The PEA will be led by
PROJECT UPDATE
Phase 1 drilling: The Company's Phase 1 drill program concluded at the end of April. The data from the 75,000 m of drilling completed in this program will be used to support the resource update which the PEA will be based on.
Phase 2 drilling: The four drill rigs currently operating on site will continue uninterrupted with Phase 2 drilling which will be focused on three key areas: (1) upgrading inferred resources to indicated for inclusion in a prefeasibility study; (2) resource expansion of bulk-tonnage mineralization and (3) testing of the width, grade and continuity of the extensive high-grade vein systems that transect the deposit.
Resource update: An updated resource estimate is scheduled for completion in 3Q 2021. The resource estimate will be based on an updated geological model of the deposit that includes the relogging of 110,000 m of historic drilling plus 75,000 m of drilling from the Phase 1 drill program. The resource model will use estimation domains based on structure and lithology. Previous resource estimates did not incorporate these constraints.
Metallurgical testwork: A comprehensive metallurgical testwork program with samples based on both lithology and mining phases is ongoing with results expected in 3Q 2021. The testwork is being conducted by
Mining: The Company has already been working with
Geotechnical / Hydrology / Hydrogeology: Knight Piesold and Co. (USA) ('Knight Piesold') completed a site visit to Cordero in
ESG: An environmental baseline study managed by CIMA Consultores ('CIMA') commenced in 1Q 2021 and will be ongoing throughout the year. A desktop social baseline assessment has already been completed by Vinfidem Consultoria ('Vinfidem') with follow up field work expected to commence later this quarter. Key findings from both sets of work will be included in the PEA. The ESG work will be complemented by the Company's inaugural ESG report scheduled for publication in 3Q 2021. The report will outline the Company's ESG approach as it relates to strategy, planning and risk management and will be developed in conjunction with
PEA PROJECT TEAM
The PEA project team will be led by Ausenco, an industry leader in cost-effective process design and construction. Ausenco is a global company providing innovative, value-add consulting studies, project delivery, asset operations and maintenance solutions in the minerals and metals industry with recent and relevant study, project construction ('EPC') and construction management ('EPCM') experience on projects within the
Study objective: The overarching objective is to deliver a technically robust study supported by a comprehensive dataset and vetted by top-tier independent consultants with third party peer review. The Company's target for the Study is to outline one of the largest producing primary silver operations in the industry with manageable upfront development capex and operating costs in the bottom half of the industry cost curve.
Process plant: The Study will incorporate staged expansions of the processing facility to reduce the upfront capex and payback period. Production trade-off studies are ongoing however based on preliminary results the initial mill throughput rate is expected to be in the 10,000 - 20,000 tonnes per day ('tpd') range and the expanded mill throughput is expected to be in the 20,000 - 40,000 tpd range.
Mine plan: The mine schedule will incorporate an elevated cut-off grade early in the mine life and the effective use of stockpiling to accelerate the payback period and maximize the NPV at the set mill throughput rates. A trade-off study comparing the use of contractor mining versus owner-operated mining is ongoing.
About
Discovery's flagship project is its 100%-owned Cordero project, one of the few silver projects globally that offers margin, size and scaleability. Cordero is located close to infrastructure in a prolific mining belt in Chihuahua State,
Contact:
Tel: 416-613-9410
Email: forbes.gemmell@discoverysilver.com
Web: www.discoverysilver.com
FORWARD-LOOKING STATEMENTS
This news release is not for distribution to
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.
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