We study the discrete quasi-periodic Schrödinger equation \[-(u_{n+1}+u_{n-1})+\lambda V(\theta+n\omega)u_n=Eu_n\] with a non-constant C1 potential function $V:\mathbb{T}\to\mathbb{R}$. We prove that for sufficiently large $\lambda$ there is a set $\Omega\subset\mathbb{T}$ of frequencies $\omega$, whose measure tends to 1 as $\lambda\to\infty$, with the following property. For each $\omega\in\Omega$ there is a ‘large’ (in measure) set of energies E, all lying in the spectrum of the associated Schrödinger operator (and hence giving a lower estimate on the measure of the spectrum), such that the Lyapunov exponent is positive and, moreover, the projective dynamical system induced by the Schrödinger cocycle is minimal but not ergodic.