Reyna Silver Corp. (RSLV:TSX.V) will complete a reverse takeover (RTO) with Century Metals Inc. and begin trading on Monday, June 8, on the TSX Venture Exchange, under the symbol RSLV.
The explorer holds several properties, most notably the flagship Guigui as well as Batopilas, both of which were spun out from MAG Silver, and both are located in major silver districts in northern Mexico. The firm's large land package encompasses more than 30,000 hectares.
"Reyna has the potential for being the leading silver junior in Mexico." - Bob Moriarty, 321gold
Dr. Peter Megaw, the co-founder of MAG Silver and a well-known silver exploration geologist, serves as Reyna's chief exploration advisor. He brings 40 years of experience in Mexican geology to the company, and Guigui was the subject of his doctoral thesis.
Guigui, Reyna Silver's primary focus, is located in the Santa Eulalia Mining District, just 15 km east of the city of Chihuahua, a major mining center and home of an international airport. Eulalia Mining District is Mexico's largest known Carbonate Replacement Deposit (CRD) and has seen production totaling 460 million ounces of silver, 2.99 million tonnes of lead and 2.29 million tonnes of zinc.
About 9,500 meters of drilling have been carried out on the property between 2003 and 2015. A nine-hole drilling program conducted by MAG Silver in 2005 revealed an 8.3 meter intercept of 131 g/t silver and a narrow intercept of 523 g/t silver equivalent (109 g/t of silver and 5.6% lead and 4.3% zinc) over 0.40 meters. The company has stated that "these holes significantly prove that the mineralization in the San Antonio Mine area continues to the Guigui property and indicates a much wider hydrothermal system." Grupo Mexico's producing San Antonio Mine is located just a few hundred meters away.
The company's management believes that the source of the district's mineralization could be located on the Guigui property and plans to trace the continuity of the mineralization from the existing mining camps. Over the last six months, Reyna has been conducting detailed mapping, geophysical re-interpretation and sampling to define drill targets. The company plans to drill up to 10,000 meters at Guigui.
Reyna Silver's second property is Batopilas, which comprises most of the Batopilas Mining District, one of the few places where pure silver is primarily mined. Historical production in the district from 1632 until 1910 totaled around 300 million ounces of silver at more than 1,500 g/t.
The Batopilas project totals around 1,170 hectares and includes some 30 known mineralized veins. Drilling conducted by MAG Silver in 2005 resulted in assays as high as 2 meters of 2,500 g/t silver and 0.30 cm of 19,000 g/t silver. The company states that it plans to "apply modern geoscience and exploration technology with numerous untested geologic and geophysical targets."
In addition to Guigui and Batopilas, Reyna Silver holds two projects in neighboring Sonora: El Durazno in the old Mulatos Mining District and Matilde in Sonora's gold-silver-copper belt. The 25,000-hectare El Durazno is bordered by claims of numerous miners including Agnico Eagle, Evrim, First Majestic, Alamos Gold, Peñoles and Kootenay. Two mineralized zones have already been identified at Matilde.
Reyna Silver's only property outside of Mexico is the Trudeau Gold Project, located near the city of Rouyn-Noranda in Quebec, in the Noranda Camp.
The company is helmed by an experienced team. In addition to geologist Peter Megaw in the role of chief technical advisor, Doug Kirwin serves as senior technical advisor. Kirwin was executive vice president at Ivanhoe Mines and led the discovery of the Oyu Tolgoi copper-gold deposit in Mongolia. Jorge Ramiro Monroy, founder and managing director of Emerging Markets, a mining focused investment company, serves as CEO, and Peter Jones, former CEO of HudBay Minerals, will sit on the board post RTO.
Reyna Silver raised approximately CA$6.5 million through private placements, issuing nearly 33 million units at CA$0.20. Each unit consists of one share and one half-share purchase warrant exercisable at $0.45 for 24 months. Reyna Silver has approximately 73 million shares and around 18 million warrants outstanding. Board and management hold 21.5%, MAG Silver 19.9% and 20% is held by institutional shareholders, including Sprott Asset Management, Commodity Discovery Fund, Century Global, Terra Capital, Plethora Private Equity and the BIA Gold Fund.
Bob Moriarty of 321gold wrote on June 5, "Reyna has one of the strongest technical teams in mining much less in Mexico with Dr. Megaw and Doug Kirwin. . .The company has 73 million shares outstanding and $6.5 million CAD in the bank. It is exceptionally tightly held with over 60% of the shares held by Mag Silver, management, Sprott and other institutions. With the four-month hold on the recent PP, there are less than 10% of the shares free trading and not in the hands of insiders. . .Reyna has the potential for being the leading silver junior in Mexico. It will be a silver-bug's delight."
Videos of Peter Megaw discussing the deposits are available here.[NLINSERT]
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Bob Moriarty, 321gold: Reyna Silver is an advertiser and I have participated in the latest private placement. Naturally I am biased but I've seen their main project and I love them. Do your own due diligence.