Regency Silver (RSMX.V) has started drilling at its flagship Dios Padre silver project in Sonora, Mexico. The initial drill program consists of 2,000 meters and is aiming to test the large IP anomaly approximately 550 meters north of the historical workings on the Dios Padre project.
Dios Padre currently contains 8.9 million ounces of silver and just under 7,000 ounces of gold in the inferred resource category with an average grade of 221.7 g/t silver and 0.17 g/t gold (for a silver-equivalent grade of 236 g/t and a silver-equivalent content of 9.5 million ounces using an 87:1 silver:gold ratio).
In other news, Regency Silver has entered into an agreement with AsiaBaseMetals (ABZ.V) to sell a 70% interest in the Paisano gold project in Peru. As Regency Silver will be busy in Mexico on the Dios Padre project and given the limited cash resources, it made sense to attract a partner for this project. AsiaBaseMetals will have to make the property tax payments while also issuing 250,000 shares to Regency Silver as well as spending at least C$1M on exploration within the next three years. There is a firm commitment to spend at least C$200,000 before the end of May 2024 which shouldn’t be too difficult to achieve. However, ABZ has the option to issue shares (at the higher of the market share price and C$0.17) in lieue of the exploration expenditures to keep the option agreement in good standing.
Disclosure: The author has a long position in Regency Silver. Please read our disclaimer.
