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Reyna Silver Receives Permits for Flagship Project

By Alejandro Ehrenberg | Fri, 12/04/2020 - 10:08

Reyna Silver announced that it has received drill permits from the Mexican government for the Guigui project in Chihuahua. “We are excited to have received drill permits for Guigui. Our technical team is eager to start drilling, having spent the last six months preparing for the initial 10,000m drill program. With this permit in hand, we are finalizing our drilling contract and will be mobilizing drill rigs soon. We will provide the market with another update upon commencement of the program,” Jorge Monroy, CEO of Reyna Silver, said in a press release.

Guigui is located in the heart of the Santa Eulalia Mining District, home to Mexico’s largest carbonate replacement deposit (CRD). The Santa Eulalia Mining District has produced 510Moz of silver, 4.2mt of lead and 3.6mt of zinc, at average grades of 310g/t silver, 8.2 percent lead and 7.1 percent zinc. The project is adjacent to the San Antonio mine, operated by Grupo México, and the Potosi mine, operated by a junior Australian mining company.

Reyna Silver is following a well-established exploration model based on the drilling, geophysics and other geological work done by MAG Silver in search for the source of the district within the Guigui Project. “Historically, the Santa Eulalia district has 50 million tons of ore, 310g/t silver with a 15 percent lead/zinc combination. It is very high grade,” Monroy told MBN. MAG Silver’s Dr. Megaw is credited with the geological model that explains CRD in a way that has allowed a number of companies, including MAG Silver and Excellon, to make discoveries in Mexico. “Our primary focus will be to explore the Guigui district and to look for the source of the CRD there. The geological model defines chimneys and an intrusive area where the source of the system should be. It has never been identified at Guigui. Dr. Megaw thinks it lies within our area. We will start the camping process in 4Q20,” he said.

Reyna Silver is also exploring another project called Batopilas. This was Mexico’s highest-grade silver mine until the Revolution broke out in 1910. “There is a book called The Silver Bullet about the mine. In 1913, Pancho Villa came to town and destroyed it, after which it was left alone until the 1990s. MAG Silver acquired the old mine and about 4,000ha of land surrounding it, unifying the district for the first time. MAG Silver invested US$5 million, including 10,000m of drilling. We have access to all of this data. The first action will be to piece the data back together, and perhaps do some drilling in 2021,” Monroy said.

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Alejandro Ehrenberg Alejandro Ehrenberg Journalist and Industry Analyst