Discovery Metals Corp. (TSX-V: DSV) (OTCQX: DSVMF) is pleased to announce results from the second set of diamond drill holes completed at its flagship Cordero project located in Chihuahua State, Mexico. Discovery acquired Cordero through the acquisition of Levon Resources Ltd. in August 2019. The holes are part of the previously announced 30,000-35,000 metre, Phase 1 drill program planned for completion in 2020. The focus of this program is to define and delineate areas of higher-grade mineralization within the existing Cordero resource.
Taj Singh, President and CEO, states: “We are pleased with this second set of drill results, as it further validates the near-surface high-grade potential at Cordero. Drilling completed to-date clearly shows that there is excellent continuity and higher grades within the breccia-hosted mineralization. With the addition of two new drill rigs in January, we are excited to now have four drill rigs turning at Cordero and we look forward to the results from this increase in drill activity over the next few quarters.”
* Complete assay results for holes C19-297 through C19-306 can be found at the link in the “Discussion” section below. Please, refer to the “Technical Notes” section below for details on assumptions & calculations. Grams per tonne is abbreviated as “g/t”, silver equivalent is abbreviated as “AgEq”.
Discovery’s focus at Cordero is on upgrading the economic potential of the Project through understanding the nature of the higher-grade zones within the larger mineralized system. Based on Discovery’s review of previous work and the re-logging of core from historic drilling, higher-grade mineralization is currently understood to be predominantly associated with two styles of mineralization: (1) sulphide mineralization within a breccia host; and (2) discrete sulphide veins. The goal of the Phase 1 program is to gain an understanding of the geology, geometry (strike, dip, orientation) and controls on these styles of mineralization in order to define and delineate the higher-grade zones.
Twenty-three holes totaling 8,214 m have been completed to-date, with assays from 15 holes pending. All holes were drilled in the southwest portion of the resource area as defined by Levon3 and were drilled roughly perpendicular to the northeast trend of higher-grade blocks outlined in the Levon resource model.
Holes C19-297 through C19-306 comprise the second set of drill results released by Discovery (see January 8, 2020 press release for the results of holes C19-293 through C19-296). Seven of the ten holes were successful in targeting higher-grade sulphide mineralization within a breccia host. In several holes, mineralization was also intercepted in dacite and sedimentary rocks adjacent to the mineralized breccias. Sulphide mineralization consists predominantly of sphalerite, galena and pyrite as breccia matrix fill within dacite clast-dominated breccias.
Holes C19-297 and C19-303 intercepted sulphide vein-style mineralization with highlight intercepts including 1.1 m of 1,533 g/t AgEq2 and 0.6 m of 1,569 g/t AgEq2. The Company will conduct mapping of historical underground workings to improve its understanding of the structural and geological controls on the sulphide veins. Drilling of the vein targets will ramp up during Q2 once the initial phase of the mapping program is complete.
Supporting maps and sections, drill hole locations and full assay results can be found at the link below:
A full version of this press release with supporting maps and sections can be found at the link below:
2020 EXPLORATION PROGRAM:
The Phase 1 drill program will encompass 30,000–35,000 m of drilling. Approximately 6,000 m of the drill program was completed in 2019. The remainder of the drill program is expected to be completed during the first three quarters of 2020. The majority of the drilling in 2020 will be focused on higher-grade breccia mineralization, with the remainder targeting sulphide vein mineralization. The results from Phase 1, in conjunction with the ongoing relogging program of historical drill core, will be incorporated in an updated resource estimate for Cordero, targeted for completion in early 2021.
In addition to this work, the Company anticipates the completion of metallurgical test work in the second half of 2020. Discovery also expects to advance reconnaissance targets on the large 35,000 hectare Cordero property package to drill-ready status in 2020, through mapping, sampling and interpretation of a recently completed, property-wide geophysical survey.
The total exploration budget at Cordero for 2020 is C$11.0 million. The Company is well positioned to fund this exploration program given a cash balance as of January 1, 2020, of approximately C$24.0 million.
About the Cordero Project
Cordero is located on the eastern edge of the Sierra Madre Occidental mountains in the northern part of the Central Mexican Silver Belt, Mexico’s premier porphyry and carbonate replacement deposit district. Mineralization at Cordero is similar in nature to well-known nearby bulk tonnage precious metals mines and projects (e.g. Newmont Corporation’s Peñasquito Mine and Orla Mining Ltd.’s Camino Rojo project). The bulk tonnage potential of the Cordero deposit was first recognized by Levon in 2009 and the resource was defined by 132,000m of drilling in 292 holes. The most recent resource estimate3 as shown in the table below was released in 2018 (technical report available on Discovery’s website and Levon’s SEDAR profile) and was based on a base case cutoff grade of 15 g/t AgEq. The table includes a sensitivity analysis that also shows tonnage and grade estimates at higher AgEq cutoff grades within the resource shell.
|AgEq3 (g/t) Cutoff||Tonnage & Grade within Mineral Resources Pit Shell||Total Contained Ag (Mozs)||Total Contained AgEq3 (Moz)|
|Class||M (tonnes)||AgEq3 (g/t)||Ag (g/t)||Au (g/t)||Pb (%)||Zn (%)|
Historical mine workings and prospects at Cordero date back to the 17th century. There are currently about 40 identified shallow, vertical shafts and associated workings at Cordero, generally developed along outcropping, southwest-striking, high-grade silver-zinc-lead-gold sulphide veins as well as high-grade skarn mineralization. Local artisanal miners report most of the past and recent production was direct shipping ore, which was hand-sorted, shipped, and processed in the nearby town of Parral. Despite a long history of mining, these veins have never been explored by drilling, and have the potential to add significantly to the high-grade mineral endowment at Cordero.
Discovery Metals Corp. 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. 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 land holdings 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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