Defiance Drills Wide Widths Near Surface ON the Veta Grande
DEFIANCE DRILLS WIDE WIDTHS NEAR SURFACE ON THE
VETA GRANDE
FOR RELEASE: MARCH 16th, 2023 TSXV: DEF
OTCQX: DNCVF
FRA: D4E
Defiance Silver Corp. ("Defiance" or the "Company") is pleased to provide the final
results from seven drill holes drilled during the 2022 drill program. These holes were
designed to improve the main Veta Grande structural model and to test splays to the Veta
Grande system, including the footwall San Herculano structure.
Highlight of Results
• DDSA-22-62 – Encountered a base metal rich portion of the Veta Grande structure,
returning 2.58m of 423 g/t AgEq (from 213.40m to 215.98m) within a wider 11.22m
intercept of 152 g/t AgEq (from 205.15m to 216.37m).
• DDSA-22-61 – Returned 1.49m of 399 AgEq (from 231.28m to 232.77m) within a
wider interval of 4.97m of 142 g/t AgEq (from 230.04m to 235.01m). This hole tested
up dip of historical holes SAD-15-09 and SAD-15-10, and below hole DDSA-22-59
(2.42m of 123 g/t AgEq, reported in this release). Historic workings were
encountered higher in the hole, while drilled mineralization occurred between the
main VG structure and a hanging wall splay.
• DDSA-22-60 – Returned 6.98m of 114 g/t AgEq (from 31.10m to 38.08m) on the
Veta Grande and encountered historic workings from a downhole depth of 33.25m
to 34.75m.
• DDSA-22-59 – From surface returned 9.57m of 175 AgEq (from 1.38m to 10.95m).
This hole drilled reportable grade in three locations: surface waste dumps, the main
Veta Grande structure, and possible San Herculano structure. In-situ vein material
from Veta Grande grades 2.42m of 123 g/t AgEq (from 27.30m to 29.72m).
Chris Wright, Chairman & CEO, commented: “This phase of drilling was designed to
strengthen our understanding of the historical underground development of the Veta
Grande vein system, which is critical for both the geologic modelling and the updated
resource estimation that we are working towards. We are encouraged by the wide widths
of near surface mineralization alongside high grades of Pb-Zn mineralization encountered
in this phase of drilling.”
Overview Map of Drill Locations
Figure 1 – Plan map of Defiance’s San Acacio project area, including location of current and past
drill holes.
Discussion of Results
Defiance undertook a drill program in late 2022 to gather additional data in the San Acacio
resource area. These holes were designed to improve the main Veta Grande structural
model and to infill poorly-drilled areas, as well as to test both hanging wall and footwall
splays to the Veta Grande system. The footwall San Herculano structure was one of the
main exploration targets of this phase of drilling.
Drill hole DDSA-22-59 was targeted to hit the Veta Grande vein system near surface and
test the deeper San Herculano vein target. The hole was collared into surface waste
material from historic mining and returned 9.57m grading 175 g/t AgEq from 1.38m
down hole. The overall grade and tonnage of waste material is unknown. The Veta
Grande structure was intersected near surface (2.42m grading 117 g/t AgEq from
27.30m). An additional mineralized structure was encountered in the footwall of the Veta
Grade; it is not yet clear whether this represents San Herculano or another structure.
Drill hole DDSA-22-60 was a 130 metre step out to the northwest from hole DDSA-22-59.
The hole was also designed to hit the Veta Grande near surface and to test the San
Herculano vein at depth. The Veta Grande structure was again intersected near surface
and contained 6.98m grading 114 g/t AgEq from 31.10m down hole. Most grade
appears to be contained in remaining vein material that was not historically mined; 1.5
metre wide workings were encountered from 33.25 to 34.75m. Anomalous structures
were encountered in the San Herculano zone.
Drill hole DDSA-22-61 was designed to test hanging wall vein splays and the main Veta
Grande vein. This hole tested up dip of historical holes SAD-15-09 and SAD-15-10, and
below hole DDSA-22-59. Historic workings were encountered at the modelled location of
the main hanging wall splay; in-situ mineralization was hit between the main VG structure
and the hanging wall splay. Hanging wall splay mineralization returned 2.37m grading
250 g/t AgEq from 230.04m, while the main Veta Grande zone returned 2.23m of 114 g/t
AgEq from 245.68m.
Drill hole DDSA-22-62 was drilled in the far NW part of the property, under Tajo Carolina,
a historic surface mining area. This hole successfully intercepted both the modelled Veta
Grande hanging wall splays and the main mineralized Veta Grande structure. Again, the
intercepted mineralization is within and between Veta Grande and a hanging wall vein
splay. The hole encountered a base metal rich portion of the Veta Grande structure,
returning 2.58m of 423 g/t AgEq (from 213.40m to 215.98m) within a wider 11.22m
intercept of 152 AgEq (from 205.15m to 216.37m).
Drill hole DDSA-22-63 was designed to test the Veta Grande footwall splay, including the
San Herculano structure and did not drill the Veta Grande structure itself. Several zones of
alteration and anomalous metal values were encountered in the foot wall to the Veta Grande
structure in this area. Whilst none of the intercepts are reported here, the style and metal
assemblage of the anomalous zones is encouraging.
Drill holes DDSA-22-56 and 57 were designed to test a calcite rich outcrop 2 km to the
south-east of the resource area but along the regional Veta Grande structure. Hole DDSA-
22-56 intercepted hydrothermal material and alteration at the projection of the Veta Grande
structure. Trace elements present in the intercepted zone suggest that the structure was
hit in the upper levels of the epithermal system. Hole DDSA-22-57 deviated significantly to
the east and drilled outside the target zone.
San Herculano Vein Target
The San Herculano structure is located in the footwall of the Veta Grande vein. San
Herculano is a recently-identified target revealed during surface mapping and reviews of
historical documents about the underground workings. It is currently unknown if the
historical miners were successful in removing economic material from this area; however,
the appreciable amount of development effort is encouraging from an exploration
perspective.
Drill holes targeting the San Herculano structure intersected thin zones of anomalous silver
and base metal mineralization. Whilst a formal San Herculano vein has yet to be identified,
the company believes that exploration in semi-parallel structures to the Veta Grande
warrants follow up exploration.
Table of Results
Hole From To
Interval
(m) Ag g/t Au g/t Pb % Zn % AgEq g/t
DDSA-22-59 1.38 10.95 9.57 157.38 0.12 0.06 0.10 175
DDSA-22-59 23.10 31.69 8.59 59.60 0.07 0.03 0.07 70
Including 27.30 29.72 2.42 117.89 0.04 0.01 0.02 123
DDSA-22-59 63.00 64.15 1.15 45.42 0.34 1.32 0.64 145
DDSA-22-60 31.10 38.08 6.98 81.09 0.17 0.01 0.07 114
Including 31.10 35.31 4.21 119.21 0.12 0.01 0.04 136
DDSA-22-61 230.04 235.01 4.97 133.58 0.02 0.01 0.04 142
Including 230.04 232.77 2.73 236.67 0.04 0.00 0.06 250
Including 231.28 232.77 1.49 377.79 0.06 0.00 0.10 399
DDSA-22-61 245.68 247.91 2.23 94.56 0.14 0.01 0.03 114
DDSA-22-62 205.15 216.37 11.22 23.98 0.34 0.69 1.69 152
Including 212.97 216.37 3.40 50.45 0.71 1.72 3.85 341
Including 213.40 215.98 2.58 58.02 0.85 2.25 4.88 423
Table 1 – Silver equivalent is calculated using the following formula: Silver-Equivalent (AgEq) =
[(Au_ppm x 60.34)+(Ag_ppm x 0.70)+(Pb_ppm x .0021)+(Zn_ppm x 0.0032)]/ 0.70. Metal price
assumptions are Au:$1877, Ag:$22, Pb: $0.97, Zn:$1.48. A 30 day metal price average is used to
determine metal prices and 100% recovery has been assumed for all metals. At this stage of the
project, reliable metallurgy has yet to be completed, and the reader is cautioned that 100%
recoveries are never achieved. True thickness is assumed to be 50%-80% of downhole width.
Drill Hole Information
Hole Number Total Depth Azimuth Dip Easting Northing Elevation (m)
DDSA-22-56 249.0 48 -49 754195 2524825 2478
DDSA-22-57 379.2 42 -51 754168 2524705 2488
DDSA-22-59 240.6 39 -50 752160 2526077 2590
DDSA-22-60 261.7 40 -55 752049 2526139 2599
DDSA-22-61 338.1 60 -55 751977 2525989 2642
DDSA-22-62 276.5 25 -63 751269 2526510 2585
DDSA-22-63 206.7 43 -62 751984 2526248 2578
Table 2 – Drill collar details. All coordinates in WGS84 UTM Zone 13N.
Next Steps
Planned 2023 drilling at the Zacatecas project includes programs for resource expansion,
(including metallurgical testing), brownfields exploration, and greenfields exploration,
including:
• Resource expansion drilling that will be focused in the current resource
area, designed to delineate additional tonnage of mineralisation outside of
the current resource estimate.
• Brownfields exploration designed to test newly recognized hanging wall and
footwall vein splays, offset structures at depth, and additional targets in
close proximity to the historical workings.
• Greenfields exploration that will be a combination of follow up drilling on the
recent first-pass success at Palenque and first-pass drilling on regional
targets including the northern Zacatecas district at Pánuco.
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 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].
San Acacio History
Zacatecas State continues to be the top producer of silver in Mexico and is one of the
reasons Mexico remains the world’s largest silver-producing region. The Zacatecas-
Fresnillo Silver Belt is one of the most prolific silver producing areas in the world.
Production at the San Acacio mine dates to at least 1548 when Spanish colonialists mined
mainly bonanza oxide ores, typically grading in excess of 1kg/tonne silver. The various
veins were mined intermittently until the mid-1800s when an English company drove the
~2km Purisima tunnel to allow for deeper underground access and drainage. From the late
1800s until the Mexican Revolution in 1920, mining consisted of intermittent production
from bonanza grade ores. During the Mexican Revolution, heavy fighting in the Zacatecas
region led to the halt of most mining endeavors. In the mid 1920’s, a cyanide plant targeting
silica rich ores and a floatation plant for complex Pb-Zn ores were built with varying success
until the transition from oxide to sulphide rich ores made for recovery complexities. In the
mid 1930s the first tonnage estimate was created on the property, although the project sat
mostly idle save for some stope and adit rehabilitation at Purisima and Refugio. Production
was largely dormant except for some small processing done by CIA Fresnillo in the late
1930s to early 1940s. In the mid- 1990s Silver Standard Resources Inc. began a systematic
exploration and evaluation program targeting an open pit silver mine consisting of backfill,
remaining stopes and silica-rich hanging wall and footwall mineralization of the Veta Grande
structure. This entry by a publicly -listed company kicked off nearly 3 decades of
exploration, development, and bulk-scale processing.
Defiance Silver has been exploring the project since 2011 and has focused primarily on
identifying mineral resources. Drilling by previous operators as well as Defiance Silver from
2009 to early 2017 confirmed the presence of significant mineralizing events that provide
evidence for a long-lived mineralizing system. Drilling in late 2017 and early 2019 outlined
complexities in the structural geology of the area and identified significant “down dropped”
and rotated structural blocks as the company tested the Veta Grande at similar elevations
where it was encountered by earlier mining and drilling.
San Acacio hosts a current inferred mineral resource estimate containing 16.97 Moz silver
(17.76 Moz AgEq) grading 181.94 g/t silver (192.5 g/t AgEq) with a 100 g/t AgEq cut off (see
the Technical report titled: Technical Report and Resource Estimate, San Acacio Silver
Deposit, Zacatecas State, Mexico by Giroux and Cuttle dated September 26, 2014, which
is available on Sedar and the company’s website here).
Other Corporate Matters
Defiance announces that the company is making a management change. Sherry Roberge,
the company’s Chief Financial Officer and Corporate Secretary, will be leaving the
Company on April 5, 2023 and the company has commenced an executive search for a
new Chief Financial Officer and Corporate Secretary.
The company also announces that it has previously engaged Soar Financial Partners, a
brand of NorthStar Communications GmbH ("Soar") and Tarik Dede ("Dede"), to perform
services for the Company, including investor relations activities, as defined in accordance
with the policies of the TSX Venture Exchange ("TSXV") and applicable securities laws.
Pursuant to an agreement entered into with Soar on May 15, 2021 for a period of one year,
Soar will receive a cash fee of €4,750 per month, due quarterly upfront. In addition, fees
for any blogging services provided by Soar will result in an additional fee of €1,750 per
month, due quarterly upfront, and road show fees of €2,850 per road show day. At the
discretion of the board of directors of the Company, Soar may also receive stock options,
pursuant to TSXV policies. In case no options are granted the Retainer fee is increased by
25%. The Company retained Dede for blogging services on a per transaction basis. Dede
will receive a cash fee of €750 per month and will not be issued any stock options for its
services. Both parties are arm’s length parties and still currently engaged. Defiance also
announces an update to the Shares for Debt transaction (See News Release dated
December 6th, 2022), regarding consulting services rendered for the company by an arm’s
length party, Rhea Advisors, LLC (“Rhea”). The scope of these services were related to in-
house marketing, communications, and project-based consulting with management.
About Defiance Silver Corp.
Defiance Silver Corp. (DEF | TSX Venture Exchange; DNCVF | OTCQX; D4E | Frankfurt) is an
exploration company advancing the district-scale San Acacio Deposit, 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, V.P Exploration for Defiance Silver 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
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 comments
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.