Drilling Continues to Return Wide Widths at Defiance Silver’S Zacatecas Project
DRILLING CONTINUES TO RETURN WIDE WIDTHS AT
DEFIANCE SILVER’S ZACATECAS PROJECT
FOR RELEASE: AUGUST 4TH, 2021 TSXV:DEF
OTCQX:DNCVF
FRA:D4E
Defiance Silver Corp. ("Defiance" or the "Company") is pleased to provide an
update to the ongoing drill program at the company’s Zacatecas project. The current
phase of the drill program has been successful in defining a new zone of mineralization
near the Veta Morada fault and further outlining wide zones of mineralization on the
Veta Grande vein system at the Zacatecas project.
Highlight of Results
• DDSA-21-40 – Intersected high grade and wide widths of silver on the Veta
Grande vein, including 2.8 metres of 336 g/t AgEq (from 314.40-317.20m)
within an 8.28 metre wide zone of 188 g/t AgEq included in a wider interval of
16.47m of 129 g/t AgEq (from 302.48-318.95m).
• DDSA-21-34 – Was designed to test the Veta Morada fault at depth and
intersected a new, unnamed vein with elevated Ag, Au, Pb, Zn results near the
Veta Morada fault, including 1.25m (206.9-208.15m) of 253.63 g/t Ag, 0.20 g/t
Au and 0.47 % Zn or 286 g/t AgEq. This was in a 3.10 metre wide zone
(206.90-210.05m) of 133 g/t AgEq. This was the first hole into a newly identified
structural zone.
Chris Wright, Chairman & CEO, commented: “We are encouraged by the discovery of
a previously unrecognized silver-bearing vein system in a hanging wall structure that
has never previously been tested. Furthermore, drill hole DDSA-21-40, a step out hole
from the excellent results on hole DDSA21-36, returned encouraging grades and wide
widths. Follow-up drilling in this zone will target the new mineralized vein at DDSA-
21-36 and the mineralization in DDSA-21-40.”
Overview Maps
Figure 1 – Zacatecas project and reported drill holes in yellow.
Blue diamonds represent previously reported drill holes in current program. Light blue
diamonds represent holes completed with results pending.
Figure 2 – Drill hole collar locations with Veta Grande and new unnamed vein projected to
surface. Cross-section locations shown in white dashed lines.
Cross Sections
Cross Section 1 - Cross Section of drill hole DDSA-21-34 (Veta Morada area with the newly
discovered unnamed vein). Previous reported results from hole DDSA-21-35 also
highlighted.
Cross Section 2 - Cross section of drill hole DDSA-21-40 with highlighted intervals and
location of old workings encountered on the Veta Intermedia.
Discussion of Results
Historical stopes and higher-grade mineralized intercepts appear to primarily occur at
the intersections of north-striking faults and the Veta Grande vein system. The vein
system looks to contain higher grades and wider intercepts of mineralization at these
intersections, as evident by the presence of substantial underground workings, high-
grade historical drill results, and wide widths with high metal grades encountered in
the 2021 drill program (e.g. DDSA-21-36, 37).
Proof of concept exploration success: one drill hole into the Veta Morada area
discovered a previously unrecognized hanging-wall vein system with multiple elevated
precious and base metal intercepts.
The drill holes in this release were designed to test several targets at the San Acacio
Project area:
1) Test a previously undrilled vein system at San Acacio (Veta Morada fault
zone).
2) Test locations with different relationships to fault intersections to locate
areas of increased mineralization and understand their controls.
3) Discover and quantify the extent of historic workings and remaining in-situ
mineralization.
Objective 1 – New Vein Zone
Hole DDSA-20-34 was the first hole collared to test the Veta Morada fault located to
the south of the main Veta Grande structure. Drilling encountered a previously
unknown vein that appears to be outboard of the Veta Morada fault and possibly
related to northerly-striking faults that are perpendicular to the main Veta Grande fault
trend. This unnamed vein has limited information and further drill programs will
continue to follow up on and delineate this vein.
Objective 2 – Structural Controls on Grade-Thickness
Holes 33, 39, 40, and 45 were drilled on locations within the Veta Grande system that
were untested by previous exploration drill holes. Hole DDSA-20-33 was the first hole
drilled during this drill program. It was drilled deep underneath the system prior to the
mapping team’s identification the potential controlling structures. This hole does
intersect the three veins of the Veta Grande vein system; however, the veins are poorly
mineralized in this location. Subsequent mapping has shown that this hole was drilled
into the footwall of the north-striking, east-dipping faults that appear to control the
mineralization in this area. Holes drilled into the hanging-wall of this same structure
tend to have significant grade-thickness.
Likewise, hole DDSA-21-39 hit vein and breccia material at the predicted location;
however, this hole appears to be too far from the north-striking faults that control the
new mineralization announced in the last release (holes DDSA-21-36, 37 & 38). The
vein is present in DDSA-21-39 but is silica-flooded and richer in lithics rather than
polyphase breccia clasts. The vein does contain sulphide mineralization, but in lesser
amounts than DDSA-21-36, 37 & 38. Sulphide content progressively decreases from
36 to 37 to 38 to 39 and appears to be controlled by proximity to another of these
north-striking structures.
Following on this understanding, DDSA-21-40 was collared in the same location as
DDSA-21-39 but drilled from the footwall into the hanging wall of a prospective north-
trending fault. A large interval of substantial mineralization was encountered here.
Historic miners did not penetrate this zone of the Veta Grande vein, though Veta
Intermedia was mined in this location.
Hole DDSA-21-45 was a re-drill of hole DDSA-21-44, which was attempting to target
the intersection of the Veta Grande structure and a north-striking fault farther to the
east within the project area. Hole DDSA-21-44 experienced severe deviation, and the
hole was abandoned and re-collared nearby as hole DDSA-21-45. Unfortunately, hole
DDSA-21-45 experienced further deviation (+12 degrees) and failed to intersect the
target.
Objective 3 – Extent of Historic Workings
Holes DDSA-21-41, 42, and 43 were drilled into the eastern extent of the most
significant historical workings to understand the extent of mineralization and
underground workings in this area. Hole DDSA-21-41 was drilled broadly parallel to
and underneath the Refugio tunnel, confirming the lack of underground workings and
the diminished sulphide content of the veins in this portion of the vein system.
Hole DDSA-21-42 was drilled directly into the area with the largest amount of historic
workings mapped on the historic long-section and between two historic underground
drill holes with moderate silver grades. Hole DDSA-21-42 encountered three different
workings, including a set of deeper workings not shown on the historic long section
of the mine.
Hole DDSA-21-43 targeted the intersection of a mapped north-striking fault and the
projection of the Veta Grande vein; the portion of the vein targeted in this hole is down-
dip from that of hole DDSA-21-42. Hole DDSA-21-43 encountered a large historic
working (6+ metres) at the projection of the Veta Grande vein. These workings are not
shown on any historic long sections or level plans, but the size of the working and
tenor of the remaining mineralization indicates that the structural intersection that was
targeted is productive for historically mineable mineralization.
San Acacio Geologic Overview
The highest-grade silver mineralization is typically associated with honey-coloured
sphalerite, argentiferous galena, variable silver sulphides, and spatially correlated with
amethyst. The highest-grade gold mineralization is typically associated with pyrite,
brown to red-coloured sphalerite, and occasionally with hematite. The hanging-wall
mineralization tends to express as a more conventional vein to veinlet array
morphology while the Veta Grande often occurs as a breccia with vein-type textures
and gangue.
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 also available on Sedar and the company’s website
here.
Long Section of Drilling
Figure 3 – Schematic long section showing Veta Grande intersections, limits of current
resource estimate, and known underground workings.
Table of Results
Table 1 – Silver equivalent is calculated using the following formula: Silver-Equivalent (AgEq)
= [(Au_ppm x 56.26)+(Ag_ppm x 0.80)+(Pb_ppm x .0016)+(Zn_ppm x 0.0026)]/0.80. Metal
price assumptions are Au:$1750, Ag:$25, Pb: $0.75, Zn:$1.2. 100% recovery has been
assumed for all metals. At this stage of the project, no metallurgy has been 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
Table 2 – All coordinates in WGS84 UTM, Zone 13N.
The current drill program, a continuation of the previously numbered drill holes,
commenced with hole DDSA-20-33. This news release contains the results from holes
(DDSA-21-33, 34 and 39 to 45) for a total of approximately 4014.2 metres. The
company has drilled approximately 7842 m of HQ3 drill core to date in the current
program.
Next Steps
1) Continued drilling in the main resource area at the San Acacio mine, designed
to test the limits of the vein system for an updated resource estimate.
2) Additional district-scale surface exploration, including mapping and sampling
at the Lucita project is ongoing.
3) Core re-logging of the historical drill holes is ongoing.
4) Permits have been submitted for approval on additional exploration holes as a
follow up to the property-wide surface geochemistry and mapping program at
San Acacio.
5) Permits have been submitted for approval for phase 1 drilling at Lucita.
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