NIA is excited to announce its #1 favorite Mexican silver stock suggestion Defiance Silver (TSXV: DEF). The company also has a U.S. OTC symbol: DNCVF.
DEF has just launched a major drilling campaign at its district-scale San Acacio Deposit, located in the historic Zacatecas Silver District in Mexico. DEF's Zacatecas claims are surrounded by the claims of much larger silver companies including Pan American Silver (PAAS), Capstone Mining (TSX: CS), and Endeavour Silver (EXK). The Zacatecas Silver District is one of the most prolific silver producing areas in the world, having produced in excess of 1 billion ounces of silver.
DEF's San Acacio Deposit has a large inferred resource of 16,944,000 oz of silver grading 182.42 g/t silver. In addition to the San Acacio Deposit, DEF has acquired the adjacent Zacatecas Silver District holdings of Mag Silver (MAG). DEF now controls a land package of over 1,506 hectares and has exclusive use of a 135,000ha Regional Database that MAG spent over $10 million to assemble.
A drilling campaign at San Acacio from 2017 saw its first 8 step out holes successfully extend mineralization by 140m below the base of the maiden resource. These drill holes intercepted considerably higher grades than the initial resource.
DEF has located a large target anomaly along San Acacio's 0.9km southeast extension using Induced Polarization Survey (IP) and Atomic Energy Resonance Imaging technology. This anomaly measures 200m long, 300m wide and at a depth of 200m below surface. After the 0.9km southeast extension, DEF controls an additional 3.5km far southeast extension.
The Zacatecas Silver District has excellent infrastructure including paved roads, state power, and a skilled Mexican labour force.
DEF has only 149.48 million shares outstanding. DEF's market cap here at $0.37 per share is only CAD$55.3 million and in our opinion the company is receiving little value for its Zacatecas silver assets because DEF owns 100% of the Tepal gold project.
Tepal is an advanced gold project in Michoacán, Mexico with a measured & indicated resource of 1,804,000 oz of gold plus 813 million lbs of copper! There is major potential to expand this huge gold/copper resource with the recent discovery of an untested high-grade feeder system!
Based on a gold price of $1,500 per oz and copper price of $3 per lb, a 2017 Preliminary Economic Assessment (PEA) gave Tepal an after-tax Net Present Value with a 5% discount rate of USD$345 million!
Historically, NIA's biggest area of success has been with Mexican silver companies. DEF has an excellent looking chart with a key breakout point of $0.385 per share.
Resource Statement for the Tepal project located in Michoacán, Mexico: JDS Energy & Mining Inc., Effective Date January 19, 2017, Authored by Gord Doerksen, P. Eng., Dino Pilotto, P.Eng.,and Kelly McLeod, P.Eng. of JDS Energy & Mining Inc.; Daniel Friedman, P.Eng, Knight Piesold Ltd.; Michael Godard, P.Eng., Independent Consultant; and David K. Makepeace, P.Eng.,Micon International Ltd. The project has a M&I Resource of 187M tonnes grading 0.30 g/t Au, 0.20% Cu, 1.54 g/t Ag, 0.004% Mo using a US $5/t cut off.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA has received compensation from DEF of USD$40,000 cash for a six-month marketing contract. This message is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.
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