Extended Higher-Grade Mineralization And Expanded Drill Program At Cordero Project

TORONTO - Discovery Metals Corp. reported results from eight diamond drill holes completed at its flagship Cordero project located in Chihuahua State, Mexico. The holes are part of a Phase 1 diamond core drilling 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. Current discussed drill holes focused on defining and extending the higher-grade mineralized footprint in the northern corridor along the north-east trend.

Highlight intercepts include: 0.7 meters (“m”) averaging 2,489 grams per tonne (“g/t”) silver equivalent (“AgEq”)1 in hole C20-326 from 303.1 m (comprised of 2,470 g/t Ag, 0.02 g/t gold (“Au”), 0.0% lead (“Pb”) and 0.4% zinc (“Zn”)); 51.9 m averaging 197 g/t AgEq1 in hole C20-328 from 79.2 m (comprised of 69 g/t Ag, 0.13 g/t Au, 1.1% Pb and 1.9% Zn)l; 62.2 m averaging 174 g/t AgEq1 in hole C20-328 from 239.8 m (comprised of 62 g/t Ag, 0.22 g/t Au, 1.2% Pb and 1.3% Zn) & 85.5 m averaging 112 g/t AgEq1 in hole C20-330 from 134.3 m (comprised of 38 g/t Ag, 0.16 g/t Au, 0.8% Pb and 0.8% Zn).

Taj Singh, President and CEO, said, “We are very encouraged that we continue to intercept broad zones of mineralization with excellent grades along the north-east trend in areas where there are significant gaps in previous drilling. We are also excited to announce, based on the excellent exploration results we have achieved to date, we are expanding our Phase 1 drill program by approximately 20,000 meters. With over C$40 million cash on our balance sheet we are very well positioned to not only complete this expanded program, along with an updated resource and PEA, but also to advance and drill test our property-wide targets at Cordero.”

The initial Phase 1 Cordero drill program was planned for 30,000-35,000 m of core drilling. Forty-eight holes totaling 17,500 m have been completed to date. Based on the strong results thus far, and following the closing of a C$25 million private placement on June 8, 2020, the Company is expanding its Phase 1 drill program to 50,000-55,000 m. The additional meters will be focused on two key areas: 1) Targeting of broad zones of breccia-hosted mineralization in the east and north-east of both mineralized corridors and 2) Testing of the width, grade and continuity of extensive high-grade vein systems identified in and adjacent to historical artisanal underground workings during the early history of the Project.

Following a shutdown of exploration activities due to COVID-19, drilling activity is expected to commence by the end of the month with one drill rig. Further drill rigs will be added when the Company is confident that health and safety risks can be managed effectively.

Initial drilling from the Phase 1 drill program was focused on understanding the mineralizing controls in the Cordero system. The eight drill holes in this current release (C20-325 through C20-322) were focused on testing and defining mineralization to the northeast of the core Pozo de Plata zone. All holes have been drilled roughly perpendicular to the main north-east trend of higher-grade mineralization. Assays from an additional eight holes are pending.

Drilling to the north-east of the Pozo de Plata zone continues to intercept broad zones of breccia-hosted mineralization. Hole C20-328, drilled 560 m north-east of Pozo de Plata, intercepted 51.9 m averaging 197 g/t AgEq1 (69 g/t Ag, 0.13 g/t Au, 1.1% Pb and 1.9% Zn) and 62.2 m averaging 174 g/t AgEq1 (62 g/t Ag, 0.21 g/t Au, 1.2% Pb and 1.3% Zn), confirming the extension and continuation of near surface mineralization in this direction.

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. In addition to the bulk tonnage mineralization there are also multiple high-grade silver-zinc-lead-gold sulphide vein trends as evidenced by more than 40 historical shallow, vertical shafts and associated underground workings.