Defiance Silver Corp. (DEF: TSX-V) (“Defiance” or the “Company”) announces that as a result of a review by the British Securities Commission, the Company is issuing the following news release to clarify its disclosure.
As of March 14, 2013 the Company on its San Acacio and Veta Grande project pages of its corporate website referred to a previous historical resource calculation by Source Exploration Corp as “an historic indicated resource of 18 million ounces of silver”. This statement should have referenced the historical resource calculated by Source Exploration Corp as 4.05 million ounces of indicated resource contained in 1.49 million tonnes at a grade of 84.9 g/t silver and a total of 14.35 million ounces of inferred silver resource contained in 3.44 million tonnes at a grade of 80.0 g/t silver and 0.74 million tonnes at a grade of 232.6 g/t silver. The Company combined the indicated and inferred resource ounces of silver which is contrary to NI 43-101 policy guidelines. Although the Company correctly categorized the Source Exploration Corp resource as historical in nature on the two project pages, on its home page the Company failed to indicate the Source Exploration resource was historical in nature. The Company also failed to update its website information to include the NI 43-101 compliant resource of 3.55 million ounces of silver contained in 1.15 million tonnes grading 95.8 g/t silver and 12.45 million ounces of silver contained in 2.89 million tonnes grading 134.1 g/t silver as announced in the Company’s news release dated October 25, 2013. To correct any misconceptions, the Company is not basing a production decision either on the historical resource announced by Source Exploration on May 21, 2010 nor on the current NI 43-101 compliant resource as announced by the Company on October 26, 2013. The Company has either removed or corrected the portions of the website pages that were in error.
The Company’s Corporate Brochure and Fact Sheet, previously available on its website, contained statements that were not compliant with NI 43-101. In the Factsheet, the Company for brevity in presentation on page one combined the indicated and inferred resource from the NI 43-101 compliant resource calculation announced in the Company’s news release dated October 25, 2012 referencing that the details of the breakdown of the indicated and inferred resources was included the reverse side of the Fact Sheet. The Company was incorrect in doing so and should not have combined the indicated and inferred resources on page one. Also on the page two of the Fact Sheet where the compliant NI 43-101 resource was presented in tabular form, the Company failed to provide the reference to its news release of October 26, 2012 which provides the: effective date of each estimate of mineral resources and mineral reserves; key assumptions, parameters, and methods used to estimate the mineral resources and mineral reserves; and the identification of any known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources or mineral reserves. This was an oversight by the Company.
In the Corporate PowerPoint Presentation, previously available on its website, the Company included on page 3 a comparison chart between the Company and six other companies that either have or are preparing to develop silver mining operations in historic silver mining districts in Mexico. In the comparison table the Company for brevity of presentation incorrectly presented a global resource for each of the seven companies instead of presenting the breakdown of the resources and reserves of the different companies in the correct NI 43-101 compliant categories of proven and probable reserves, and measured, indicated, and inferred resources. This disclosure was also non-compliant with NI 43-101 as it presented a resource solely in the form of metal content instead of providing details of tonnage and grade used to calculate the amount of contained metal. This was meant to be an indication of the value added potential for the Company if it was successful in developing its mill and mine assets in the historic Zacatecas Silver District but the presentation of the reserves and resources was incorrect and non NI 40-101 compliant and no conclusions should be drawn from the chart previously presented on page three of the Corporate Presentation. On pages 10 and 12 of the Corporate Presentation previously available on its website, the Company for brevity of presentation referred to a combined resource of 16 million ounces of silver of undefined resource category for the San Acacio property which was non-compliant statement. The San Acacio resource should have been broken down as indicated and inferred resources as announced in the Company’s news release of October 25, 2012.
Copies of the Company’s revised Fact Sheet and Corporate Presentation will be posted on its corporate website once corrected.
In the Company’s MD&A dated December 31, 2012, the reference made to a resource for the Encantada Mine of First Majestic Silver without breaking it down into NI 43-101 compliant categories and expressing the resource in metal content only, was incorrect.
The Company on both its website and in the Fact Sheet previously available on its website failed to identify that Bruce Winfield, the Qualified Person under section 3.1 of NI 43-101, is also the President and CEO of the Company. The Fact Sheet as well as the website will be revised to include this additional information.
Mr. Bruce Winfield, P.Geo., President and CEO of the Company is the Qualified Person for information contained in this press release and is a Qualified Person within the meaning of NI 43-101.
On behalf of Defiance Silver Corp.
President and CEO
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.
|1610 - 409 Granville Street|
Vancouver, BC V6C 1T2