170 km south of Guadalajara, 18km south of the Jalisco State border
Excellent with paved roads and low topography
Water, power, deep sea port access at Manzanillo and Lazaro Cárdenas.
Experienced technical Mexican geologists and local labor
Town of Tepalcatepec, 15.5 km from the Tepal project
2017 Preliminary Economic Assessment which is currently being amended. Ownership: In dispute; pending successful restoration of illegal mining concession transfer.
The Tepal project is located in the state of Michoacán, Mexico, a short distance from the Jalisco State border, lying roughly equidistant between the two international commercial sea ports of Manzanillo and Lazaro Cárdenas and the international Airports of Manzanillo and Guadalajara, a city of 5 million people.
The project is a 15-minute drive via paved highways and well maintained ranch roads from the commercial centre of Tepalcatepec (municipality population 45,000).
The region has a history of established international scale agribusiness and has a long history of local independent mining operations, both indicative of a supportive community and social relationship.
The project area has excellent infrastructure and a work pool of highly trained technical talent and local labor.
The results from 443 holes totaling over 82,895 meters of core and reverse circulation drilling has delineated the North, South, and Tizate zones in the Measured & Indicated category.
Tepal’s current NI 43-101 contains 1.8 million ounces of gold and 813 million pounds of copper at grades of 0.30 g/t gold, 0.2% copper, 1.54 g/t silver, and 0.004% molybdenum in the Measured & Indicated Categories within the resource pit shell.Note that until the PEA is amended, these mineral resources are not considered current.
The resource uses a US$5/tonne equivalent value net smelter return (NSR) cut-off and a $1,250 gold price, $2.50 copper price, $18.00 silver price.
Sulphide and oxide gold recoveries are estimated to be 83% and 78%, respectively, and 87% for copper in sulphide material.
Past exploration focused on bulk porphyry-style mineralization but recent work indicates the presence Au-Ag epithermal feeder zones that remain largely untested.
Mineralization follows these newly identified structural controls and feeders whose strike and depth potential remain unexplored.
There is potential to add ounces by drilling along strike and dip, with potential to improve grade within the existing resource by angled drilling of high angle structures.
Defiance owns 100% of the Tepal Project.
Tepal was originally acquired by Defiance through a merger with ValOro Resources in 2018; ValOro was previously known as Geologix Explorations.