Reyna Silver Announces Commencement of Drilling and Acquisition of Union Patented Claims
Rhea-AI Summary
Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) has entered into an Option Agreement with Aulode for the Union Hill Project in Eureka County, Nevada. The company has added 10 newly staked claims (81 hectares) to its 70% optioned Gryphon Summit project, completing its control of 12,058.98 hectares of Gold, Silver, and Critical Metals potential. Drilling is set to commence, targeting major potentially mineralized structures, depth of oxidation, and critical ore-system exploration vectors.
The Agreement gives Reyna Silver the right to earn 100% ownership of the mineral rights and exploration rights, subject to cash payments totaling US$917,500 by August 2, 2030. A second option allows for 100% ownership of all remaining rights, including surface rights, upon making a production decision and additional payments. Reyna Silver will grant Aulode a 2.5% NSR royalty upon exercising the Second Option, with an option to repurchase 1.25% of it for US$2,500,000.
Positive
- Acquisition of Union Patented Claims completes Reyna Silver's control of 12,058.98 hectares of potential Gold, Silver, and Critical Metals resources
- Drilling set to commence, targeting major potentially mineralized structures
- Option Agreement provides path to 100% ownership of mineral rights and exploration rights
- Potential for unoxidized sulfide mineralization beneath historical production zones
Negative
- Significant cash payments required: US$917,500 by 2030 for First Option, plus additional US$2.5 million for Second Option
- 2.5% NSR royalty to be granted to Aulode upon exercising Second Option
- Risk of losing rights if production decision not made by August 2, 2033
News Market Reaction – RSNVF
On the day this news was published, RSNVF gained 5.14%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
VANCOUVER, BC and HONG KONG / ACCESSWIRE / August 6, 2024 / Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) ("Reyna Silver") is pleased to announce that it has entered into an Option Agreement (the "Agreement") with Aulode LLC. ("Aulode") on the Union Hill Project (the "Project") located in Eureka County, Nevada. Drilling commences imminently targeting the framework of this extensive system including identifying the level of oxidation, major potentially mineralized structures and critical ore-system exploration vectors.
The Union patented claim group has 10 newly staked claims (81 hectares) at the Company's
Union Patented Claims encompass this historical high-grade Silver,-Lead-Zinc producing district. Mineralization was mined to the base of oxidation leaving the underlying sulfides untouched.
Adding 233 unpatented claims (1900 hectares) means the company now controls all of the identified gold, silver and critical metals potential at Gryphon.
Drilling will commence imminently- targeting the major potentially mineralized structures that define the framework of this extensive system, identifying the depth of oxidation, and critical ore-system exploration vectors.
"The Union patented claims were the last puzzle piece Reyna Silver needed to fully control Gryphon, providing the opportunity to take a serious look at Gryphon from new angles," said Jorge Ramiro Monroy, Reyna Silver President and CEO. "We can't wait to unleash our technical team's experience discovering major CRDs in a comprehensive attack on the entire district's combined Gold, Silver, plus Critical Metals endowment "
CRD systems are continuous, zoned, polymetallic deposits and following known CRD mineralization back towards its interpreted porphyry source is a key exploration element. Historic production in the Gryphon region occurred prior to the advent of contemporary high-recovery selective flotation metallurgy and focused almost exclusively on oxidized mineralization. This means unoxidized sulfide mineralization beneath the historical production zones remains to be followed through the balance of the CRD-Skarn-Porphyry continuum model Reyna Silver follows. Reyna Silver plans to immediately use the geometry and geochemistry of the historic Union and Mineral Hill CRD workings to vector towards underlying sulfide Ag-Pb-Zn mineralization. Notably, CRDs in in this part of Nevada, like the Eureka district 70km South of Gryphon and the Cortez Camp 50km to the west, are also known for their significant gold credits, generally believed to stem from a later overprint of Carlin-type gold mineralization (See Press Release of August 1, 2024). Both mineralization types are documented at Gryphon and the two mineralizing events exploited the same structural plumbing, so understanding the controls on CRD mineralization should enhance understanding the geometry of the entire system, including where concentrated Carlin-type gold may occur.
Figure 1. Updated claim map of the 12,058.98 ha project with new boundaries in bold blue and previous boundaries in narrow blue. Patented Claims are delineated in reds. Union is shown in bold red and Mineral Hill on the east side in narrow red (See Press Release of August 1, 2024). Selective sampling results for Silver are shown in blue with Lead in grey and Zinc in green.
The Agreement:
The Agreement gives Reyna Silver the right (the "FIrst Option") to earn a
The First Option is subject to Reyna Silver making cash payments to Aulode in the aggregate amount of US
(a) US
(b) US
If Reyna has not made a production decision by August 2, 2030, it may extend the date for exercise of the Second Option by up to a further three years by making further cash payments of US
On exercise of the Second Option by Reyna Silver, Reyna Silver will grant Aulode a
If Reyna Silver has not made a production decision by August 2, 2033, then Reyna Silver will quitclaim and transfer its rights in the Project to Aulode and Aulode will grant Reyna Silver a
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 size of Reyna Silver's Gryphon Summit project after the Union Patented Claims acquisition?
When is Reyna Silver (RSNVF) expected to start drilling at the Union Hill Project?
What are the key terms of the Option Agreement between Reyna Silver and Aulode ?
What royalty will Reyna Silver grant to Aulode if it exercises the Second Option?
