San acacio deposit

Exploration at Depth

Defiance plans to aggressively develop its San Acacio Deposit in the near term by:

  1. Developing a plan to increase the silver mineral resource at the San Acacio Deposi
  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

2.1 KM of Exploration Potential

”Defiance

Defiance Silver Project Concessions: Almaden to Restauracion Claims

Phase I Drilling

1 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 first three holes have extended mineralization by 140m below the limits of the current resource. All three holes were drilled on a single section on the western margin of the project and all intersected broad zones of mineralization at increasing depths. 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 (see press release dated January 15, 2015) 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**
SAD14-01 132.5 149.5 17 110.21 0.13 0.01 0.11 0.35 139.1
including 134 142.1 8.1 222.12 0.22 0.01 0.20 0.53 268.1
SAD14-02 168.5 185.2 16.7 101.11 0.75 0.02 0.14 1.79 235.4
including 168.5 171.7 3.2 419.10 0.82 0.02 0.14 0.30 499.4
and 176.2 182.59 5.9 30.15 1.46 0.03 0.23 4.62 334.7
SAD14-03 194.5 213.3 18.8 21.14 0.42 0.02 0.83 1.09 128.0
including 205 213.3 8.3 42.89 0.92 0.04 1.87 2.44 278.3

*True Widths are approximately 70% to 80% of each intersection

**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 $0.95/pound in US$

See press release dated January 29th 2015 for more information.

Additional holes released tested below the limit of the existing resource.

Holes SAD14-04 and SAD15-07 intersected the San Acacio vein over wide widths of high grade mineralization (results in table below). These results extend by 100 meters to the SE the area of high grade mineralization intersected by the Company’s initial three holes. Hole SAD15-08 also intersected high grade mineralization grading 674 g/t AgEq over a width of 7.25m in a possible extension of the Navidad vein. Additional work is required to further define this exciting newly identified wide high grade mineralized structure.

All five holes are below the limit of the existing resource and, will further increase the existing resource.

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**
SAD14-04
including

143
147
153.1
1531
10.1
6.1
100.23
138.35
0.56
0.80
0.13
0.19
0.77
1.27
1.61
1.90
248.1
340.4
SAD15-07
including

185.4
199.1
206.5
206.5
21.1
7.4
70.84
158.8
0.24
0.52
0.03
0.07
0.35
0.81
0.77
1.83
134.9
306.7
SAD15-08 106.05 113.3 7.25 631.46 0.43 0.01 0.09 0.22 675.6
SAD15-08 119.5 120.2 0.7 431.95 0.24 0.01 0.21 0.64 483.4
SAD15-08 163.05 163.8 0.75 330.75 0.10 0.01 0.15 0.31 356.8
SAD15-08 260.5 266.5 6.0 11.25 0.31 0.01 0.04 0.53 57.9
SAD15-08 272.1 275.5 3.4 38.47 0.20 0.01 0.03 0.27 65.8

*True Widths are approximately 70% to 80% of each intersection

**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 $0.95/pound in US$


Phase II Drilling

0.6 KM Refugio to Restauracion Claims

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

Phase III Drilling

4 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.