Mercedes 50%
Peruvian Metals Corp. owns a 50% interest in a private company called San MaurizoMines Ltd. (“San Maurizo”). This private company owns a 100% direct interest in the Mercedes property through its wholly owned Peruvian subsidiary Basic Metals SAC. The project is subjected to a 20% Net Profit Interest (“NPI”) and will be eliminated once the $ 4 million US is paid to the holder of this NPI. Mercedes has secured access agreements with the local community. A camp has been established and new road access to the upper showings is currently underway.
The Mercedes property is in the Junin Department in central Peru and covers an area of approximately 1,345 hectares. The property is accessible from the town of Concepion located on the central highway by approximately 40 kilometres of a well-maintained gravel road. Mineral will be processed at a local toll mill 12 kilometres from the Project.
The property has extensive historical underground workings with horizontal drifts totaling approximately 900 metres. Previous operators from the early 1980’s focused on three main structures called Veta Victor I and II and the Kelly vein. In total over 15 mineralized structures have been identified crossing Upper Cretaceous and Late Tertiary Sucllamachy granites. These structures are subparallel to a large U shape gully allowing easy underground access to these mineralized structures.
Historic underground samples from the Victor II vein averaged 4.14 grams Au/mt, 7.9 ounces Ag/mt and 0.91% Pb and 4.03% Zn. Samples taken in 2024 from mineral sacks from a group of small miners ready for shipment to a local toll mill averaged 8.16 grams Au per metric tonne, 17.88 ounces Ag per metric tonne, 4.36% Lead and 4.38% Zinc.
Mineral Sacks ready for Shipment
Recent metallurgical results have confirmed high recoveries of silver and gold at Mercedes. The lead and zinc content is determined to be insignificant compared to the Ag-Au. To achieve higher recoveries, metallurgical work and future processing only focused on the recoveries of Ag-Au. Therefore, the Company will design its process method to produce only one Ag-Au concentrate.
Metallurgical work on the Victor II Vein workings started with a head grade returning 3.69 grams Au/mt and 9.4 ounces Ag/mt. The metallurgical results are very good by using flotation methods. The met work produced a concentrate assaying 33.03 ounces Ag/mt and 12.23 grams Au/mt. Silver-Gold recoveries returned 97.85% and 92.19% respectfully. Mineral to concentrate ratio of 3.50 to 1 was also achieved. The Victor II vein is well exposed in two levels in the underground adits. The mineralized structure ranges in width from 0.30 to 1.0 meters in width as reported by Company geologists.
Victor II Mine Entrance
The Company located a fourth mineralized structure called the Charo Vein. This mineralized structure is located 475 metres west of the Victor II vein and on the opposite side of the U-shaped gully. A historic 45-metre adit was located and cleaned out. The adit opening was reestablished and secured for access. Three samples were taken from the adit with assays returning an average of 1.33 grams Au/mt, 14.83 ounces Ag/mt and 1.36% Pb. Assays ranged from 0.25 to 2.59 grams Au/mt, 0.398 to
41.697 ounces Ag/mt, and 0.17 to 3.67% Pb over an average width of 0.35 meters. One large composite sample was taken over the length of vein for metallurgical work. The head grade of the composite assayed 0.63 grams Au/mt and 6.10 ounces Ag/mt. Metallurgical results using flotation methods produced a concentrate grading 48.42 ounces Ag/mt and 4.01 grams Au/mt. Silver-Gold recoveries returned 92.3% Ag and 74.7% Au. The mineral concentrate ratio of 8.54 to 1 was achieved.
Charo Vein Adit
The Company will start the development of a 225-meter 2.5 X 3.0 meter crosscut to intersect the Kelly, Victor I and Victor II veins. This adit is designed to provide access to multiple mineralized faces and establishing underground drill sites.
