Canadian exploration company Magma Silver Corporation is advancing preparations for new drilling at its Niñobamba silver and gold project in Peru's Ayacucho region, as it negotiates surface access agreements with two local communities.
The company has already secured the necessary permits to begin drilling in the project's Joramina zone once the community agreements are finalized.
The Niñobamba project covers approximately 4,196 hectares, which Magma either owns outright or holds under a purchase option for a 100 percent interest. The site contains a mineralized corridor stretching for roughly eight kilometres.
Ayacucho, located in the south central Andes of Peru, is a historic and active mining region. The mineralization at Niñobamba is associated with a high and low sulfidation epithermal silver and gold system, a type of deposit typically formed by ancient hot springs near the surface of the earth.
Historical exploration and permits
The project holds an extensive database generated by previous operators. Major global mining firms including Newmont, AngloGold Ashanti, Bear Creek, and Rio Silver previously invested more than 14.5 million Canadian dollars in exploration work at the site, completing over 9,700 metres of drilling.
Newmont and AngloGold Ashanti are among the world's largest gold producers, and their prior involvement highlights the region's established mineral potential.
For the Joramina zone specifically, Peru's Ministry of Energy and Mines, the government body that regulates the sector, has authorized 20 drilling platforms. This permit is valid for a period of 14 months.
Magma has previously outlined plans to allocate US$1 million to its exploration and drilling program in this specific area of the property.
High grade sample results
Recent sampling work by Magma has expanded the signs of mineralization across different sectors of the Niñobamba project.
In four historical mining workings located immediately north of Joramina Central, five samples returned an average of 5.32 grams per tonne of gold and 149.7 grams per tonne of silver. Grams per tonne is a standard industry measure used to determine the concentration of precious metals in ore.
Individual values from these workings ranged from 0.50 to 14.56 grams per tonne of gold, and 18.8 to 329.5 grams per tonne of silver.
In the Rafaela sector, 10 samples averaged 0.21 grams per tonne of gold and 36.2 grams per tonne of silver, reaching maximum values of 0.4 grams per tonne for gold and 217.7 grams per tonne for silver.
These results connect to a previous discovery during the second phase of fieldwork, when Magma located a tunnel that had not been reported by Newmont. The company obtained a 10 metre interval grading 2.32 grams per tonne of gold in that area and was evaluating the possibility of drilling from inside the tunnel.
Mineralization and regional activity
To the northeast of the gallery, a 0.70 metre rock sample registered 17.41 grams per tonne of gold and 433.6 grams per tonne of silver. The veins in this area also contained galena and sphalerite, which are the primary ores of lead and zinc respectively, though the company has not yet assayed for these elements.
Additionally, a random composite sample taken at Randypata reported 0.20 grams per tonne of gold and 265.9 grams per tonne of silver.
Magma interpreted these surface results as part of a zone that could potentially overlap with an unexplored porphyry system containing copper, lead, and zinc. Porphyry systems are typically large, low grade deposits that can host significant amounts of base metals and are a major source of the world's copper.
The company stated that Niñobamba is the largest silver dominant system within the regional trend that is not currently controlled by a major mining corporation.
Next steps for the project
The broader area around Niñobamba is seeing active exploration by other major operators. BHP, the Australian multinational mining company, holds a large land package to the west of the project.
According to Peruvian regulatory documents, BHP has received environmental approval to conduct up to 46,000 metres of drilling approximately nine kilometres west of Magma's property.
Magma's immediate next step is to close the agreements with the local communities to enable access to Joramina and proceed with drilling operations.
In the meantime, the company is continuing to compile historical data, prepare its exploration program, and reinforce the team managing the project.
