Peruvian Metals (TSX-V:PER) plans to open a portal at its Esperanza vein before year-end after returning gold grades up to 89.5 grams per tonne at its Palta Dorada property in northern Peru.
The company reports a new half-metre composite sample from the oxide zone of the San Juan vein, exposed in underground workings at the 100%-owned gold-silver property.
Randomly selected sulphide samples returned 20.97g/t gold (Au) and about 338g/t silver (Ag), equal to about 25.63g/t gold equivalent.
The San Juan vein is 60–70cm wide and is exposed in a rehabilitated 53m shaft. The company now extracts sulphide material 10m below the oxide-sulphide transition, with the material bagged and stockpiled for processing at its 80%-owned Aguila Norte plant, about 150km away.
Four earlier oxide samples returned between 0.87g/t and 55.30g/t Au.
A crosscut now at 25m is projected to intersect San Juan 100m southwest of the shaft at 50m. The company says the adit will open two additional minable faces, with progress set to improve once more workers arrive.
The Esperanza vein lies 850m west of the shaft. Four grab samples of oxidised material returned 5.63–8.9g/t Au, averaging 7.12g/t.
The company expects to extract oxide material for sale to local toll mills in 2027, having sold 31 tonnes of oxide material grading 8.8g/t Au to the Chala One toll mill in June 2022.
CEO Jeffrey Reeder says provisional permits allow extraction of large bulk samples.
“In the short term, oxide material will be sold to local mills,” Reeder says.
“Sulphide material will be transported to our Aguila Norte mill for processing, where we will be able to produce a Au-Ag concentrate for sale.”
Reeder says gold traded near US$1,500 ($2,138.54) per ounce when the company acquired its initial interest and now trades near US$4,200 per ounce, which has greatly improved the economics.
The property covers about 2,250 hectares. Peruvian Metals has a market capitalisation of about C$17.76 million ($18 million).
Peruvian Metals is a Canadian precious metals processing and exploration company operating in Peru.
Write to JC Villarba at Mining.com.au
Images: Peruvian Metals
