Kuya plans upgrades, geological work at Bethania

Executive Summary

• Kuya Silver Corp. announced a combined $3-million (U.S.) investment to accelerate production growth and resource development at its Bethania silver mine in Peru.
• The initiative consists of two parallel programs: a modernization of internal underground haulage infrastructure to transition from legacy rail systems to trackless vehicles, and a geological drilling campaign to unlock resource growth potential at depth.
• The modernization aims to debottleneck operations, improve safety, and facilitate a faster and more reliable ramp-up to the initial 350-tonne-per-day production milestone, with potential completion more than a year sooner than previously expected due to improved financial strength.

Key Details

• Total Investment: Approximately $3-million (U.S.) expected to be spent over the next six to nine months.
• Modernization Program:
  • Objective: Transition from legacy narrow-gauge rail-and-cart systems to modern, trackless, light-tonnage haulage vehicles (LTHVs).
  • Infrastructure: Development of an expanded internal underground hauling path with dimensions of 3.5 metres by 3.5 metres to accommodate modern equipment, improve airflow, and enhance safety.
  • Production Impact: Key enabler to reach the initial 350-tonne-per-day milestone more reliably; provides infrastructure for future higher throughput rates.
  • Timeline: Previously expected to take until mid-to-late 2027 if funded by internal cash flow; improved financial position allows for potential completion more than a year sooner.
  • Current Operations: The existing rail system will continue to operate as planned during the construction of the new infrastructure.
• Geological Program:
  • Scope: Approximately 4,000 to 5,000 metres of underground boreholes from within the existing mining infrastructure at the Santa Elena concession.
  • Drilling Plan: 30 to 35 boreholes planned to test the depth extension of three primary vein systems (Espanola, 12 de Mayo, and Victoria) and potential extensions to the east.
  • Purpose: Gather geotechnical and geological data to improve mine planning precision, assess resource confidence, and evaluate the potential for mine life extension.
  • Location: Underground work within the western portion of the Santa Elena concession, focusing on the 590 level and below.
• Strategic Context:
  • The modernization addresses operational analysis findings that identified an opportunity to add expanded infrastructure to accelerate short-term production and increase long-term capacity.
  • The geological program is the first such underground activity in over four years, aiming to test vein systems that can extend considerably deeper than the current resource estimate (which is restricted to the upper 200 metres).

Notable Quotes

• Christian Aramayo, Chief Operating Officer: "This modernization program is the critical path to accelerating our production profile and unlocking higher throughput rates... This is not just an incremental improvement; it's a fundamental upgrade to the mine's logistics that will provide immediate benefits in safety and efficiency. It derisks our path to 350 tonnes per day and provides the optionality we need for future growth."
• David Stein, President and CEO: "This investment is laser focused on accelerating our path to cash flow and building a more valuable, long-life operation. The modernization work is a direct response to our on-the-ground experience and is the key to unlocking higher throughput sooner... This is a targeted effort to derisk our future and maximize the value of the Bethania mine for all stakeholders."