Defiance (DEF.V): Mexican Mining Industry Has Great Potential for New Discoveries

Q: What are the main factors behind Defiance Silver continuing investment in Mexico?

A: Mexico has a tremendous amount of potential to make additional discoveries in jurisdictions that have prolific mining histories. In addition, several jurisdictions in Mexico are very mining friendly; they have a deep cultural understanding of the role that natural resource development plays in the underlying economies of cities and states. We think that there is discovery potential at both of our project areas and in Mexico. In the past 15 years, people who have worked with us have had great results with their investments in Mexico. Both of our projects in Mexico have very successful lifelines of exploration and development, especially in Zacatecas, a mining region that has been a source of tremendous development success, a large part of it is due to the skilled local people who truly understand mining and the nuances in these systems.

Q: How has the COVID-19 pandemic become an opportunity for Defiance to re-evaluate its projects and where are the company’s main investment targets?

A: COVID was very much that black swan event in the world that has had an adverse outcome for many communities. Mexico has had a very difficult situation with the virus. We were fully operating with technical and exploration work in March, and then the pandemic hit full speed. We sat down and discussed what the situation was and made the decision early on to pull our crews off our projects before the federal decree from the Mexican federal government was announced. Nevertheless, this time presented an opportunity for Defiance to really dig into the data and assemble all of our targets and 3D models with both in-country teams with executive level staff. This desktop time gave us an opportunity to put together a larger 12-month plan to restart operations once it was safe and with appropriate health and safety protocols in place.  This was very fruitful for us because we were able to establish really good targets and plan the drill program. We were then able to start reaching out to drill contractors and start putting together our drilling permits and amendments to cover where we wanted to have certain drill pads and access roads built. We were able to make the best out of a difficult situation…

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