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Reyna Silver Looks Like Mag Silver II

Bob Moriarty
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Jun 5, 2020

Part of the reason might be that their silver projects in Mexico used to be owned by Mag Silver until two years ago. Mag spun off a number of their great silver projects that they just didn’t have the bandwidth to move forward into a private company named Reyna Silver. Reyna is just finishing up a reverse takeover and will be trading publicly in the next week or so.

In 2005 I went to Mexico to see Endeavour Silver. While there the president of Mag Silver found out I was around. He contacted me and asked if I could extend my trip to spend a couple of days with their chief geo. I made the time and flew to Mexico City where Dr. Peter Megaw picked me up. We spent the next three or four days driving around Mexico looking at silver projects.

I’ve been doing this for almost twenty years now and seen hundreds of projects. Being with Peter Megaw driving around Mexico looking at projects for a few days was easily the most interesting work I have ever done in my life. Peter is one of those guys who can talk with intelligence about anything at all.

Face it, most geologists are boring. Those few who actually know their profession tend to be single minded. They can discuss rocks but can’t fathom a race riot or the role of the IMF in international finance or what it is like to go to school in Sweden. Not Peter, he is a font of information. He is a professor and like Quinton Hennigh he can explain complex concepts in a simple way. The days flew by.

Here is a picture of Peter with his drop dead gorgeous daughter Lauren. Peter is the one on the right, Lauren on the left. She has hair. He doesn’t.

Peter happens to be one of the top mineral specimen guys on the planet. He collects and specializes in mineral crystals. Casually he dropped into the conversation his daughter also sells crystals and specimens. I asked how old she was. I think he said she was not quite a teenager. Remember, this was fifteen years ago.

I was a little surprised. No, actually I was a lot surprised. Then he told me she started selling specimens when she was six. Wow. It was an interesting story, one of many.

So all these silver projects in Reyna are projects I walked on fifteen years ago. Younger investors wouldn’t recall this, it was before their time but from the late 1930s until just before the turn of the century mining in Mexico was a dismal wasteland. All the productive mines had been nationalized and turned into collectives. And as is always the case with Socialism they were driven into bankruptcy through a lack of management and direction. Governments are run by people too lazy to work and too nervous to steal.

Peter looked around the world for where the next great opportunities would be and concluded that as stupid as the Mexican government had been, sooner or later they would wake up and smell the roses. About 48 billion ounces of silver have been produced through history. 12 billion of those ounces came from Mexico. Literally there are hundreds of former silver mines all over the country that could be turned back into profit centers. Peter set out to become the Go-To guy for Mexico. You can ask anyone in the mining business who the best expert is on Mexico and 100% of them will name Peter Megaw.

Peter talked about the mines at Batopilas and how magnificent native silver specimens came from the mine. I whined until I got him to promise to send me a specimen. When it didn’t arrive in the next six months, I wined some more until it showed up on my doorsteps.

(Click on images to enlarge)

Silver mining began at Batopilas as early as 1632 but stopped completely by 1921 as a result of the Mexican Revolution. I have a picture from a month’s production in 1906 when the mines were producing 10,000 ounces per day. If Reyna produced as much today that would be $62 million USD yearly in cash flow.

Mag Silver has gone up 1300% from being $1.25 when we drove around Mexico. But as good as they are, they simply couldn’t advance all the great projects they had. So two years ago they spun off a handful of really solid past producers into Reyna. While Batopilas is a high priority, for this year the highest priority is the Santa Eulalia Mining District and their Guigui CRD system (Carbonate Replacement Deposit). Reyna is starting a 5,000-meter drill program in Q3 2020 with a follow up 5,000-meter phase 2 planned for Q1 of 2021.

Reyna has one of the strongest technical teams in mining much less in Mexico with Dr. Megaw and Doug Kirwin. Peter is the leading CRD guy in the world. The company has 73 million shares outstanding and $6.5 million CAD in the bank. It is exceptionally tightly held with over 60% of the shares held by Mag Silver, management, Sprott and other institutions. With the four-month hold on the recent PP, there are less than 10% of the shares free trading and not in the hands of insiders.

Shares will begin to trade on Monday June 8th. Expect a lot of volatility. Reyna has the potential for being the leading silver junior in Mexico. It will be a silver-bugs delight. Here is a recent presentation by Peter Megaw.

Reyna Silver is an advertiser and I have participated in the latest private placement. Naturally I am biased but I’ve seen their main project and I love them. Do your own due diligence. The corporate presentation is up to date and all interested investors should read it.

Reyna Silver Corp
RSLV-V $.20 73.1 million shares

Reyna Silver website

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Bob Moriarty
President: 321gold
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