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District-Scale Exploration Can Help Meet Rising Silver Demand

Ariel Navarro - Reyna Silver
Vice President of Exploration


Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Mon, 11/06/2023 - 09:47

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Q: What is the status of Reyna Silver's projects in Mexico?
A: We have two projects in Mexico, both in Chihuahua. We just concluded the Batopilas’ drilling stage in mid-September and are processing the initial results. We are also working on the Guigui project, our flagship asset. We are employing artificial intelligence (AI) to process the information generated by these two projects. At Guigui, for example, we are using AI to analyze all the geophysical data and propose drilling plans for 2024.

Q: What advantages does the use of AI bring to Reyna Silver’s exploring operations? 
A: AI has proven to be a great tool. For example, we are building a database of geophysics for the Guigui project. AI also opens up the possibility of building a global database of projects similar to ours, generating a model that makes drilling targets safer and more precise because it would use global data to determine the most suitable point.

Best of all, AI is quite fast. Time is valuable, so having results in a short period reduces costs, allowing companies to carry out several drilling, geophysics or geochemistry campaigns in the same year. Experts can sometimes take at least six months to process this information, so AI brings speed and cost-effectiveness. This technology puts us in an advantageous position. We might be among the first to be using AI in exploration and it has given us great results. 

Q: Why did Reyna Silver choose Mexico as an investment destination? 
A: Mexico is very attractive for Reyna Silver, especially its northern and northeastern regions because they have mines with high grades of silver. Chihuahua, Durango, Zacatecas, Aguascalientes, the entire central region, Guerrero and some regions in the south have been leading in silver production since Mexico’s colonial era. Mexico has held its position as one of the largest silver producers globally for many years. 

The north features important projects like First Majestic’s Las Chispas mine, which can easily be the largest silver mine in Sonora and is technically new. It is not on the scale of Zacatecas or Guerrero but it is proving that there is potential for silver mining in the north of Mexico. Most mining developments in the region are open-pit because Sonora and Chihuahua have little vein mineralization. 

Q: What makes your Mexican assets attractive projects?  
A: Batopilas and Guigui consist of a series of mining concessions covering the entire mining district. Reyna Silver focuses on district-level discoveries, which is a bit more challenging because it involves uncovering large-scale mineral deposits across an entire mining district. Guigui, located in Santa Eulalia, Chihuahua, practically covers the entire mining district, which also includes carbonate replacement deposits (CRD). Similarly, we cover most of the silver district in Batopilas but in this case, we are dealing with veins that are exceptionally rich in silver. These veins have between 20kg and 30kg of silver, a unique feature globally. 

Q: Why does the company consider the Guigui project as its most strategic asset?
A: This project is in the heart of the largest CRD district in the world. To the east, we have Grupo México’s San Antonio mine and to the west the Consolidated Zinc’s mines. Reyna Silver’s exploration indicates that the central part of this CRD district is within the Guigui project, which makes it an invaluable asset. 

Q: What benefits do investors gain from investing in exploration?
A: Mexico brings great assurances to mining projects as the country has world-class gold, silver and copper deposits. Investors algo gain confidence from knowing that mining has taken place in Mexico for many years. Despite media reports of insecurity, familiarity with mining facilitates operations. The country also has a great workforce and most towns have personnel with experience in mining, facilitating exploration development.

At Reyna Silver’s Batopilas and Guigui, both artisanal and industrial mining have been carried out for many years. Thus, both projects have all the necessary infrastructure for project development. Batopilas is a lifelong mining district. These types of projects provide investors with confidence of great possibilities of success. 

Q: What is Reyna Silver’s forecast for silver demand in the near term and how will this impact the company's operations? 
A: Silver has always been in high demand, lately due to electronics and medical devices. Demand for silver is expected to increase, as is demand for green or critical minerals like lithium and nickel. These minerals are used in batteries, electric cars and the electrification of almost everything. Silver is a key component of electronic devices as it is one of the best electric conductors.

This demand brings benefits to all silver-related companies. For example, projects with a measured resource that might have been deemed insufficient due to low silver prices are being revived by the rising demand and silver prices. Numerous projects, previously hindered by their size, may soon evolve into viable mines. 

Q: What new projects is the company interested in participating in? 
A: We work closely with MAG Silver, a global expert in CRD deposits. Thus, CRD deposits or projects are particularly attractive to us. We are not exclusively committed to CRDs but they are the most appealing for Reyna Silver. Having the best experts globally is a distinct advantage for us and we aim to leverage their expertise to the fullest.

Reyna Silver experienced exponential growth in the past six years. We started in Mexico and now we are expanding through two additional projects in the US state of Nevada, which will be acquired by the end of 2023: Medicine Springs and Gryphon. Medicine Springs is a joint venture between Reyna Silver and Reyna Gold. It is undergoing a second assessment campaign. We are actively growing. Our vision is to continue expanding, evaluating projects worldwide and exploring opportunities for acquisition to further grow as a company.

Reyna Silver is a Canada-based silver exploration company with projects in the US and Canada but with a focus on Mexican silver assets. Reyna Silver's strategy centers around exploring potential district-scale and high-grade projects.


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