Canada-headquartered Element79 Gold (CSE:ELEM) believes recent changes to the oversight for small-scale and artisanal mining in Peru could contribute to improved regulatory clarity and operational efficiencies across the sector.
The Peruvian government has enacted Supreme Decree No. 009-2025-EM, transferring oversight of small-scale and artisanal mining from regional governments to the Ministry of Energy and Mines.
Element79’s flagship Lucero Project – a past producing gold and silver mine – is located in Peru.
CEO James Tworek says the company is closely monitoring this policy shift and its implementation.
“Given Lucero’s location and strategic focus within the artisanal and small-scale mining segment, we view enhanced regulatory structure and centralised oversight as potentially beneficial, provided that community engagement and regional collaboration remain part of the process,” Tworek says.
The deadline for the mandated formalisation of the Comprehensive Mining Formalisation Registry permit holders with mineral right holders has been extended until 31 December 2025.
Element79 says this allows additional time for regional operators and stakeholders to advance their formalisation efforts, which may support ongoing engagement strategies with artisanal miners operating within and around the Lucero Project.
The Ministry of Energy and Mines’ Directorate General of Mining Formalisation will now handle all administrative, monitoring, and enforcement processes related to mining formalisation.
Meanwhile, a new national traceability platform (SIPMMA) is being launched to improve transparency and monitoring of registered small-scale mining operations.
Element79, which has a market capitalisation of C$16.2 million ($25.2 million), says its Lucero Project remains a core focus, with continued efforts to formalise local artisanal miners and advance exploration toward production.
Formerly operated as the Shila mine from 1989 to 2005, Lucero spans 10,805 hectares in the Chila mountain range of Southern Peru.
The area contains several historic “high-grade” gold-silver mines that were operated from the late 1980s to 2005 with small-scale artisanal mining ongoing since 2005.
Between 1998 and 2005, Lucero reported annual production averaging about 20,000 ounces of gold and 435,000 ounces of silver at grades of 14.7 grams per tonne gold and 450g/t silver.
Recoveries from the ore processing facility during this time averaged 94.5% for gold and 85.5% for silver.
Write to Angela East at Mining.com.au
Images: Element79
