San acacio deposit

Exploration at Depth

Defiance plans to aggressively develop its San Acacio Deposit along its 5.6km concessions by:

  1. Developing a plan to increase the silver mineral resource at the San Acacio Deposit via aggressive exploration drilling campaigns
  2. Consolidating neighboring concessions within the Zacatecas Silver District including the Veta Grande Vein Structure

San Acacio Deposit Claims

San Acacio Deposit and Vein Structures

Exploration Strategy:

Explore the 5.6 KM in Three Phases. From the Almaden zone to the Far Southeast Extension, there is unlimited exploration potential.

San Acacio Deposit: 5.6 KM of Exploration Potential

Defiance Silver Project Concessions: Almaden to Property Boundary Claims

Phase I & II Drilling


Phase I Drilling

1.2 KM Almaden to Refugio Claims

From Point A to B, this is an area of lowest risk and highest reward as most of the production was from these old stopes. Defiance will drill below the old stopes. Phase I is designed to test for a continuation of mineralization to depth below the current resource and the workings of the past producing mine.

So far, results from the 5,000m Phase I drill program has extended the mineralized envelope by 230m below the limits of the current resource. Mineralization continues to be open along strike and down dip.

Of interest is that the Silver Equivalent grades and the drill widths returned were considerably higher than those employed in the resource and provide for the opportunity to expand Defiance’s resource subject to the results of further drilling.

Results are provided in the following table:

Hole #

From (m)

To (m)

Length (m)

Ag, g/t

Au, g/t

Cu, %

Pb, %

Zn, %

AgEq,* g/t*

SAD14-01

132.50

149.50

17.00

110.21

0.13

0.01

0.11

0.35

139.15

including

134.00

142.10

8.10

222.12

0.22

0.01

0.20

0.53

268.13

SAD14-02

168.50

185.20

16.70

101.11

0.75

0.02

0.14

1.79

235.36

including

168.50

171.70

3.20

419.09

0.82

0.02

0.14

0.30

499.43

including

176.20

182.10

5.90

30.15

1.46

0.03

0.23

4.62

334.68

SAD14-03

194.50

213.30

18.80

21.37

0.42

0.02

0.84

1.10

128.03

including

205.00

213.30

8.30

42.89

0.92

0.04

1.87

2.44

278.33

SAD14-04

143.00

153.10

10.10

100.23

0.56

0.13

0.77

1.61

248.11

including

147.00

153.10

6.10

138.35

0.80

0.19

1.27

1.90

340.41

SAD15-06

178.00

185.30

7.30

109.21

0.13

0.01

0.04

0.09

125.09

SAD15-06

219.50

231.00

11.50

20.06

0.39

0.03

0.04

1.54

114.85

including

224.00

231.00

7.00

19.88

0.57

0.03

0.06

2.35

161.82

SAD15-07

136.40

140.00

3.60

211.49

0.14

0.01

0.11

0.20

234.17

SAD15-07

147.10

149.50

2.40

149.16

0.16

0.02

0.42

1.59

241.55

SAD15-07

185.40

206.50

21.10

70.84

0.24

0.03

0.35

0.77

134.87

including

199.10

206.50

7.40

158.75

0.52

0.07

0.81

1.83

306.68

SAD15-8

106.05

113.30

7.25

631.46

0.43

0.01

0.09

0.22

675.58

SAD15-8

119.50

120.20

0.70

431.95

0.24

0.01

0.21

0.64

483.38

SAD15-8

163.05

163.80

0.75

330.75

0.10

0.01

0.15

0.31

356.81

SAD15-9

221.00

224.05

3.05

Mine Opening on Veta Chica

SAD15-9

226.15

241.80

15.65

65.22

0.02

0.01

0.01

0.04

68.99

including

226.15

231.00

4.85

118.32

0.02

0.07

0.01

0.04

129.64

SAD15-9

263.70

266.75

3.05

40.38

0.09

0.01

0.15

0.52

74.55


266.75

269.80

3.05

Mine Opening on Veta Grande


269.80

271.35

1.55

4.90

0.04

0.01

0.15

0.51

33.43

SAD15-10

282.70

284.30

1.60

100.03

0.11

0.01

0.01

0.03

110.72

SAD15-10 **

331.50

343.45

11.95

Veta Grande vein

including

331.5

333.6

2.1

283.31

0.17

0.01

0.38

0.70

337.75

**

333.60

335.65

2.05

Mine Opening on Veta Grande

including

335.65

341.15

5.5

96.65

0.26

0.03

0.61

1.34

194.32

**

341.15

341.85

0.7

Mine Opening on Veta Grande

including

341.85

343.45

1.60

19.44

0.12

0.02

0.40

1.58

106.88

SAD15-11

283.50

285.00

1.50

136.03

0.03

0.02

0.03

0.06

143.22

SAD 17-12

226.2

253.65

27.03

148.21

0.29

0.02

0.13

0.67

202.99

including

226.2

234.20

7.58

212.91

0.05

0.01

0.06

0.26

230.03

including

238.0

243.00

5.00

230.69

0.51

0.04

0.43

1.68

354.97

including

247.6

253.65

6.05

122.07

0.74

0.01

0.09

1.04

222.59

SAD17-13

261.00

271.00

10.00

171.22

0.08

0.01

0.27

0.42

204.65

including

261.00

264.00

3.00

372.21

0.10

0.01

0.16

0.45

404.03

SAD17-14

308.07

308.67

0.60

139.53

0.40

0.00

1.84

1.09

276.74


314.12

315.00

0.88

213.84

0.30

0.00

0.01

0.00

236.21


318.00

318.30

0.30

477.55

0.46

0.00

0.05

0.17

520.27

SAD17-15

209.82

213.00

3.18

285.04

0.02

0.01

0.05

0.17

296.30

SAD17-17

439.13

440.14

1.01

33.90

0.12

0.01

0.51

3.14

187.85

*Reported for comparison only, with no assumptions regarding metal recovery or smelter payments. Prices used are Au: $1210.50/ounce, Ag: $16.33/ounce, Cu; $2.80/pound, Pb; $0.83/pound and Zn $0.95/pound. US dollars. **Grade not calculated because of no data for open mine workings. ***True Widths are approximately 70% to 80% of each intersection.

Phase II Drilling

The next step is to expand our exploration program and commence a Phase II drill program along the 0.9 KM Refugio to Restauracion Claims

From Point B to C, Defiance will drill below underexplored shallow shafts to the Restauracion Claims.

Phase III Drilling

3.5 KM Restauracion to Property Boundary

San Acacio Project: Long Section

Defiance has the opportunity to survey and drill from Point C to the Property Boundary, totaling 4 km of unexplored potential along strike, which was not mined historically.