Discovery Silver by Business Enquirer (Internal Use Only Not Downloadable)

Developing Silver Prospects

PROJECT DIRECTED BY

WRITTEN BY

Gary Smith

Romana Moares

Discovery Silver

Developing Silver Prospects Discovery Silver Corp. is a Canadabased exploration and development company that is aggressively advancing one of the world’s largest silver deposits, the Cordero Project in Mexico, through development and towards eventual construction and production. Over the last few months, the company has made significant progress towards the engineering and development phases, while also beginning to systematically explore the huge land package around the main resource area.

iscovery Silver is the 100% owner of its flagship Cordero Project in northern Mexico which, based on its recently released Preliminary Economic Assessment (PEA) would place it among the world’s largest producing and highest cash-flowing primary silver mines. The asset also contains zinc and lead.

Taj Singh, President & CEO, Discovery Silver

is also located in a favourable location - in one of the most well-known and mining-friendly states in Mexico, Chihuahua State, on a prolific silver belt. The main resource area represents less than 1,000 hectares of the 35,000 hectare land package we own. We believe the potential for additional new discoveries is high.”

On top of that, the project has a huge resource (close to 400 million ounces AgEq (silver equivalent)) that sits just outside the planned mine that could eventually be brought into production if/when silver prices increases, which would make it even larger than currently outlined.

Cordero drillcore laid out in boxes

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Taj Singh, the company President & CEO, outlines the project’s key features: “Cordero has all the attributes of a Tier 1 mining project: margin, scale, significant organic growth opportunities. It

Drill site at the Cordero Project

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Resources Feature Right place, right time The mine would also have very favourable operating costs. Singh notes, “As one of the few openpit silver mines in the world (vast majority are underground which use very selective and high-cost mining of narrow veins), Cordero would benefit from efficiencies of scale. “Another significant advantage of the open-pit is that the capital costs for underground development, to access and delineate ore, which are typically very high, would not be required. Cordero also has excellent infrastructure with a major highway nearby, which also benefits the capital and operating costs.” “We are also very fortunate that the local community is supportive of the project and looks forward to the significant economic boost the area would get with a major mine in production,” Singh points out. “Mining has always been an important part of the region economically and there are many mines in this part of the state, so the labour and knowledge pool is very deep and established. Unemployment is still quite high, so the locals appreciate the job opportunities we provide. Generally speaking, Mexico is a very pro-mining country. People understand the benefits that mining brings. The supportive social situation and strong community engagement put us in a very good position to progress the project.” Taj Singh himself joined Discovery Silver in 2017 as President and CEO when the company went public, following a career in mining spanning over two decades. He also has a very good knowledge of the Mexican environment and just prior to Discovery worked exclusively in Mexico for six years as a Vice President for a producing gold mining company.

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Discovery Silver is relatively young – the company started with earlier stage properties of small scale with a turning point coming in the summer of 2019 with the acquisition of what

is now its flagship project – the Cordero Project in Chihuahua State. “We have been very busy since that and the company has grown substantially. Developing the Cordero project is our key focus now, and our ultimate goal is to bring that mine into production over the next several years,” says Singh.

Oretest Drilling New Rigs, Experienced Personnel, Greater Production Oretest Drilling Mexico believe that diversity allows for complimentary minds to work together. When we achieve this, the result is a safer and more efficient place to work for us all. The future of Oretest will be one where we advance our equipment and train staff to make our tasks easier, safer and more productive. By keeping our machines new and well maintained, Oretest has a vision to create an environment that is more Productive, Safer, Friendlier and appeals to our broader clients requirements. Our values define what matters most with our continued success and production levels at our drilling operations. Our customers, suppliers and employees are a commitment to our values, making our work, decision making and actions more effective. We value Health, Safety, Integrity, Client relationship, and Teamwork. Gernot Wober, VP Exploration, Discovery Silver: ”Oretest Drilling Mexico (Fiscal: Canmex Diamond Drill) has constantly shown high professional standards and production on our Cordero Project, Parral, Mexico. Safety, Production, Recovery, Rig availability, and EnvironmentalvStewardship are all at extremely high levels and continue to be improved on.”

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Resources Feature Over the last three years, the company has made tremendous progress and was recently named as one of the “8 Mexican mines to watch” by the well-known mining.com platform. Since acquiring Cordero, 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 large high-grade bulk tonnage core with a low stripping ratio. This core sits within an even larger volume of disseminated mineralization meaning that there is a high potential for the mine to go beyond the 16 years of planned mine life and/ or produce at larger throughputs than currently outlined. “Over 120,000 m have been drilled in 18 months, making it one of the most aggressive drill programmes in the silver industry. The resource area only represents 5% of the total concession area and this means we should continue to develop new, exciting targets to drill test over the years, hoping to find more deposits in the district,” says Singh. A new resource, incorporating geology and structure for the first time as well as data from more than 500 drill holes was released in October 2021. This was followed by a new Preliminary Economic Assessment (PEA) released in November 2021, focused on Cordero’s high-grade resource and integrating new metallurgical test work and engineering studies.

The metrics demonstrated in the PEA are supported by a mine plan with essentially 100% of the tonnes processed in the measured and indicated category, which speaks of how advanced this project truly is, and a simple and conventional process design based on the company’s metallurgical test work programme of 2021.

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Over 120,000m have been drilled in 18 months, making it one of the most aggressive drill programmes in the silver industry.

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Exploring the potential

Discovery Silver

The PEA demonstrated that Cordero has the potential to be developed into a highly capital-efficient mine and become one of the largest silver mines in the world (+26 million oz Ag per year over a 16-year mine life) with a very impressive cost profile (life-of-mine all-in sustaining cash costs of $12.35/oz AgEq).

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Discovery Silver

Resources Feature

Sustainable approach Still, it is not all about just profits. Over the last decade, the whole mining industry has undergone a major change towards more environmentally friendly development and sustainability is one of the priorities of any mining company these days.

“Drill results will be ongoing in both new mining areas and with our first drill testing of brand-new regional targets, but our immediate objective is to aggressively advance the general programme to bring the project into production. That’s the focus,” concludes Taj Singh. www.discoverysilver.com

Discovery Silver is no exception. “We have always felt very strongly about sustainability and always wanted to stay ahead of the curve,” says Taj Singh, noting that the company released its inaugural ESG report in the autumn of 2021. “Exceeding the expectations of governments and regulators and the communities where Discovery operates is critical to sustaining strong and trusting relationships with all stakeholders. We strive to ensure full compliance with environmental laws, regulations and standards and aim to prevent, minimize, mitigate and, where appropriate, remediate our impacts on the environment.”

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We have always felt very strongly about sustainability and always wanted to stay ahead of the curve.

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Speaking about the coming months, he affirms that the goal is clear. In 2022, the company will strive to advance Cordero to a prefeasibility study (PFS), which should further de-risk the project, and is expected to be released in the autumn of 2022 - an important milestone. About a year after that, the company plans to deliver the Feasibility Study and continue into construction. Mid-2025 is a reasonable estimate for a production start. The company is also hoping to potentially discover a new deposit on the property through property-wide drilling. “We have been getting several targets ready for drilling in 2022, through mapping, sampling and geophysics and will look to drill-test them through the year.

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Discovery Silver Corp. www.discoverysilver.com

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