AI-optimized Geophysics Highlights Drill Target at Reyna Silver's Guigui

VANCOUVER, January 22, 2024 - Reyna Silver Corp. (TSXV:RSLV)(OTCQX:RSNVF)(FRA:4ZC) ("Reyna'' or the "Company") is pleased to share results from ExploreTech's Artificial Intelligence (AI) optimization of existing geophysical data from the Guigui Project in Chihuahua, Mexico. ExploreTech's proprietary AI algorithms highlight a strong, multi-layered magnetic anomaly southeast of the 0.5 sq. kilometre sulphide-mineralized skarn footprint identified in 2022 drilling (See Press Release from April 7, 2022). The results reinforce existing geological thinking that the intrusive source for the district lies in that area and greatly enhance the area's potential (Figure 2). Pads to drill the target are already permitted and accessible.

The Guigui Project covers the southern part of the Santa Eulalia District -one of the world's largest Carbonate Replacement Deposits ("CRDs") with over 500 Million ounces of historical silver production. Reyna's CRD exploration model indicates that the intrusive source and proximal mineralized skarn for the system remain to be found, and ExploreTech's AI approach to modeling the existing geophysics is specifically designed to augment surface-based geological work to locate that intrusive source beneath extensive, but thin, pre-mineral volcanic rock cover.

ExploreTech's platform first uses AI to identify and locate where a geophysical anomaly actually is and then design the optimum hole geometry to hit it. The first step searches a geophysical survey dataset and calculates thousands of possible explanations for anomalies measured at the surface (See exploretech.ai for additional information). For CRDs, the search focuses on solutions most likely to be caused by a source intrusion. This process generates thousands of candidate models that the program then evaluates in 3 dimensions to determine the optimal drilling trajectory to pierce as many of these potential intrusion-related anomalies as possible (See Figure 1).

ExploreTech's use of AI to reveal and reinforce target anomalies in existing geophysical datasets appears to be a significant new exploration tool and Reyna intends to apply it to the extensive existing datasets for its Gryphon Summit and Medicine Springs CRD projects in Nevada.

"We are delighted with the strength and coherence of the anomaly ExploreTech has modeled in the part of Guigui where we've been homing in on the source intrusion for the Santa Eulalia District, and we really look forward to drilling their optimized hole," said Jorge Ramiro Monroy CEO of Reyna Silver. "The results already make a compelling case to immediately apply their AI approach to our new geophysics (AMT) from Medicine Springs and the treasure trove of geophysics that we inherited with Gryphon."

"What really gets my attention, beyond the strength and coherence of the target generated by ExploreTech's cutting-edge AI approach to the geophysics, is the fact that it highlights a target that our Project Geologist, Rene Ramirez, has been championing for several years," said Dr. Peter Megaw, Chief Exploration Advisor to Reyna Silver. "Exploring through cover is not easy, so having this kind of tool to combine with boot-leather geology and sharpen our targeting at Guigui and our Nevada projects may be an important exploration advance across the board."

Figure 1. A 3D cross-section of the Magnetic Body in grey highlighted by ExploreTech's work underlying the Area of Interest identified southeast of the 2021 Drilling Program. The thin volcanic layer obscuring the Carbonate rocks (limestone) is in dark green. The optimized drill hole aims to intersect the highest percentage of the optimized geophysics layers possible.

Click here to watch video about the ExploreTech optimized Geophysics at Guigui.

Figure 2. Plan view of the Aeromag geophysics survey over the Guigui project (prior to the acquisition of La Chinche) with previous drillhole collars and downhole traces shown in dark grey. The magnetic feature in the Area of Interest showcases the sharp contrast between the conductive feature displayed in red and the surrounding resistive terrain in blue.

The ExploreTech partnership with Reyna Silver highlighted an area of interest, entirely covered by altered pre-mineral volcanics, lying southeast of the center of the previous drilling (See Press Release from April 7, 2022). Reyna had data from two previous geophysical surveys over the area, so applying ExploreTech's cutting-edge xFlare program to this blind target was an ideal opportunity to sharpen and de-risk the target (Figure 2). xFlare AI makes multiple model runs on the data, varying parameters between runs to generate a range of model solutions. These are then combined and the best-fitting models stack into clusters representing the tightest approximation of where the anomaly lies. Once this is accomplished, the program designs a drill hole that passes through the centers of as many of the individual anomalies as possible, again enhancing the ability to reliably test whatever feature is creating the anomaly (See Figure 1 and explainer video)

The result of this process at Guigui is a Magnetic anomaly lying 1000-1200m deep, 400-800m southeast of the 0.5 by 1.25 km area where previous drilling encountered sulfide-mineralized skarn (See Press Release from April 7, 2022). This is very close to where the previous drilling and our exploration model suggest a strong candidate for where the source intrusion should lie. The DrillerAPI subroutine of xFlare shows a high probability of intersecting the magnetic anomaly with a 1500m hole drilled from a previously permitted pad.

Application of ExploreTech Modeling to Nevada Properties

Reyna recently ran an aerial Magneto Telluric (MT) survey at Medicine Springs that revealed a conductive anomaly underlying the altered and silicified carbonates that yielded the strongest surface copper geochemical anomaly in the project area. This combination of anomalies is interpreted as reflecting a possible intrusive center hidden under alluvial cover just northeast of the reconnaissance drilling area (See Press Release from November 8, 2023). The parallels between the source intrusion targets at Guigui and Medicine Spring make applying ExploreTech's approach here a logical next step.

Reyna's Gryphon Summit Gold, Silver and critical metals project came with 39 kilometres of IP, 17 kilometres of CSAMT and NSAMT, gravimetric, hyperspectral, and lidar-like surveys. ExploreTech's capability to quickly process large datasets like these will enable Reyna Silver's technical team to optimize the incorporation of these geophysics datasets for its 2024 drilling program. The targets will focus on the intrusion-centered porphyry-CRD mineralization and the Carlin-type mineralization that previous work indicates overlap on the property (See Press Release November 29, 2023).

QUALIFIED PERSON

Dr. Peter Megaw, Ph.D., C.P.G., the Company's Chief Exploration Advisor and Qualified Person, reviewed the technical aspects of the exploration projects described herein and is responsible for the design and conduct of the exploration program and the verification and quality assurance of analytical results. Dr. Megaw is not independent as he and/or companies with which he is affiliated hold Net Smelter Royalties on the Guigui and Batopilas Projects that predate Reyna Silver acquiring them.

ABOUT REYNA SILVER

Reyna Silver Corp. (TSXV: RSLV) is a growth-oriented junior exploration and development company focused on exploring for high-grade, district-scale silver deposits in Mexico and USA.

Reyna's principal properties are the Guigui and Batopilas Properties in Chihuahua, Mexico. Guigui covers the interpreted source area for the Santa Eulalia District and Batopilas covers most of Mexico's historically highest-grade silver system. The Company also has an option to acquire 100% of the Medicine Springs property in Nevada, USA as well as the early stage La Durazno and Matilde and La Reyna mineral properties in Mexico.