October 4, 2021
Defiance Silver Corp. (TSXV:DEF, BUY, C$1.45 target, Timothy Lee) announced plans for its upcoming maiden drilling program at its Lucita concessions, immediately north of its high-grade San Acacio Ag project in Zacatecas, Mexico. As per our note here, Defiance optioned the Lucita concessions from Pan American Silver (TSX:PAAS, Not Rated) in December 2020. Previous work by Pan American had primarily focused on the northern Panuco area, although surface sampling on the Palenque vein system to the south had returned several high-grade (>700 g/t Ag) samples over a ~5km strike length along the structure. Defiance plans to drill several holes into the Palenque structure, which we note has never been drilled before. Meanwhile, the company also plans to continue drilling at San Acacio, where recent focus has been on targeting vein extensions below historical mine workings (read more), as well as further regional surface sampling and re-logging of core from historical drill holes. Overall, we are encouraged and excited to see Defiance conduct its initial drill program at Lucita. Based on surface sampling, the Palenque vein appears to be a promising target, and provides the company with an interesting greenfields exploration target in addition to the brownfield opportunities on the San Acacio concessions. Drilling is expected to commence mid-October, with an initial focus on the southern portion of Lucita, which includes the Palenque, El Puerto, and Tahuares vein structures. Read more
