February 1, 2022
Defiance Silver Corp. (TSXV:DEF, BUY, C$1.40 target, Timothy Lee) announced it has recommenced drilling at the company’s Zacatecas project (option to acquire 100%-interest) in Mexico. The drill program is focused on the Lucia license area (read more), which began in early November and recommenced in January after a three-week hiatus. The exploration program will continue to focus on testing regional targets at Lucita, Tahuares, and Veta Grande, as well as follow-up drilling on the successful 2020-21 campaign at the historical San Acacio mine and Veta Grande resource area (read here and here). To date, Defiance has completed over 3,000m of regional drilling at the central Lucita land package, with 4,500m of first pass drilling planned. The company is also conducting work to assess the potential for access to the historic underground workings, which could facilitate future drilling from underground. Following the completion of this drilling program and receipt of assays, the company will select targets for additional drilling. Moreover, Defiance announced it has granted incentive stock options to directors and officers of the company, which will purchase an aggregate of 1,756,250 common shares at an exercise price of $0.405/sh. The options are exercisable until January 31, 2032 and vest accordingly: 1) one-third on the date of grant, 2) one-third twelve months following the grant date, and 3) one-third twenty-four months following the grant date. It also issued 230,000 Deferred Share Units and 75,000 Performance Share Units which mature upon grant, and 356,250 Restricted Share Units, which mature over the same terms as the stock options. Overall, we believe that the company’s Zacatecas property package hosts several promising targets, including known mineralization at past producing mines as well as earlier-stage prospects, and we are encouraged to see the company conduct this initial drilling at Lucita. Read more
