Regency Silver Corp. (TSX-V:RSMX) said it has entered into an agreement to option a 100% undivided interest in the El Tablon claims in the State of Durango, Mexico.
“The property covers a total of 7,200 hectares and contains numerous artisanal workings and tunnels, which explored many of the veins and veinlets that exist within the concession area,” the company said.
In order to exercise the option, Regency Silver must pay US$50,000 on receipt of exchange acceptance, issue a total of 1 million common shares and pay back taxes and mining filings on or before March 31, 2024, it added.
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Regency Silver must also pay a US$1 million bonus upon a NI 43-101 resource being published, which estimates the El Tablon claims contain a minimum of 70 million silver equivalent ounces or 1 million gold ounces in the measured or indicated categories.
The shares are subject to a four-month hold period and the agreement is subject to the approval of the TSX Venture Exchange.
The El Tablon claims lie within the Sierra Madre Occidental prolific gold-silver belt only 16 miles from the historical Tayoltita, which has historically produced over 11 million ounces of gold and 582 million ounces of silver and which continues to be active with significant mineral resources.
A Mexican Council on Natural Resources report from 2012 indicates the presence of 7 veins and breccias in a short space of land, which reported silver grades up to 1,402 grams per ton (g/t), lead up to 2.097%, copper up to 1.381%, and gold up to 1.00 g/t. One of the samples exceeded 10,000 g/t of silver. The El Tablon claims have potential both for high-grade silver veins and bulk mineable high volume-low grade polymetallic mineralization, the company said.
Regency Silver is a silver and gold exploration company focused on the Americas.
Contact the author at jon.hopkins@proactiveinvestors.com