Defiance Silver Corp. · TSXV:DEF
Defiance Silver — Investor Presentation (November 2022)
31 slides from Defiance Silver's investor presentation, November 2022
Slide 1: Corporate Presentation November 2022
DEFIANCE SILVER CORP CORPORATE PRESENTATION NOVEMBER 2022 TSXV:DEF OTCOX:DNCVF WKN: AUQW5S
Slide 2: Forward-Looking Information and Statements
FORWARD-LOOKING INFORMATION AND STATEMENTS This presentation contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statement
Slide 3: Project Summary: Zacatecas and Michoacán
LOCATION Zacatecas Michoacán PRIMARY Silver Gold-Copper COMMODITY DEPOSIT TYPE Epithermal Vein Porphyry-Epithermal STAGE Resource Pre-Feasibility 1.8mm ozs Au + NI 43-101 RESOURCE 16.9mm ozs Ag * 813mm lbs Cu Excellent; road, power grid, Excellent; road, seaport, INFRASTRUCTURE water, and experience
Slide 4: Resource and PEA Footnotes
(1) Please see Defiance news release dated January 15, 2015 and Appendix for 43-101 Inferred Mineral Resource Estimate (2) Please see ValOro news release dated January 19, 2017 and Appendix for PEA Assumptions
Slide 5: Trading, Cash Position and Share Structure
TSXV:DEF TRADING Trading Symbols OTC:DNCVF 52 Week Hi-Low $0.75-$0.14 Average Daily Trading ~337,784 500.0 3,000,000 Volume 450.0 CASH POSITION 2,500,000 Cash (CAD $M) ~$11.0 400.0 Price per Share October 2022 350.0 Volume 2,000,000 300.0 SHARE STRUCTURE 250.0 1,500,000 Share Price $0.185 November 1
Slide 6: Discovery-Focused Geoscience Works
• Located in Zacatecas, Mexico. • Option to acquire 100% ownership. • Current Initial Resource: 16.9 mm Oz. Ag based on 44 holes totalling 10,200m of drilling. • San Acacio and Lagartos projects located on the prolific Veta Grande and Mala Noche Vein Systems. • Significant Intersections outside of c
Slide 7: Expanded Land Position in Zacatecas Silver District
• Nearly tripled Defiance's land position in historic Zacatecas silver district. • Option to acquire 100% ownership from Pan American Silver • High-grade historical drilling on Northern, Panuco licenses. • Significant, well-mineralized, multi- kilometer target at Lucita Central (Palenque Vein System
Slide 8: Lucita Central Multi-Kilometre Vein System
• Multi-Kilometre vein system. Surface mapping has identified over 20km strike length of prospective structures. • 4,750 metres drilled to date; 13 holes complete, 8 holes pending results from lab. • Shallow vein system, multiple vein, vein-breccia and stockwork style zones have been encountered. •
Slide 9: Palenque Vein System Blind Mineralization
• Part of the Multi-Kilometre Palenque vein system. • Blind mineralization found at depth on a regional structure. Follow up drilling is panned on this newly encountered mineralized system • Shallow vein system, multiple vein, vein-breccia and stockwork style zones have been encountered. *True thick
Slide 10: Northern Zacatecas District Drill Results
• Multi-Kilometre vein system. • Northern Zacatecas District • 3 phases of historical drilling completed, returning high grade silver in a number of different veins. • Neighbouring operators currently reporting high grade results on veins that continue onto the project. • Results to date include*: •
Slide 11: San Acacio and Lagartos Projects, Zacatecas
• Located in Zacatecas, Mexico. One of Mexico’s most well-known • San Acacio and Lagartos projects located on the prolific Veta mining districts Grande and Mala Noche Vein Systems. Next door neighbour is • Excellent infrastructure, topography, and skilled local workforce. the 3800 TPD Cozamin mine (
Slide 12: San Acacio Intercepts
4.73 m of 385 g/t AgEq 1.85 m of 1102 g/t Ag
Slide 13: Polyphase Vein Breccias Drill Section
DDSA-21-48 fe) Saad Ov ‘aad , oO } . 0 . ‘ NOQQOO* SS . ‘ MAYS SQ PL ataiie SOSA alan SON DDSA-21-47 fo) sA0.15-07 sA0.16-06 DDSA-21-36 193,80 to 19: 4.73 m @ 386 git AgEq 131 gitAu 144.11 git Ag 2.80% Pb DDSA-21-35 @ » . os ARproximar —— = ‘SAN 5.34 e ‘$095.18. @. Sadasa? e@ 1 oximat wr Seetor. 201
Slide 14: Strategy to Add Value at Zacatecas District Projects
STRATEGY TO ADD VALUE AT ZACATECAS DISTRICT PROJECTS FULLY-FINANCED EXPLORATION AND RESOURCE DRILLING PROGRAM ADDING OUNCES TO AN ADVANCED ASSET TSXV: DEF OTC: DNCVF
Slide 15: Tepal Project Exploration Target
Railway Highway Paved Road • Located in Michoacán near the border of Deposit Morelia Jalisco State. Tepal Project • 100% ownership. Option to Acquire 2.5% Manzanillo Port Colima NSR • Current M&I resource: 1.8 mm Oz. Au & 813 mm lbs Cu+. • C$27M spent to-date. PEA completed in 2017 • Excellent infra
Slide 16: Tepal PEA Economics
1 Using base case price assumptions of $1,250/oz. gold, $2.50/lb copper and $18.00/oz. silver, Tepal has an estimated $169 million after-tax NPV at a 5% discount rate, an attractive 24% after-tax IRR, and an after-tax payback period of 2.3 years. Base case LOM revenue split is 54% gold/43% copper/3%
Slide 17: Tepal Annual Production and Cost
300 $1,200 250 $1,000 Annual Production (koz.) 200 $800 Cost/oz. (US$) 150 $600 100 $400 50 $200 0 $0 1 2 3 4 5 6 7 8 9 10 Au AuEq. AISC/oz. (1) Using US$1,250/oz. Au price, US$2.50/lb. Cu price and US$18.00/oz. Ag price (2) Cash cost includes all mining, milling & refining, transport, mine-level G&
Slide 18: South Zone Resource Growth Potential
• South Zone - Strong potential to increase Au and Cu resource through targeted exploration and systematic drilling. • “Central Block” Recent work indicates the presence of high grade Au-Ag epithermal zones that remain largely untested. • Drill targets exist both within and nearby current pit shell
Slide 19: Re-interpreted Geologic Model, South Zone
• Re-interpreted Geologic Model indicates porphyry system in south zone open at depth. • Current exploration focused on high-grade Au/Cu mineralization found • At depth in South Pit • TEP-11-026: 309m-496m – 188m - 1.04 g/t Au, 0.38% Cu, 1.2 g/t Ag. • Along Strike of and at depth in North Pit testin
Slide 20: Tizate Zones and Planned Drilling
TIZ-11-018: 282.95 to 284.37m* 25.3 g/t Au, 565 g/t Ag • 7 Zones identified. 12 holes planned in 5 Zones in addition to more surface exploration work. • Recent work indicates the presence of Au- Ag epithermal zones that remain largely untested. *True width not known
Slide 21: Resource and PEA Footnotes
(1) Please see Defiance news release dated January 15, 2015 and Appendix for 43-101 Inferred Mineral Resource Estimate (2) Please see ValOro news release dated January 19, 2017 and Appendix for PEA Assumptions
Slide 22: Defiance Silver Corp Contact Details
@™, DEFIANCE DEFIANCE SILVER CORP Defiance Silver Corp www.defiancesilver.com Suite 2900 - 550 Burrard Street info@defiancesilver.com Vancouver, BC, V6C OA3 Canada +](604) 343-4677 TSXV:DEF OTC:DNCVF WKN: AUQWS TSXV: DEF OTC: DNCVF 22
Slide 23: Appendix
APPENDIX @ DEFIANCE OEE IANGE TSXV: DEF OTC: DNCVF 23
Slide 24: Management and Directors
Founder and Director of Windermere Capital, an investment firm and manager of Past Director of Silvercrest Mines Inc., Past President and CEO and Director two private investment funds: the Navigator and Breakaway Strategic Resource of Valoro/Geologix Exploration Inc., Vice President of Exploration a
Slide 25: Silver Supply and Demand
Rank Country MMozs Photography 1 Mexico 196.6 & Silverware 2 Peru 144.9 Mandatory 10% Mine Closures 3 China 114.9 Industrial 4 Russia 43.4 Disruption or Electronics, 5 Chile 42.1 Voluntary Solar Panels, Closures Investment 6 Bolivia 39.9 Semiconduct 7 Poland 39.6 Bars & Coins ors, etc. 51% 8 Austral
Slide 26: San Acacio Inferred Resource Estimate
Grade>Cut-off Contained Metal Tonnes > Cut- Vein off (tonnes) Ag Ag AgEq Au (g/t) AgEq (g/t) Au (ozs) (g/t) (ozs) (ozs) VETA G 2,150,000 192.43 0.19 204.66 13,302,000 10,000 14,147,000 VETA C 739,000 153.28 0.08 158.66 3,642,000 1,900 3,770,000 TOTAL 2,889,000 182.42 0.16 192.89 16,944,000 11,900 17
Slide 27: San Acacio Historical Drill Intercepts
Hole # From (m) To (m) Length Ag (g/t) Au (g/t) Cu % Pb % Zn % AgEq (m)* (g/t)** SAD14-01 134.00 142.10 8.10 222.12 0.22 0.01 0.20 0.53 268.13 SAD14-02 168.50 171.70 3.20 419.09 0.82 0.02 0.14 0.30 499.43 SAD14-03 05.00 213.30 8.30 42.89 0.92 0.04 1.87 2.44 278.33 SAD14-04 147.00 153.10 6.10 138.35
Slide 28: Tepal Resource Classification
Resource Au Grade Contained Au Contained Cu Resource Au Grade Contained Au Contained Cu Tonnes Cu Grade (%) Ag Grade (g/t) Tonnes Cu Grade (%) Ag Grade (g/t) Classification (g/t) (oz) (lbs) Classification (g/t) (oz) (lbs) Measured 34,100,000 0.48 0.25 0.95 528,000 185,000,000 Measured 26,800,000 0.5
Slide 29: Tepal and Tizate Metallurgical Recoveries
Combined Flotation Tails Cyanidation Recovery Tepal Recovery Tepal Recovery Copper 88.2% 88.2% Gold 83.2% Gold 62.4% 16.5% 78.9% Silver 63.3% Silver 27.4% 15.5% 40.2% Tizate Recovery Tizate Recovery Gold 75.3% Copper 85.9% 85.9% Silver 55.9% Gold 55.0% 16.0% 74.0% Silver 59.6% 18.5% 78.1% 1. Au = go
Slide 30: Tepal PEA Parameters and Sensitivities
% Δ in Base Case Sustaining Capital Costs $86.7 Metals Prices -10% 0% 10% Gold Price (US$/oz) $1,125 $1,250 $1,375 Mine Life 9.8 years Copper Price Total Material Mined 142.9 Mt (US$/lb) $2.25 $2.50 $2.75 Silver Price (US$/oz) $16.20 $18.00 $19.80 Strip Ratio 0.6 : 1 All-In Sustaining Costs (net of
Slide 31: Tepal Gold-Equivalent Production Profile
300,000 $1,200 250,000 $1,000 Gold-Equivalent Ozs 200,000 $800 USD per Oz 150,000 $600 100,000 $400 50,000 $200 - $0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Payable Gold Copper Equivalent Silver Equivalent All-In Sustaining Cash Cost (1) Using US$1,250/oz. Au price, US
Defiance Silver — Investor Presentation (November 2022) on 6ix