In a significant development for the mining sector, Peruvian Metals Corp. (TSXV: PER, OTC: DUVNF) has announced a major agreement with the Comunidades Campesinas y Nativas Comunidad Campesina de Pomamanta. This partnership, officially registered with the public registry of Sunarp Peru, establishes a cooperative framework for the exploration and extraction of minerals at the Mercedes project. Peruvian Metals holds a 50% interest in San Maurizo Mines Ltd., the entity managing the Mercedes property.
The agreement spans six years and grants local access to the mine site. This important step enables Peruvian Metals to initiate mineral extraction activities. With provisional permits in hand, the company expects to commence operations promptly and aims to finalize the entire permitting process by the end of the year, targeting an extraction capacity of up to 350 tonnes daily.
Operational plans and initial focus
The initial phase will concentrate on the Victor II vein, known for its promising metallurgical results. Previous assessments indicated high recovery rates of both silver (Ag) and gold (Au), with a concentrate showing an impressive 33.03 ounces of Ag per metric ton and 12.23 grams of Au per metric ton. The extraction processes have reportedly achieved recovery rates of 97.85% for silver and 92.19% for gold, highlighting the project’s financial viability.
Infrastructure enhancements
In preparation for the upcoming extraction, Peruvian Metals has undertaken significant infrastructure improvements. New timber has replaced outdated materials, ensuring the safety and stability of underground operations. These enhancements are critical for maintaining safe working conditions, reflecting the company’s commitment to responsible mining practices.
Management expertise and future prospects
Under the leadership of Eric Hinton, P.Eng., and Jeff Reeder, P.Geo., the management team is well-positioned to advance the project. Mr. Hinton, the principal shareholder of Hudson Heartland Ltd., brings over 35 years of extensive mining experience across various regions, including Canada, the United States, Ghana, and Zimbabwe. His credentials are supported by memberships in esteemed engineering and geoscience organizations.
Jeffrey Reeder, the Chief Executive Officer of Peruvian Metals, expressed enthusiasm regarding the collaboration with the local community. He stated, “The current permitting allows the company to begin extracting bulk samples, with full permits expected to be finalized by year-end. The favorable market conditions, with gold prices rising from $2,175 to about $5,100 per ounce and silver from $23 to approximately $90, have significantly enhanced the project’s economic outlook. This enables us to produce commercially viable Au-Ag concentrates.”
Quality assurance and technical oversight
All scientific and technical disclosures have been overseen by Jeffrey Reeder, who meets the qualifications outlined in National Instrument 43-101. The metallurgical evaluations were conducted by Ing. Jose Orlando Moncada Rejas, the primary metallurgist at the Aguila Norte Plant. Furthermore, independent assaying of the extracted materials was performed by Procesmin Ingenieros SRL, utilizing fire assay techniques for both Au and Ag.
Financial adjustments
In addition to the community agreement, Peruvian Metals has announced modifications to the financing arrangements disclosed on January 29. The revised terms now allow for warrants to be exercisable at $0.15 for a duration of one year, compared to the previous terms of $0.20 for two years. Other aspects of the financing arrangement remain consistent.
About Peruvian Metals Corp.
Peruvian Metals Corp. operates as a Canadian exploration and mineral processing enterprise. The company’s strategy emphasizes acquiring and developing precious and base metal properties in Peru while providing toll milling services to generate high-grade marketable concentrates from mineral purchases. The Aguila Norte processing facility possesses an environmental permit (IGAC) issued by the Peruvian government, facilitating future operational expansions beyond the current capacity of 100 tonnes per day.