All amounts are presented in Canadian dollars unless otherwise stated.
'Other key project development milestones for 2021 include completion of social baseline assessment and progress on environmental baseline studies. Our planned work for metallurgy, processing, geotech and hydrology will go above and beyond what is typically included in a PEA study and will identify areas where we can accelerate pre-feasibility work.
'Our current cash balance of approximately
2021 DRILL PLANS
We plan on completing 66,000 m of drilling in 2021 based on four drill rigs operating throughout the year. This program and the number of drill rigs may be expanded when the Company is confident that the health and safety risks related to COVID-19 can be managed effectively.
Based on the excellent results from drilling in the South Corridor, our Phase 1 drill program has been expanded by 10,000 m to 65,000 m. Our Phase 1 drill program will be completed in 2Q 2021 and will be immediately followed by our Phase 2 drill program. The total amount and allocation of drill metres in our Phase 2 drill program is still to be determined and will be based on a detailed review this quarter of all drill results to date.
BALANCE SHEET
We ended 2020 with a cash balance of approximately
RESOURCE ESTIMATE & PRELIMINARY ECONOMIC ASSESSMENT
Our objective is to deliver a technically robust PEA that demonstrates Cordero is a high-margin silver project with size and scaleability. The PEA will be focused on the bulk-tonnage domain and will be supported by more than 350 drill holes and 180,000 m of drilling and two programs of detailed metallurgical testwork. Key milestones include:
Phase 1 drill program - based on our results to date we have expanded our Phase 1 program to 65,000 m (an increase of 10,000 m). We expect to complete the remaining 20,000 m of this expanded Phase 1 program in 2Q 2021.
Metallurgical testwork - sampling for the metallurgical testwork is based on both mining phase and lithology. The program will consist of comminution testwork, flotation optimisation, preconcentration testwork and high-level environmental testwork. Results are expected to be received in 2Q 2021.
Resource estimate - the resource estimate will be focused on the bulk-tonnage domain only and will incorporate all historical data and data from Phase 1 drilling. The resource update is expected to be completed in 3Q 2021.
PEA - the 'base case' mine plan in the PEA will be based on a conservative silver price and will incorporate staged expansions of the throughput rate at the planned processing facility. Scheduling will prioritise higher grades early in the mine life to expedite payback. The study will be based on the updated resource model and all metallurgical testwork and is expected to be completed in 4Q 2021. To demonstrate the scaleability of Cordero we also anticipate including a 'blue sky' alternative as an addendum that looks at the impact of higher silver prices on Project throughput and optimization.
HIGH-GRADE VEINS
Phase 1 drilling of the high-grade vein trends that transect the deposit has focused on testing the limits and continuity of the vein trends and has yielded highly encouraging results. In Phase 2, the focus of vein drilling will transition to resource definition with the objective of publishing an initial resource estimate of the high-grade veins in 2022.
PRE-FEASIBILITY STUDY
Phase 2 drill program - a key focus of our Phase 2 drill program will be on upgrading any inferred mineral resources within the PEA mine plan to allow the inclusion of these ounces in the PFS mine plan. This infill drilling is expected to commence in 3Q 2021 following a review of all Phase 1 data.
Gap analysis - as part of our PEA we will be completing a gap analysis for metallurgy, processing, geotech and hydrology to identify the data gaps required to advance the project to a PFS level. This analysis will allow us, where appropriate, to commence PFS level work for these items in 2H 2021 in order to accelerate the delivery of a PFS for Cordero.
CORPORATE RESPONSIBILITY
Health & safety - managing health and safety during the COVID-19 pandemic will remain a key priority during the year. Risk mitigation measures include recent investment in on-site infrastructure to accommodate social-distancing requirements, enhanced testing and travel restrictions.
Environment - CIMA Consultores Ambientales, a consulting firm based in
Community relations - we engaged Vinfidem Consultoria, a consulting firm based in
PROPERTY-WIDE EXPLORATION
Target generation - we have strengthened our exploration team in
Reconnaissance drilling - initial drill testing of property-wide targets is expected to commence in the 4Q 2021 following the completion of field work on our high priority targets.
Contact:
Tel: 416-613-9410
Email: forbes.gemmell@dsvmetals.com
About Discovery
Discovery's flagship project is its 100%-owned Cordero silver project in Chihuahua State,
FORWARD-LOOKING STATEMENTS
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in
Cautionary Note Regarding Forward-Looking Statements
This news release may include forward-looking statements that are subject to inherent risks and uncertainties. All statements within this news release, other than statements of historical fact, are to be considered forward looking. Although Discovery believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those described in forward-looking statements. Factors that could cause actual results to differ materially from those described in forward-looking statements include but are not limited to: fluctuations in market prices, including metal prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. Discovery does not assume any obligation to update any forward-looking statements except as required under applicable laws.
(C) 2021 Electronic News Publishing, source