Discovery Reports Q3 2020 Financial Results & Update

TORONTO, Nov. 25, 2020 (GLOBE NEWSWIRE) — Discovery Metals Corp. (TSX-V: DSV, OTCQX: DSVMF) (“Discovery” or the “Company”) is pleased to announce its financial results for the three months ended September 30, 2020, and to provide a summary of key events for the quarter and subsequent to quarter end. All amounts are presented in Canadian dollars (“C$”) unless otherwise stated.
Discovery’s flagship project is our 100%-owned Cordero project (“Cordero” or the “Project”) located in Chihuahua State, Mexico. We are aggressively advancing the Project through a 55,000 metre (“m”) Phase 1 drill program focused on delineating a high-margin silver project with size and scaleability.CORPORATE HIGHLIGHTS:On August 7, 2020, we closed a $35 million private placement that included a $15 million investment from Mr. Eric Sprott. The placement consisted of 25.9 million units at a price of $1.35 per unit. Each unit was comprised of one common share of Discovery and one-half of one common share purchase warrant, with each full warrant exercisable at $1.75 until August 7, 2022 (refer to the press release dated August 11, 2020, for further details).As at September 30, 2020, and following the completion of this financing, we had a cash balance of $84 million to drive value through aggressive exploration, resource growth and future development.EXPLORATION HIGHLIGHTS:We have now completed 43,640 m (111 holes) as part of our expanded 55,000 m Phase 1 drill program. There are currently four drill rigs operational on site. Additional drill rigs may be added when the Company is confident that the health and safety risks related to COVID-19 can be managed effectively. Based on our current level of activity we anticipate completing the expanded Phase 1 drill program by the end of Q1 2021.Drilling is focused on two key concepts: (1) targeting of bulk-tonnage mineralization within and to the east and northeast of both mineralized corridors; and (2) testing of the width, grade and continuity of extensive high-grade vein systems that transect the deposit.Bulk-tonnage targetsAt our bulk-tonnage targets our recent focus has shifted to the South Corridor, an area of the deposit that has seen significantly less drilling than the North Corridor. As our drill results from the South Corridor indicate, we have been successful in intercepting broad zones of mineralization in areas where there were significant gaps in previous drilling, which indicates potential for the conversion of waste to ore in this part of the deposit.Drill highlights during Q3 2020 and subsequent to quarter end from our bulk-tonnage targets include:• 401.7 m averaging 134 grams per tonne silver equivalent (“g/t AgEq¹”) in hole C20-343 from 66.9 m (49 g/t Ag, 0.07 g/t Au, 1.0% Pb and 1.1% Zn) including:
30.3 m averaging 182 g/t AgEq¹ (57 g/t Ag, 0.10 g/t Au, 0.8% Pb, 2.2% Zn) and;112.3 m averaging 247 g/t AgEq¹ (96 g/t Ag, 0.08 g/t Au, 2.0% Pb, 1.8% Zn) and;44.2 m averaging 241 g/t AgEq¹ (84 g/t Ag, 0.10 g/t Au, 1.8% Pb, 2.0% Zn)• 139.1 m averaging 138 g/t AgEq¹ in hole C20-348 from 196.2 m (47 g/t Ag, 0.07 g/t Au, 0.6% Pb and 1.6% Zn) including:
19.0 m averaging 357 g/t AgEq¹ (112 g/t Ag, 0.17 g/t Au, 1.8% Pb, 4.0% Zn)• 120.4 m averaging 114 g/t AgEq¹ in hole C20-333 from 206.8 m (30 g/t Ag, 0.11 g/t Au, 0.4% Pb and 1.5% Zn)• 26.6 m averaging 108 g/t AgEq¹ in hole C20-353 from 99.5 m (56 g/t Ag, 0.09 g/t Au, 0.4% Pb and 0.7% Zn) and 29.6 m averaging 119 g/t AgEq¹ from 278.1 m (52 g/t Ag, 0.07 g/t Au, 0.8% Pb, 0.8% Zn)High-grade vein targetsWe continued to advance high-grade sulphide veins as a separate exploration target. At the Todos Santos Vein trend we have now demonstrated a minimum strike extent of 1.5 km based on historic underground workings and recent drilling while at the Parcionera Vein trend we have now confirmed a minimum strike extent of 350 m. These vein trends along with other known vein trends at the Project are a new and exciting component of our story that we look forward to drill testing for the remainder of the year and through 2021. Drill highlights during Q3 2020 and subsequent to quarter end from the vein targets include:• Todos Santos Vein1.4 m averaging 1,907 g/t AgEq¹ in hole C20-342 from 147.0 m (700 g/t Ag, 0.74 g/t Au, 16.1% Pb and 14.0% Zn)1.9 m averaging 2,007 g/t AgEq¹ in hole C20-344 from 171.1 m (1,035 g/t Ag, 0.06 g/t Au, 20.0% Pb and 6.4% Zn)3.4 m averaging 1,150 g/t AgEq¹” in hole C20-349 from 145.6 m (412 g/t Ag, 0.42 g/t Au, 8.0% Pb and 10.0% Zn) within a 5.0 m interval averaging 962 g/t AgEq¹ (331 g/t Ag, 0.35 g/t Au, 6.3% Pb, 9.2% Zn)2.0 m averaging 1,207 g/t AgEq¹ in hole C20-351 from 224.8 m (532 g/t Ag, 0.38 g/t Au, 8.8% Pb and 8.1% Zn)• Parcionera Vein
1.5 m averaging 1,119 g/t AgEq¹ in hole C20-338 from 149.8 m (489 g/t Ag, 0.82 g/t Au, 2.9% Pb and 11.1% Zn)1.3 m averaging 1,073 g/t AgEq¹ in hole C20-340 from 69.6 m (587 g/t Ag, 0.67 g/t Au, 9.4% Pb and 2.4% Zn)
For all drill results refer to press releases dated July 20, August 19, September 14, October 14 and November 12, 2020, for further details.COVID-19 UPDATEAs with much of Mexico this past fall, Chihuahua State saw a significant increase in the community spread of COVID-19. During the month of October, the Company isolated and quarantined several employees and contractors who had tested positive for COVID-19 during routine testing at site. These tests were followed-up with subsequent PCR testing with anyone testing positive being isolated immediately. The Company is continually enhancing its testing protocols, social-distancing measures and travel restrictions and saw a noticeable reduction in positive cases during the month of November.The Company continues to be proactive regarding COVID-19 and continually monitors employees and contractors and remains committed to being engaged with our local stakeholders during this uncertain period. The Company will continue to closely monitor the directives of all levels of government in both Mexico and Canada as well as the relevant health authorities.Q3 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 September 30, 2020. A copy of the Financial Statements and MD&A is available on our website at www.dsvmetals.com or on SEDAR at www.sedar.com.