Defiance Silver Corp. · TSXV:DEF
Defiance Silver — Investor Presentation (March 2022)
29 slides from Defiance Silver's investor presentation, March 2022
Slide 1: Defiance Silver Corp Corporate Presentation March 2022
DEFIANCE SILVER CORP CORPORATE PRESENTATION MARCH 2022 TSXV:DEF OTCOX:DNCVF WKN: AUQWS
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 overview: 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: (1) Please see Defiance news release dated January 15, 2015 and Appendix for 43
(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 and Share Structure
TSXV:DEF TRADING Trading Symbols OTC:DNCVF 52 Week Hi-Low $1.07-$0.37 Average Daily Trading $1.20 3,000,000 ~375,647 Volume $1.00 2,500,000 CASH POSITION Cash (CAD $M) ~$15 Price per Share Feb 2022 $0.80 2,000,000 Volume $0.60 1,500,000 SHARE STRUCTURE $0.40 1,000,000 Share Price $0.61 March 1st, 20
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: Fresnillo analogy and San Acacio drill intercepts
Hole ID From To Width* Ag Au Cu Pb Zn Zone SADD09- 243.00 244.3 1.3* 769 0.15 0.01 0.23 0.79 Natividad 04A including 243.00 243.3 0.3* 3,090 0.57 0.04 0.92 3.27 Natividad SADD10- 314.85 316.0 1.20* 239 0.42 0.11 1.33 4.10 HW VG 09 5 SAD15- 106.05 113.3 7.25* 631.4 0.43 0.01 0.09 0.22 Unknown 08 SAD1
Slide 8: 4.73 m of 385 g/t AgEq Representative samples 1.85 m of 1102 g/t Ag
4.73 m of 385 g/t AgEq Representative samples 1.85 m of 1102 g/t Ag
Slide 9: Polyphase Vein Breccias drill results
DDSA-21-47 128.50 to 132.00 m 3.50 m @ 360 git AgEq 0.50 git Au 274.50 gh Ag 0.32% Pb 1.25% Zn including 1.80 m @ 561 git AgEq ~ 12 m of old underground workings encountered 132.00 m to 144.00 m, grades not reparte DDSA-21-48 142.2 to 163.17 m 20.97 m @ 178 git AgEq |. 0.11 git Au 144.00 git Ag 0.38
Slide 10: Expanded land position in Zacatecas silver district
• Nearly tripled Defiance's land position in historic Zacatecas silver district. • Option to acquire 100% ownership. • Strengthens land position to ~1/4 of historical district. • The Zacatecas Silver district has produced >1B Ozs Ag and is still a prolific mining region for Ag and base metal deposit
Slide 11: Multi-kilometre vein system adjacent to San Acacio
• Multi-Kilometre vein system. • Adjacent to San Acacio project. • Historical surface results identified a vein system up to 12m wide over a strike length of 4km. Historical grab samples returned between 25 g/t Ag to over 700 g/t Ag • Target identified through regional targeting program. • Surface w
Slide 12: 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 Be OEFIANCE
Slide 13: Tepal Project, Michoacán
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. • Excellent infrastructure: road access
Slide 14: Tepal PEA economics
1 Using ba se ca se price a ssumptio ns of $1,250/oz. gold, $2.50/lb co pper and $18.00/oz. silver, Tepal has a n estimat ed $169 millio n aft er-tax NP V at a 5% disco unt rat e, a n attractiv e 24 % after-ta x IRR, and a n aft er-tax pay back period of 2.3 year s. Ba se case LOM revenue split i s
Slide 15: Tepal annual production
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 16: South Zone potential to increase Au and Cu resource
• 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 17: Porphyry system in south zone open at depth
• 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 18: Tizate zones identified and planned holes
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 19: (1) Please see Defiance news release dated January 15, 2015 and Appendix for 43
(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 20: Defiance Silver Corp contact details
DEFIANCE DEFIANCE SILVER CORP Defiance Silver Corp www.defiancesilvercom Suite 2900 - 550 Burrard Street info@defiancesilver.com Vancouver, BC, V6C OA3 Canada +1(604) 343-4677 TSXV:DEF OTC:DNCVF WKN: AUJOWS “SXV DIF = JTC: ONCVE
Slide 21: Appendix
APPENDIX DEFIANCE =~ @ CEDIANCE “SXV DET OTC: ONC 2
Slide 22: 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 23: Silver supply and demand
Rank Country MMozs Photography 1 Mexico 196.6 & Silverware Mandatory 2 Peru 144.9 10% Mine Closures 3 China 114.9 Industrial 4 Russia 43.4 Disruption or Electronics, 5 Chile 42.1 Voluntary Solar Panels, Closures 6 Bolivia 39.9 Investment Semiconduct 7 Poland 39.6 Bars & Coins ors, etc. 51% 8 Austral
Slide 24: 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 25: San Acacio drill hole 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 26: 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 27: 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 28: 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 29: Tepal gold-equivalent production and costs
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