Silver Explorer Acquires Past-Producing Mexican Gold Mine

Important Disclosures:

1. Regency Silver Corp. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Regency Silver Corp. and Agnico Eagle Mines Ltd. 
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Regency Silver Corp. (RSMX:TSX.V; RSMXF:OTCQB) has entered into a binding agreement dated September 8 to acquire 100% of the Jabali Gold Project in Mexico's Mulatos Mining District, including the historic La Dura gold mine, through the purchase of all shares of Tarachi Gold S.A. de C.V., according to a September 9 release.

The transaction will add about 569 hectares of mineral concessions located roughly 6 kilometers west of Alamos Gold Inc.'s (AGI:TSX; AGI:NYSE) Mulatos mine, 10 kilometers southeast of Agnico Eagle Mines Ltd.'s (AEM:TSX; AEM:NYSE) La India mine, and 20 kilometers northeast of Regency's Dios Padre project.

"Jabali fits the model that worked at Timmins Gold — a Mexican gold property in a producing district, with a multi-generational drill database and clear geological analogues to a neighboring producer," Chief Executive Officer Bruce Bragagnolo said. "Mulatos has produced more than 2 million ounces (Moz) of gold, 6 kilometers from this concession. Our objective is straightforward: validate the historical work, complete a NI 43-101 resource, and put Jabali back into production using the toll milling model for processing."

Under the deal, Regency will pay US$70,000 when the formal agreement is executed and issue 20 million shares once it secures a toll milling agreement with a nearby mine on standard terms, the release said. The shares will be subject to voluntary pooling, with 5 million released upon Exchange approval and another 5 million every six months thereafter. Regency will also make a US$1 million payment six months after commercial production begins and a further US$1 million payment 12 months after that, pay an additional US$2 million after the project produces 50,000 ounces of gold equivalent, and grant a 2% net smelter return royalty. No finder's fees will be paid. Closing is expected around September 30, subject to TSX Venture Exchange approval, with shareholder approval not expected to be necessary.

La Dura is a former underground gold mine, and historical drilling by Urastar and Tarachi Gold has identified high-grade mineralization from surface to approximately 100 meters depth, with the zone continuing deeper. Tarachi Gold's 2020 and 2021 drilling produced selected results of up to 6.91 grams per tonne (g/t) gold over 63.4 meters and 7.26 g/t gold over 12 meters. Regency intends to assess a restart and pursue toll milling with a nearby operation while completing studies to determine potential capital and operating costs. The company is also preparing a NI 43-101 technical report while interpreting the deposit as a geological analogue of the nearby Mulatos deposit.

The Case for Jabali: Grade, Location, and Data

Regency framed the acquisition as a fit with the Timmins Gold model Bragagnolo cited, and gave four reasons for the deal:

• Past production and high-grade gold. La Dura is a past-producing high-grade gold mine with documented historic high-grade drilling, and Regency believes its existing underground workings will make the mine easier to bring back into production.
• Proximity to producing mines. The property sits about 6 kilometers west of Alamos Gold's Mulatos operation and 10 kilometers southeast of Agnico Eagle's La India mine.
• Multi-generational drill database. Jabali carries assay data from four prior operators (Ormonde Mining, Minera Real de Ángeles, Urastar, and Tarachi Gold), totaling more than 6,300 sample records and over 2,000 meters of recent diamond drilling.
• Portfolio fits with Dios Padre. The acquisition consolidates Regency's Sonora exploration footprint within the same Sierra Madre Occidental gold belt as its flagship Dios Padre project and the La India project.

Historical drilling on the El Jabali concession returned several notable gold intervals, though Regency has not independently verified the results and presents them only as historical information. Urastar reported 16.25 g/t gold over 4.6 meters from 56.4 meters in hole LJBRC-14-003, 4.64 g/t over 13.7 meters from 16.8 meters in LJBRC-14-001 and 4.27 g/t over 3 meters from 19.8 meters in LJB-12-04, while Tarachi Gold reported 4.54 g/t over 20.1 meters from surface in Jab 20-005 and 5.05 g/t over 20.07 meters from 22.5 meters in Jab 20-006. Regency plans to test the historical database through twin-hole drilling during a Phase 1 program.

The company also holds an option on the La India project and emphasized that it has no ownership interest in the nearby Alamos Gold or Agnico Eagle operations. The company cautioned that the historical results and information about surrounding projects do not necessarily reflect the mineralization that may occur at Jabali.

Technical Analyst Sees Porphyry Potential at Dios Padre

¹On March 31, Technical Analyst John Newell of John Newell & Associates reviewed Regency Silver Corp. for Streetwise Reports, noting that renewed strength in gold and silver has increased investor interest in hard assets amid inflation, government debt, and geopolitical uncertainty. He said exploration companies operating in established mining regions can attract significant attention when drilling begins to reveal major mineral systems. Regency has been reporting strong gold, silver and copper intersections from a breccia system at its Dios Padre Project in Sonora, Mexico, which Newell believes could represent the upper portion of a larger porphyry-style system within the prolific Laramide porphyry belt.

Regency, a Canadian junior explorer, is advancing its flagship Dios Padre property between Hermosillo and Chihuahua City, with road access, nearby electricity and an experienced local workforce supporting exploration, he said. The property also hosts a historic silver mine and an NI 43-101 inferred resource of approximately 11.375 million ounces of silver equivalent. Recent drilling indicates that mineralization could extend beyond the existing resource footprint.

Newell highlighted Sonora's strong mining history, pointing to major operations including Pan American Silver's Dolores mine and Alamos Gold's Mulatos mine. He said the region's established production history reflects favorable geology and provides a strong setting for additional discoveries.

Newell said strong precious metals markets can provide exceptional leverage for exploration companies that make meaningful discoveries, particularly as larger producers seek new deposits to replace declining reserves. He noted that successful drilling can rapidly increase the perceived value of a project and potentially attract strategic interest when a discovery sits within a proven mining district with established infrastructure and nearby producing operations.

Newell concluded that Regency remains in the early stages of defining the Dios Padre mineral system, but continued drilling could broaden investor awareness of the project's potential. The company's high-grade gold-silver-copper breccia system and geological evidence for a deeper porphyry component provide the basis for further exploration.

"Based on the current chart structure and the exploration potential of the project, Regency Silver Corp. appears to represent a Speculative Buy near the CA$0.16–CA$0.20 range, with meaningful upside should future drilling confirm the geological model and continue expanding the discovery," Newell said.

The Catalyst: Hormuz Risk Powers Metals as Silver's Bull Case Builds

Gold and silver rose on Wednesday morning as safe-haven demand tied to the U.S.-Iran conflict offset the drag from rising interest-rate expectations, according to the Kitco News AM report for September 9. Spot gold traded around US$4,403.10 an ounce, up 1.11%, while silver was near US$66.08, up 0.68%, with escalating strikes and Brent crude above US$100 a barrel driving flows into bullion.

Kitco framed the tug-of-war between geopolitics and monetary policy. "For gold, the balance is conflicted but constructive in the short term: higher crude and elevated yields raise the opportunity cost of holding bullion, but safe-haven flows, a softer dollar and concern over Gulf supply routes are offsetting the rate headwind," the report said. Markets were pricing roughly a 60% chance of a 25-basis-point rate hike at the Federal Reserve's September 15–16 meeting, with the 10-year Treasury yield near 4.81%, its highest since October 2023.

The report said the rebound had yet to clear key technical resistance — about US$4,422 for gold and US$67.21 for silver — to confirm a full trend reversal, leaving the week's inflation data as the likely decider. Producer price figures due Thursday and consumer prices Friday now carry added weight given oil-shock inflation concerns.

A Yahoo Finance report by Tim Manni on September 8 tied silver's strength to geopolitics and inflation risk: fighting between the U.S. and Iran has pushed oil toward US$100 a barrel, stoking price pressures ahead of the Federal Reserve's mid-September rate meeting and supporting demand for precious metals as a hedge. He also flagged silver's volatility, noting the metal topped US$113 an ounce in January 2026 before sliding to about US$77 by February, a roughly 32% drop in a matter of weeks.

The longer-term outlook cited in the article was bullish. "Experts with BlackRock and J.P. Morgan agree that the outlook for silver remains strong, and its price will increase," Manni wrote, adding that those forecasters expect silver to surpass US$80 an ounce by the end of 2026 and potentially reach US$100 by 2030.

Ownership and Share Structure²

Members of Regency Silver's management team and its board own about 4.72% of the company. Of this total, CEO Bragagnolo, the largest shareholder overall, owns 3.3%. The rest is retail.

Regency Silver has 138.03 million shares outstanding. Its market cap is CA$13.77 million. Its 52-week range is CA$0.10–0.44 per share.

Common Investor Questions

What did Regency Silver announce? Regency signed a binding agreement dated September 8 to acquire 100% of the Jabali Gold Project, including the historic La Dura gold mine, in Mexico's Mulatos Mining District, by buying all shares of Tarachi Gold S.A. de C.V., according to a September 9 release.

What is Jabali, and where is it? Jabali is about 569 hectares of concessions in Sonora, Mexico, roughly 6 kilometers west of Alamos Gold's Mulatos mine, 10 kilometers southeast of Agnico Eagle's La India mine, and 20 kilometers northeast of Regency's Dios Padre project. Its centerpiece, La Dura, is a former underground gold mine with historic high-grade drilling from surface to about 100 meters depth.

What are the terms of the deal? Regency will pay US$70,000 on execution and issue 20 million shares once it secures a toll-milling agreement with a nearby mine, with those shares released from voluntary pooling in 5-million increments. Regency will also make a US$1 million payment six months after commercial production begins and a further US$1 million payment 12 months after that, pay an additional US$2 million after the project produces 50,000 ounces of gold equivalent, and grant a 2% net smelter return royalty. There are no finder's fees, and closing is expected around September 30, subject to TSX Venture Exchange approval; a shareholder vote is not expected.

Why does Regency want the project? CEO Bruce Bragagnolo framed it as a fit with the "model that worked at Timmins Gold," citing past production and high-grade gold, proximity to producing mines, a multi-generational drill database from four prior operators (more than 6,300 sample records and over 2,000 meters of recent diamond drilling), and portfolio fit with its flagship Dios Padre project in the same Sierra Madre Occidental belt.

What do the historical drill results show? Historical drilling returned intervals such as 6.91 g/t gold over 63.4 meters and 7.26 g/t over 12 meters (Tarachi Gold), plus results from Urastar, including 16.25 g/t over 4.6 meters. Regency has not independently verified these results, presents them only as historical information, and plans to test them through twin-hole drilling in a Phase 1 program.

What is Regency's plan for Jabali? Validate the historical work, complete an NI 43-101 resource, and pursue a restart using a toll-milling model with a nearby operation, while completing studies to determine potential capital and operating costs.