Discovery Silver Corp. (TSX: DSV) (OTCQX: DSVSF) is pleased to announce results from Feasibility Study drill holes on its flagship Cordero silver project located in Chihuahua State, Mexico. These holes consist of reserve expansion drilling and will be incorporated in a Feasibility Study in conjunction with a resource update planned for the first half of 2024.

Highlight intercepts from this current set of drill holes include:

• 41 m averaging 197 g/t AgEq¹ (63 g/t Ag, 0.09 g/t Au, 1.2% Pb and 2.7% Zn) from 386 m and 8 m averaging 416 g/t AgEq¹ (195 g/t Ag, 0.23 g/t Au, 2.2% Pb and 4.1% Zn) from 79 m in the core of the South Corridor in hole C22-688.
• 37 m averaging 139 g/t AgEq¹ (58 g/t Ag, 0.05 g/t Au, 0.8% Pb and 1.5% Zn) from 236 m and 104 m averaging 86 g/t AgEq¹ (37 g/t Ag, 0.04 g/t Au, 0.3% Pb and 1.1% Zn) from 91 m in hole C22-705; these intervals were in the southern portion of the South Corridor within the reserves pit.
• 51 m averaging 105 g/t AgEq¹ (51 g/t Ag, 0.06 g/t Au, 0.7% Pb and 0.9% Zn) from 63 m in hole C22-697 in the southern portion of the South Corridor.

Tony Makuch, CEO, states: “Our Feasibility Study drilling continues to demonstrate the potential to grow reserves at Cordero whilst building further confidence in the underlying resource model. This drill program is nearing completion upon which drilling will then focus on testing multiple highly prospective targets identified by our extensive field programs that have been ongoing since 2021.

“Meanwhile, we continue to make excellent progress on our environmental impact assessment (‘Manifesto de Impacto Ambiental’ or ‘MIA’) which we plan to submit to the Mexican Federal Environmental Department (SEMARNAT) later this quarter. The MIA is one of the principal permits required for the development of Cordero. We have completed an initial review of the new mining law in Mexico and while we are awaiting further clarification on certain amendments, we do not expect the new mining law will have a material impact on the Project timeline. It is our intention to adhere to all Mexican regulatory requirements alongside our overarching corporate objective of delivering the highest industry standards for environmental protection, social responsibility and health and safety.”

DRILL RESULTS:

This current set of Feasibility Study drilling consists of 23 drill holes and was focused on two key areas: 1) reserve upgrade and expansion drilling in the South Corridor and 2) reserve expansion drilling on the margins of the Pozo de Plata zone in the North Corridor. Supporting maps and sections, drill hole locations and full assay results can be found here: Plan map, sections & assays. A PDF of this release with supporting maps and sections included as appendices can be found here: Press release with plan map & section.

Drilling in the South Corridor continues to demonstrate the potential to improve grade and convert waste to ore within the reserves pit. C22-705 returned 36.7 m of 139 g/t AgEq¹ from 236.3 m toward the bottom of the reserves pit in an area previously modelled as low grade and waste. This hole also intercepted 103.6 m of 86 g/t AgEq¹ from 91.2 m improving the confidence of a broad higher-grade zone near surface. On this same section, hole C22-688 returned 40.6 m of 197 g/t AgEq¹ from 386.4 m and 37.5 m of 78 g/t AgEq from 282.1 m. Both intercepts have the potential to expand the volume of higher-grade blocks modelled toward the bottom of the reserves pit. C22-698 intercepted 78.3 m of 97 g/t AgEq¹ from 103.5 m, potentially extending the depth of higher-grade blocks within the reserves pit.

Drilling in the North Corridor consisted of shallow holes targeting the expansion of reserves on the northwest margins of the Pozo de Plata zone. Drilling confirmed that the tenor of mineralization at Pozo de Plata diminishes to the northwest, consistent with the underlying block model estimation in this area.

Detailed drill highlights from this set of Feasibility Study drill holes are provided in the table below:

¹All 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 reporting 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 is calculated as Ag(g/t) + 18.39 x Au(g/t) + 30.81 x Pb(%) + 36.54(%). This calculation is based on metal prices of USD $22.00/oz Ag, $1,600/oz Au, $1.00/lb Pb, $1.20/lb Zn and life-of-mine average recovery assumptions from the 2023 Pre-Feasibility Study of 87% for Ag, 22% for Au, 86% for Pb and 85% for Zn.

DRILL PROGRAM UPDATE:

The Company has now completed 49,700 m (156 holes) as part of its Feasibility Study drill program (since the data cut-off for the PFS study). Feasibility study drilling consists of resource upgrade drilling, drilling targeting the expansion of the PFS open pit, engineering drilling and condemnation drilling.

Condemnation drilling is expected to wrap up in June upon which the property-wide drill program will commence. This program will initially target large chargeability anomalies in the Sanson area (approximately 3.5 km to the northeast of Cordero) and resource expansion targets to the northeast of the deposit. Currently, 9,000m of drilling is planned for property wide drilling in 2023.  This program may be expanded depending on the results of the initial drilling.

About Discovery

Discovery’s flagship project is its 100%-owned Cordero project, one of the world’s largest silver deposits. The PFS published in February 2023 demonstrates that Cordero has the potential to be developed into a highly capital-efficient mine that offers the combination of margin, size, and scalability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico.