TORONTO, May 12, 2021 (GLOBE NEWSWIRE) – Discovery Silver Corp. (TSX-V: DSV, OTCQX: DSVSF) (“Discovery” or the “Company”) is pleased to provide a project update and to announce the project study team for its preliminary economic study ( “PEA” or “Study”) on the Cordero Company’s flagship project (“Cordero” or “the Project”) located in the State of Chihuahua, Mexico. The PEA will be led by Ausenco Engineering Canada Inc. (“Ausenco”) and is scheduled for completion in 4Q 2021 and will be based on an updated resource estimate scheduled for completion in 3Q 2021.

Taj Singh, President and CEO, said: “The goal of our PEA is to make Cordero one of the most productive and longest-running primary silver mines in the world, with costs in the lower half of the industry’s cost curve. The study will be supported by a comprehensive drilling and metallurgy data set and will be undertaken by a leading Ausenco-led project team with input from specialists from all key mining disciplines. As study work progresses, we will continue to remain focused on adding value through drilling with our recently launched Phase 2 drilling program.

PROJECT UPDATE

Phase 1 drilling: The Company’s Phase 1 drilling program was completed at the end of April. Data from the 75,000 m of drilling completed under this program will be used to support the resource update on which the PEA will be based.

Phase 2 drilling: The four drilling rigs currently operating at the site will continue uninterrupted with Phase 2 drilling which will focus on three key areas: (1) upgrading inferred resources to be indicated for inclusion in a pre-feasibility study; (2) expansion of large tonnage mineralization resources; and (3) testing the width, grade and continuity of the large high-grade vein systems that transect the deposit.

Updating resources: An updated resource estimate is expected to be completed in 3Q 2021. The resource estimate will be based on an updated geological model of the deposit which includes relining of 110,000m of historic drilling plus 75,000m of drilling. of the phase 1 drilling program. The resource model will use estimation domains based on structure and lithology. Previous resource estimates did not take these constraints into account.

Metallurgical tests: A comprehensive metallurgical testing program with samples based on both lithology and mining phases is underway with results expected in 3Q 2021. Testing is being conducted by Blue Coast Research Ltd. (“Blue Coast”) under the supervision of Libertas Metallurgy Ltd. (“Libertas”) And Ausenco. The current program will extend to previous metallurgical testing programs conducted by ALS Ltd. in 2013 and METCON Research Inc. in 2011.

Mining: The Company has already worked with AGP Mining Consultants Inc. (“AGP Mining”) to complete the preliminary pit optimization work to assist with drilling targeting. Preliminary mine planning work was also completed to assess the impact on project economics of different mining rates, mill throughput rates, and cut-off and storage strategies. The objective of this work is to optimize the net present value (“NPV”) and the efficiency of the capital (ratio of the initial capital expenditure to the NPV).

Geotechnics / Hydrology / Hydrogeology: Knight Piésold and Co. (USA) (“Knight Piésold”) carried out a site visit to Cordero in March 2021. The site visit included an examination of the drill core to assess the stability of the pit wall, an assessment potential tailings and waste storage sites and a preliminary review of Cordero’s hydrogeological regime. Dedicated open pit geotechnical drilling is scheduled to begin this month and will be used to generate pit slope assumptions for the PEA.

ESG: An environmental benchmark study managed by CIMA Consultores (“CIMA”) began in the first quarter of 2021 and will continue throughout the year. An office social baseline assessment has already been carried out by Vinfidem Consultoria (“Vinfidem”) and follow-up field work is expected to start later this quarter. The main findings of the two sets of work will be included in the PEA. The ESG work will be completed by the company’s first ESG report, which is scheduled for publication in Q3 2021. The report will describe the company’s ESG approach with regard to strategy, planning and risk management and will be developed in collaboration with Stratos Inc. (“Stratos”).

PEA PROJECT TEAM

The PEA project team will be led by Ausenco, an industry leader in designing and building cost-effective processes. Ausenco is a global company providing innovative value-added consultancy studies, project delivery, asset operations and maintenance solutions in the minerals and metals industry with recent and relevant experience in studies, project construction (“EPC”) and construction management (“EPCM”) on projects in the Americas. Ausenco has significant experience in Mexico, including recently leading the feasibility study (and future EPC) for the Las Chispas project of SilverCrest Metals Inc. Ausenco also has recent experience with sizeable processing plants and / or recovery schemes similar to what is expected at Cordero, including the Arctic project of Trilogy Metals Inc. in Alaska (feasibility study), the Constancia mine of Hudbay Minerals Inc. in Peru (EPCM), The Mina Justa mine of Minsur SA in Peru (feasibility study and EPCM), the Mantoverde project of Mantos Copper SA in Chile (EPC), the Blackwater project (EPC) of Artemis Gold Inc. in Canada and the Magino project of Argonaut Gold Inc. ( EPC) in Canada.

OVERVIEW OF PEA

Goal of the study: The overarching goal is to provide a technically sound study supported by a comprehensive data set and endorsed by leading independent consultants with third party peer review. The company’s goal for the study is to describe one of the largest primary silver production operations in the industry with development investments and manageable operating costs in the lower half of the price curve. industry costs.

Processing plant: The study will include phased expansions of the processing facility to reduce initial capital expenditure and payback period. Production trade-off studies are underway, but based on preliminary results, the initial throughput of the plant is expected to be between 10,000 and 20,000 tonnes per day (“tpd”) and the plant throughput increased. should be between 20,000 and 40,000 t / d. interval.

Mine plan: The mine schedule will include a high cut-off grade early in mine life and efficient use of storage to accelerate the payback period and maximize NPV at set throughput rates. A trade-off study comparing the use of contract mining to owner mining is underway.

QP CONSULTANT / LIST OF THIRD PARTIES
Ausenco – www.ausenco.com
AGP Mining – www.agpmining.com
Côte Bleue – www.bluecoastresearch.ca
CIMA – www.cimasc.com.mx
Chevalier Piésold – www.knightpiesold.com
Libertas – LinkedIn Profile
Red Dot 3D – LinkedIn Profile
RockRidge Council – www.rockridgeconsult.com
Vinfidem – www.vinfidem.com.mx

About Discovery Silver
Discovery’s flagship project is its 100% owned Cordero project, one of the few silver projects in the world to offer margin, size and scalability. Cordero is located close to infrastructure in a prolific mining belt in the state of Chihuahua, Mexico, and is backed by an industry-leading track record with over C $ 90 million available for aggressive exploration, resource expansion and future development. Discovery received the 2020 TSX Venture 50 award and the 2021 OTCQX Best 50 award.

On behalf of the Board of Directors,

Taj Singh, M.Eng, P.Eng, CPA,
President, CEO and Director

For more information contact:

Forbes Gemmell, CFA
VP Corporate Development & Investor Relations
Telephone: 416-613-9410
Email: [email protected]
Website: www.discoverysilver.com

Qualified Nobody

Gernot Wober, P.Geo, Vice President of Exploration, Discovery Silver Corp., is the Company’s Designated Qualified Person for this press release within the meaning of National Instrument 43-101 respecting Disclosure Standards for Mining Projects (“NI 43 -101 ”) and has reviewed and validated that the information contained in this press release is accurate.

FORWARD-LOOKING STATEMENTS:

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This press release is not intended for distribution to United States news services or for distribution in the United States.

This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of any of the securities in any jurisdiction where such an offer, solicitation or sale would be illegal, including including one of the titles in United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Act of 1933”) or any state securities laws, and may not be registered. offered or sold in the United States or to, or on behalf of or for the benefit of, United States nationals (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from these registration requirements is available.

Caution regarding forward-looking statements

This press release may contain forward-looking statements subject to inherent risks and uncertainties. All statements contained in this press release, other than statements of historical fact, should be considered as forward-looking. Although Discovery believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results or developments may differ materially from those described in the 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 assurance that these statements will prove to be correct and, therefore, readers are cautioned by their own assessment of these uncertainties. Discovery assumes no obligation to update forward-looking statements, except as required by applicable law.