Cordero is Ready to Become A Major Silver Deposit in 2021By Paloma Duran | Fri, 05/28/2021 - 11:30
Discovery Silver Corp announced its 1Q21 financial results and provided a status on its Cordero project. The company will soon release an updated resource estimate and PEA, which seeks to demonstrate that Cordero is one of the few deposits that offers an excellent combination of margin, size and scalability.
Cordero is considered one of the largest undeveloped silver projects in the world. The project has great potential due to its grade, scale, growth opportunities, and strategic location in Chihuahua. The asset was acquired in 2019 and since then it has focused on exploring high-grade zones within its mineralized system to better define its margins. Currently, there is an aggressive 66,000m drilling campaign that seeks to define and expand its mineralization resources.
The company reported that during 1Q21, it had cash and cash equivalents and investment balance of US$94.7 million. In addition, it joined in March the VanEck Vectors Junior Gold Miners ETF (NYSE: GDXJ) and the ETFMG Prime Junior Silver Miners ETF (NYSE: SILJ).
Discovery completed the Phase 1 drilling program at Cordero, which included 75,000m and 178 holes. The company said the results have exceeded its expectations and have shown greater potential at Cordero. The data collected will be used to update resources in 3Q21 and for its PEA that is expected for the second half of the year.
The company explained that it bulk-tonnage drilling has expanded the area by more than 250m, which has been defined over a strike length of 14 km and drilled to a depth of 500m. Additionally, high grade vein systems continue to show positive results and higher returns.
At Josefina, the company reported it has intercepted bonanza grades along 1.5 km of strike extent.; at the Todos Santos vein the company continues to expand the strike extent to the southwest and northeast; and at the Parcionera vein trend, Discovery has confirmed the extension of the strike by at least 1 km with potential for further expansion.
The PEA will be led by Ausenco, a leader in cost-effective process design and construction. Their goal is to deliver a robust study showing Cordero as one of the main silver operations in Mexico with manageable development capital expenditure and operating costs in the lower half of the industry’s cost curve, reported the company.
The company announced that Phase 2 of the drilling program 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 extensive high-grade vein systems that transect the deposit.” In addition, the company is currently conducting socio-economic and environmental studies, which will continue throughout the year.