Issue link: http://resourceworld.uberflip.com/i/107613
mining Defiance Silver delivers NI 43-101 Resource Estimate by Andrew Duval Defiance Silver Corp. [DEF-TSXV] recently produced a NI 43-101 compliant, indicated and inferred resource estimate for its San Acacio silver mine in the Zacatecas Silver District of Mexico. The estimates include a total indicated resource of 1.15 million tonnes grading 95.8 g/t silver, and 0.20 g/t gold and total inferred resources of 2.89 million tonnes grading 134.1 g/t silver and 0.17 g/t gold. These estimates generate an idicated resource of 3.55 million oz silver and 7,600 oz gold, and total inferred resources of it was originally acquired by Impact Silver. The processing plant has been undergoing repairs and upgrades since Impact's acquisition. Currently, the company is focusing on further refurbishment of the plant in order to maintain the operating permit and recommence operations. The San Acacio Mine controls 65% of the Veta Grande Vein system, which has historically produced over 200 million oz of silver since its discovery in 1546. The epithermal vein system extends to a depth of at least 335 metres and extends approxi- 2013 of US $150,000, a payment in September 2014 of US $225,000, and a final payment in September 2015 of US $5.5 million. In a July 31, 2012 news release, regarding the extension of the original option agreement, CEO, Bruce Winfield, stated that he is "extremely pleased with the substantial increase in the time allowed to purchase the San Acacio Mine; three years is sufficient time to allow Defiance to explore, develop and finance the San Acacio Mine. This extension also allows us to align the mine Most recently, the company raised CDN $833,300 in a non-brokered private placement offer of up to 2,500,000 units at a price of CDN $0.20 per unit for gross proceeds of $500,000, subject to an overallotment option of 50%. These funds will be used for general working capital purposes, the ongoing refurbishment of the Santa Gabriela mill and the development of the San Acacio Mine. 12.45 million oz silver and 16,100 oz gold. The estimate assessments were calculated with a silver equivalent cut-off grade of 65 grams per tonne (g/t). The San Acacio Mine is part of the Zacatecas Silver Project, which also includes the Santa Gabriela processing plant to be acquired from Impact Silver Corp. Defiance Silver has signed an option agreement to acquire a 100% interest in the San Acacio Mine property from a private Mexican company, and plans to use the Santa Gabriella processing plant in conjunction with the mine. The processing plant was previously used to treat silver-lead-zinc ores, utilizing a flotation system from the Zacatecas silver district on a custom milling basis. The plant operated at an estimated 200 tonnes per day (tpd) intermittently from approximately the year 2000 to March 2010 when 72 www.resourceworld.com mately 5.5 km along strike of the San Acacio property. The option agreement with a private Mexican company, announced November 1, 2011, included a total purchase price for the proposed acquisition of US $5.75 million with a Net Smelter Royalty of 2.5%. Under the terms of the agreement, Defiance can also purchase surface rights covering 12 ha controlling the adit access to underground workings for US $5,000 as well as surface rights covering 12.0246 ha which host approximately 300,000 tonnes of tailings from the former San Acacio Mine. These tailings may be purchased for US $1.50 per tonne. Defiance has paid an initial US $75,000 for a 180 day due diligence period, along with the first year option payment of US $200,000. The option payment schedule is completed after a payment in September development schedule with the refurbishment and recommencement of the 200 tpd Santa Gabriela mill. Together, the mine and mill enable Defiance to enter the ranks of silver producers within 15 months of receiving financing." Most recently, the company raised CDN $833,300 in a non-brokered private placement offer of up to 2,500,000 units at a price of CDN $0.20 per unit for gross proceeds of $500,000, subject to an overallotment option of 50%. These funds will be used for general working capital purposes, the ongoing refurbishment of the Santa Gabriela mill and the development of the San Acacio Mine. Investors should expect further financing opportunities by the company which will allow Defiance Silver to pursue development and expansion of its mining operations in Mexico. n february 2013