Peruvian Metals Corp. has reported assay results from newly sampled underground workings at the Kelly Vein on the Mercedes silver-gold property in central Peru. A sample collected over a 0.60-metre width returned 3.16 grams of gold per metric tonne, 8.42 ounces of silver per metric tonne, 0.58% lead, and 4.88% zinc.

The Kelly Vein is located 140 metres west of the Victor II Vein and trends in the same direction as the Victor I, Victor II, Charo, and Herraje veins. A large sample was collected from the underground working for metallurgical testing.

Peruvian Metals holds a 50% interest in San Maurizo Mines Ltd., which holds a 100% direct interest in the property via its subsidiary Basic Minerals SAC. The Mercedes project is being developed jointly with 50% partner Hudson Heartland Ltd., with development and exploration costs shared equally. The 1,345-hectare property features historical underground workings with horizontal drifts and shafts totaling approximately 900 metres.

Mineral extraction from underground workings on the Victor II Vein has commenced, with material placed in sacks and stockpiled. An assay from a random grab sample of this stockpiled material returned 5.88 grams of gold per metric tonne, 5.55 ounces of silver per metric tonne, 4.95% lead, and 7.07% zinc, though the company noted this grab sample may not represent the final grade of the batch. Extracted material will be shipped to the Aguila Norte Processing Plant for an initial pilot bulk sample test.

To access the Kelly, Victor 1, and Victor II veins for extraction from six possible mineralized faces, Peruvian Metals plans to develop a 225-metre crosscutting drift, with certain permits pending. The company expects to complete the entire permitting process by the end of 2026 to allow extraction of up to 350 tonnes per day, building on a six-year access and operating agreement secured with the Comunidad Campesina de Pomamanta.

“Our Company is excited to jointly develop and explore the prospective Mercedes property,” stated Jeffrey Reeder, Chief Executive Officer of Peruvian Metals. “When Peruvian Metals acquired an interest in the property, silver was trading at US$23 per ounce and gold at US$2100 per ounce. Now that silver is in the US$70 and gold in the US$4600 per ounce range , the economics has greatly improved.”

Read the full announcement: Peruvian Metals Provides Progress Update on Mercedes Au-Ag Property with Assay Results from the Newly Sampled Kelly Vein