December 19, 2024
Defiance Silver Corp. (TSXV:DEF, BUY, C$0.95 target, Timothy Lee) has filed an NI 43-101 technical report for its 100%-owned Zacatecas Ag project, which includes the San Acacio project, shortly after announcing an updated MRE for the Tepal project (read notable). Mineral resources were not estimated in the technical report. The 2014 MRE, which outlined ~18M oz AgEq in Inferred resources at San Acacio alone and was based entirely on historical work carried out by previous operators, remains non-compliant. Defiance has since completed 26,578m (73 holes) of drilling at the San Acacio concessions, primarily targeting the Veta Grande structure, and 3,800m (13 holes) of drilling targeting multiple vein structures at the Lucita concessions, which were first optioned in 2020 (read recent exploration results here and here). The company is now planning a 2-phase work program, with an estimated total US$9.2M budget, leading to an MRE for San Acacio in 2025. Phase 1 would involve surface mapping and sampling, a property-wide LiDAR survey, 12,500m of infill and step-out drilling at San Acacio, and exploratory drilling at Lucita. Phase 2 would consist of metallurgical testwork, additional geophysics, and 12,500m of further drilling in and around the Veta Grande vein system to support an MRE, as well as additional drilling at Lucita South and initial drilling at Lucita North. We note that the expected value for potential mineral resources in our probability-weighted valuation for the Zacatecas Ag project is 39.4M oz AgEq. Read more
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Defiance Silver Corp. – TSXV:DEF – 1,2,3,8
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