Peruvian, community in talks for Minas Visca mapping

Executive Summary

• Peruvian Metals Corp. provided a technical update on its Minas Visca silver project in northern Peru, highlighting positive metallurgical results from bulk sampling and confirming the commercial viability of producing metal concentrates from lower-grade material.
• The company announced a non-brokered private placement raising up to $1 million in gross proceeds, consisting of 10 million units at $0.10 per unit, to fund exploration and working capital.
• The release outlines the strategic advantage of the Minas Visca property, noting its proximity to the company's existing Aguila Norte processing plant and the potential for organic growth amidst rising silver prices.

Key Details

• Project Location & Access: Minas Visca is located ~140 km north of Lima, covering ~94 hectares. It is accessible via paved highway and 50 km of dirt road. Mineralized material can be shipped to the company’s Aguila Norte processing plant.
• Acquisition History: Acquired in 2021 via a superior offer in a closed bid auction at the Peruvian Public Registry of Mining. Competitors included Newmont Peru SRL and Mitsui Mining & Smelting Co.
• Metallurgical Results (Historic): Banco Minero del Peru historic reports indicated metallurgical samples averaging 13.16 oz/t Ag, 2.55% Pb, and 3.77% Zn. Two concentrates could be produced:
  • Concentrate 1: 63.03% Pb, 6% Zn, 317 oz/t Ag.
  • Concentrate 2: 61.9% Zn, 7.2% Pb.
• Current Sampling & Metallurgy:
  • Ten samples from old stockpiles averaged 0.49 g/t Au, 12.93 oz/t Ag, 2.62% Pb, and 1.68% Zn.
  • One bulk sample from surface material assayed 4.83 oz/t Ag, 0.25 g/t Au, and 1.62% Pb.
  • Preliminary metallurgical work on this lower-grade material showed recoveries of 85.50% for silver, 84.37% for lead, and 46.33% for gold.
  • Resulting concentrate assayed 150.34 oz/t Ag, 42.12% lead, and 2.59 g/t Au.
• Geology: Underlain by Tertiary volcanics of the Calipuy formation. Mitsui surrounds the concession to the north, east, and south.
• Community & Future Work: Initial community discussions are positive. Plans include detailed mapping, sampling, additional metallurgical tests, and assessing underground adits for permitting. Mitsui is planning a drill program next door.
• Processing Plant (Aguila Norte):
  • Located near the project, accessible by paved highway.
  • Holds environmental permit (IGAC).
  • Currently producing at 100 tonnes per day capacity.
  • Company intends to replace third-party mineral with polymetallic mineral from Minas Visca and Palta Dorada (which shows 89% gold recoveries).
  • Throughput can expand beyond 100 tpd once mineral supply exceeds current capacity.
• Financing Details:
  • Type: Non-brokered private placement.
  • Gross Proceeds: Up to $1,000,000.
  • Use of Proceeds: Advance exploration strategy and general working capital.
  • Units: 10,000,000 units at $0.10 per unit.
  • Composition: Each unit consists of one common share and one-half non-transferable share purchase warrant.
  • Warrant Terms: Each warrant entitles holder to acquire one common share at $0.20 per share for two years following closing.
  • Hold Period: Four months following the date of issue for shares, warrants, and underlying shares.
  • Insider Participation: Anticipated up to 25% of the placement.
  • Conditions: Subject to approval of the TSX Venture Exchange.

Notable Quotes

• "We were very pleased to acquire this attractive silver-rich polymetallic property. When the company acquired the property, silver was trading in the $23 (U.S.)-per-ounce range. It was believed that much of the high-grade stockpiled silver material represents mineral extracted from underground workings. Now that silver is trading at more than $100 (U.S.)per ounce, the economics of extracting mineralized material at Minas Visca is very attractive. This addition to the company's property portfolio yet again demonstrates Peruvian Metals' ability to grow organically without entering expensive third party option deals." — Jeffrey Reeder, CEO