Discovery Silver Corp. (TSX-V: DSV) (OTCQX: DSVSF) is pleased to announce results from the first 15 Feasibility Study drill holes on its flagship Cordero silver project located in Chihuahua State, Mexico. These holes consisted of upgrade and expansion drilling of the proposed open pit and were drilled subsequent to the data cut-off date for the Pre-Feasibility Study. The Pre-Feasibility Study is progressing well and remains on track to be delivered in early 2023.

Highlight intercepts from this current set of drill holes include:

• 77 m averaging 126 g/t AgEq¹ (46 g/t Ag, 0.08 g/t Au, 0.7% Pb and 1.4% Zn) from 218 m and 22 m averaging 265 g/t AgEq¹ (83 g/t Ag, 0.10 g/t Au, 1.8% Pb and 3.2% Zn) from 374 m in hole C22-656.
• 96 m averaging 124 g/t AgEq¹ (33 g/t Ag, 0.03 g/t Au, 0.7% Pb and 1.8% Zn) from 464 m including 36 m averaging 190 g/t AgEq¹ (44 g/t Ag, 0.04 g/t Au, 0.9% Pb and 3.1% Zn) in hole C22-654.
• 43 m averaging 179 g/t AgEq¹ (62 g/t Ag, 0.11 g/t Au, 1.4% Pb and 1.7% Zn) from 228 m in hole C22-648.
• 52 m averaging 139 g/t AgEq¹ (49 g/t Ag, 0.07 g/t Au, 0.8% Pb and 1.7% Zn) from 224 m in hole C22-653.

Tony Makuch, Interim CEO, states: “Results from our first set of drill holes to increase the confidence level of the resource model continues to demonstrate the excellent continuity of mineralization within the open pit at Cordero and supports the mineral resource estimation. Drilling on the margins of the pit also outlines the opportunity to expand the size of the pit laterally and at depth as we proactively target value-creation opportunities.

Meanwhile we continue to make excellent progress on our Pre-Feasibility Study. Geotechnical evaluation work has confirmed favourable ground conditions of the proposed locations of key infrastructure, including the rock storage facility and the tailings storage facility. Mine design has been focused on the optimisation of mine phasing including targeting a reduction in the volume of pre-strip during the development period. The process design has been improved and incorporates a conventional flowsheet with silver production and operating costs expected to benefit from better metallurgical recoveries and mill throughput rates that are approximately 25% higher than what was assumed in the PEA. Other scope areas are progressing well and we remain on schedule to deliver this major milestone in early 2023.”

DRILL RESULTS:

This initial set of Feasibility Study drill holes was focused on two key areas: 1) further upgrading the resource classification within the PEA pit and 2) expanding and upgrading resource blocks between the PEA pit and the Resource constraining pit shells. Detailed drill highlights from the holes in this release are provided in the tables below. Supporting maps and sections, drill hole locations and full assay results can be found at the following link: Plan map, sections & assays

A PDF of this release with supporting maps and sections included as appendices can be found at the following link: Press release with plan map & sections

In the South Corridor, hole C22-654 intercepted 95.7 m of 124 g/t AgEq¹ on the margins of the PEA pit and at a vertical depth of approximately 450 m. Hole C22-656, drilled to upgrade the resource in the central part of the South Corridor, returned a number of strong intervals including 77.1 m of 126 g/t AgEq¹ from 131.1 m and 21.7 m of 265 g/t AgEq¹ from 374.3 m.

In the North Corridor, hole C22-648 intercepted 27.4 m of 86 g/t AgEq¹ from 166.2 m and 42.6 m of 179 g/t AgEq¹ from 228.3 m, confirming the continuity of higher-grade mineralization within the core of the PEA pit. Hole C22-647, drilled to improve the data density on the western edge of the pit, returned 25.6 m of 99 g/t AgEq¹ from 174.1 m and 18.7m of 147 g/t AgEq¹ from 264.8 m. Both intervals were outside of the PEA pit limit demonstrating the potential to laterally expand future pit extents.

Detailed drill highlights from the initial feasibility study drill holes are provided in the table below:

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 cutoff with no more than 10 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% of the Company’s mineralized intercepts. AgEq calculations for reported drill results are based on USD $22.00/oz Ag, $1,600/oz Au, $1.00/lb Pb, $1.20/lb Zn. The calculations assume 100% 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 2021 PEA completed on Cordero.}

DRILL PROGRAM UPDATE:

The Company has now completed approximately 17,000 m (52 holes) as part of its Feasibility Study drill program. Feasibility study drilling will consist of engineering drilling, resource upgrade drilling and drilling targeting the expansion of the PFS open pit. The total metres to be drilled in the feasibility study drill program will be finalised following the completion of the PFS scheduled for early 2023. Total metres supporting the PFS is summarized below:

About Discovery

Discovery’s flagship project is its 100%-owned Cordero project, one of the world’s largest silver deposits. The PEA completed in November 2021 demonstrates that Cordero has the potential to be developed into a highly capital efficient mine that offers the combination of margin, size and scaleability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico. Continued exploration and project development at Cordero is supported by a strong balance sheet with cash of approximately C$55 million.