Defiance Acquires Option ON Pan American Silver’S Lucita Property; Significantly Expands Zacatecas Projects
DEFIANCE ACQUIRES OPTION ON PAN AMERICAN
SILVER’S LUCITA PROPERTY; SIGNIFICANTLY EXPANDS
ZACATECAS PROJECTS
FOR RELEASE: DECEMBER 2nd, 2020 TSXV: DEF
OTC: DNCVF
Vancouver, British Columbia - (Newsfile Corp. – December 2nd, 2020) - Defiance Silver Corp.
(“Defiance” or the “ Company”) is pleased to announce that it has entered into a definitive option
agreement with Pan American Silver Corp. (“Pan American ”) to acquire a 100% interest in Pan
American’s Lucita property, located adjacent to Defiance’s San Acacio project (Figure 1). If the option
requirements are satisfied and the option is exercised by the Company, t his acquisition would nearly
triple the land position of Defiance in the historic Zacatecas silver district to over 4,3 00 Ha and
contains some of the most prospective targets in the camp.
Highlights of the Acquisition Include:
• Defiance’s Zacatecas District landholding interests increased from 1,600 Ha to over 4,300 Ha,
including more than 10 known veins that returned drill results including 3.25m of 325 g/t Ag
and 1.25m of 775 g/t Ag (Figure 1).
• Acquired the on -strike extension of Zacatecas Silver Corporation’s 19 million ounce Ag -
Equivalent Panuco Deposit (see full disclosure below).
• Lucita hosts the undrilled Palenque vein structure, a 12 metre wide structure that has a 4km
strike length and has return historical in situ grab and dump samples ranging from 25g/t Ag to
over 700g/t Ag (Figure 2).
• Other priority high-grade vein structures also exist on the southern license area.
Chris Wright, Executive Chairman & CEO, commented: “ Our exploration team has continued to
advance our district exploration model, as it has yielded favorable targets throughout the Zacatecas
Camp. The Lucita option represents a key milestone for Defiance Silver in establishing a district-scale
land package at our Zacatecas projects and furthering our exploration thesis and strategy in the
district. Not only does this project contain historical high -grade drill results with demonstrable
exploration targets at depth and on -strike, it also has discovery potential at the multi -kilometre long
Palenque structure.”
Figure 1 – Defiance’s Zacatecas District Land Position
Property Overview
The 2,674 Ha Lucita project is characterized as a low to intermediate sulphidation Ag -Au vein,
breccia and stockwork system with historical high-grade drill results and drill ready exploration
targets. There are at least 10 known mineralized structures over a strike length of more than 4km ,
including the on-strike extension of the Panuco Deposit, currently being explored by Zacatecas Silver
Corp. The veins in the northern license area have a continuous length of 4km and have widths from
0.20 m to 4 m. Historical drilling of these veins from 20 holes completed by Pan American in 2011 -
2012 returned encouraging results, including 3.35m of 325 g/t Ag from hole LU11 -16 and 1.25m of
775 g/t Ag from hole LU11-9 (Figure 3). The composition of the epithermal veins at Lucita is quartz,
calcite and occasionally minor barite, where colloform and crustiform banded textures can be seen,
belonging to various mineralization events. The company believes the previously drilled structures
intersected high-level epithermal mineralization, as mineral zonation at surface suggests that the top
of the hydrothermal system is still present at the on-strike Panuco deposit.
Pan American Silver has carried out geological mapping, sampling , and two drilling campaigns in the
northern license area (Figure 3) . Phase I drilling in 1996 comprised 10 holes and 1,409.85 m etres of
drilling. Phase II drilling was carried out in late 2011 and early 2012 , comprising 20 drill holes with
3,693.41 metres drilled. Both drill campaigns intersected mi neralized veining typical of a high -level
epithermal system.
Central and Southern License Areas (Palenque)
A key undrilled structure located on the se licenses, adjacent to portion of the Defiance licenses that
host the Tahures Vein, is the Palenque vein system. The Palenque system has an alteration zone up to
12 m wide at surface and numerous, high -grade rock chip, grab, and dump samples over a 4km strike
length with historical chip, grab, and dump samples ranging from 25g/t Ag to >700 g/t Ag (Figure 2).
The structure is characterized by high -level alteration assemblages that may be related to deeper
“boiling zone” epithermal mineralization. The Palenque vein is a near -term drill target, and Defiance
will be actively advancing the understanding of the mineral system in order to drill Palenque in 2021.
Figure 2 - Central Area with rock samples taken from Palenque and other unnamed structures. Recently
acquired licenses in Blue and current Defiance Licenses in White. Third-party licenses are in Grey.
Northern Licenses (Panuco/Los Tajos)
The northern claim block hosts the on -strike extension, most specifically the Panuco Central and the
Tres Cruces veins, of the Panuco deposit under option to Zacatecas Silver Corp. Using a cut-off value
of 100.0 g/t AgEq for the Panuco deposit, the current Inferred mineral resource estimate results in
3,954,729 tonnes grading 136.00 g/t Ag, 0.14 g/t Au, 0.012% Pb and 0.110% Zn or 153.20 g/t AgEq.
This e quates to 19,472,901 ounces of AgEq (2016 Mineral Resource Estimate, Panuco Deposit,
Zacatecas Mexico for SantaCruz Silver Mining by V. Bui and G. Giroux). Defiance Silver’s qualified
person and technical team have been unable to verify this information, a nd that the information is
not necessarily indicative of the mineralization on the Lucita property.
Figure 3 - Historical Drilling in Northern (Panuco) Area
Table 1 – 2011-2012 historical results at the Northern (Panuco) License
Exploration Strategy
Defiance is planning an aggressive exploration program to adequately test the mineral potential at
Lucita. The upcoming exploration program is being planned as detailed surface mapping, surface
geochemistry, surface geo physics (Mag, IP, CSAMT), and surface drilling. The company anticipates
starting this exploration program immediately and in conjunction with the ongoing surface and
underground exploration programs at San Acacio and Lagartos.
Terms of Agreement
Defiance has the option to acquire 100% ownership of the Lucita Property , while Pan American
Silver will retain a 2% NSR. The option terms include an initial payment of US$100,000 upon signing;
US$100,000 on or before the first year anniversary; US$500,000 on or before the second year
anniversary; and a final payment of US$800,000 on or before the third year anniversary.
About Defiance Silver Corp.
Defiance Silver Corp. (DEF | TSX Venture Exchange; DNCVF | OTC; D4E | Frankfurt) is an
exploration company advancing the district -scale San Acacio Deposit, located in the historic
Zacatecas Silver District and the 100% owned Tepal Gold/Copper Project in Michoacán state, Mexico.
Defiance is managed by a team of proven mine developers with a track record of exploring, advancing
and developing several operating mines and advanced resource projects Defiance’s corporate mandate
is to expand the San Acacio and Tepal projects to become premier Mexican silver and gold deposits.
Mr. George Cavey, P.Geo, is a Qualified Person within the meaning of National Instrument 43 -101,
and has approved the technical information concerning the Company’s material mineral properti es
contained in this press release.
On behalf of Defiance Silver Corp.
“Chris Wright”
Chairman of the Board
For more information, please contact: Investor Relations at +1 (604) 343 -4677 or via email at
www.defiancesilver.com
Suite 2900-550 Burrard Street
Vancouver, BC V6C 0A3
Canada
Tel: +1 (604) 343-4677 Email: [email protected]
Neither TSX Venture 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
release.
This news release may contain forward -looking statements including but not limited to co mments
regarding timing and content of upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, etc. Forward -looking statements address future
events and conditions and therefore involve inherent risks and uncertainties. Actual results may
differ materially from those currently anticipated in such statements. Defiance Silver Corp. relies
upon litigation protection for forward-looking statements.