Modern Methods a Must for Successful Mining Exploration

Q: How have recent political and economic trends influenced the attractiveness of northwestern Mexico as an exploration area compared to elsewhere in the world?

A: On the economic side, costs in Mexico have not gone up like in other parts of the world. Particularly in the US, Canada and Australia, costs have increased while Mexico has remained stable. This has been incredibly positive for us and other companies in the sector. Reyna Gold has experienced a great deal of cost inflation in the mining sector but on the exploration side in northwestern Mexico, this has not been an issue for the company. The subsidies applied to oil have helped operators. 

Politically, there have unfortunately been some negative connotations surrounding the mining industry. Various Western investors have soured on Mexico as a jurisdiction and much of this ties back to the nationalization of lithium. Many investors believe that if lithium is nationalized, other minerals like gold and silver might go down the same path. Nonetheless, due to the importance of Mexico as a global gold and silver producer, that is highly unlikely to happen.

Q: How does Reyna Gold match highly experienced industry veterans, innovative technology and cutting-edge exploration methods to build a modern exploration company?

A: Reyna Gold tries to use innovative and modern methods, especially in geophysics, to support exploration, which not all exploration companies do. The company has conducted magnetic surveys and imaging of its properties, for example. We are using geophysics and cellar imaging to indicate where the potential ore bodies are. 

Moreover, the company employs many geologists who have made major discoveries in Mexico and elsewhere. The younger generation of geologists also understands what constitutes a big deposit and they are in the field looking for mineralization, supported by a rigorous scientific approach. 

Reyna aims to cover vast amounts of land systematically. Geology is an interesting subject because it is a science but it also has a kind of art to it. Some expert geologists can figuratively smell the deposits. While there is a great deal of data to be processed, there still is a need for the informed, skilled human mind to interpret that data, rather than just a machine. We employ a third party that interprets the data. They then bring the data to the geologist and together, they explore the field.

Q: What are the common denominators between Reyna Gold's main opportunities, La Gloria, El Durazno, La Centella and Don Porfirio, and what are some of their unique features?

A: Reyna Gold wants to operate district-scale operations. La Gloria and El Durazo are rather large projects but, in general, all the properties are close to major ore bodies or mines. At La Gloria, we are finding significant amounts of copper, which we did not expect when we started. All the projects have the size and the potential to make several further discoveries. 

Q: What are the company's ESG priorities in Mexico and how has its relationship with communities and the authorities evolved?

A: Reyna Gold employs many locals as geologists and provides support for the geologists. It also aims to be supportive of the local community around the Caborca Gold Belt. Many mines have stopped production and if we can bring a new mine to the community, that would be great for the local economy. We want to be an asset to Sonora’s economy, too. 

Q: What will the mining landscape look like in 2023 and what opportunities and challenges do you foresee for the company?

A: Globally, the mining landscape has lacked capital for quite some years. Since 2011, the capital made available for the industry has declined. This is reflected in the number of gold discoveries: In the past 20 years, there were 329 gold discoveries but in the past 10 years, we have seen just 29. That is because of the underfunding of exploration efforts. Many economists expect demand for copper and base metals to pick up but it takes an average of around 10 years for a mine to start production and raising money for such projects can be difficult. In that sense, the landscape for mining in the future consists of a remarkably interesting and prosperous dynamic. For companies, there is a great deal of potential to exploit in the coming decade. The challenge in the mining industry is that it is prone to risk since it does not set the price of its product. That is why all companies want to get deposits with which they are confident about mineralization.

Reyna Gold is a gold exploration company focused on the district-scale exploration of two major gold belts in Mexico. The company has four properties covering 570km² in the Mojave-Sonora Megashear and the Sierra Madre Gold and Silver Belt.