Peruvian Metals Secures 6 Year Agreement with Community at Mercedes Project

Peruvian Metals Corp. has achieved a significant milestone by securing community approval for its Mercedes Project operations in Peru. The 6-year agreement with Comunidad Campesina de Pomamanta has been officially registered with Peru's public registry, enabling the company to commence mineral extraction and processing activities. This represents a crucial step forward for the project, which had been pending community consent.

The operational framework is now in place for the company to begin extraction of up to 350 tonnes per day once full permitting is completed by year-end. Initial operations will focus on the Victor II vein, which has demonstrated exceptional metallurgical performance with silver recoveries of 97.85% and gold recoveries of 92.19%. Previous testing produced concentrates grading 33.03 ounces silver per metric tonne and 12.23 grams gold per metric tonne, indicating strong economic potential.

The timing of this approval coincides with highly favorable commodity pricing conditions. CEO Jeffrey Reeder noted that gold prices have risen from US$2,175 per ounce when the company first acquired its interest to current levels around US$5,100 per ounce, while silver has increased from US$23 to approximately US$90 per ounce. This dramatic price appreciation significantly enhances the project's economics and positions Peruvian Metals to capitalize on strong precious metals markets.

The project structure involves a 50% stake in San Maurizio Mines Ltd., which holds the Mercedes Property, with development costs shared equally with Hudson Heartland Ltd. The operation will be managed by experienced mining professionals Eric Hinton and Jeff Reeder, bringing over 35 years of international mining experience to the project. With community support secured and provisional permits in place, Peruvian Metals is well-positioned to advance from exploration to production phase.