Defiance Discovers Blind Silver System at Lucita
DEFIANCE DISCOVERS BLIND SILVER SYSTEM AT LUCITA
FOR RELEASE: AUGUST 9th, 2022 TSXV:DEF
OTCQX:DNCVF
FRA:D4E WKN: A1JQW5
Defiance Silver Corp. (“Defiance” or the “Company”) is pleased to provide a second
update on the 4,750-metre maiden drill program at the Lucita property on the
company’s Zacatecas silver project, including additional newly-discovered zones of
high-grade silver mineralization. This drill program was the first to be undertaken at the
central Lucita project (Palenque vein system), which is currently under option from Pan
American Silver (See News Release dated: December 2nd, 2020). Initial results from
this program were released on April 13th, 2022.
The current release summarizes the results from an additional 8 holes (DDLU-21-06 to
DDLU-21-13). The drill holes reported in this release encountered several styles of
high-grade silver mineralization, including the classic vein-hosted style and blind,
newly-discovered contact-style mineralization at depth. The encountered
mineralization is open along strike and both up and down dip from the released results,
which are highly-encouraging and warrant extensive follow-up exploration work,
including diamond drilling.
Chris Wright, Chairman & CEO, stated: “Our team has been successful at identifying
both near-surface and high-grade, vein-hosted silver mineralization, as well as a blind
silver-rich zone that is over 45 metres wide, encountered in hole DDLU-22-10. The
drilling within the central Lucita license area has demonstrated the continuity of the
Palenque vein system over a 4 km vein corridor. This vein system represents an
emerging discovery in a world-class silver mining district.”
Highlights:
• DDSA-22-10 discovered several different styles of mineralization, including a
new blind high-grade interval at depth. The hole returned multiple results
over 100 g/t Ag, and individual intercepts grade up to 737 g/t Ag (from 398m).
Intercepts include 3.05m of 264 g/t Ag and 0.20 g/t Au (from 370.23 to
373.28m), 4.01m of 166 g/t Ag and 0.37 g/t Au (from 388.56 to 392.57m), and
2.25m of 235 g/t Ag (from 398 to 400.25m).
• DDSA-22-10 also returned highly anomalous Ag mineralization from 370.23m
to the end of the hole at 420.1m, with a 49.87m interval returning a weighted
average of 58.79 g/t Ag. This new zone is open for expansion and will be a key
follow up target in future drill programs.
• DDSA-22-09 was drilled prior to DDSA-22-10 and hit anomalous veins, but was
stopped short of the mineralized zones encountered in DDSA-22-10. Additional
targeting work will be completed, and deeper follow up drilling will be planned
with the goal of reaching the newly discovered zone of mineralization.
• DDLU-22-12 returned high-grade Zn-Pb mineralization and moderate grade
Ag mineralization over narrow widths (0.28m of 86.30 g/t Ag, 2.63% Pb, and
8.08% Zn from 364.54 to 364.82m) and represents a follow-up drill target once
additional targeting and modeling work has been completed.
Further exploratory drilling in the Palenque central zone (DDLU-22-13) encountered
narrow zones of high-grade mineralization, including up to 843 g/t Ag & 0.2 g/t Au at
from 184.0m to 184.30m.
• The inaugural drill program at Lucita central (Palenque vein system) confirmed
the presence of high-grade, Fresnillo-style, low to intermediate-sulfidation
epithermal silver mineralization, consisting of mainly of pyrargyrite (high-level
sulfosalt) and silver sulfides that potentially indicate the higher-level setting of a
zoned epithermal system. Follow-up drilling is planned for later this year at the
newly discovered zones of mineralization at Palenque and Tahures.
Select Table of Results
Hole From To Interval Au g/t Ag g/t
DDLU-22-10 370.23 373.28 3.05 0.20 264.29
including 371.13 371.90 0.77 0.19 668.00
DDLU-22-10 388.56 392.57 4.01 0.37 166.32
including 388.56 391.28 2.72 0.57 228.83
including 390.06 391.28 1.22 1.13 416.00
DDLU-22-10 398.00 400.25 2.25 0.08 235.29
including 398.00 398.53 0.53 0.19 737.00
DDLU-22-10 412.41 413.16 0.75 0.03 189.00
DDLU-22-10 415.20 416.08 0.88 0.04 108.00
DDLU-22-13 110.59 112.16 1.57 0.04 146.64
DDLU-22-13 184.00 186.00 2.00 0.04 149.66
including 184.00 184.30 0.30 0.20 843.00
DDLU-22-13 229.85 231.00 1.15 0.09 109.43
Table 1 - Drill Results. *True thicknesses are unknown at this time but are assumed to be between 50%-
90% of the core length. **Drill holes DDLU-21-06, DDLU-21-07, DDLU-21-08, DDLU-22-09, DDLU-22-
11, and DDLU-22-12 did not return reportable results.
Cross Section of DDSA-22-09 & 10:
Figure 1- Cross section through holes DDLU-22-09 & 10, showing multiple styles of mineralization,
including a high-grade intercept at a "blind" faulted contact and as well as narrow zones of grade within
the black shale unit.
Map of Lucita Central Drill Holes:
Figure 2 - Overview map of the completed drilling at Lucita Central (Palenque) and San Acacio.
Discussion of the Lucita Exploration Model:
Regional targeting done by Defiance in late 2019 and early 2020 identified the potential
for a Fresnillo-style low to intermediate-sulfidation epithermal system on the Lucita
land package, which is in a similar crustal-scale setting as the world-class Fresnillo
district. The regional prospectivity of the Lucita project has been historically defined by
surface geochemistry, mapped vein structures, and regional drill holes that the
company has in its proprietary 1,300 km2 regional database. Since mid-2021, the
company has completed a detailed surface mapping program, with targeted re-
sampling of veins and surrounding areas. This work has yielded significant surface
grab sample results and outlined multiple un-tested vein targets throughout the Lucita
land package. The first pass 4,750 m diamond drilling program on the Palenque and
Tahures vein systems were completed earlier in 2022, with the aim of conducting
follow-up drilling in this area later in 2022 (Fig 2).
Discussion of Results:
The dominant silver mineralization at Lucita consists of p yrargyrite (with lesser
acanthite, proustite and stephanite), hosted in polyphase calcite and quartz veins,
breccia veins and stockwork veinlets. As is common in the Zacatecas and Fresnillo
districts, mineralization is often hosted in steeply-dipping veins with typical epithermal-
style textures. The main commodity at the level of current drilling is silver with minor
gold. This differs from the Veta Grande system at the company’s San Acacio project
(See News Release dated: September 7th, 2021), which has a more polymetallic
signature.
Initial interpretations are that the west-striking Palenque vein system (Fig. 2) are part of
a low-to-intermediate-sulfidation epithermal-style vein system. New holes reported
here, DDLU-22-10 and 11, also encountered two additional styles of silver-dominant
mineralization, including a flat-lying faulted contact as well as fine veinlet arrays within
underlying shales. Future exploration will target these new styles of mineralization at
DEF’s Zacatecas projects.
DDLU-21-06, DDLU-21-07 & DDLU-21-08 – These holes were designed to step west
along the Palenque vein system from holes DDLU-21-01 to 05 (Fig 2). Holes DDLU-21-
06 and 07 were targeted under mapped outcropping veins with silver grade and
historic workings at surface. However, the two shallow holes failed to intersect the
vein. This is likely due to displacement from a low-angle structure or steepening of the
vein; further structural data collection and interpretation is underway to generate
follow-up targets. DDLU-21-08 was similarly designed to test under mapped veins
with historic workings and evidence of mineralization at surface. However, no
significant intervals were intersected.
DDLU-22-09 – This hole was designed to intercept a mapped calcite-rich but low-
grade portion of the Palenque vein system (Fig 1), with old workings nearby. The vein
successfully intersected the steeply dipping veins with anomalous Ag and Au grades,
including deep in the hole. Results were encouraging to follow up with a deeper hole,
DDLU-22-10.
DDLU-22-10 – Interesting results from DDLU-22-09 prompted a deeper hole
underneath the encountered veins. Hole DDLU-22-10 successfully encountered
multiple calcite and quartz veins with anomalous to high-grade Ag ± Au mineralization.
A blind intercept in a low-angle fault between the volcanosedimentary package and
underlying black shales also yielded a high-grade Ag ± Au intercept (Fig 1). Several
small but higher-grade Ag intercepts continued further into the black shales. This new
style of mineralization related to the black shale, as well as the targeted vein-hosted
intercepts, will be followed up with future exploration effort.
DDLU-22-11 and 12 – Encouraging results from DDLU-22-10 prompted step overs to
the west (Fig 1). DDLU-22-11 encountered the same thick, calcite-rich veins as hole
DDLU-22-10 with narrow intervals of mineralization, including 0.7 m @ 86.70 g/t Ag and
0.53 m @ 83.60 g/t Ag, at 248.81 m and 249.92 m depth, respectively. These results
are encouraging evidence for the presence of similar mineralization along the same
vein system. Likewise, the black shale contact was encountered with moderately
anomalous results.
Hole DDLU-22-12 continued to test the western limit of the Palenque system within the
license area. Results included several small veinlets with anomalous but not reportable
values. A surprising intercept of 0.28 m of high-grade Zn-Pb mineralization and
moderate-grade Ag was encountered in the underlying sediments at 364.54 m with
86.30 g/t Ag, 2.63% Pb and 8.08% Zn. This interval is encouraging and is a target for
future follow-up.
DDLU-22-13 – The last hole in the initial Lucita drilling campaign aimed to follow up on
the success of DDLU-22-05. DDLU-22-13 was planned east of holes DDLU-21-05 and
04, underneath a calcite-rich portion of the Palenque vein (Fig 1). Several narrow but
high-grade intercepts (up to 843 g/t Ag) were encountered. These results warrant
follow up exploration in this portion of the Palenque vein.
Collar Information for Reported Drill Holes:
Hole Number Total Depth Azimuth Dip Easting Northing Elevation (m)
DDLU-21-06 150 215 -45 753046 2528799 2460
DDLU-21-07 219 195 -70 753046 2528799 2460
DDLU-21-08 324 0 -57 752244 2528713 2524
DDLU-22-09 216 35 -53 751816 2528886 2543
DDLU-22-10 433.5 30 -57 751807 2528837 2539
DDLU-22-11 357 15 -60 751695 2528930 2505
DDLU-22-12 402 20 -55 751575 2528937 2506
DDLU-22-13 330 20 -75 754736 2528366 2485
Table 2 -Drill hole information. Coordinate projection UTM:WGS 84 Zone 13N
Lucita Project Summary:
The Lucita project is a large land package in the prolific Fresnillo -Zacatecas mining
district. In December 2020, Defiance Silver entered into an option agreement with Pan
American Silver to acquire a 100% ownership of the Lucita property (See News
Release dated: December 2nd, 2020).
The 2,674 Ha Lucita property consists of the Panuco zone in the north, the central
Lucita zone (Palenque vein system), and the southern Lucita zone adjacent to
Defiance’s San Acacio project. The mineralization within the Lucita land package is
characterized as a low to intermediate sulfidation epithermal Ag-Au veins, breccias,
and stockwork. While historical work in the central Lucita area has been limited to
first-pass regional geological mapping and sampling, the northern license area of
Panuco has historical high-grade drill results and multiple drill ready exploration
targets.
Discussion of QAQC and Analytical Procedure:
Samples were selected based on the lithology , alteration, and mineralization
characteristics; sample size ranges from 0.25–2m in width. All altered and mineralized
intervals were sent for assay. One blank, one standard, and one duplicate were
included within every 20 samples. Standard materials are certified reference materials
[CRMs] from OREAS and contain a range of Ag, Au, Cu, Pb, and Zn values. Blanks,
standards, and duplicates did not detect any issues with the analytical results.
Samples were analyzed by ALS Chemex Laboratories. Sample preparation was
performed at the Zacatecas, Mexico, prep facility, and analyses were performed at the
Vancouver, Canada, analytical facility. All elements except Au and Hg were analyzed
by a multi-element geochemistry method utilizing a four-acid digestion followed by
ICP-MS detection [ME-MS61m]; mercury (Hg) was analyzed after a separate aqua
regia digest by ICP-MS. Overlimit assays for Ag, Pb, and Zn were conducted using the
OG62 method (multi-acid digest with ICP-AES/AAS finish). Gold was measured by fire-
assay with an ICP-AES finish [50g sample, Au-ICP22].
Defiance also reports that it intends to settle up to $18,250 o f debt through the
issuance of up to 50,000 common shares of the Company (the “Shares”) at a deemed
price of $0.395 per Share to a creditor of the Company.
The issuance of the Shares to the Creditor is subject to the approval of the TSX
Venture Exchange. All securities issued will be subject to a four month hold period
from the date of issue.
About Defiance Silver Corp.
Defiance Silver Corp. (DEF | TSX Venture Exchange; DNCVF | OTCQX; D4E | Frankfurt) is an
exploration company advancing the district-scale Zacatecas project, located in the historic
Zacatecas Silver District and the 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
properties 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]