Peruvian Metals Reports: Silver - Gold Recoveries of 97.85 % and 92.19% Respectively from the Victor II Vein at the Mercedes Ag-Au Property in Central Peru

Executive Summary

• Peruvian Metals completed acquisition of a 50 % interest in San Maurizo Mines Ltd., giving it joint ownership (50/50) with Hudson Heartland Ltd. of the Mercedes silver‑gold property in Peru.
• New metallurgical testing on composite samples from the Victor II and newly discovered Charo veins demonstrated very high Ag–Au recoveries (up to 97.9 % Ag, 92.2 % Au).
• The company plans to begin bulk sampling/extraction in Q1 2026, develop a 225‑m cross‑cut adit, and process material at a local toll mill; the project carries a US$4 M Net Profit Interest that will be eliminated once paid.

Key Details

• Acquisition: Completed purchase of 50 % interest in San Maurizo Mines Ltd., which holds 100 % of Mercedes via Basic Minerals SAC. Ownership now split equally between Peruvian Metals and Hudson Heartland Ltd.; development and exploration costs to be shared 50/50.
• Property Overview: Mercedes covers ~1,345 ha in Junín Dept., Peru; accessible via a 40‑km gravel road from Concepción. Historic underground workings total ~900 m with six identified mineralized veins (Victor I & II, Kelly, etc.).
• Metallurgical Results – Victor II Vein:
• Composite sample head grade: 3.69 g/t Au, 9.4 oz/t Ag.
• Flotation concentrate grade: 12.23 g/t Au, 33.03 oz/t Ag.
• Recoveries: 97.85 % Ag, 92.19 % Au.
• Mineral‑to‑concentrate ratio: 3.5 : 1.
• Metallurgical Results – Charo Vein (newly located):
• Composite sample head grade: 0.63 g/t Au, 6.10 oz/t Ag.
• Flotation concentrate grade: 4.01 g/t Au, 48.42 oz/t Ag.
• Recoveries: 92.3 % Ag, 74.7 % Au.
• Mineral‑to‑concentrate ratio: 8.54 : 1.
• Exploration & Development Plans (Q1 2026):
• Two miner groups to start bulk sampling/extraction from Victor II and Charo veins.
• Construction of a 225‑m cross‑cut adit (2.5 × 3.0 m) targeting Kelly, Victor I & II veins for underground drill sites.
• Material to be processed at a toll mill located ~12 km from the project site.
• Financial Arrangement: Project subject to a 20 % Net Profit Interest (NPI); NPI will be eliminated once US$4 M is paid to the holder.
• Management & Personnel: Project overseen by Eric Hinton, P.Eng (sole shareholder of Hudson Heartland Ltd.) and Jeff Reeder, CEO of Peruvian Metals. Metallurgical work performed by Ing. Jose Orlando Moncada Rejas at the Aguila Norte Plant; assays conducted by Procesmin Ingenieros SRL.
• Forward‑Looking Statements: Company highlights improved economics due to silver price increase (from US$23/oz to ~US$90/oz) and expects substantial cash flow generation from the partnership model.

Notable Quotes

“Our Company is excited to jointly develop and explore the prospective Mercedes property with Hudson Heartland Ltd.… The new metallurgical work suggests we focus on achieving the highest silver recoveries by producing only one concentrate, rich in silver and gold.” – Jeffrey Reeder, CEO

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