Edmonton, Alberta–(Newsfile Corp. – 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 profitsharing 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.
