Defiance Silver Corp. · TSXV:DEF
Defiance Silver — Investor Presentation (June 2021)
29 slides from Defiance Silver's investor presentation, June 2021
Slide 1: Defiance Silver Corp Corporate Presentation June 2021
DEFIANCE SILVER CORP CORPORATE PRESENTATION JUNE 2021 TSXV:DEF OTCOX:DNCVF FRA:D4E
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 NI 43-101 1.8mm ozs Au + 16.9mm ozs Ag * RESOURCE 813mm lbs Cu Excellent; road, power Excellent; road, seaport, grid, water, and INFRASTRUCTURE access wit
Slide 4: (1) Please see Defiance news release dated January 15, 2015 and Appendix for 43-101
(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 $1.07-$0.18 $1.20 2,500,000 Average Daily Trading Volume ~375,000 CASH POSITION $1.00 December 31st, Cash (CAD $M) ~$19 2,000,000 2020 Price per Share $0.80 Volume 1,500,000 SHARE STRUCTURE $0.60 Share Price $0.91 June 15, 2021 1,000,000 Mark
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 Veins. • Significant Intersections outside of current
Slide 7: Fresnillo analogy and San Acacio drill intercepts
Hole ID From To Widt Ag Au Cu Pb Zn Zone h* 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 SAD15-08 106.05 113.3 7.25* 631.4 0.43 0.01 0.09 0.22 Unknown SAD1
Slide 8: New highlighted drill results
[HolelD /Vein 1D From To Width m Au_ppm Ag ppm Pb_pet Zn_pet_ AgEq 152.55 158.17 0.47 131 229.00 to 234.87 m 229.00 | 23487 5.87 m @ 161 git AgEq 250.18 255.75 253.10 255.75. 0.61% Zn DDSA-21-37 250.18 to 255.75 m ' 5.57 m @ 196 git AgEq 0.04 gt Au H 182.87 gtAg 08% Po 0.26% Zn including 2.65 m @ 32
Slide 9: Drilling target areas map
DRILLIN RS iface DDsA21-37 DDSA-21-38 os G 2020-20¢ DDSA.21-35°" DDSA2396§ App! extent of current 20: Source NEW HIGHLIGHTED DRILL. eq RESULTS IN AgEgq (ait) 100 to 200 git AgEq 300 to 800 git AgEq 800 to 1000 g/t AgEq >1000 g/t AgEq HISTORIC HIGHLIGHTED DRILL 241.35 to 259.90 m 18.55 m @ 149 git Ag
Slide 10: Expanded Zacatecas land position
• Nearly triples Defiance land position in historic Zacatecas silver district. • Option to acquire 100% ownership. • Strengthens land position to ~1/4TH 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: Palenque target
• Surface grade over multiple kilometres. • Adjacent to San Acacio project. • Un-drilled, high priority target. • 12m wide with 4km of strike length has returned historical grab samples between 25 g/t Ag to over 700 g/t Ag. • Identified through regional targeting program. • Surface work ongoing; Map
Slide 12: 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 OEE IANGE TSXV: DEF OTC: DNCVF
Slide 13: Tepal Project
Railway Highway Paved Road • Located in Michoacán near the border of Deposit Morelia Jalisco State. Tepal Project • 100% ownership. Manzanillo Port Colima • Current M&I resource: 1.8 mm Oz. Au & 813 mm lbs Cu+. • C$27M spent to-date. • Excellent infrastructure: road accessible with power, water, and
Slide 14: 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 15: Tepal annual production and costs
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 exploration 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 17: 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 18: Tizate zones and planned holes
TIZ-11-018: 282.95 to 284.37m* 25.3 g/t Au, 565 g/t Ag • 5 Zones identified. 12 holes planned alongside surface exploration work. • Recent work indicates the presence of Au- Ag epithermal zones that remain largely untested.
Slide 19: (1) Please see Defiance news release dated January 15, 2015 and Appendix for 43-101
(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 Suite 2900 — 550 Burrard Street info@defiancesilver.com Vancouver, BC, V6C OA3 Canada +1(604) 343-4677 W |i] @ TSXV:DEF OTC:DNCVF TSXV: DEF OTC: DNCVF
Slide 21: Appendix
APPENDIX @ DEFIANCE OEE IANGE TSXV: DEF OTC: DNCVF
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 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 24: San Acacio 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 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 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 mineral resource estimate
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 assumptions 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 AISC
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