Discovery Minerals Announces a Very Positive Outcome From the Mapping & Sampling Program of Gold Bearing Structures on War Eagle Mountain Including the Oro Fino Target Zone

A Recommendation to carry out a Drilling Program to locate the ore zones indicated by the Sampling Results has been made by the Consulting Geologist.

Murphy, Idaho, Oct. 24, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Discovery Minerals LTD (OTCQB:DSCR), the precious metals exploration and production company, are pleased to announce the results of its reconnaissance rock sampling program at the War Eagle Mountain Project. The Oro Fino vein is the first target of three major vein systems at War Eagle Mountain. The most recent assay program targeted the Oro Fino vein system and samples were collected from available exposures of reef, waste dumps and mineralized quartz vein material found during our recent trenching program.

EXCERPTS FROM THE CONCLUDING GEOLOGIST’S REPORT:

The low sulphidation epizonal War Eagle Mountain project near Silver City, Idaho, contains one of the largest historic gold and silver producers in the district namely the Oro Fino vein. This deposit has produced the equivalent of the 400,000 ounces of gold as gold and silver doré. The Oro Fino vein is hosted by granite for its entire length.

The sampling of the vein system took place over a distance of 4440 feet (1353m). Many of the areas were covered by old waste dumps or previously mined. Overall, there is a large shear zone that has a number of quartz veins that were previously worked for gold and silver. Generally, within the shear zone, which may be up to 60 feet wide or more, there are 2 or 3 main quartz veins. These quartz veins are usually on the hanging wall or the footwall of the overall shear zone.  Splays and pinch out sections are common. Cross faults occur particularly in the northern part of the vein system. Some areas showed that the vein zone has narrowed to an inch or two wide, especially between the Minnesota shaft and the South Chariot shaft.

Rock sampling of mostly quartz from the various exposures, dumps, float and colluvial material was collected during July, August & September 2019, with 224 assay samples being generated.

Table 1 Initial rock sampling significant assays.

Rock sampling of available outcrops was carried out followed by trenching in accessible areas, especially where earlier rock samples had yielded encouraging gold assays. This led to trenching at the area north of the Cumberland shaft and south of the Oro Fino shaft, on a south facing slope covered in scree. Earlier rock chip sampling on the eastern vein here had yielded assays up to 13.65ppm. A trench was placed near here and yielded a 2’ wide zone of quartz veining that 33.4 ppm Au (404850).

Table 2

More trenching was conducted in the area and as most of the area had no outcrop the location of the trenches was largely based upon inference of the projected strike zone of the quartz veining. There were many occasions where the trenches encountered fill material where the main quartz veins have been mined out and some of the mineralisation discovered is located in the hanging wall of the mined sections as at trenches OFT5 and OFT6.

The initial waste dump sampling yielded encouraging results, whereby a bulk sample and a quartz only sample were taken in tandem at each waste dump. The bulk samples averaged 1.22 ppm Au and the quartz only samples averaged 5.75 ppm Au. This confirmed that many of the dumps could be significantly upgraded by taking only the quartz sample compared to the entire waste dump. Further work was conducted to establish if certain size fractions would yield better results. Some dumps were deeply weathered and therefore it may be possible to screen out the weathered granite sand in preference to the resistant quartz vein material. Various size fractions were taken up to 2” in diameter. Results from the beneficiation tests show that the proportion -1/4” material amounts to 48% on average and grade is approximately 1.46 ppm Au, while the oversize averages 3.45 ppm Au. This is an oversimplification as different dumps have different size fraction responses; but 4 samples in the +1/4” to -1” sizes from four dumps averaged 16.14 ppm Au. The size fraction results above 2” was not reliable because of the lack of rocks collected in that range. Further bulk sampling is recommended to investigate the consistency of these results, but it appears likely that the -1/4” material is mainly waste and that sieving will improve gold grade.

In the small valleys (Oro Fino gully) and on nearby scree slopes (Oro Fino South ridge) areas of quartz vein material has collected due to its resistance to weathering. It was postulated that these accumulations could be a good source of mill feed as they could be easily mined and were composed almost entirely of vein quartz. Traverses across these areas collecting random fist size rocks yielded encouraging results with the Oro Fino gully sampling yielding assays ranging from 1.36 to 44.6 ppm Au and averaging 18.2 ppm from four traverses. Mining and screening out the sand would seem to be a feasible activity and a bulk sample should be given an extensive trial.  

A drilling program is proposed based upon the encouraging results discovered to date. Although certain sections are mined out there remains considerable potential for discovering near surface low grade open cut type ore as well as deeper high-grade ore suitable for underground mining, especially in the Oro Fino shaft area and further northward where sporadic mining has taken place. Gold mineralisation may not necessarily be restricted; the quartz veins and assays indicate that the altered granite is mineralized which would increase the potential for wider zones of low-grade ore.

Inconsistencies in the long section presented by Piper & Laney report show that certain near surface sections were not mined such as between the Minnesota and South Chariot mines. Drilling in this area may also discover shallow ore that was previously missed by earlier miners.

The area between the Mahogany and the Afterthought has not been investigated thus far as the area is largely covered by colluvium and alluvium, but is considered highly prospective given that both mines discovered economic ore.

About Discovery Minerals Ltd.:

Discovery Minerals Ltd. (OTC PINK : DSCR) is an acquisition and development company that targets natural resource properties and cutting edge technology opportunities through its subsidiaries. The Board of Directors has determined that these activities have emphasis on early positive cash flow from any projects undertaken.

Safe Harbor: This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.

Authorized by Russell Smith, CEO.

Contact:      Discovery Minerals Ltd.