Defiance Acquires Mag Silver’S Zacatecas Silver District Holdings; Mag Becomes Strategic Shareholder
DEFIANCE ACQUIRES MAG SILVER’S ZACATECAS
SILVER DISTRICT HOLDINGS; MAG BECOMES STRATEGIC
SHAREHOLDER
FOR RELEASE: June 13, 2018 TSXV: DEF
OTC: DNCVF
Defiance Silver Corp. (“De fiance”) is pleased to announce that it has entered into a binding
agreement to acquire MAG Silver’s Zacatecas Silver District holdings. As consideration for the
sale, MAG will acquire 5,000,000 common shares of Defiance representing an approximate 5%
strategic investment position . Defiance will receive a 100% interest in MAG’s Lagartos Project
along with a significant regional exploration database covering 135,000ha stretching from the
Zacatecas to the Fresnillo Silver Districts. The transaction will pro vide Defiance control over a
1,506ha land package within the rapidly consolidating Zacatecas Silver district including over
65% of the Veta Grande vein , the San Acacio Silver Deposit (16.9M oz in 2.9 MT grading
182.42 grams per tonne silver inferred resour ce, see Defiance News Release dated January 15 ,
2015) and concessions bordering both the San Acacio deposit and veins being advanced by Pan
American Silver, Capstone Mining and Endeavour Silver. Completion of the transaction is
subject to a number of con ditions precedent, including approval of the TSXV. Closing is
expected to occur on or about June 22, 2018.
Dr. Peter Megaw, MAG’s Chief Exploration Officer commented, “With the Zacatecas Silver
District consolidating, MAG was approached by a number of co mpanies looking to acquire its
holdings in the camp. MAG chose to partner with Defiance because of our long -held interest in
the exploration potential of the Veta Grande Vein, the second most important vein in the billion -
ounce Zacatecas silver district. A number of high-grade ore-shoots have been found along its
length and the ability to expand exploration to a continuous 5.6 km stretch of this historically
under-explored vein greatly enhances the potential for discovering more. This strategic interest
in Defiance provides MAG with exposure to the upside of future discoveries as their exploration
of this important vein advances.”
“With a number of silver miners actively consolidating the Zacatecas Silver District, we are
excited that MAG chose to sell its Lagartos project to Defiance,” stated Peter J. Hawley,
President and CEO. “This is an accretive and transformational acquisition for Defiance,
receiving a 100%, royalty-free interest in the Lagartos project along with a regional database that
cost over $10 million to create. With new concessions adjacent to our current land holdings to
the northwest and southeast, this acquisition further consolidates our presence in the area and
enhances the district-scalability of the San Acacio project.”
The Lagartos Project consists of 14 concessions totaling approximately 800 hectares (Figure 1).
In addition, Defiance will also receive a database covering an additional 135,000 hectares in the
Zacatecas silver district providing the opportunity to acquire further concessions. All of the
Lagartos concessions are located within the Zacatecas silver district, which has produced an
estimated billion ounces of silver, principally before 1 895. Zacatecas lies along the “Fresnillo
Silver Trend” a regional structural zone that has yielded over 5 billion ounces of silver. The four
largest districts along the trend; Guanajuato, Zacatecas, Sombrerete and Fresnillo are all
characterized by multiple sets of parallel silver -gold veins with high-grade oreshoots located
periodically along their lengths. The Zacatecas District is characterized by six major sets of such
parallel veins. This consolidation gives Defiance control of over 65% of the Veta Grande vein,
which historically produced a significant amount of silver within the district. A number of the
other newly acquired Lagartos concessions lie along other important vein systems in the
Zacatecas Silver District including: the Malanoche vein system currently being mined by
Capstone Mining Corp.; the Cantera - El Bote vein sys tem; and the Panuco vein system
controlled by Santacruz Silver Mining Ltd. and Pan American Silver Corp. It is believed that all
the known deposits were found in outcrop 350 to 500 years ago, while new vein systems remain
to be discovered.
Figure 1. Defiance Silver Current and Newly Added Concessions.
Please click here or on image to view full size.
MAG’s exploration programs succ essfully identified a number of broad (10s of meters wide)
hydrothermal alteration zones along structures up to 4 kilometers long that appear to represent
the upper level manifestations of deeper Zacatecas and/or Fresnillo (Juanicipio) -style epithermal
vein mineralization . Select grab samples along these zones returned values ranging from one
half ounce up to 2. 3 kilograms silver (67 ounces). Significant drilling highlights include 850 g/t
(24.8 ounces per tonne) silver over 0.95 meters; 417 g/t (12.1 oun ces per tonne) silver over 1.0
meter (See MAG Silver News Release dated Jan 19, 2010). Selected grab samples are not
necessarily representative of the mineralization hosted on the property.
Highlights
800 hectares of mining rights in 14 concessions
Exploration digital data bank including; a drill hole database totaling 90 holes, extensive
geochemistry, geophysics, satellite imagery, and detailed drill logs from over 135,000ha
of ground stretching from the Zacatecas Silver District to the Fresnillo Silver District
All core drilled by MAG Silver in the district.
About Defiance Silver Corp.
Defiance Silver Corp. (DEF | TSX Venture Exchange; DNCVF | OTC; D4E | Frankfurt) is
a silver explorer and developer advancing the San Acacio Deposit, located in the his toric
Zacatecas Silver District of central Mexico. Defiance is managed by a team of proven mine
developers with a track record of exploring and developing 7 operating mines to date. Defiance’s
corporate mandate is to expand San Acacio to become one of Mexi co’s premier high grade wide
vein silver deposits. A Panoramic Video on the San Acacio Deposit is available on our website.
Mr. Peter J. Hawley, P.Geo. Interim President & CEO, Chairman of the Board to Defiance Silver
Corp, is a Qualified Person within the meaning of National Instrument 43-101, and has approved
the technical information concerning the Company’s material mineral properties contained in
this press release.
On behalf of Defiance Silver Corp.
“Peter J. Hawley”
Interim President & CEO
Chairman of the Board, Director
For more information, please contact: Sunny Pannu – Corporate Development (604) 669 7315 or
via email at [email protected]
2300 - 1177 West Hastings Street www.defiancesilver.com
Vancouver, BC V6E 2K3 Tel: 604-669-7315 Email:[email protected]
Neither TSX Ven ture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this rel ease.