Peruvian Metals renews lease on use of surface rights

Executive Summary

• Peruvian Metals Corp. has renewed the surface rights lease for its 80%-owned Aguila Norte processing plant in northern Peru for an additional 10 years.
• The plant, which operates under an environmental permit (IGAC) allowing for up to 350 tonnes per day, processed 36,616 tonnes in 2025. The company plans to initiate engineering studies to expand capacity to meet expected mineral deliveries from its Palta Dorada property in 2026.
• The release details significant exploration updates, including high-grade metallurgical results from Palta Dorada (89% gold recovery) and historical and recent sampling data from adjacent concessions at Aguila Norte indicating potential for future processing.

Key Details

• Lease Renewal: The surface rights lease for the Aguila Norte processing plant was renewed for 10 years. The plant is located on a 120-hectare concession wholly owned by subsidiary Minera Aguila de Oro S.A.C. (MADOSAC).
• Plant Capacity and History:
  • Initial 10-year authorization received in February 2016.
  • Environmental permit (IGAC) granted in mid-2017.
  • Current permitted capacity: 100 tonnes per day (expandable to 350 tonnes per day).
  • 2025 Production: Operated at full capacity, processing 36,616 tonnes.
• Expansion Plans: Engineering studies will commence to add capacity to the plant and tailings facility to handle mineral from the 100%-owned Palta Dorada property expected in 2026.
• Palta Dorada Property Updates:
  • Located 120 km southeast of Aguila Norte; held by a separate wholly owned subsidiary.
  • Recent metallurgical testing on sulphide material with a head grade of 8.3 g/mt Au showed 89% gold recovery.
  • Precious metals concentrates from Palta Dorada will be 100% owned by Peruvian Metals.
• Aguila Norte Adjacent Concessions (MADOSAC):
  • MADOSAC owns two contiguous concessions (263 hectares) not covered by the current IGAC permit.
  • Historic Sampling (AndeanGold Ltd., 2009): 31 samples from the main adit returned a weighted average of 4.81 g/mt Au, 41.7 g/mt Ag, and 0.51% Cu.
  • Recent Shaft Sampling: A 20-metre vertical shaft was cleaned out; one grab sample at the bottom contained abundant sulphides with assays of 1.487 g/mt Au, 3.40 oz/mt Ag, and 3.00% Cu (0.24% soluble Cu).
  • Vein Sampling (East of Plant): Seven grab samples from underground workings and surface stockpiles averaged 6.24 g/mt Au (range: 1.03 to 13.50 g/mt Au). The vein is heavily oxidized, varying in width from 0.30 to 1.20 metres.
  • Lab Analysis: Samples processed by Procesmin Ingenieros S.R.L. (fire assay for Au-Ag, atomic absorption for Cu) and Auro Met Labs.

Notable Quotes

• Jeffrey Reeder, CEO: "In 2015, the company focused on creating a sustainable exploration and development company... The company is now stronger than ever and with the precious metal prices at historic levels, Peruvian Metals is in a position to benefit from the processing of its own mineral."