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A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Discovery Metals continues to release high-grade assays from drilling at its advanced exploration-stage Cordero project in Chihuahua state, Mexico, which it acquired last year.
Highlights of the results from 10 holes at Cordero included hole C20-316, which hit 1 metre of 2,153 g/t silver-equivalent (1,255 g/t silver, 1.1 g/t gold, 20% lead and 2.49% zinc) from 166.4 metres depth, within a longer 27.7-metre interval grading 247 g/t silver equivalent (119 g/t silver; 055 g/t gold, 2.02% lead and 0.28% zinc).
Five of the holes were drilled in the Southern Corridor, south of the main Cordero Fault, in the previously untested southernmost vein trend
The same hole returned 62.8 metres of 217 g/t silver-equivalent (79 g/t silver, 0.58 g/t gold, 1.19% lead and 1.15% zinc) from 222.3 metres depth, while hole C20-314 returned 106.1 metres of 139 g/t gold-equivalent.
Both holes were drilled along the northeast extension of the well-mineralized Pozo de Plata zone at Cordero.
Five of the holes were drilled in the Southern Corridor, south of the main Cordero Fault, in the previously untested southernmost vein trend.
Results included 1.2 metres of 1,436 g/t silver equivalent from 51.1 metres depth in hole C20-310; and 0.6 metre of 2,929 g/t silver-equivalent from 81.3 metres in hole C20-312.
Drilling has been temporarily suspended at Cordero due to covid-19, but the company has already completed 48 holes totalling 17,500 metres of a planned 30,000-35,000 metres. Assays from 24 holes are pending.
Taj Singh, Discovery’s president and CEO, said in a release that the results were positive for two reasons.
“First, they confirm that higher-grade breccia-hosted silver-gold-lead-zinc mineralization extends to the northeast, beyond the previously defined limits of the Pozo de Plata zone. Second, drilling along the southernmost vein trend intercepted multiple sulphide veins that returned kilogram per tonne silver-equivalent intercepts,” Singh said.
At a 15 g/t silver-equivalent cutoff grade, the deposit hosts 990 million indicated tonnes grading 32 g/t for 1 billion oz. silver equivalent
“The first-ever drill test of veins highlights the excellent potential that may exist within this and other vein trends on the property.”
Singh added that follow-up drilling will focus on expanding higher-grade resources, and once exploration is allowed to resume, is planned on both the north-east extension and the vein targets.”
At the end of March, Discovery announced it was temporarily suspending exploration due to a closure of non-essential businesses in Mexico until Apr. 19.
Discovery Metals acquired Cordero last year from Levon Resources. At a 15 g/t silver-equivalent cutoff grade, the deposit hosts 990 million indicated tonnes grading 32 g/t for 1 billion oz. silver equivalent.
It also holds 282 million tonnes grading 56 g/t silver equivalent for 513 million oz.
A 2018 preliminary economic study showed the project could support 29 years of open-pit production at 40,000 tonnes per day, producing an average of 8 million oz. silver, 99 million lb. of zinc in concentrate, 69 million lb. of lead in concentrate, and 11,900 oz. of gold annually.
(This article first appeared in the Canadian Mining Journal)
