Peruvian Metals Achieves Record Fourth Quarter Throughput in 2020 at the Aguila Norte Processing Plant in Northern Peru

(Edmonton, Alberta– January 5, 2021) Peruvian Metals Corp. (TSXV: PER) (“Peruvian Metals” or the “Company”) is pleased to provide an update regarding the mineral processing at its 80% owned fully permitted Aguila Norte Processing Plant (“Aguila Norte” or the “Plant”) located in Northern Peru. During 2020 the Plant processed 13,185 tonnes of third-party mineral compared to 18,510 tonnes in 2019. The decrease in the amount of processing was due to the COVID pandemic whereby the plant was closed from March 16th to July 27th.

During the fourth quarter of 2020, Peruvian Metals processed 6,732 tonnes of mineralized material, an increase of 66.8% compared to 2019 fourth quarter processing of 4,496 tonnes.  Since reopening the Plant, mineral processing during the final 5 months averaged more than 70% of the Plant’s capacity of 36,000 tonnes per year.

During 2020, the Plant produced high grade quality concentrates for third parties in thirteen mineral campaigns or batches, ranging from 177 tonnes to 2,040 tonnes. The Plant achieved excellent recoveries by producing 2,685 tonnes of highly marketable Zinc concentrates averaging 50.5% Zn and 948 tonnes of Lead-Silver concentrates averaging 48.7% Pb and 165 ounces Ag per tonne. Two hundred and ninety tonnes of Copper concentrate averaging 30.7% Cu was also produced by processing three small batches totaling 1,912 tonnes of copper mineral. Concentrate ratios (amount of Mineral Processed: Tonnes of Concentrates Produced) in 2020 averaged 3.36 : 1 unchanged from 2019, showing that the Plant is producing significant amounts of concentrates for clients.

Jeffrey Reeder, CEO of Peruvian Metals comments: “Despite 2020 being a difficult year, we are extremely pleased with the level of production since governmental restrictions were lifted in July. The fourth quarter achieved record throughput levels and production levels are expected to continue for the first quarter 2021. We fully expect to increase the total throughput in 2021 and improve profit margins by processing mineralized material with a few select miners and begin processing mineral from our profit-sharing agreements with other miners. During 2020 the Company divested two non-core assets and will continue to divest certain non-core assets during 2021.”

The Aguila Norte processing plant has an environmental permit (“IGAC”) from the Peruvian government which provides the Plant with the ability to expand operations past the current 100 tonnes per day level.

Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.

About Peruvian Metals Corp.

Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The Company continues to acquire and develop precious and base metal properties in Peru.

 

For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com .

Peruvian Metals Corp. is a Canadian resource company listed on the

TSX Venture Exchange : Symbol “PER”

For additional information, contact:  Jeffrey Reeder Tel: (647) 302-3290

Website: www.peruvianmetals.com   Email: [email protected]etals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Disclosure Regarding Forward-Looking Statements: This press release contains certain “Forward-Looking Statements” within the meaning of applicable securities legislation. We use words such as “might”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “forecast” and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.

Peruvian Metals Corp. Provides Update on Mineral Processing During October and November at the Aguila Norte Processing Plant in Northern Peru

Edmonton, Alberta–(Newsfile Corp. – December 2, 2020) – Peruvian Metals Corp. (TSXV: PER) (“Peruvian Metals” or the “Company”) is pleased to provide an update regarding the mineral processing at its 80% owned fully permitted Aguila Norte Processing Plant (“Aguila Norte” or the “Plant”) located in Northern Peru.

During the months of October and November, Peruvian Metals processed 4,692 metric tonnes (“mt”) of third party mineral. The Company pleased to note that the Plant has already exceeded 2019 total fourth quarter production of 4,496 mt. The company expects to continue processing during December will continue to accept mineral deliveries during the holidays.

Jeffrey Reeder, CEO of Peruvian Metals, comments: “Since the successful restart of the Aguila Norte processing facility, the plant has been achieving consistent and increasing production since July. We expect similar production levels for December and will be accepting mineral deliveries until the end of the year. Since the restart we are extremely pleased that the average daily production is 71% of total capacity. The Company is now able to use its free cash flow to continue its plant upgrades.”

The Aguila Norte processing plant has an environmental permit (“IGAC”) from the Peruvian government which provides the Plant with the ability to expand operations past the current 100 tonnes per day level. Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.

About Peruvian Metals Corp.

Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The Company continues to acquire and develop precious and base metal properties in Peru.

For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com

Peruvian Metals Corp. is a Canadian resource company listed on the
TSX Venture Exchange : Symbol “PER”
For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290
Website: www.peruvianmetals.com Email:
[email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclosure Regarding Forward-Looking Statements: This press release contains certain “Forward-Looking Statements” within the meaning of applicable securities legislation. We use words such as “might”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “forecast” and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.

Peruvian Metals Generates a New High Grade Silver-Gold Project in Northern Peru

Edmonton, Alberta–(Newsfile Corp. – October 15, 2020) – Peruvian Metals Corp. (TSXV: PER) (“Peruvian Metals” or the “Company”) is pleased to announce that the Company has assembled a number of contiguous prospective mineral concessions hosting the potential for a high grade silver-gold resource in Northern Peru called “Cerro La Cumbre” (“The Property”). Historic underground development on this new property exposed a high grade silver-gold vein returning values up to 1,535 g/t Ag and 5.13 g/t Au. The Property is located about 3 hours by truck or approximately 90 kilometres by a combination of highway and dirt road from Peruvian Metals’ 80% owned Aguila Norte Processing Plant (the “Plant”).

The Property is located within the Tertiary aged Calipuy volcanic complex. This volcanic unit hosts several prolific gold producers in Northern Peru including Newmont’s Yanacocha and Barrick’s Laguna Norte and Pierina mines. The precious metal mineralization occurs in a series of quartz veins which are considered to be of low sulphidation type. The nearby historic Machacala Au-Ag and the Salpo Mines are also considered to below sulphidation epithermal deposits. Three other notable low sulphidation Au-Ag systems hosted within Northern Peru’s Calipuy volcanic complex are the 2.6 million Au ounces Tres Cruces deposit owned by Barrick and New Oroperu Resources, the privately owned Urumalqui Ag-Au deposit and SSR Mining’s high grade Au-Ag San Luis deposit. Figure 1 shows the location of the property in Northern Peru.

https://orders.newsfilecorp.com/files/3210/65949_1a8367fa94146b90_001full.jpg

The Property is comprised of three concessions covering an area of 1,027 hectares. The main concession where the underground workings are located is subject to a purchase option agreement requiring the Company to pay US$200,000 over 6 months, with no royalties payable to the previous owner. The Company had a lease to extract mineral on this concession in 2018 but allowed the lease to expire. Due to new circumstances and the recent increase in the prices of silver and gold, the Company will re-acquire this concession under more favourable terms.

The underground development on the property consists of both shafts and drifts exposing a well-defined N-S trending structure showing typical low sulphidation type Ag-Au mineralization. Geological observation and interpretation suggest that the adits and shafts were driven into the higher level of a low sulphidation system. The bladed textures observed in the adits are now filled with quartz suggesting the “High Grade Precious Metal Intervals” are below the workings. Figure 2 below depicts the conceptual geological model which shows the approximate vertical position within the epithermal system where the Company’s geologists believe that the precious metal mineralization is located on the property.

The main Ag-Au mineralized structure outcrops on a large silicified mound and is observed to have a strike length of at least 700 metres. Eight samples were taken by the Company from the quartz vein exposed in the underground workings with an average width of 0.70 metres. Gold assays range from 0.99 g/t Au to 5.13 g/t Au averaging 2.24 g/t Au and silver assays range from 90 g/t Ag to 1,535 g/t Ag with an average of 326 g/t Ag or a silver equivalent of 16 oz/t Ag using a 77:1 gold to silver ratio. Historic sampling reports ten non-systematic samples were taken in 2003 at various mined underground sites with vein widths ranging between 0.30 and 0.80 meters. Gold results reported in the report range between 4.16 g/t Au to 16.78 g/t Au averaging 8.8 g/t Au over a weighted average width of 0.66 meters. Silver results over the same average width range between 111g/t Ag to 1,038 g/t Ag averaging 412 g/t Ag or a silver equivalent of 35 oz/t Ag. Please take caution as these results are historical in nature and should not be relied upon.

https://orders.newsfilecorp.com/files/3210/65949_figure2.jpg

Peruvian Metals plans to conduct property wide exploration consisting of soil and rock sampling with geological mapping followed by a geophysical survey. Underground workings will be extended for the extraction of mineralized material for bulk samples and subsequent metallurgical testing. The Company will also plan a diamond drilling program in 2021 consisting of both surface and underground programs.

Jeffrey Reeder, CEO and President of Peruvian Metals states “The Cerro La Cumbre project exhibits all the geological characteristics typical of a high grade low sulphidation system and is ideally located in Northern Peru with very good infrastructure and power at site. The Company’s objective is to explore and define a high grade gold-silver minable resource at Cerro La Cumbre by conducting both underground and surface exploration programs along with metallurgical studies which will show what types of modifications and additions are needed to treat this type of mineralized material at our Aguila Norte Processing Plant.”

Peruvian Metals is a uniquely positioned junior resource company. The Aguila Norte Processing Plant is capable of toll milling local ores that generate revenues to the Company to sustain its exploration and acquisitions of strategic mineral properties without perpetual shareholder dilution via repetitive share issuances. Over 25 years of exploring throughout Peru gives the Company’s management team exceptional insight into mineral projects of merit. The Company has assembled a portfolio of properties throughout Peru that it continuously options, assigns and sells to 3rd parties to offset its working capital requirements.

Jeffrey Reeder, P.Geo. and a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation, or approved the scientific and technical disclosure contained in this news release.

About Peruvian Metals Corp.

Peruvian Metals Corp. is a Canadian exploration company focused on mineral processing and the exploration and development of precious and base metal properties in Peru.

Peruvian Metals Corp. is a Canadian resource company listed on the
TSX Venture Exchange: Symbol “PER”
For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290

Website: www.peruvianmetals.com Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclosure Regarding Forward-Looking Statements: This press release contains certain “Forward-Looking Statements” within the meaning of applicable securities legislation. We use words such as “might”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “forecast” and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.

Peruvian Metals Assigns the Development of the Mansa Musa Gold-Silver Project

Edmonton, Alberta–(Newsfile Corp. – October 6, 2020) – Peruvian Metals Corp. (TSXV: PER) (“Peruvian Metals” or the “Company”) is pleased to announce that it has entered into agreements with a group of Peruvian private investors to purchase the Mansa Musa Gold-Silver property (the “Property”). The investors are supported by GEXEG S.A.C (“GEXEG”), a private mining consulting company based in Lima. The Property is located in the Department of Huancavelica, 300 kilometres southeast of Lima and consists of five concessions totaling 3600 hectares where previous operators have spent in excess of US$5 million on exploration on the main concessions. Payments to the Company totaling US$940,000 will be made over seven years with up to 3% NSR payable to Peruvian Metals on all metal production. On the two main concessions, the 3% NSR will be payable solely to Peruvian Metals and on the three surrounding concessions 2% will be paid to Franco-Nevada and 1% to Peruvian Metals.

The first agreement, subject to a five month due diligence period, is a five year assignment agreement whereby the investors supported by GEXEG can control and develop the Property without obtaining property ownership. The group will be responsible for environmental remediation and will make payments to the Company during the first three years of the assignment agreement totaling US$415,000. The group commits to a production decision within the second year of the agreement. Once the first agreement expires, the group can enter into a second agreement to purchase 100% of the property still subject to a 3% NSR and by making payments over two years totaling US$525,000. GEXEG will be supporting all evaluation, exploration and development for the group of investors.

Established in 2013, GEXEG Consultores is a highly reputable group of Peruvian mining professionals providing services for exploration and mining companies throughout the Peruvian Andes. Celso Palacios, the founding director of GEXEG, is a geological engineer with over 28 years experience and was the co-discoverer of the Rescatada gold deposit where Minera Aruntani S.A.C mined over 2 million ounces of less than 1 g/t gold. GEXEG’s staff includes a multidisciplinary group of geological, mining, metallurgical, industrial and systems engineers as well as experts in cost control and finance. GEXEG’s clients include Minas Buenaventura, NEXA, El Brocal, Korea Zinc, Chinalco, Sumitomo, Hudbay, Kaizen Discovery, OZ Minerals and Sumitomo Metal Mining.

The Mansa Musa project is underlain by Tertiary age volcanic rocks with high sulphidation style mineralization similar to Barrick’s Pierina and Alto Chicama mines and Newmont and Buenaventura’s Yanacocha mine in Peru. Other notable and comparable high sulphidation oxide gold properties in Southern Peru include Pan American’s Pico Machay, Minera IRL’s Corihuami and Aruntani’s Rescatada (now called Arasi) mines. It is important to note that the style of the near surface oxide gold mineralization allows for low cost extraction.

Jeffrey Reeder, the CEO and Chairman of Peruvian Metals, comments: “We are very pleased to have GEXEG involved in the development our Mansa Musa Gold-Silver project in Southern Peru. They have the in-house expertise to plan and execute a mine plan which will be beneficial to Peruvian Metals. Having retained a significant NSR on the Property will allow our Company to focus on its high grade projects in Northern Peru and the Huachocolpa area while generating a substantial new revenue stream.”

Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.

About Peruvian Metals Corporation

Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The company continues to acquire and develop precious and base metal properties in Peru.

For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com.

Peruvian Metals Corporation. is a Canadian resource company listed on the
TSX Venture Exchange: Symbol “PER”
For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290
Website: www.peruvianmetals.com Email:
[email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclosure Regarding Forward-Looking Statements: This press release contains certain “Forward-Looking Statements” within the meaning of applicable securities legislation. We use words such as “might”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “forecast” and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.

Peruvian Metals Sells Base Metal Concessions In South-Central Peru for $800,000 US


Peruvian Metals Corp. (TSXV: PER) (“Peruvian Metals” or the (“Company”) is pleased to announce that it has sold the Company’s 100% owned subsidiary Corongo Exploraciónes(“Corongo”) to Mines & Metals Trading (Peru) PLC (“MMTP”) for $200,000 US cash and $600,000 US in shares. Corongo holds several concessions totaling 2420 hectares located in the Huachocolpa Mining District in South-Central Peru. MMTP is a private company based in Isle of Man and owns the 600 tonnes per day Recuperada Mill located near Corongo’s properties. MMTP has recently entered into an arm’s-length definitive business combination agreement dated Dec. 23, 2019, with Zincore Metals Inc. (“Zincore”) to complete a reverse takeover (“RTO”) of Zincore by MMTP.

The Huachocolpa Mining District is host to several producing and past-producing vein-hosted polymetallic, base metal (silver-zinc-lead-copper plus or minus gold) mines. Polymetallic mining and milling continue to be the dominant formal economic activity in the district with Compañia Minera Kolpa S.A and MMTP’s Recuperada Mill being the largest operations currently in production in the area. MMTP will now control a large land package totaling in excess of 15,000 hectares with many of the acquired Peruvian Metals’ concessions being contiguous with MMTP concessions. Peruvian Metals will retain the Minas Maria Norte property (“Maria Norte”) located 13 kms northwest of the Recuperada Mill by transferring the property to a 100% owned subsidiary of the Company.

Transactions Details

MMTP is currently undertaking an RTO with Zincore and it is expected to be completed during the second quarter of 2020. The current valuation of MMTP shares is based on a pre-RTO financing of $17.33 CDN per share. Peruvian Metals has received $200,000 US and will receive 45,008 shares of MMTP valued at $17.33 CDN or $780,000 CDN. Upon completion of the RTO, each share of MMTP will be exchanged for approximately 73.2 Zincore shares. Peruvian Metals will receive approximately 3.3 million shares in the new TSX-Venture listed corporate entity called Latitude Base Metals. Information on the company can be found at http://latitudebasemetals.com/.

Jeffrey Reeder, CEO of Peruvian Metals comments: “The Company is very pleased to have successfully divested a non-core asset to a new group controlling the 600 tpd Recuperada Flotation Plant in the Historic Mining District in South-Central Peru. In addition to the plant, Mines & Metals Trading / Latitude Base Metals have assembled an impressive land package ensuring long operational life in the district. We are fortunate to receive an early ground floor share position in the new operating company. This transaction shows the Company’s ability to generate quality prospects and Peruvian Metals will continue to apply for concessions in new areas throughout Peru.”

Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.

About Peruvian Metals Corp.

Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The Company continues to acquire and develop precious and base metal properties in Peru.

For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com .

Peruvian Metals Corp. is a Canadian resource company listed on the

TSX Venture Exchange : Symbol “PER”

For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290

Website: www.peruvianmetals.com Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclosure Regarding Forward-Looking Statements: This press release contains certain “Forward-Looking Statements” within the meaning of applicable securities legislation. We use words such as “might”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “forecast” and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.

PERUVIAN METALS CORPORATION AND RIO SILVER INC. SIGN MEMORANDUM OF UNDERSTANDING FOR THE JOINT EXPLORATION AND DEVELOPMENT OF THE PALTA DORADO GOLD-SILVER-COPPER PROJECT IN NORTHERN PERU



Peruvian Metals (“Peruvian Metals”) has signed a Memorandum of Understanding (“MOU”) with Rio Silver Inc. (“Rio Silver”) to initially establish a small-scale mining operation on the Palta Dorado Au-Ag-Cu Property (“Palta Dorado” or the “Property”) located in the Ancash Mining Department in Northern Peru. The purpose of the MOU is to establish an equal profit sharing agreement between the companies on the sales of the Au-Ag-Cu concentrates. Peruvian Metals will provide space at Peruvian Metals’ 80% owned Aguila Norte Processing Plant (“Aguila Norte or Plant”).
The property covers an area of approximately 1200 hectares and located approximately 120 kilometres southeast of the Plant. Road access to the plant is approximately 180 km’s with about 150 km’s consisting of highway. The property has had limited small scale mining in several small adits and shafts by the previous owner. Both sulphide and oxide mineral extracted from the property was shipped over 1000 kilometres to processing plants in Southern Peru.
Limited surface sampling and mapping around adits and workings has identified several oxide Au-Ag veins hosted in granodioritic rocks. The main working on the property is a fifty-three metre shaft where miners used a hoist to bring mineral to the surface. The mineralized NEE-SWW vein exposed in this main working has been observed over an 800 metre strike length on surface. Surface sampling alone couldn’t determine the grade and width of the mineralized structure due to the oxidation and cover. Samples taken from altered intrusive wallrock returns encouraging anomalous gold results.
The oxide-sulphide transition is clearly exposed in the shaft and occurs at approximately 25 metres below surface. At the initial property visit, approximately forty-five tonnes of mineral in sacks were outside of the main working ready for shipment to Southern Peru. Two composite samples were taken from these sacks and returned an average grade of 26.7 g/t Au, 23.76 oz/t Ag and 3.16% Cu. A third sample ~50 kg was taken and used for metallurgical work. The work was performed by Procesmin Ingenieros Laboratories with a head grade of 23.21 grams/MT Au, 29.04 oz/MT Ag and 4.95% Cu. Metallurgical work showed that two concentrates can be produced. The first and the most value concentrate grades 125.59 grams Au/MT, 4,808 grams Ag /MT and 24.41% Cu with a mineral to concentrate ratio of 7.8 to 1. A second marketable Au-pyrite concentrate was also produced grading 11.46 grams/MT Au, 565 grams Ag/MT and 2.90% Cu having a mineral to concentrate ratio of 2.7. This second concentrate is marketable in Peru and can be sold to traders in order to blend with higher grade arsenic gold concentrates. The overall mineral to concentrate ratio by processing this mineral would be 1:1.
Artisanal workings on a second SEE-NWW structure north of the main working exposed strongly oxidized quartz veins ranging between 30 to 70 centimetres in width. Four samples taken from mineral sacks contained heavily oxidized material ready for shipment ranged from 8.65 g/t to 17.3 g/t averaging 12.4 g/t Au. Silver assays ranged from 42 g/t and 187 g/t averaging 107 g/t Ag. A bottle-roll metallurgical sample with a head grade of 13.0 g/t Au and 102 g/t Ag returned a 92.15% gold and 65% silver recoveries over 36 hours.
The MUO will eventually lead to a 50-50 ownership between Peruvian Metals and Rio Silver in a Peruvian Company (“Joint Venture”). Equal ownership will occur once Peruvian Metals has equally matched Rio Silver’s capital investment in the property of $250,000 US. These capital expenditures will include permitting, property taxes, camp construction, property wide exploration and any infrastructure needed for mining.
The profits on the sale of concentrates will be shared between Rio Silver and Peruvian Metals after operational expenses outlined in the MUO. Operational expenses related to mining will be shared by both companies. Operational expenses will include mining, transportation of mineral and concentrates, support staff, consumable and logistics. Peruvian Metals’ 80% owned Plant will also charge the Joint Venture commercial mineral processing rates as other clients and will be considered as an operational expense.
Peruvian Metals’ will act as the operator of the Joint Venture and be responsible to obtain the small scale permits related to the mining. Peruvian Metals is very experienced in obtaining these permits and expects no serious issues. The Joint Venture has already identified an experienced underground mining who agreed to start the mobilization of the compressors and mining equipment to the site. Small-scale mining can start in the first quarter of 2020. It is expected to initially start between 400 to 600 tonnes per month working on the main workings. More crews will be added to increase production.
Jeffrey Reeder the CEO of Peruvian Metals states: “Our company is excited to jointly develop and explore the prospective Palta Dorado property with Rio Silver. The property has several high grade Au-Ag-Cu veins ready to be exploited and processed at the Aguila Norte Plant. Oxide gold material can be also exploited and sold to a number toll mills for immediate cash flow. Initial development and exploration will consist of drifting along the high grade sulphide veins generating instant cash flow. The mining engineer who has visited the site and agreed to supervise the mining has over 20 years of underground experience and is confident to be able to ship to Aguila Norte 400 to 600 tonnes in the first month of mining.”

Peruvian Metals Achieves Record Throughput in 2019 at the Aguila Norte Processing Plant in Northern Peru


(Toronto, Ontario – January 6th, 2020) Peruvian Metals Corp.(TSXV: PER) (“Peruvian Metals” or the “Company”) is pleased to provide an update regarding the mineral processing at its 80% owned fully permitted Aguila Norte Processing Plant (“Aguila Norte” or the “Plant”) located in Northern Peru.
During Q4, Peruvian Metals processed 4,496 tonnes of mineralized material for third parties. The Company has achieved record throughput for 2019 by processing 18,510 tonnes resulting in an increase of 380% production compared to 2018. More than 90% of the mineral processed produced two concentrates. The last three quarters of 2019 averaged more than 60% of the plant’s capacity of 36,000 tonnes per year.
During 2019, the Plant produced high grade quality concentrates for third parties in twenty two mineral campaigns or batches ranging from 232 metric tonnes to 1750 metric tonnes. All but two of the batches were polymetallic. The plant achieved excellent recoveries by producing 4091 metric tonnes of highly marketable Zinc concentrates averaging 52.4% Zn and 1364 tonnes of Lead-Silver concentrates averaging 52.9% Pb and 125 ounces Ag per tonne. 46 tonnes of Copper concentrates was also produced by processing only one small batch copper mineral. Concentrate ratios (Amount of Mineral Processed: Tonnes of Concentrates Produced) averaged only 3.31 to 1 showing that the Plant is producing significant amount of concentrates for clients.
Jeffrey Reeder, CEO of Peruvian Metals comments: “Processing during 2019 at the Company’s Aguila Norte processing facility has achieved record processing throughput. We fully expect to dramatically exceed the 2019 throughput in 2020. The Plant is continuing to produce quality concentrates and expects to have the Plant fully commissioned during first quarter of 2020. The Company continues to establish good relationships in Northern Peru and is continuously reviewing new opportunities. Our Company expects to continue processing with a few select miners while we intend to enter into mineral purchase and profit sharing agreements with other miners. The Company will continue to focus on improving profit margins and plans to divest certain non-core assets in early 2020.”
The Aguila Norte processing plant has an environmental permit (“IGAC”) from the Peruvian government which provides the Plant with the ability to expand operations past the current 100 tonnes per day level. With the processing of third party mineral and the companies plans to convert to mineral purchasing and processing, to achieve higher margins, expansion of the facility is anticipated in the mid-Q3.
Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.
About Peruvian Metals Corp.
Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The Company continues to acquire and develop precious and base metal properties in Peru.

For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com .

Peruvian Metals Corp. is a Canadian resource companylisted on the
TSX Venture Exchange:Symbol “PER”
For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290
Website: www.peruvianmetals.com Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclosure Regarding Forward-Looking Statements: This press release contains certain “Forward-Looking Statements” within the meaning of applicable securities legislation. We use words such as “might”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “forecast” and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.

Peruvian Metals Exceeds US$1 Million in Revenues for 2019

 


– Peruvian Metals Corp. (TSXV: PER)(“Peruvian Metals” or the “Company”) is pleased to provide an update regarding the mineral processing at its 80% owned fully permitted Aguila Norte Processing Plant (“Aguila Norte” or the “Plant”) located in Northern Peru. The Company reports that 2019 revenues have exceeded US$1,003,000 (CDN$1,333,000) at the Plant by processing 13,799 tonnes (“mt”). of third-party mineral in seventeen mineral campaigns. During this period the Company has worked diligently to reduce liabilities in both Canada and Peru by over CDN$400,000.

Jeffrey Reeder, CEO of Peruvian Metals, comments: “Achieving the revenue milestone of US$1 million by the 3rd Quarter is a significant accomplishment for our Company. Recent improvements such as the expansion of the tailings area will allow us to focus on achieving higher processing volumes. Significant reductions in debt levels are continuing and will improve the working capital position of the Company. Our Peruvian team has done an excellent job, not only in the mineral processing, but also developing long term relationships with mineral suppliers and miners.”

During the third quarter of 2019, Aguila Norte achieved mineral processing throughput of 4,186 mt, representing a 44% decrease from the second quarter. The Company expects to return to higher levels of processing throughput during the fourth quarter now that the expansion of the tailings area is completed. To further increase processing volumes, the Company began construction on expanded drying pads, anticipated to be completed in October.

The Company anticipates that revenues will continue to maintain, upgrade and potentially expand the Plant while providing a high-quality mineral concentrate product to its customers. With a demonstrated cash flow, Peruvian Metals gains the ability to negotiate favorable terms for mineral purchases which will provide higher operating margins. The Company expects its working capital position will continue to improve during the fourth quarter of 2019.

The Aguila Norte processing plant has an environmental permit (“IGAC”) from the Peruvian government which provides the Plant with the ability to expand operations past the current 100 mt per day level. Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.

About Peruvian Metals Corp.

Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business model is to provide toll milling services for clients and to produce high grade concentrates from mineral purchases. The Company continues to acquire and develop precious and base metal properties in Peru.

For further information on Peruvian Metals Corp. please visit www.peruvianmetals.com .

Peruvian Metals Corp. is a Canadian resource company listed on the TSX Venture Exchange: Symbol “PER”

For additional information, contact: Jeffrey Reeder Tel: (647) 302-3290

Website: www.peruvianmetals.com   Email: [email protected]

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Disclosure Regarding Forward-Looking Statements: This press release contains certain “Forward-Looking Statements” within the meaning of applicable securities legislation. We use words such as “might”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “forecast” and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.