Kuya Silver and Novamera have engaged to complete a definitive agreement on the SM Project as well as refining and finalizing the implementation plans over the next few months. Currently it is anticipated that the SM Project would provide up to an additional 100 tpd of production from surface, having little impact on Kuya Silver's conventional underground mining activities. The additional 100 tpd production could generate significant incremental revenue, enhancing cash flow and accelerating overall project payback. With minimal surface disruption and real-time reclamation, the SM Project aligns with Kuya Silver's commitment to sustainable mining practices.
Novamera has agreed to source funding for upfront capital required for the SM Project, which is expected to be on the order of $4.0 - $4.5 million USD, to be repaid from SM Project cash flows, after which Kuya Silver has agreed to pay Novamera a revenue share (capped at USD $50/oz silver price).
David Stein, Kuya Silver's President and CEO stated, "Since being introduced to Novamera and its Surgical MiningTM process, we have been fascinated by the possibility to use this technology at Bethania, which seems perfectly suited for this kind of technique to increase production and extract resources near surface that might otherwise be sterilized by normal mining operations. The arrangement with Novamera results in minimal upfront financial or operational risk to Kuya Silver, with the opportunity to profit meaningfully from this bonus production opportunity."
Dustin Angelo, Novamera's CEO said of the LOI, "We are excited to partner with Kuya Silver and help them unlock more value from their mineral resources. It's great to be working with such an outstanding team that is willing to explore innovative solutions that benefit all stakeholders of a mining project. We look forward to partnering with Kuya Silver, getting this project started in short order and showcasing the operational, economic and environmental benefits of Surgical MiningTM.
Bethania Ramp-up Update
The Bethania mine is ramping up production, broadly within expected parameters at this stage of the process. Overall production in Q3 and early Q4 was slowed by longer-than-expected lead time to purchase explosives, however these issues have now been fully resolved. To date, the mine has achieved close to 40 tpd of production, while at this stage mine development is still being heavily prioritized to reach optimal production levels in the near future. Currently the Company expects to achieve 100 tpd of mineralized and non-mineralized (development) material by mid Q1, with proportion of development declining in Q2 and beyond. Kuya Silver aims to achieve its initial target of 350 tpd by Q3 2025 (not including the SM Project).
In the normal course of mine development, Kuya Silver was pleased to encounter a previously unknown mineralized branch of the Española Vein while developing production access on the main Española Vein. Kuya Silver is currently mining this new vein with grades to date being well above the expected average. While this recent production success is not necessarily indicative of future production expectations, it is worth noting that our 2021-22 diamond drilling program, identified several previously unknown veins, now part of our resource estimate, and today in the early stages of mining operations we are seeing similar occurrences.
Finally, in preparation for year-end, the Bethania team is preparing to submit its mine plan for 2025 to the Peruvian authorities. In that plan, Kuya Silver has designed a new production ramp, to be developed progressively over the course of the year and beyond, which would improve safety, and allow for production to increase beyond 100tpd with better access to deeper levels of the mine. Kuya Silver has also designed a preliminary underground exploration drill program into its 2025 operations plans.
National Instrument 43-101 Disclosure
The technical content of this news release has been reviewed and approved by Kevin J. O'Connell, P.E., Independent Technical Advisor to Kuya Silver and a Qualified Person as defined by National Instrument 43-101.
About Kuya Silver Corporation
Kuya Silver is a Canadian‐based, growth-oriented mining company with a focus on silver. Kuya Silver operates the Bethania silver mine in Peru, while developing district-scale silver projects in mining-friendly jurisdictions including Peru and Canada.
About Novamera
Novamera is a surgical mining technology company that has developed data-driven hardware and software solutions that pinpoint, map, navigate and extract high value narrow vein deposits. Novamera's precision drilling products integrate into conventional drilling equipment, enabling mining companies to quickly and sustainably mine various metal and mineral deposits that are otherwise uneconomic due to size, geometry and orientation. The process has large scale environmental and social impacts to support ESG targets and improve social licence. Requiring a small footprint with no blasting, the solution produces 95% less waste, 44% less GHG emissions and 99% less water discharge.
For more information, please contact:
David Stein, President and Chief Executive Officer
Telephone: (604) 398‐4493
info@kuyasilver.com
www.kuyasilver.com
Greg Metzgar, VP Business Development
Telephone: (801) 201-8060
gmetzgar@novamerainc.com
www.novamerainc.com
Reader Advisory
This news release contains statements that constitute "forward-looking information," including statements regarding the plans, intentions, beliefs, and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words "may," "would," "could," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect," "must," "next," "propose," "new," "potential," "prospective," "target," "future," "verge," "favourable," "implications," and "ongoing," and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking information. Without limiting the generality of the foregoing statements, the Company's business operations, is forward-looking information. Investors are cautioned that statements including forward-looking information are not guarantees of future business activities and involve risks and uncertainties, and that the Company's future business activities may differ materially from those described in the forward-looking information as a result of various factors, including but not limited to fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing, and general economic, market, and business conditions. There can be no assurances that such forward-looking information will prove accurate, and therefore, readers are advised to rely on their own evaluation of the risks and uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.
Neither the CSE nor the Canadian Investment Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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