About Rio Grande Resources
It is expected that Foremost Clean Energy will complete a strategic plan of arrangement to spin out the Winston Group of Gold and Silver Properties into a newly established independent entity Rio Grande Resources Ltd. (CSE: RGR) sometime by the end of January 2025. Shareholders of Foremost directly benefited from this transition, receiving two common shares of RGR for each share held Foremost share, with Foremost itself retaining 19.95% ownership.
The Winston Project is situated in the northwestern region of Sierra County, New Mexico, about 45 miles northwest of the town of Truth or Consequences, within the Chloride Sub-District of the Black Range Mountains (see figure 1 below.) Subject to certain underlying royalties, Rio controls a 100% interest in the Winston Property, comprised of three historic past-producing high-grade gold-silver mines on 147 unpatented lode mining claims, including the four (4) Little Granite Claims (the “LG Claims”) and (2) patented mining claims, Ivanhoe and Emporia (the “Ivanhoe/Emporia Claims”), for a total of 149 total mining claims across 3,000+ acres. (see further information on the Winston Project on this website under “Our Projects– The Winston Project”)
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Figure 1. Winston Property (yellow ellipse) regional location map, showing the north end of Chloride Sub-District. Porphyry Copper Deposit (PCD) in blue circles; Base-Metal CRD Districts in purple rectangles; epithermal precious metals in red rectangles.
Despite the discovery of high-grade silver and gold deposits in the past, a steep decline in pricing rendered mining operations uneconomically viable, leading to the abandonment of the project. The Winston properties have seen little to no modern exploration since the 1980s and remain vastly underexplored. The last 40+ years have had significant advancements made in geological exploration to enhance the ability to locate and extract metals. By combining historical data with contemporary exploration techniques, Rio will set the stage to unearth the properties full potential.
Opportunity
Rio Grande offers tremendous new opportunities under a new stand-alone company. With its own experienced management team, the Winston project will receive the dedicated attention and development they truly deserve. The project is situated in a geologically promising region of New Mexico, known for its rich history of gold and silver production. Furthermore, supportive government policies from the Trump administration could result in faster permitting processes and expanded mining activities.
A company in the early stages of exploration typically presents considerable upside potential, as successful exploration efforts can result in significant discoveries. Rio offers a compelling opportunity for those interested in this sector.
The Lassonde Curve
Mining legend Pierre Lassonde is renowned for his knowledge about mineral exploration, discovery, and development. Drawing from decades of experience, he created the chart below that has become a staple in the mining industry—the Lassonde Curve. The Lassonde Curve illustrates the typical lifecycle of a mining project, highlighting the phases of exploration, development, production, and closure, alongside the associated risks and investment returns over time. Mr. Lasonde recognizes that the most significant financial gains are often realized during the exploration phase, particularly when a company transitions from discovery, when market sentiment and valuations can surge.
Figure 2. Chart Illustrating The Lassonde Curve and the Life Cyle of Mineral Discoveries
The Lassonde Curve suggests that investors should target entry points during early-stage exploration, ideally when the company has identified promising resources but before the news of a major discovery or a feasibility study, which can drive up share prices dramatically. The Lasonde Curve illustrates The best time to invest is during the early exploration phase or shortly before significant catalysts, such as drill results or resource updates, when valuations are lower but potential upside is high. While most mineral discoveries do not match it perfectly, the Lassonde Curve guides an investor through what to expect at each stage and empowers them to time their investments right.
Why Rio Grande
As an early-stage company, Rio, amongst some of its peers, is generally more undervalued compared to established miners, allowing for entry at a lower price point before potential market recognition. The gold and silver sectors are also historically seen as safe havens during economic uncertainty, adding a layer of security to investments.
Investment Highlights
Rio Grande is dedicated to uncovering gold and silver deposits, capitalizing on the current and historically high gold prices. As the projects are set to advance, the increase in commodity prices coupled with a renewed and focused interest, the project has some key advantages:
1. Strategic Location: New Mexico boasts a diverse geological background and hosts numerous former mines and established mineral trends. Rio Grande is within geographically optimal location
2. Modern Exploration Techniques: Rio will employ modern exploration technologies and methodologies to enhance the efficiency and effectiveness of its exploration efforts. This includes advanced geophysical surveys and data analytics, allowing the company to identify high-potential targets that were previously overlooked or not easily located with old techniques
3. Experienced Management Team: The leadership team at Rio Grande Resources comprises seasoned professionals with a strong track record in mineral exploration and development.
4. Focused Approach: Rio maintains a focused approach on gold and silver exploration in New Mexico. This specialization allows the company to allocate resources more effectively and gain in-depth knowledge of the local geology and market conditions, increasing the likelihood of successful discoveries.
Rio Grande Resources stands out in the crowded field of precious metals exploration due to its strategic location, modern exploration plans, and a new experienced management team with a focused approach. These factors combine to create a compelling story for Rio Grande, as it begins its exploration and development on the promising yet underdeveloped Winston projects.
