Strategic land package of 4,300 hectares located within the historic mining district of Zacatecas located 8km from the historic silver mining city of Zacatecas. Defiance’s land package in Zacatecas is comprised of four project areas:
- The project has had a number of resource estimates completed by a variety of companies since 1996, none of the previous estimates are considered current resource estimates.
- Project area covers the historic Veta Grande vein system, which has multi-century historic mining operation.
- Contains the Palenque silver structure, as well as the on-strike extension of the Panuco deposit acquired from Pan American Silver and first drilled in 2022.
- Early stage exploration with three historic drill campaigns by Pan American Silver.
- Historic first pass drilling by MAG Silver.
- lies within the Mala Noche belt, where Capstone Mining is producing from the 4400 Tonne per day Cozamin Mine.
All the properties have excellent infrastructure with paved road access, accessible topography, power, available city water, and a sizeable skilled workforce in the nearby communities as well as the city of Zacatecas. Our Zacatecas project area is underexplored; using modern and systematic geoscience to establish a better understanding of mineral system controls will better focus future resource expansion and exploration drilling.
- At San Acacio, the Veta Grande vein system trends northwest to southeast through the heart of the property and outcrops in the western portion of the property; numerous historic surface and underground workings occur along 2 km of strike length.
- The land package covers approximately 50% of the historic mine workings in the Veta Grande vein system, including adjacent ground that is highly prospective for mineral deposits with historically overlooked potential using modern exploration methods.
- Exploration potential exits at depth in this system. At San Acacio, the Veta Grande vein system extends to a depth of at least 335 meters; other mineralized vein systems in the district extend to over 1km in depth.
- A total of 10,234.6 meters have been drilled in 44 holes and 233 trench and chip samples; 8,873.4 meters were included in the now, non-complaint resource estimate. Over 10,000m of drilling (in 32 drill holes) were completed between 2014-2019 with multiple vein intercepts in the principle Veta Grande structure demonstrating an increased mineral envelope.
- The property has had a number of resource estimates completed by a variety of companies since 1996, none of the previous estimates are considered current resource estimates.
- Historic NI 43-101 complaint mineral resource estimates at the San Acacio project were optimized for an open-pit operation. Defiance considers the project as a potential underground mining scenario.
- From a period of Dec 2014 through to Dec 2017 after the 2014 non-complaint report was completed, Defiance drilled 32 additional diamond drill holes for a total of 10,194m. These holes tested the Veta Grande vein system; at depth beneath the area previously untested by previous drill programs and therefore not a part of any previous technical report. Of interest, a number of holes intercepted encouraging mineralization below the limits of previous drilling.
- Base metals are not included in the previous resource estimates.
- A new phase of exploration began in 2019, utilizing modern systematic discovery focused geoscience
- All available historic drill core has been re-logged and in many cases, resampled.
- The entire property has been re-mapped, much of it covered with new soil geochemistry, the old geophysics has been re-interpreted and all data has now been incorporated into our Leapfrog model
- Since 2020, Defiance has completed an additional 41 orientated diamond drill holes for a total of 16,390 additional meters of drilling. All drill results have been disseminated to the public.
- A new NI43-101 mineral resource report is in progress.
- The recently-acquired Lucita project area significantly expands Defiance’s land position in the district. The project area includes the on-strike extension of the 19 million oz AgEq. Panuco deposit (Santa Cruz Silver-Technical Report, Veta Grande Project- Bui & O’Brien Aug 2019), as well as the undrilled Palenque vein structure, a 12 metre wide structure that has an over 4km strike length and has return historical in situ grab, chip, and dump samples ranging from <25g/t Ag to over 700g/t Ag. Defiance has been unable to verify the information from the Panuco deposit and that the information is not necessarily indicative of the mineralization on the Lucita project.
- Pan American completed two drilling campaigns in the Panuco license area; one program in 1996 and the second one in 2011-2012, both drill campaigns intersected mineralized veining typical of a high-level epithermal system.
- Within the central Lucita Palenque vein system, work limited to surface sampling and first pass mapping had been completed prior to Defiance’s involvement.
- Defiance has since completed extensive geological mapping and sampling and first pass drilling on the central Lucita project (Palenque).
- In early November 2021, the Company commenced the first-ever regional drill program on the central Lucita land package and completed over 4,750 metres of regional drilling. The initial results presented are highly encouraging and warrant extensive follow-up exploration work.
Untested targets at the San Acacio project include hanging wall / footwall structures, which are proven in the district. There are several mineralized zones outside the Veta Grande vein that are historically untested.
- Defiance has the option to earn 100% of the San Acacio project and Lucita projects, and owns a 100% interest in the Lagartos project area.
The Zacatecas Silver District is one of the most prolific silver producing areas in the world, having produced in excess of 681 million ounces of Silver during the period 1546 to 1895 (Geological Mining Monograph of the State of Zacatecas). Zacatecas State continues to be the top producer of silver in Mexico and is one of the reasons Mexico remains the world’s largest silver-producing region.
The Zacatecas-Fresnillo Silver Belt is one of the most prolific silver producing areas in the world. Production at the San Acacio mine dates to at least 1548 when Spanish colonialists mined mainly bonanza oxide ores, typically grading in excess of 1kg/tonne silver. The San Acacio project controls approximately 50% of the historic workings on the Veta Grande system which has estimated past production of in excess of 200 million ounces of silver (Reference R. Burk, July 1994, Summary of Property Evaluation Veta Grande, San Acacio for Minera Teck S.A. de C.V.).
The various veins were mined intermittently until the mid-1800s when an English company drove the ~2km Purisima tunnel to allow for deeper underground access and drainage. From the late 1800s until the Mexican Revolution in 1920, mining consisted of intermittent production from bonanza grade ores. During the Mexican Revolution, heavy fighting in the Zacatecas region led to the halt of most mining endeavors. In the mid 1920’s, a cyanide plant targeting silica rich ores and a floatation plant for complex Pb-Zn ores were built with varying success until the transition from oxide to sulphide rich ores made for recovery complexities. In the mid 1930s the first tonnage estimate was created on the property, although the project sat mostly idle save for some stope and adit rehabilitation at Purisima and Refugio. Production was largely dormant except for some small processing done by CIA Fresnillo in the late 1930s to early 1940s. In the mid- 1990s Silver Standard Resources Inc. began a systematic exploration and evaluation program targeting an open pit silver mine consisting of backfill, remaining stopes and silica-rich hanging wall and footwall mineralization of the Veta Grande structure. This entry by a publicly-listed company kicked off nearly 3 decades of exploration, development, and bulk-scale processing.
Defiance Silver has been exploring the project since 2011 and has focused primarily on identifying mineral resources. Drilling by previous operators as well as Defiance Silver from 2009 to early 2017 confirmed the presence of significant mineralizing events that provide evidence for a long-lived mineralizing system. Drilling in late 2017 and early 2019 outlined complexities in the structural geology of the area and identified significant “down dropped” and rotated structural blocks as the company tested the Veta Grande at similar elevations where it was encountered by earlier mining and drilling.