Questcorp Mining's Breakthrough Drilling at La Union: A High-Grade Gold-Silver CRD Opportunity in Mexico

In the volatile world of junior mining, few stories blend geological promise, strategic positioning, and regulatory tailwinds as compellingly as Questcorp Mining's La Union Gold-Silver Project in northwest Sonora, Mexico. With 25% of its maiden 1,200–1,500-meter drilling program completed as of August 2025, the company is testing a carbonate replacement deposit (CRD) system that has already shown signs of hosting polymetallic mineralization with grades rivaling some of the world's most celebrated deposits. For investors seeking exposure to a high-conviction exploration play in a politically stable, resource-rich jurisdiction, Questcorp's La Union project represents a rare convergence of technical and strategic advantages.

Geological Promise: A CRD System with Historical High-Grade Signatures

The La Union project is situated in Neoproterozoic sedimentary rocks, including limestones, dolomites, and siliciclastic sediments, overlying Paleoproterozoic crystalline basement. This geological setting is ideal for CRD-style mineralization, where gold and silver are often associated with mantos (sheet-like deposits), chimneys, and structural zones. Historical grab samples from the area have revealed extraordinary grades, including 59.4 grams per metric tonne (g/t) gold, 833 g/t silver, 11% zinc, 5.5% lead, and 2.2% copperQuestcorp Mining Provides Update on Its Maiden Drill Program at La Union^[1]. While grab samples are inherently selective, these results align with the polymetallic signatures typical of CRD systems and suggest the potential for large-scale discoveries.

Recent drilling has further validated the project's potential. Initial holes beneath the historic Union Mine intersected carbonaceous formations of the Clemente and Caborca groups, which are favorable hosts for CRD mineralizationQuestcorp Mining Completes 25 Percent of Maiden Drilling Program at the La Union Gold & Silver Project in Mexico^[2]. A second hole in the El Cobre Mine area revealed quartzites and hematitic oxides, indicators of oxide gold mineralization potentially linked to supergene enrichmentQuestcorp Mining Continues Exploration in Advance of Drilling at the La Union Gold-Silver Project^[3]. The identification of stacked thrust faults and unmapped intrusive bodies within the mineralized area has also expanded the exploration footprint, suggesting that host rock volumes—and thus, mineralization potential—are significantly greater than previously assumedThe Mining and Exploration News in Mexico: Highlights on the Third Week of August 2025^[4].

Near-Term Discovery Potential: Drilling Strategy and Structural Advantages

Questcorp's drilling strategy is methodical and geologically sound. Angled holes are designed to cut perpendicular to stratigraphic and structural targets, a technique critical for intercepting CRD systems where mineralization can be laterally extensive but vertically discontinuousQuestcorp Mining Announces Commencement of Phase 1 Work at the La Union Gold Project^[5]. By August 2025, the company had completed 300 meters of its planned program, with the drill moving to the Famosa Target—a high-priority area supported by permits from the Mexican Mining MinistryQuestcorp Mining Provides Update on Its Maiden Drill Program at La Union^[6].

The structural setting further enhances optimism. High-angle normal faults and low-to-medium-angle thrust faults have acted as conduits for mineralizing fluids, creating a network of shear zones and replacement bodies that could host multiple high-grade lenses. This complexity is a double-edged sword: while it increases exploration risk, it also raises the ceiling for discovery. For context, historical mining at La Union focused on chimney and manto-style replacement bodies, leaving deeper sulfide zones—often higher-grade—as untested targetsQuestcorp Mining Inc. Completes 25% of Maiden Drilling Program at the La Union Project^[7].

Strategic Alignment with Mexican Government Initiatives

Mexico's mining sector is undergoing a transformation under the Plan México framework, which prioritizes regulatory efficiency and environmental sustainability. The Sonora government, in particular, has streamlined project approvals, reducing processing times from 2.6 years to under one yearMining Sector: Driving Development, Embracing Sustainability^[8]. This aligns directly with Questcorp's timeline, as the company advances its drilling program without bureaucratic delays.

Moreover, the Mexican government's emphasis on sustainable practices—such as renewable energy adoption and water recycling—resonates with Questcorp's operational approach. The company's collaboration with Riverside Resources, a seasoned project generator with a track record of spin-outs (e.g., Blue Jay Gold, Capitan Silver), further strengthens its strategic positioning. Riverside's role as operator at La Union ensures access to technical expertise and capital discipline, critical factors for de-risking junior exploration projectsRiverside Resources: Project Generator with a Diversified Portfolio of Assets in Canada & Mexico^[9].

Riverside's Exploration Legacy: A Track Record of Value Creation

Riverside Resources' involvement cannot be overstated. As a project generator, the company has built a royalty portfolio across North America, including stakes in projects like Fresnillo's Tajitos and Arizona Metals' Sugarloaf. Its partnership with Questcorp at La Union mirrors its successful collaboration with Fortuna Silver Mines on the Cecilia project in Sonora, where a partner-funded drill program is already advancingRiverside and Questcorp Prepare for Inaugural Drill Program at Union Project in Sonora^[10]. This legacy of value creation—through spin-outs, royalties, and joint ventures—provides a template for how Questcorp's La Union project could evolve into a flagship asset.

Investment Case: A High-Conviction Play in a Prospective Gold Belt

For investors, the case for Questcorp hinges on three pillars:
1. Near-Term Discovery Potential: With 25% of drilling completed and no material downhole issues reported, the company is on track to release initial results by late Q3 2025. A single high-grade intercept—such as the 45.7 g/t gold over 32 meters recently reported by Awalé Resources in Côte d'IvoireAwalé Hits 45.7 g/t Gold over 32m at the Odienné Project^[11]—could catalyze a re-rating.
2. Strategic Positioning: Sonora's status as a key gold-silver province, combined with Mexico's pro-business regulatory environment, ensures that Questcorp's discoveries will attract regional and global interest.
3. Partnership-Driven Capital Efficiency: Riverside's operatorship and Questcorp's option to earn 100% interest in La Union minimize dilution risks while aligning incentives for aggressive exploration.

Conclusion

Questcorp Mining's La Union project is a textbook example of how geological insight, strategic partnerships, and regulatory alignment can create a high-conviction junior exploration play. While the company's 25% drilling completion milestone is just the beginning, the historical grades, structural complexity, and government support suggest that this could be the catalyst for a significant discovery. For investors willing to tolerate the inherent risks of early-stage exploration, Questcorp offers a compelling opportunity to participate in the next chapter of Mexico's mining renaissance.