Update on Status of Technical Reports for Its Mexican Projects
Update on Status of Technical Reports for Its
Mexican Projects
Vancouver, British Columbia--(Newsfile Corp. - November 29, 2024) - Defiance Silver Corp. (TSXV:
DEF) (FSE: D4E) (WKN: A1JQW5) ("
Defiance
" or the "
Company
") would like to provide an update on
the preparation of the required technical reports for its Tepal and San Acacio projects (also see the
Company's
February 2
nd
and
April 10
th
2024
press releases for more details).
Tepal
As reported by the Company last April, the Company concluded that it was incapable of providing an
amended report and that it would therefore prepare a new report on the project in compliance with
National Instrument 43- 101 -
Standards of Disclosure for Mineral Projects
("
NI 43-101
").
Defiance has
been working with Micon International Limited, its technical advisors, to prepare a new technical report,
including a new Mineral Resource Estimate ("
MRE
"), that will replace the previously filed technical report
for its Tepal project.
Following the acquisition of ValOro Resources by Defiance at the beginning of January 2019 (see press
release dated
January 7, 2019
), it was decided that more focus would be put on the development of the
San Acacio project (which forms part of the Zacatecas complex) with management devoting less
attention and resources to Tepal, working with the existing reports and results on the project. In June
2022, Defiance announced it had been the victim of an illegal and fraudulent transfer of the mineral
concessions forming part of the Tepal project (see press release dated
June 24, 2022
). As such, the
review of the Tepal project was further complicated by the Company's inability to access the project for
two years due legal issues related to a number of illegally and fraudulently transferred concessions. This
issue was finally resolved, through the Mexican courts, in favour of the Company as confirmed by its
news release dated
March 6, 2024
.
Access has provided further information and insights into the nature and extent of the mineralization,
allowed the Company to identify areas where further work could assist in infilling information in the
current mineralized zones, expanding the mineralized zones or identifying new ones and identifying gaps
in the database where further exploration programs could enhance and refine the information used as
the basis of our new MRE.
The Company is however not in a position to amend the 2017 Preliminary Economic Assessment (the
"
2017 PEA
") on the Tepal Project, principally because the Qualified Person ("QP") responsible for the
metallurgical section of the 2017 PEA has retired, has been unavailable to exchange and collaborate
with the Company and Micon on the results of his work, and Micon is not in position to replicate and sign-
off on the metallurgical results obtained by the QP for the 2017 PEA. Therefore, this work will need to be
redone.
In addition, once the Company regained access to the property, it conducted a review of the previous
work on the project, comprised of verifying the Tepal database and relogging of several holes. Finally,
the increase in the metal prices and likely increase in capital costs, determined that those portions of the
previous 2017 PEA will also need to be updated. The Company plans to complete a new preliminary
economic assessment during the course of 2025 following the release of the new MRE on the project.
The Company anticipates being in a position to file the new Tepal technical report by mid-December.
San Acacio (Zacatecas project)
Defiance has been working with SGS Geological Services, who has been contracted to prepare a
revised technical report that will include all projects forming part of the overall Zacatecas complex, which
includes the San Acacio project.
The revised technical report will include all exploration work completed
on the project to date.
A mineral resource estimate was disclosed for the San Acacio project in a 2014 technical report.
However, as indicated in the
February 2, 2024 news release
, the 2014 report did not comply with
disclosure requirements for mineral resources set out in NI 43-101.
Defiance has completed additional diamond drilling on the project since 2014, including 72 drill holes for
a total of 25,446.62 metres on the San Acacio project, as well as extensive surface geological and
structural mapping of the mineralized zones, and surface soil sampling of the entire project.
This work
has not yet been incorporated into current geological and resource models for use in the preparation of a
current mineral resource estimate by an independent qualified person.
Since the 2014 Mineral Resource Estimate ("
MRE
") did not comply with disclosure requirements for
mineral resources set out in NI 43-101, and the additional drilling completed on the project has not yet
been incorporated into current geological and resource models for use in the preparation of a current
mineral resource estimate by an independent qualified person, there are no current mineral resources on
the project.
The Company anticipates being in a position to file the new Zacatecas technical report in mid-
December.
Qualified Person
Mr. George Cavey, P. Geo, Vice-President Exploration and Director of the Company, is a Qualified
Person within the meaning of NI 43-101 and has approved the technical information concerning the
Company's material mineral projects contained in this press release.
About Defiance Silver Corp.
Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (OTCQX: DNCVF) 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 advance our projects through capital-
efficient exploration focused on resource growth and new mineral discoveries.
On behalf of Defiance Silver Corp.
"Chris Wright"
CEO & 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:
Disclaimer
Neither the 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.
Cautionary Statements Regarding Forward-Looking Information
Information contained in this news release which are not statements of historical facts may be
"forward-looking information" for the purposes of Canadian securities laws. Such forward-looking
information involves risks, uncertainties and other factors that could cause actual results,
performance, prospects and opportunities to differ materially from those expressed or implied by such
forward looking information. Forward-looking statements are generally identifiable by use of the words
"believe", "expect", "anticipate", "contemplate", "plan", "intend", "continue", "budget", "estimate",
"may", "will", "schedule", "understand" or the negative of these words or other variations on these
words or comparable terminology. These forward-looking statements relate to, among other things: the
Company's ability to complete and file a new technical report for its Tepal and Zacatecas projects,
and the ability of the Company to prepare an updated preliminary economic assessment for its Tepal
project.
Forward-looking information is necessarily based upon a number of estimates and assumptions that,
while considered reasonable by Defiance, are inherently subject to significant technical, political,
business, economic and competitive uncertainties and contingencies, which are beyond the
Company's ability to control or predict, that may cause the actual results of the Company to differ
materially from those discussed in the forward-looking statements. Known and unknown factors could
cause actual results to differ materially from those projected in the forward-looking information.
Factors and assumptions that could cause actual results or events to differ materially from current
expectations include, among other things and without limitation: political risks associated with the
Company's operations in Mexico; the inability of the Company and its subsidiaries to enforce their
legal rights in certain circumstances; failure to establish estimated mineral resources; the possibility
that future exploration results will not be consistent with the Company's expectations; and other risks
disclosed in the Company's public disclosure record on file with the relevant securities regulatory
authorities. For additional risk factors, please see the Company's most recently filed Management
Discussions & Analysis for its financial year ended June 30, 2024 available on SEDAR+ at
www.sedarplus.ca
.
There can be no assurances that forward-looking information and statements will prove to be accurate,
as many factors and future events, both known, and unknown could cause actual results, performance
or achievements to vary or differ materially from the results, performance or achievements that are or
may be expressed or implied by such forward-looking statements contained herein or incorporated by
reference. Accordingly, all such factors should be considered carefully when making decisions with
respect to Defiance, and prospective investors should not place undue reliance on forward looking
information. Forward-looking information in this news release is made as at the date hereof. The
Company assumes no obligation to update or revise forward-looking information to reflect changes in
assumptions, changes in circumstances or any other events affecting such forward-looking
information, except as required by applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/231864