Reyna Silver Acquires the Mineral Hill District Within the Gryphon Project and Provides Operation Update
Rhea-AI Summary
Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF) has entered into an Option Agreement with Minquest to acquire the Mineral Hill Project in Eureka County, Nevada. This acquisition includes 8 patented claims and 20 unpatented claims within the company's larger Gryphon Project. Mineral Hill was a significant historic Ag-Pb-Zn CRD producer, with average silver grades of 140 oz/ton (3,968 g/t) in its prime during the 1870s.
The agreement allows Reyna Silver to earn 100% ownership of Mineral Hill by incurring US$1,550,000 in exploration expenditures and making US$1,810,000 in cash payments to Minquest by July 31, 2030. Upon exercising the option, Reyna Silver will grant Minquest a 2.5% NSR royalty, with an option to repurchase 1.25% for US$2,500,000.
Reyna Silver is also preparing to start its 2024 drill program at the Gryphon Project, building on historic work and new geological interpretations.
Positive
- Acquisition of Mineral Hill Project expands Reyna Silver's presence in a historically high-grade silver producing area
- Option Agreement structure allows for gradual investment and exploration of the new project
- Potential for discovering both CRD and Carlin-type gold deposits within the Gryphon Project
- Imminent start of 2024 drill program at Gryphon Project based on new geological interpretations
Negative
- Significant financial commitments required to exercise the Option Agreement (US$3.36 million total)
- Long-term commitment to exploration expenditures until 2030
- 2.5% NSR royalty obligation upon exercising the option
News Market Reaction
On the day this news was published, RSNVF declined 5.49%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
VANCOUVER, BC AND HONG KONG, CHINA / ACCESSWIRE / August 1, 2024 / Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) ("Reyna" or the "Company") is pleased to announce that it has entered into an Option Agreement (the "Agreement") with Minquest Ltd. ("Minquest") on the Mineral Hill Project (the "Project") located in Eureka County, Nevada. This historic district was an inlier including 8 patented claims and 20 unpatented claims within the overall Gryphon Project (Figure 1.)
"Mineral Hill was producing some of the highest-grade silver-rich CRD mineralization ever found in this part of Nevada well before its neighbors Eureka, Cortez and Railroad were even discovered, so acquiring these patented claims fills an important missing piece in the Gryphon property puzzle," said Jorge Ramiro Monroy, CEO of Reyna Silver. "All these districts show overlapping Carlin Gold and CRD mineralization, but previous exploration at Gryphon just focused on the gold, so filling this hole lets us apply our broader integrated vision to unlock the full Gold, Silver and Critical Metals potential of the overall Gryphon system."
Figure 1. Map of Gryphon claims with the Mineral Hill 8 patented claims and surrounding 20 claims noted in red on the western side of the property. The blue outline delineates the 10,300 ha existing claims package encompassing the Gryphon Project.
Mineral Hill was a significant historic Ag-Pb-Zn CRD producer with an average grade of 140 oz/ton Ag (3,968 g/t Age) production during its prime in the 1870s with average grades lowering to 24 oz/ton Ag (680 g/t Age) towards the end of mine life. Studying this portion of the Gryphon system allows the technical team to understand the geometry of the mineralization and begin following it towards source and potentially more mineralization.
The major deposits of the Lander and Eureka county area, including the Battle Mountain - Eureka trend and the Carlin trend, were noted as CRD deposits prior to discovery of the massive Carlin gold systems in the 1960s. Ralph Roberts, famous Carlin trailblazer, cited CRDs as the significant deposits in his papers in 1960 and 1966 including Eureka, Railroad and Cortez which are now collectively known for producing over 60 Moz of Gold. The association of CRDs and Carlin deposits has been recognized for years though the relationship is not fully understood, yet (See Figure 2.)
Figure 2. Map of the major Carlin deposits noted in gold (scaled relative to production) and Ag-Pb-Zn CRDs noted red as identified by R. Roberts in his famous 1960 "Alignment of Mining Districts in North-Central Nevada" (USGS Professional Paper 400-B) and 1966, Metallogenic provinces and mineral belts in Nevada (Nevada Bureau of Mines Report 13, pt. A, p. 47-72).
The Agreement
The Agreement gives Reyna Silver the ability to earn a
The Reyna Silver technical team's depth of experience exploring and discovering major CRDs provides the opportunity to take a serious look at Gryphon from a new angle. Leveraging the CRD system to reveal all the ore-systems contained within Gryphon.
Gryphon Project Update
Additionally, Reyna Silver is looking forward to starting the 2024 drill program imminently building upon the concatenation of historic work, extensive mapping and reinterpretation of geology resulting in exciting new targets. The camp is ready to go, Earthworks on the east side are almost finished and the drill rig will arrive soon.
For Further Information, Please Contact:
Bethany Terracina, VP Investor Relations
bethany@reynasilver.com
www.reynasilver.com
About Reyna Silver Corp.
Reyna Silver is a growth-oriented junior exploration and development company. The Company focuses on exploring for high-grade, district-scale silver deposits in Mexico and the United States. In Nevada USA, the Company has recently entered into an option to acquire
Forward Looking Information
This release may contain forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements may include, without limitation, statements relating to the Offering and the use of proceeds therefrom. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. The forward-looking statements contained herein are also subject generally to assumptions and risks and uncertainties that are described from time to time in the Company's public securities filings with the Canadian securities commissions. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: Reyna Silver Corp.
View the original press release on accesswire.com
FAQ
What is the Mineral Hill Project that Reyna Silver (RSNVF) acquired?
How much does Reyna Silver (RSNVF) need to invest to acquire 100% of the Mineral Hill Project?
What were the historical silver grades at the Mineral Hill Project acquired by Reyna Silver (RSNVF)?
When is Reyna Silver (RSNVF) planning to start drilling at the Gryphon Project?
