase 1 drill program was focused on understanding the mineralizing controls in the Cordero system. Drill holes for this current release were focused on testing and defining the mineralization potential to the northeast and the southwest of the core Pozo de Plata zone.

Northeast extension

Drilling northeast of Pozo de Plata confirmed broad zones of silver-rich breccia mineralization across a strike length along this extension of approximately 600 m. Hole C20-319, the northeastern-most hole drilled by the company for which assay results have been received, intercepted 168.8 m of 207 grams per tonne silver equivalent (70 g/t silver, 0.1 g/t gold, 1.5 per cent lead and 1.9 per cent zinc). The remaining holes in this news release drilled along this northeast trend also intercepted wide zones of breccia-hosted mineralization. Subsequent drilling has targeted mineralization farther northeast of hole C20-319. Drill highlights from the northeast extension are provided in the first table.

                                                                                            Distance northeast
Hole ID        From (m)  To (m)  Width (m)  Ag (g/t)  Au (g/t)  Pb (%)  Zn (%)  AgEq (g/t)    of Pozo de Plata

C20-319            77.0   108.2       31.2        51      0.07     0.9     0.8         122               
and               140.0   308.8      168.8        70      0.10     1.5     1.9         207        
including         264.8   292.5       27.7       103      0.20     2.2     4.4         378                 
and including     275.1   292.5       17.4       123      0.24     2.6     6.0         484              
and including     302.4   307.8        5.4       294      0.25     6.8     6.6         826        
and               389.2   420.1       30.9        28      0.05     0.5     1.6         118               600 m
C20-320            84.9   115.7       30.8        45      0.26     0.7     0.4         107               
and               132.5   174.0       41.5        75      0.25     1.7     1.1         201      
and               213.1   250.4       37.3        67      0.24     1.5     0.7         166     
including         214.2   217.5        3.3       588      0.58    12.4     1.7       1,141               300 m
C20-322           104.7   124.6       19.9        72      0.41     1.2     1.4         205               
including         111.3   115.3        4.1       270      1.45     4.7     5.5         780               100 m
C20-324           105.1   227.0      121.9        34      0.07     0.6     0.8          93              
and               290.2   301.7       11.5        45      0.09     1.1     2.1         176               500 m

Southwest extension

Four holes were drilled to test the mineralization continuity to the southwest of Pozo de Plata. Hole C20-317, drilled 400 m southwest of Pozo de Plata, intercepted 79 m of 159 g/t AgEq (90 g/t Ag, 0.22 g/t Au, 0.9 per cent Pb and 0.5 per cent Zn) from surface, confirming the extension and continuation of near-surface breccia-hosted mineralization in this direction. Drill highlights from the four holes drilled along the southwest extension are provided in the second table.

                                                                                        Distance southwest of
Hole ID    From (m)  To (m)  Width (m)  Ag (g/t)  Au (g/t)  Pb (%)  Zn (%)  AgEq (g/t)          Pozo de Plata

C20-317         0.0    79.0       79.0        90      0.22     0.9     0.5         159                  
including      35.0    35.5        0.5     1,500      0.33    22.7     6.7       2,608                  400 m
C20-318         8.4    30.6       22.2        40      0.08     0.5     0.4          79                  400 m
C20-321       195.0   206.3       11.3         8      0.00     0.3     2.4         120                  300 m
C20-323       197.0   217.5       20.5        53      0.02     1.6     3.0         236                  
and           226.6   243.5       16.9        25      0.01     0.6     2.9         167                  350 m                          

Drill update

The company announced on March 31, 2020, that it had temporarily suspended all exploration activities at its Mexican operations due to the increased health and safety risks associated with the growing number of COVID-19 cases in the country. The shutdown is expected to last until at least May 30, 2020, as per the most recent administrative order from the federal government of Mexico suspending all non-essential business activities until that date. The company has put in place business continuity plans so that exploration activity can quickly ramp up once it is deemed safe to do so.

Sample analysis and quality assurance/quality control program

True widths of reported drill intercepts have not been determined. 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 Geochemistry-Mexico 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, a split of 250 g 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 of exploration, Discovery Metals, 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.

About Discovery Metals Corp.

Discovery Metals is focused on historic mining districts in Mexico. Discovery's flagship is its 100-per-cent-owned Cordero silver project in Chihuahua state, Mexico. The 35,000-hectare property covers a large district that hosts the announced resource as well as numerous exploration targets for bulk-tonnage diatreme-hosted, porphyry-style and carbonate replacement deposits. In addition, Discovery is also exploring multiple high-grade carbonate replacement-style silver-zinc-lead showings in a land package of approximately 150,000 hectares in Coahuila state, Mexico. The landholdings contain numerous historical direct ship ore workings and significant underground development, but no drill testing has ever been carried out on them.

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