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Kuya aims for 2024 production at silver mine in Peru

January 9, 2024
in Business
Kuya aims for 2024 production at silver mine in Peru
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Kuya Silver Corp. [KUYA-CSE, KUYAF-OTCQB, 6MR1-FSE] said Monday it has commenced underground development at its past-producing Bethania Silver Mine in Peru in preparation for production this year.

Kuya said its Peruvian subsidiary, Minera Toro de Plata, has commenced an underground development and reconditioning program as an initial step to resuming operations at the mine. Initially the program will involve inspecting, reinforcing, updating and improving underground support in several areas required to access future production areas and other critical path underground infrastructure.

“We see this as an important step, not only to achieve first silver production later this year, but for the longer-term growth of the Bethania district,’’ said Kuya Chief Operating Officer Christian Aramayo.

Kuya shares were unchanged Monday at 24 cents and currently trade in a 42-week range of 77 cents and 19.5 cents.

Kuya was in the news recently when it announced details of a toll milling agreement and development plan for its Bethania Silver Project.

Kuya said Compania Minera San Valentin (CMSV) has pledged to process run-of-mine material at their plant located 20 kilometres by road from the Bethania project. “This same plant processed material from Bethania between 2013 and 2015, and has a nameplate capacity of 500 tonnes per day,’’ Kuya said.

The Bethania Silver project is located on the Cordillera Central in Central Peru, approximately 316 kilometres by road from Lima. It is a region that contains prolific and prospective base and precious metals belts.

The project consists of four concessions covering 1,750 hectares that are accessible year-round via a four-hour drive from the city of Huancayo.

The mine was in production until 2016, toll milling its ore at various concentrate plants in the region.

Referring to the toll milling agreement, Kuya said CMSV will have up to three concentrate production circuits available for production, specifically silver-lead, zinc and copper-silver. The terms of the agreement are guaranteed for 24-months, and renewable upon mutual agreement, beginning from the date of first delivery of material to the mill. There is no minimum production obligation for Kuya Silver.

Prior to the end of 2023, MTP completed a mining plan for 2024 and submitted the required documentation to the General Mining Directorate. Although the mine is permitted to produce up to 350 tonnes per day, the company expects the ramp-up period to extend into next year.

According to a 2022 maiden resource estimate, Bethania an indiPrcated resource of 5.8 million ounces of silver equivalent at an average grade of 451 g/t silver equivalent (AgEq) contained in 404,000 tonnes. On top of that is an inferred resource of 8.0 million ounces of AgEq at an average grade of 356 g/t contained in 700,000 tonnes.

A preliminary economic estimated (PEA) envisages 1.37 million ounces of silver equivalent (AgEq) in the first year, and life of mine production of 8.68 million ounces of AgEq.

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