From Explorer to Producer? Regency Silver's Two-Track Bet in Sonora

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. Disclosure for the quote from the John Newell article published on March 31, 2026

1. For the quoted article (published on Marc 31, 2026), Regency Silver has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
2. Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a  U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

John Newell Disclaimer

As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

2. 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.

Key Investor Takeaways

• Regency Silver has agreed to acquire the past-producing Jabali gold project in Sonora, Mexico, and plans to put its La Dura mine back into production using toll milling at a nearby mine.
• Jabali lies about 6 km west of Alamos Gold's Mulatos mine and about 20 km northeast of Regency's flagship Dios Padre project.
• Historical drilling at Jabali returned 6.91 g/t gold over 63.4 m. Regency has not verified the results and has given no restart timeline.
• Most of the purchase price for the acquisition, which had not been announced as closed as of October 13, is tied to milestones: 20 million shares on a toll milling agreement, cash payments after commercial production, and a 2% net smelter return royalty.
• At Dios Padre, hole REG-26-35 returned 5.06 g/t gold, 41.85 g/t silver, and 1.10% copper over 36.35 m. The breccia now extends about 775 m down-plunge and remains open.
• The drill has left Dios Padre, and drilling is to resume once Regency finishes assessing the 2026 results.
• Technical Analyst John Newell rated Regency a Speculative Buy in March, saying the Dios Padre breccia could be the upper part of a larger porphyry-style system.¹
• Industry accounts for about 58% of silver demand, and the market is forecast to post a sixth straight annual deficit in 2026.

An Idle Gold Mine and an Explorer's Plan to Switch It Back On

About 6 kilometers (km) from a mine that Regency Silver Corp.'s CEO says has produced more than two million ounces of gold, an underground gold mine called La Dura sits idle. Regency Silver Corp. (RSMX:TSX.V; RSMXF:OTCQB), an explorer best known for a drill discovery 20 km away, has agreed to buy it and says it plans to put it back to work.

The company announced on September 9 that it had signed a binding agreement to acquire 100% of the Jabali gold project, which includes La Dura, in the Mulatos Mining District of Sonora, Mexico. It intends to send ore to a nearby mine for processing under a toll milling arrangement.

"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," CEO Bruce Bragagnolo said in the release. Bragagnolo, who co-founded and led Timmins Gold Corp., said Jabali "fits the model that worked at Timmins Gold."

That gives Regency two tracks in the same part of Sonora: a possible restart at Jabali and continued exploration at its flagship Dios Padre project.

Six Kilometers From Mulatos: What Comes With Jabali?

Jabali covers about 569 hectares. It lies about 6 km west of the Mulatos mine owned by Alamos Gold Inc. (AGI:TSX; AGI:NYSE) and about 10 km from the La India mine owned by Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE). Regency would acquire it by purchasing all the shares of Tarachi Gold S.A. de C.V.

Drilling by Tarachi in 2020 and 2021 returned 6.91 grams per tonne (g/t) gold over 63.4 meters (m) and 7.26 g/t gold over 12 m, the release said. Regency has not verified those results and presented them as historical information only. In test work done for a previous operator in 2021, cyanide leach tests by Bureau Veritas averaged 94.8% gold extraction.

Regency said La Dura's existing workings should make it easier to restart. The company is doing the studies needed to estimate capital and operating costs and is completing a National Instrument 43-101 technical report. It has not given a timeline.

Most of the purchase price depends on progress. Regency pays US$70,000 on execution of the formal agreement and issues 20 million shares once it reaches a toll milling agreement.

The shares will be subject to a voluntary pooling agreement, with 5 million released upon Exchange acceptance and a further 5 million released every six months thereafter.

It pays US$1 million six months after commercial production begins and another US$1 million 12 months after that. A further US$2 million is due after 50,000 gold-equivalent ounces are extracted, and the vendors receive a 2% net smelter return royalty. Closing was expected on or about September 30, subject to TSX Venture Exchange acceptance.

Beneath an Old Silver Mine, the Gold-Copper Hit That Started It All

Regency's flagship project is Dios Padre, near Yecora, Sonora, about 20 km southwest of Jabali. The historic silver mine there reportedly produced about 16 million ounces, Streetwise Reports noted in January. The company has been drilling a gold-copper-silver breccia beneath it.

In results released June 16, hole REG-26-35 returned 5.06 g/t gold, 41.85 g/t silver, and 1.10% copper over 36.35 m, within 96 m averaging 2.08 g/t gold. The hole was a step-out about 25 m southeast of the discovery hole REG-22-01.

"REG-26-35 is the most significant hole drilled to date due to its high content of gold, silver, and copper," Bragagnolo said. The breccia now extends about 775 m down-plunge, and the mineralized zone "remains open in all directions," he said.

The 2026 program totaled nine holes and 6,234 m. The drill has left the property, and Regency said it planned on resuming drilling once it finishes assessing the results.

Mapping and sampling continue at Dios Padre and at Regency's separately optioned La India mineral concession, a 4,823-hectare property about 10 km to the north that the company optioned in January.

Two Tracks, One Gold Belt

Regency said Jabali "consolidates Regency's Sonora exploration footprint within the same Sierra Madre Occidental gold belt."

Several steps stand between the plan and production. The acquisition has to close. Regency needs a toll milling agreement with a nearby mine, which also triggers the share payment. The technical report and the restart cost studies have to be finished. At Dios Padre, the next step is a decision on when and where to drill again.

Expert: Dios Padre Breccia May Be the Top of Something Bigger

¹In a March 31 review, written before the Jabali agreement, Technical Analyst John Newell of John Newell & Associates said the breccia at Dios Padre could be the upper part of a larger porphyry-style system within the Laramide porphyry belt.

Newell said the project benefits from road access, nearby electricity, and an experienced local workforce. The property hosts a historic silver mine and a National Instrument 43-101 inferred resource of about 11.375 million ounces of silver equivalent, and he said drilling indicated mineralization could extend beyond that footprint.

He pointed to the region's production history, including Alamos Gold's Mulatos mine, as evidence of favorable geology. A discovery in a proven district with infrastructure and producing mines nearby can attract strategic interest, he said, as larger producers look for deposits to replace declining reserves.

Newell said Regency was still in the early stages of defining the Dios Padre system. He rated the company a Speculative Buy and set a long-term target of about CA$2.20, conditional on continued exploration success.

Silver's Factory Floor: Solar Pulls Back as Data Centers and Cars Step Up

Silver was at US$60.25 per ounce early on October 9, up about 22% from a year earlier but down about 8% over the past month, Fortune reported. Prices were trying to climb off two-month lows after pressure from geopolitical tensions, rising Treasury yields, and a stronger dollar, Yahoo!Finance reported.

Factories, not investors, buy most of the metal. Industrial users took 657.4 million ounces (Moz) of the 1,130.6 Moz consumed in 2025, or about 58%, according to figures from the Silver Institute's World Silver Survey 2026 reported by Investing News Network.

That demand is shifting. A survey forecasts industrial use will slip 3% to 639.6 Moz in 2026, but solar accounts for more than the entire decline. Panel makers have responded to higher prices by using less silver and substituting copper, and solar demand is expected to fall 19% to 151 Moz, Mercom India reported. Outside solar, industrial demand is forecast to grow by about 18 Moz.

Data centers are part of that growth. The survey expects them to account for more than 10% of silver used in electrical and electronics applications by 2027, according to an August 20 Kitco commentary. Automotive demand is forecast to grow 3.4% a year through 2031, Crux Investor reported, citing the Silver Institute.

Supply has not kept pace. Mine output is forecast to dip 0.3% to 844.1 Moz in 2026, and about 72% of it comes from mines where silver is not the main product, which limits how quickly miners can respond to price, Crux Investor reported. The survey projects a sixth straight annual deficit of 46.3 Moz, up from 40.3 Moz in 2025. The market "has clearly entered an era of reduced stocks," the Silver Institute said.

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$15.15 million. Its 52-week range is CA$0.10–0.44 per share.

Common Questions from Investors

What is Regency Silver's two-track plan in Sonora? The company has agreed to acquire the past-producing Jabali gold project and plans to restart its La Dura mine through toll milling. At the same time, it is continuing to explore its flagship Dios Padre project about 20 km away.

Where is Jabali, and what is nearby? Jabali covers about 569 hectares in the Mulatos Mining District. It is about 6 km west of Alamos Gold's Mulatos mine, which CEO Bruce Bragagnolo says has produced more than two million ounces of gold, and about 10 km from Agnico Eagle's La India mine.

What is known about the gold at Jabali? Drilling by Tarachi Gold in 2021 returned 6.91 g/t gold over 63.4 m and 7.26 g/t gold over 12 m. Regency has not verified those results and presents them as historical information only. In test work done for a previous operator in 2021, cyanide leach tests averaged 94.8% gold extraction.

How is the deal structured? Regency pays US$70,000 on execution of the formal agreement and issues 20 million shares once it reaches a toll milling agreement. The shares will be subject to a voluntary pooling agreement, with 5 million released upon Exchange acceptance and a further 5 million released every six months thereafter. It pays US$1 million six months after commercial production begins, another US$1 million 12 months after that, and US$2 million after 50,000 gold-equivalent ounces are extracted. The vendors receive a 2% net smelter return royalty.

What has to happen before Jabali produces gold? The acquisition has to close. Regency needs a toll milling agreement with a nearby mine, a completed National Instrument 43-101 technical report, and finished studies on restart costs. The company has not given a timeline.

What do recent drill results show at Dios Padre? Hole REG-26-35, reported June 16, returned 5.06 g/t gold, 41.85 g/t silver, and 1.10% copper over 36.35 m, within 96 m averaging 2.08 g/t gold. Bragagnolo called it the most significant hole drilled to date. The breccia extends about 775 m down-plunge and remains open in all directions.

What is next at Dios Padre? The 2026 program ended after nine holes and 6,234 m. Regency said drilling will resume once it finishes assessing the results. Mapping and sampling continue at Dios Padre and at the La India concession, which was optioned in January.

What does one expert say? In a March 31 review written before the Jabali agreement, Technical Analyst John Newell rated Regency a Speculative Buy with a long-term target of about CA$2.20, conditional on continued exploration success.¹ He said the Dios Padre breccia could be the upper part of a larger porphyry-style system.

What is driving silver demand? Industrial users took about 58% of the silver consumed in 2025. Solar demand is forecast to fall 19% in 2026 as panel makers use less silver, while use in data centers and vehicles is growing. The World Silver Survey 2026 projects a sixth straight annual deficit of 46.3 million ounces.