Peruvian Metals Generates a New High Grade Silver-Gold Project in Northern Peru
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.
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.
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 3
rd
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:
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.
To view an enhanced version of Figure 1, please visit:
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To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/3210/65949_figure2.jpg
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