Watch Q1 2026 Drill Program at Joramina
Magma Silver Corp. (TSX-Venture: MGMA) (OTCQB: MAGMF) announced a comprehensive 4,000-meter drill program at its Niñobamba project's Joramina zone, scheduled to commence in Q1 2026. The program builds upon extensive historical work by Newmont Mining Corporation, which invested US$7 million completing 65 diamond drill holes. Newmont's historical drilling returned 72.3 meters grading 1.19 g/t gold starting at 53 meters depth, setting the tone for things to come.
Magma's technical team determined that Newmont's historical drilling was not oriented in the most optimal direction. The company designed a two-phase program to confirm historical results and optimize future drilling. Phase 1 will consist of 2,000 meters from Pad A, targeting the zone intersected by Newmont. Phase 2, contingent on initial results, will extend mineralization and test previously undrilled gold-silver surface anomalies.
Recent surface work validated the district's potential. October 2025 drift sampling returned 10 meters of 2.32 grams per tonne gold and five meters of 4.085 ounces per tonne silver. Surface sampling near the drift returned 0.70 meters of 17.41 grams per tonne gold and 13.94 ounces per tonne silver, signaling Magma is on the right course.
Magma allocated US$1 million for the Joramina program, a significant increase from the original plan. Chairman and CEO Stephen Barley stated the drilling represents "a major accomplishment" with Newmont's comprehensive historical database providing "tremendous project knowledge" that increases certainty while saving significant time and expenditures.
Magma controls three contiguous properties totaling 4,100 hectares spanning an 8-kilometer mineralized corridor. Over $14.5 million has been invested by previous operators including some mining household names like Newmont, AngloGold Ashanti, Bear Creek Mining Corporation, and Rio Silver.
The Niñobamba project is located less than 500 kilometers southeast of Lima in Ayacucho, Peru, with excellent infrastructure including proximity to the national highway, power grid, water, and daily commercial flights from Ayacucho to Lima. The property sits in the same prolific geological belt that hosts Peru's largest high-sulfidation epithermal deposits, including the world-class Yanacocha mine which has produced over 50 million ounces of gold since 1993.
Beyond the Joramina zone, Magma's Niñobamba Main area hosts both high-sulfidation mineralization in the North Zone and low-sulfidation systems in the South Zone. Historical drilling by AngloGold returned 130 meters grading 87 g/t silver, while Bear Creek's drilling intersected 26 meters of 79.6 g/t silver. Recent trenching at the Main Zone returned 56 meters grading 1.03 g/t gold and 98.9 g/t silver.
Major Producers Demonstrate Peru's Mining Potential
Speaking of household names, four mining juggernauts are teamed up in the Andes Mountains of Peru as owners of the Antamina mine, one of the world’s largest copper/zinc mines in the world. An open pit mine that also produces molybdenum, Antamina is the biggest mine in the country, owned by Teck Resources (TSX: TECK.B) (NYSE: TECK), BHP (NYSE: BHP), Glencore (OTC: GLNCY), and Mitsubishi Corp, and independently operated by Compañía Minera Antamina S.A.
It produced 390,800 tons of copper concentrate in 2006, 461,000 tons in 2013, 410,000 tons (15% of the country’s total production) in 2024. The mine’s life was set to expire in 2026, but a $2 billion plan is being executed to extend the deposit’s useful life until at least 2036.
Newmont Corporation (NYSE: NEM), the world's largest gold producer, operates the aforementioned Yanacocha mine in Peru, South America's largest gold operation. Located in Cajamarca, approximately 800 kilometers northeast of Lima, Yanacocha has been operating since August 1993. Yanacocha’s operations are situated between 3,500 and 4,100 meters above sea level with development activities in four primary basins. The operation is now 100% owned by Newmont following the 2022 acquisition of Buenaventura's 43.65% noncontrolling interest and Sumitomo's 5% stake.
Newmont reported third-quarter 2025 free cash flow of $1.6 billion, its fourth consecutive quarter exceeding $1 billion, while producing approximately 1.4 million attributable gold ounces. The company improved 2025 cost and capital guidance based on progress in cost-savings initiatives.
Freeport-McMoRan's Cerro Verde Achieves Record Throughput
Another global mining behemoth, Freeport McMoRan (NYSE: FCX) also has a strong presence in the continent. FCX operates two copper mines in South America, Cerro Verde in Peru and El Abra in Chile. In addition to copper, the Cerro Verde mine also produces molybdenum concentrate and silver.
Cerro Verde is a massive mine located in southwestern Peru about 20 miles southwest of Arequipa. Cerro Verde’s expanded operations benefit from its large-scale, long-lived reserves and cost efficiencies and have continued to perform well. As a result of several initiatives implemented over the past several years, in 2024, Cerro Verde’s 2 concentrators were able to achieve a combined average milling rate of 415,500 metric tons of ore per day.
A Final Thought
Peru's mining sector benefits from established infrastructure, skilled workforce, and regulatory frameworks developed over decades of commercial mineral production. The country ranks third globally in silver production and eleventh in gold production, with mining contributing almost 15% of GDP. As global precious metals markets respond to industrial demand growth and supply chain diversification efforts, Peru's combination of geological endowment and mining-friendly environment positions the country as a critical contributor to North American and European mineral supply chains. That’s information that savvy investors are acting upon.
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