Mining Co. Discovers High-Grade Silver-Gold Potential in Peru

Source: Streetwise Reports 06/17/2025

Magma Silver Corp. (MGMA:TSXV; MAGMF:OTCQB; FSE:BC21; WKN:A411ED) has made all of its payments to local agencies and secured all three contiguous zones Niobamba, Jormina, and Randypata within its Niobamba silver-gold project in Peru.

Magma Silver Corp. (MGMA:TSXV; MAGMF:OTCQB; FSE:BC21; WKN:A411ED) announced in a release Wednesday that it had made all of its payments to local agencies and secured all three contiguous zones — Niñobamba, Jormina, and Randypata — within its Niñobamba silver-gold project in Peru.

All claims are in good standing order and drilling is planned at Jormina in Q4 to go after historical results like 72.3 meters of 1.19 grams per tonne gold (g/t Au) and 130 meters of 87 g/t silver (Ag) found in previous exploration by Newmont and AngloGold.

More than US$10 million has been invested by Newmonth, AngloGold, and Bear Creek into the project, including a pre-feasibility study by Newmont suggesting potential for a mid-sized mining operation.

Magma’s planned for Q3 include geophysical surveys, mapping, and channel sampling to find new high-grade targets.

Peru ranks as the third-largest silver producer globally, based on GlobalData and the company’s investor presentation. Nearly 15% of Peru’s GDP originates from the mining sector. The nation hosts three of Latin America’s largest high-sulfidation gold-silver districts, including Yanacocha.

“In internal reports and conceptual plans prepared by predecessors, there is the potential for a significant amount of gold and silver and lots of blue sky on a new gold discovery,” said Magma Chairman and Chief Executive Officer Stephen Barley. “We know where the historical potential is, and it is much simpler to find something when you already know it’s location.”

The nation anticipates mining investment to rise there to US$4.8 billion this year, Peru’s Energy and Mines Minister Jorge Montero said, according to a report by Reuters published on Mining.com June 3.

Project Covers 3 Areas

Magma maintains a 100% option on the 4,100-hectare Niñobamba Project, which includes three high-potential mineralized areas: Niñobamba, Jormina, and Randypata. All three areas are under Magma’s management, creating new opportunities for exploration and development. A community surface access arrangement is already established for the Jormina and Ranypata areas, clearing the path for an upcoming diamond drilling campaign at Jormina. The drilling permit has been submitted and is expected in Q3 2025.

The Jormina and Ranypata areas are located approximately 6.5 kilometers west of Niñobamba area. Magma has obtained an extensive exploration database from Newmont, incorporating diamond drill logs, assay results, geophysical data, and metallurgical studies.

Newmont’s pre-feasibility study also pointed to the possibility of a much larger discovery, with geological indicators suggesting proximity to a porphyry source, according to an internal Newmont memo, Magma said. Comparisons have also been drawn to Barrick’s prolific Pierina gold mine, further underlining the project’s vast potential.

A 2012 trenching program by Rio Silver at Niñobamba North revealed new high-grade areas, with trench TR-01 returning 56 meters of 1.03 g/t Au and 98.9 g/t Ag, and trench TR-04 yielding 21.77 meters of 1.32 g/t Au and 102.46 g/t Ag. These findings demonstrate a strong gold component associated with high-sulfidation mineralization, warranting further study to better understand the zonation, alteration patterns, and widths.

Magma’s additional exploration activities in Q3 and Q4 2025. This encompasses Alpha IP geophysical surveys, detailed geological mapping, and channel sampling with a focus on investigating the newly discovered high-grade gold areas at Niñobamba. These efforts aim to define compelling drill targets for upcoming campaigns, the company said.

The Catalyst: A Breakthrough for Silver

The silver marketplace has been optimistic for some time, and after the retail sales figure came in weak in the U.S., the silver marketplace managed to break through the critical US$37 threshold, reported Christopher Lewis for FX Empire on Tuesday. However, it began to retreat quickly as we continue to await the FOMC Statement on Wednesday.

It is probably worth noting that the Tuesday session also witnessed retail sales emerge weaker than expected in the United States. So, the metal is receiving a little bit of assistance from the weakening U.S. dollar. At this point though, it’ll be interesting to observe how this closes because it’s retreating pretty quickly from breaking above that crucial US$37 threshold, an area that has been important more than once in silver markets. So, I don’t know if we have the momentum to truly break out quite yet.

This is most certainly an optimistic marketplace longer term., Lewis wrote. Ultimately, he said he thinks the price probably will continue to move sideways in general, but it’s not a marketplace he suggested throwing a ton of money into right now without a catalyst.

Gold prices have retreated below $3,400 per ounce as the tension between Israel and Iran has not witnessed regional escalation. But while the precious metal continues its broader consolidation, commodity analysts at Bank of America say it still has a route to US$4,000 per ounce, Kitco’s Neils Christensen wrote on Tuesday.

In its latest report, the bank’s precious metals team, led by Michael Widmer stated that gold retains significant upside potential as investment demand has only just begun to grow. However, the analysts also cautioned that the chaos in the Middle East is not expected to provide sustainable bullish momentum for the yellow metal.

Although gold operates as a popular safe-haven asset, historically, event-induced demand has never proven to be sustainable. Some analysts observe that gold is experiencing selling pressure at the start of the week, as the tension has not affected global oil supplies—an event that would typically drive oil prices higher, influencing inflation and global economic growth.

“When it comes to gold, wars are not always a clear-cut bullish price driver,” the analysts said. “The conflict adds, however, to the confluence of factors that have been supportive for the yellow metal.”

Rather than concentrating on specific geopolitical events, Bank of America analysts are watching the broader economic landscape and gold’s growing appeal as an important global monetary asset, Christensen noted.

This occurs as U.S. government debt continues to expand at an unsustainable pace. Bank of America observed that gold is attracting new interest as Congress debates a new spending bill that aims to cut taxes — which is anticipated to increase the deficit by trillions of dollars.[OWNERSHIP_CHART-11287]

“Market concerns over fiscal sustainability are unlikely to fade, regardless of the outcome of Senate negotiations,” the analysts said. “Rates volatility and a weaker USD should then keep gold supported, especially if the U.S. Treasury or the Fed is ultimately forced to step in and support markets. As such, while wars and conflicts are usually not sustained price drivers, we see a path for gold to rally to $4,000/oz over the next 12 months.”

Ownership and Share Structure

According to the company, approximately 12.2% of the company is held by insiders and management. Refinitiv reports 5% held by strategic corporate entities. The remainder is high net worth investors close to management.

Leading shareholders include Michael Townsend with 7.37%, Barley with 1.32%, and Cannon Bridge Capital Group with 4.95%, according to Refinitiv.

Its market cap is CA$6.8 million with 34.02 million shares outstanding. It trades in a 52-week range of CA$0.04 and CA$0.26.

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Important Disclosures:

1. Magma Silver Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Magma Silver Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: MGMA:TSXV; MAGMF:OTCQB; FSE:BC21; WKN:A411DV, )

Source: https://www.streetwisereports.com/article/2025/06/17/mining-co-discovers-high-grade-silver-gold-potential-in-peru.html