Regency Silver Enters Into Options Agreement for Two Properties
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Regency Silver Enters Into Options Agreement for Two Properties

Photo by:   Artyom Korshunov
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Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Fri, 09/30/2022 - 15:13

Canada-based Regency Silver announced it has entered into option agreements for two properties in the states of Sonora and Durango, located in prolific mineral areas with significant historical production. 

On Sept. 23, 2022, Regency Silver announced it had entered into an option agreement to option a 100 percent interest in the El Tablon property located within the Sierra Madre Occidental gold-silver belt in Durango. El Tablon is near the San Dimas district and presents similar geological characteristics with the presence of productive rocks from the Lower Volcanic Complex boasting gold mineralization. 

The company quoted a report from the Mexican Council of Natural Resources (CRM), the precursor of the Mexican Geological Survey (SGM), that indicated the presence of seven veins and breccias with silver grades up to 1,404g/t and gold mineralization up to 1g/t. At the time, the council also highlighted that one of the samples exceeded 10,000g/t of silver. In addition, the samples showed significant copper and lead mineralization. 

The company reported that to exercise the option, it must pay US$50,000 upon receipt of exchange approval, issue over one million common shares as well as pay back taxes and mining filings before Mar. 31, 2024. In addition, the company must pay a US$1 million bonus upon a National Instrument (NI) 43-101 resources that estimate the property has over 70 million silver-equivalent ounces or 1 million gold ounces. 

Similarly, on Sept. 27, 2022, Regency Silver announced that it had entered into another option agreement to option a 100 percent interest in the Oso Blanco property located in Sonora, near the company’s main project, Dios Padre. Samples from the previous owner presented values as high as 545g/t of silver and according to a previous trenching program returned values of 3.41g/t of gold and 95g/t of silver in a 2m trench. The company furthermore reported the presence of copper ores. 

To exercise the option, the company must pay US$500,000 in five years and pay back taxes and mining filings worth over US$500,000 by Mar. 31, 2023. In addition, it must issue 1 million common shares over 36 months. As for the previous option agreement, the company must issue a US$1 million bonus upon a NI 43-101 resource that estimates that the property has over 70 million gold equivalent ounces or 1 million gold ounces. 

For both projects, the shares are subject to a four-month hold period and the agreements must be approved by the TSX Venture Exchange. 

Regency Silver is a mining company focused on high-grade, large-sized exploration of gold and silver projects in Mexico. Its strategy is to develop and sell 43-101 qualified deposits to mid and large-tier mining companies.
 

Photo by:   Artyom Korshunov

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