Regency Silver Reports Striking High-Grade Gold At Dios Padre Project In Sonora, Mexico

Gold seems to be all the rage with investors as of late. Often touted as an inflation hedge, gold has seen an upward trend during the unsteady markets of 2023. Investors have looked to find stable sources of the resource, especially right at home in North America.

The Best Place to Mine is Near An Old One

Regency Silver Corp. RSMXF, a Canadian mining company with operations in Sonora, Mexico, is an exploration company focusing on silver, copper, and yes– gold. As an exploration company, it aims to lower risk profiles for investors by making new discoveries in their already robust portfolio of prospects.

Recently, the company reported making a significant gold discovery at its Dios Padre project. The company completed a drilling campaign, with one of the holes, named REG-23-21, intercepting reportedly impressive gold grades. The hole intersected 54.65 meters of gold mineralization, with a grade of 5.34 grams per ton (g/t), including a higher-grade section of 7.36 g/t over 38 meters. This discovery represents a successful step-out along the southeast strike from the initial discovery hole, REG-22-01, which returned promising gold, copper and silver grades.

What is profitable mining, anyway?

A good and profitable mining site is determined by various factors, including drill length, grade, and mineralization grade. Drill length refers to the depth and reach of the drilling equipment, which is crucial for extracting minerals from the ground. A longer drill length can access deeper and potentially more lucrative mineral deposits. The grade of a mining site refers to the concentration of valuable minerals within the ore. Higher-grade deposits typically yield higher profits, as there is a larger quantity of valuable minerals present per unit of ore extracted. Another crucial factor is the mineralization grade, which indicates the extent to which a particular mineral or minerals are found within the ore. A higher mineralization grade means a higher percentage of valuable minerals, leading to increased profitability.

The 2023 drill campaign at Dios Padre comprised a total of 10 holes, spanning a length of 6,105.25 meters. Eight out of the nine holes targeting the lower Dios Padre breccia zone encountered mineralized pyrite-specularite breccia, confirming the presence of significant mineralization in this zone. The mineralized breccia zone has been found to extend at least 180 meters in strike length and 150 meters in depth. Furthermore, the breccia remains open along the strike, up-dip towards the old silver mine, and at depth.

Several other holes from the drill campaign also intersected noteworthy gold grades. For example, REG-23-19 intercepted 44.75 meters of gold mineralization with a grade of 1.61 g/t, including a higher-grade section of 13.3 meters grading 2.23 g/t. REG-23-20 intersected 96.3 meters of gold mineralization, grading 0.65 g/t, including a section of 9.95 meters grading 1.6 g/t. REG-23-16, drilled along the northwest strike, intersected 7.15 meters of gold mineralization with a grade of 2.76 g/t.

The shape and orientation of the mineralized breccia zone have also been determined. It trends northwest to southeast and dips at an angle of approximately 60 degrees to the northeast. It is important to note that the breccia's orientation differs from that of the copper dominant Quartz-feldspar porphyry (QFP) unit, indicating separate geological processes at play.

High-grade gold mineralization within the breccia appears to be associated with areas of increased pyrite content. This high-grade gold is mainly concentrated in the upper portions of the breccia. As the southeast portion of the breccia trends towards the historic mine site, similarities are observed with shallower drilling results (REG-22-04) that encountered gold-silver-rich breccias. This suggests the potential for additional high-grade gold sections as the drilling approaches the historic mine site.

The company notes that the mineralized breccia zone and the high-grade upper portion remain open along strike and at depth. Additionally, copper mineralization is closely associated with the Quartz-feldspar porphyry unit. The intersection of the breccia and the QFP unit results in the presence of gold-copper mineralization. However, copper mineralization is considered a later event that overlays the earlier gold mineralization. The concentration of copper and associated low-grade gold mineralization increases with depth within the QFP unit, indicating a potential vector towards a higher-grade copper core at depth.

The Dios Padre project holds significant technical prospectivity. This is largely because the historic silver mine workings at Dios Padre contain an inferred resource of approximately 11.375 million silver equivalent (AgEq) ounces, with silver accounting for 94% of the resource. The average grade of the resource is 255.64 g/t AgEq with a cutoff grade of 120 g/t AgEq. Existing drill intercepts within the mine workings indicate the presence of high-grade silver, such as hole FMR 12-06 with 1.9 meters grading 3,220 g/t silver within a larger intercept of 32.5 meters grading 408 g/t silver.

Triple Threat: Gold, Copper, and Silver 

Regency Silver Corp. seems to have positioned itself as a triple threat in the industry by focusing on gold, copper and silver exploration and development. With a strategic approach, the company actively seeks out properties that offer significant potential for all three precious metals. By diversifying its portfolio, Regency Silver aims to maximize its economic opportunities and mitigate risks associated with relying on a single commodity. With a team of industry experts with its desired technical capabilities, the company seems well-equipped to advance projects from exploration to production. 

The recent gold discovery at Dios Padre by Regency Silver adds another chapter to the project's potential. With ongoing exploration and further drilling, there is a possibility of expanding the current resource and uncovering more high-grade gold and silver mineralization.

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