Peruvian Metals Corp. Commences Underground Development to Access High-Grade Au-Ag Sulphides at Palta Dorada
Peruvian begins underground development at Palta Dorada, though the project currently lacks NI 43-101 resources or commercial production.
Peruvian Metals Corp. has officially commenced underground development at its 100% owned Palta Dorada Gold-Silver property in Northern Peru. The company has completed infrastructure upgrades that include improved road access, cleaned historic adits, re-established mine portals, and the installation of a generator, industrial winch, and expanded camp.
San Juan Vein development is currently underway, featuring a main portal on the 883-metre level with a 180-metre drift, a 53-metre deep shaft at the 940-metre level, and a 50-metre crosscut at the 910-metre level designed to intersect the sulphide zone.
Metallurgical results for sulphide material show a head grade of 11.10 g/t Au and 145 g/t Ag, with flotation recoveries of 89% for gold and 75% for silver. Oxide material assays returned up to 35.1 g/t Au with 82% gold recovery via cyanide leaching.
Under the processing strategy, oxide material will be sold to local toll mills, while sulphide material will be transported to the company's Aguila Norte plant for processing into Au-Ag concentrate. Future plans include extending the main access drift to 350 metres, extending the shaft, establishing underground drill stations, and exploring the North 1 structure, which has a strike length of approximately 450 metres.
Peruvian Metals Corp. (PER) has begun underground development, a logical next step following the positive metallurgical results announced earlier in 2026. The company has not yet declared NI 43-101 resource estimates or commercial production, so the development work does not materially alter the company's mine life, net asset value, or financial profile. The market had already priced in the metallurgical success, with the stock rallying to $0.30 in May 2026 before consolidating.
Peruvian Metals Corp. operates under a three-pillar model encompassing toll milling, its own ore processing, and project generation. The company’s Aguila Norte Processing Plant is 80% owned and fully permitted, currently operating at a capacity of 100 tonnes per day with an IGAC permit allowing for expansion to 350 tonnes per day.
In Ancash, Northern Peru, the company holds 100% ownership of the Palta Dorada Au-Ag-Cu property, where underground development has commenced. Additionally, Peruvian Metals holds a 50% interest in the Mercedes project in Junín, Central Peru, via San Maurizo Mines Ltd. A community agreement has been secured for this asset, which boasts high metallurgical recoveries of 97.85% for silver and 92.19% for gold.
Management is led by CEO Jeffrey Reeder, P.Geo., who brings more than 30 years of experience in Peru. Historically, the company has partnered with major mining firms including Rio Tinto, IAMGOLD, and First Quantum.