Defiance Silver Corp. · TSXV:DEF
Defiance Silver — Investor Presentation (May 2022)
30 slides from Defiance Silver's investor presentation, May 2022
Slide 1: Corporate Presentation May 2022
CORPORATE PRESENTATION FEBRUARY 2022 MAY 2022 TSXV:DEF OTCQX:DNCVF WKN: A1JQW5 TSX.V: DEF OTC: DNCVF
Slide 2: Disclaimer
DISCLAIMER 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. Al
Slide 3: Solid Project Base with a Focus on Precious Metals
SOLID PROJECT BASE | WITH A FOCUS ON PRECIOUS METALS Zacatecas Tepal Project Projects (San Acacio) 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
Slide 4: Why Invest in Defiance?
WHY INVEST IN DEFIANCE? Proven Mine Finders: Leverage to Precious Experienced Management Robust Resource Base Metal Prices: team with decades of (1,2) and Significant exploration success leading Tepal Au Price Sensitivity Exploration Potential to M&A and Mine Zacatecas Resource Development Upside Dr
Slide 5: Tight Share Structure
TIGHT SHARE STRUCTURE Share Structure Share Price History TSXV:DEF TRADING Trading Symbols OTC:DNCVF 52 Week Hi-Low $1.07-$0.37 Average Daily Trading $1.20 3,000,000 ~229,150 Volume $1.00 2,500,000 CASH POSITION Cash (CAD $M) ~$14.0 Price per Share April 2022 $0.80 2,000,000 Volume $0.60 1,500,000 S
Slide 6: Zacatecas District Projects
ZACATECAS DISTRICT PROJECTS WITHIN THE BILLION OUNCE ZACATECAS MINING DISTRICT • 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 Ve
Slide 7: Lucita Exploration Project
LUCITA EXPLORATION PROJECT DISCOVERY READY PARTNERSHIP WITH PAN AMERICAN SILVER • 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, w
Slide 8: Lucita Central
LUCITA CENTRAL • 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
Slide 9: Lucita North - Panuco
LUCITA NORTH - PANUCO • 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. • Resul
Slide 10: Veta Grande - San Acacio Resource Project
VETA GRANDE SAN ACACIO RESOURCE PROJECT • 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 the 3800 TPD Cozamin mine (Capstone mining) • Excellent
Slide 11: Representative Samples
Representative Samples 11 TSX.V: DEF OTC: DNCVF 11
Slide 12: Polyphase Vein Breccias
Target Area Polyphase Vein Breccias TSX.V: DEF OTC: DNCVF 12
Slide 13: Strategy to Add Value at Zacatecas District Projects
STRATEGY TO ADD VALUE AT ZACATECAS DISTRICT PROJECTS DISCOVERY-FOCUSED MINERAL SYSTEMS GEOSCIENCE FULLY-FINANCED EXPLORATION AND RESOURCE DRILLING PROGRAM ADDING OUNCES TO AN ADVANCED ASSET • PHASE 1 REGIONAL DRILLING COMPLETED . 4750 METRES DRILLED (15 Holes) at LUCITA (13) and TAHURES (2). • HIGH
Slide 14: Tepal Gold-Copper Project
TEPAL GOLD-COPPER PROJECT TECHNICALLY & FINANCIALLY DE-RISKED 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+.
Slide 15: Tepal Gold-Copper Project: Accretive Acquisition in a Down Market
TEPAL GOLD-COPPER PROJECT ACCRETIVE ACQUISITION IN A DOWN MARKET $4.2mm $27.0mm PRE-TAX POST-TAX Acquisition Cost of $1.39 per AuEq. Oz Spent by predecessor company PRE-TAX NPV 5% POST-TAX NPV 5% to discover 1.8mm ozs Au and US $299M US $169M Acquired in December 2018 from ValOro for $4.2mm in Defia
Slide 16: Tepal 2017 PEA Highlights
TEPAL GOLD-COPPER PROJECT 2017 PEA HIGHLIGHTS (USD) LOM Production & Cash Costs Production Summary 300 $1,200 250 $1,000 LOM INITIAL CAPITAL COST 10 Years US$214M Annual Production (koz.) 200 $800 Cost/oz. (US$) 150 $600 PRODUCTION AVERAGES LOM 10 YEARS 100 $400 Au: 79,000 oz 50 $200 Cu: 32Mlbs 0 $0
Slide 17: Exploration Upside at Tepal Centre Block
EXPLORATION UPSIDE AT TEPAL CENTRE BLOCK • 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 WEST BLOCK grade Au-Ag epithermal zones that remain largely untested. • Drill tar
Slide 18: South Zone – Target: Increasing Resource Base
SOUTH ZONE – TARGET: INCREASING RESOURCE BASE • 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. • Al
Slide 19: Exploration Upside in Centre Block/Tizate
EXPLORATION UPSIDE IN CENTRE BLOCK/TIZATE CENTRE BLOCK WEST BLOCK 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
Slide 20: Why Invest in Defiance?
WHY INVEST IN DEFIANCE? Robust Resource Base Proven Mine Finders: Leverage to Precious (1,2) and Significant Experienced Management Metal Prices: Exploration Potential team with decades of Tepal Au Price Sensitivity exploration success leading to M&A and Mine Zacatecas Resource Development Upside Hi
Slide 21: Defiance Silver Corp Contact
Defiance Silver Corp www.defiancesilver.com Suite 2900 – 550 Burrard Street info@defiancesilver.com Vancouver, BC, V6C 0A3 Canada +1 (604) 343-4677 TSXV:DEF OTC:DNCVF WKN: A1JQW5 TSX.V: DEF OTC: DNCVF 21
Slide 22: Appendix
APPENDIX 22 TSX.V: DEF OTC: DNCVF 22
Slide 23: Industry Veterans with Proven Success
INDUSTRY VETERANS WITH PROVEN SUCCESS Chris Wright, BA Dunham L. Craig, P.Geo Chairman of the Board & CEO Director 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:
Slide 24: Unexpected Developments: A Catalyst for Silver
UNEXPECTED DEVELOPMENTS | A CATALYST FOR SILVER Global Silver Production by Country in 2018 Silver Demand by Industry 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 Vol
Slide 25: San Acacio Project: Inferred Mineral Resource Estimate
SAN ACACIO PROJECT 43-101 COMPLIANT INFERRED MINERAL RESOURCE ESTIMATE 43-101 Inferred Mineral 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 VE
Slide 26: San Acacio Project: Post-Resource Drill Results Summary
SAN ACACIO PROJECT “POST-RESOURCE” DRILL RESULTS SUMMARY 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
Slide 27: Tepal Gold-Copper Project: Mineral Resource Estimate
TEPAL GOLD-COPPER PROJECT 43-101 COMPLIANT MINERAL RESOURCE ESTIMATE Tepal Total Project Resource Estimate1 – March 2012 Mineral Resource (Mine Diluted) Included in PEA Mine Plan12 Resource Au Grade Contained Au Contained Cu Resource Au Grade Contained Au Contained Cu Tonnes Cu Grade (%) Ag Grade (g
Slide 28: Tepal Project Profile: Recovery Estimates
TEPAL GOLD-COPPER PROJECT PROJECT PROFILE Flotation Concentrate & Tails Cyanidation Recovery Estimates Oxide Leach Recovery Estimates 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%
Slide 29: Tepal Project Profile: 2017 PEA Assumptions and Highlights
TEPAL GOLD-COPPER PROJECT PROJECT PROFILE 2017 PEA Assumptions 2017 PEA Highlights % Δ in Base Case Sustaining Capital Costs $86.7 Metals Prices -10% 0% 10% Gold Price (US$/oz) $1,125 $1,250 $1,375 Mine Life 9.8 years Copper Price (US$/lb) $2.25 $2.50 $2.75 Total Material Mined 142.9 Mt Silver Price
Slide 30: Tepal 2017 PEA Production by Year & Cost Profile
TEPAL GOLD-COPPER PROJECT PROJECT PROFILE 2017 PEA Production by Year & Cost 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 Equival