Mr. Taj Singh reports
DISCOVERY REPORTS Q1 2020 OPERATING & FINANCIAL RESULTS
Discovery Metals Corp. has released its operating and financial results for the three months ended March 31, 2020.
The Company is focused on advancing a portfolio of silver projects in historic mining districts in northern Mexico, including our flagship Cordero project in Chihuahua State ("Cordero" or the "Project"), as well as the Puerto Rico, Minerva and Monclova projects in Coahuila State.
In February 2020 we were named to the TSX Venture Exchange's 2020 Venture 50 in recognition of our share price appreciation, market capitalization growth, and trading volume growth over the past year.
In March 2020 we temporarily suspended all exploration activities at our Mexican operations due to the increased health and safety risks associated with the growing number of COVID-19 cases in the country. We have put in place business continuity plans so that exploration activity can quickly ramp up once it is deemed safe to do so.
In April 2020 we announced the divestiture of our non-core Congress property located in British Columbia, to Talisker Resources Ltd. ("Talisker"). Under the terms of the purchase agreement, Talisker issued 1,000,000 common shares to our Company in return for 100% ownership of Congress.
On May 18, 2020, we announced a $25 million private placement that included a $10 million investment from Mr. Eric Sprott. This financing is expected to close in early June. Support for this placement is indicative of the strong investment interest in our Company and the exposure and leverage that our Cordero project provides to a rising silver price. Upon completion, we will have over $40 million of cash on our balance sheet - this positions us as one of the best financed silver exploration companies in the industry.
At Cordero, our 100% owned project in Chihuahua State, Mexico, we:
Rapidly progressed our 30,000 to 35,000 metre ("m") Phase 1 drill program -- to date we have completed forty-eight holes totaling approximately 17,500 m
Demonstrated excellent near-surface higher-grade potential at the Project over a strike length of approximately 1,250 m. Drill highlights to date include:
68.1 m of 361 g/t AgEq
1 in hole C19-295 from 157.8 m (comprised of 117 g/t Ag, 1.96 g/t Au, 1.7% Pb and 1.1% Zn)
105.9 m of 188 g/t AgEq
1 in hole C19-304 from 76.8 m (comprised of 74 g/t Ag, 0.38 g/t Au, 1.1% Pb and 1.1% Zn)
62.8 m of 217 g/t
1 in hole C20-316 from 222.3 m (comprised of 79 g/t Ag, 0.58 g/t Au, 1.2% Pb and 1.2% Zn)
168.8 m of 207 g/t
1 in hole C20-319 from 140.0 m (comprised of 70 g/t Ag, 0.10 g/t Au, 1.5% Pb and 1.9% Zn)
Intercepted multiple sulphide veins that returned kilogram per tonne silver equivalent intercepts. Drill highlights to date from these veins include:
1.0 m of 2,153 g/t
1 in hole C20-316 from 166.4 m (comprised of 1,255 g/t Ag, 1.10 g/t Au, 20.0% Pb and 2.5% Zn)
3.3 m of 1,141 g/t
1 in hole C20-320 from 214.2 m (comprised of 588 g/t Ag, 0.58 g/t Au, 12.4% Pb and 1.7% Zn).
Q1 2020 FINANCIAL HIGHLIGHTS
The following selected financial data is summarized from our Company's unaudited interim condensed consolidated financial statements and related notes thereto (the "Financial Statements") for the three months ended March 31, 2020. A copy of the Financial Statements is available at the company's website or on SEDAR.
Discovery has transformed itself over the last 12 months and we believe we are now in the best position since the Company's formation to benefit from a rising silver price. Through the acquisition of our Cordero project in August 2019 we now have 100% ownership of a very large silver endowment. Post-acquisition we have been actively adding value through drilling with highly encouraging results reported from our Phase 1 drill program. Upon completion of the recently announced financing, we will have a cash balance of over $40 million. Our balance sheet has never been stronger and moving forward we have the firepower to aggressively advance Cordero and to accelerate our exploration efforts on the surrounding regional property package.
On March 31, 2020, we announced the temporary suspension of exploration activity in response to COVID-19. We are using this period to evaluate the substantial amount of data collected to-date to refine our drill targets. We still have assays pending from 16 holes completed prior to the shutdown and we look forward to releasing these holes in the coming weeks. We have also been busy putting in place business continuity plans so that we can ramp up our drilling activities in an efficient and systematic fashion once it is deemed safe to do so.
We look forward to providing further details on the progress we have made to our shareholders at our upcoming Annual General Meeting (AGM). The AGM will be held via conference call on June 26, 2020.
Discovery Metals is a Canadian exploration and development company headquartered in Toronto, Canada, and focused on historic mining districts in Mexico. Discovery's flagship is its 100%-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.
Gernot Wober, PGeo, VP Exploration, Discovery Metals Corp., 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 ("NI 43-101") and has reviewed and validated that the information contained in this news release is accurate.
We seek Safe Harbor.
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