CORDERO PROJECT
We believe Cordero is a Tier 1 silver asset whose true value is only now being unlocked.
Cordero is considered one of the world’s largest undeveloped silver resources. However, we call it Mexico’s most precious silver asset. Cordero has all the attributes of a quality project: grade, scale, significant organic growth opportunities and well located in mining-friendly Chihuahua state on a prolific silver belt.
Since acquiring Cordero in August 2019, Discovery’s focus has been on leveraging the under-explored higher-grade zones within the larger mineralized system with the objective of defining a high-margin project with scale. Aggressive drilling to date has outlined a higher grade bulk tonnage core flanked by high-grade veins with more than 5 km of strike extent. Our ongoing drilling is focused on defining and expanding both of these types of mineralization.
A new resource model, incorporating geology and structure for the first time as well as more than 350 drill holes, and a new PEA focused on Cordero’s high-grade resource, is planned for the second half of 2021.
At Cordero, we are defining a large, high-margin silver project with the optionality of significant resource expansion at higher silver prices.
The existing NI 43-101 resource outlines one of the world’s largest undeveloped silver resources (see table below). However, we believe true opportunity is framed at 50 g/t AgEq cutoff by leveraging the under-explored higher-grade zones within the larger mineralized system, with the objective of upgrading the economic potential of Cordero.
The company’s current Phase 1 drill program at Cordero, planned to be completed by Q2 2021, comprises 65,000 metres of drilling. The focus of the program is to define and delineate these high-grade zones and upgrade the majority of the existing resource to M&I. Our updated resource model will incorporate geology and structure for the first time. The updated resource model, to be completed in H2 2021, will include more than 180,000 metres of drilling and 350 drill holes.
| TONNAGE & GRADE WITHIN MINERAL RESOURCES PIT SHELL | CONTAINED SILVER | CONTAINED SILVER | CONTAINED SILVER | CONTAINED SILVER | CONTAINED SILVER | CONTAINED SILVER | CONTAINED SILVER | |
|---|---|---|---|---|---|---|---|---|
| AgEq Cutoff | Class | Mt | AgEq g/t | Ag g/t | Zn % | Pb % | Au g/t | Ag ozs x 1000 |
| 10 | Indicated | 1,166 | 29 | 12 | 0.3 | 0.2 | 0.04 | 436,006 |
| Inferred | 344 | 49 | 18 | 0.6 | 0.3 | 0.03 | 197,173 | 197,173 |
| 15 | Indicated | 990 | 32 | 13 | 0.4 | 0.2 | 0.04 | 407,761 |
| Inferred | 282 | 56 | 21 | 0.8 | 0.3 | 0.04 | 187,461 | 187,461 |
| 20 | Indicated | 710 | 38 | 15 | 0.4 | 0.2 | 0.05 | 347,133 |
| Inferred | 224 | 66 | 24 | 0.9 | 0.4 | 0.04 | 174,564 | 174,564 |
| 25 | Indicated | 467 | 46 | 19 | 0.5 | 0.3 | 0.06 | 278,399 |
| Inferred | 183 | 77 | 28 | 1.0 | 0.4 | 0.05 | 163,252 | 163,252 |
| 50 | Indicated | 99 | 95 | 40 | 0.9 | 0.6 | 0.11 | 128,395 |
| Inferred | 100 | 112 | 41 | 1.5 | 0.7 | 0.06 | 131,052 | 131,052 |
*Resource by IMC Inc., March 1, 2018; The resource is within an open pit geometry generated by a floating cone algorithm using metal prices of: ($US) $17.14 Ag, $1.11/lb Zn, $0.96/lb Pb, $1,262/oz Au; and recoveries of 85% Ag, 80% Zn, 81% Pb, 33% Au.