Peru Silver Explorer Advances High-Grade Project

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Magma Silver Corp. (MGMA:TSXV; MAGMF:OTCQB; FSE:BC21; WKN:A411DV) announced the commencement of a summer work program at its Niñobamba silver-gold project in Ayacucho, Peru. The program is focused on refining drill targets at the Jorimina and Randypata depositsin advance of a planned Q4 2025 drill campaign.

According to the company's news release, the work is enabled by the Tunsulla community access agreement signed earlier in July, which grants Magma Silver full access to conduct exploration activities at both zones. Chairman and CEO Stephen Barley stated in the release, "The work being carried out will assist in refining drill targets for our planned Q4 drill program as well as expand our overall knowledge of the deposits."

The summer field program will incorporate data from previous exploration activities carried out by Newmont Corporation, which included 3,536 rock samples, 2,988 channel samples, ground magnetic surveys, and over 7,800 meters of diamond drilling across both zones. Key historical results from hole JM1 at Jorimina include 72.3 meters grading 1.19 grams per tonne (g/t) gold and an additional 24.6 meters grading 1.07 g/t gold.

The company stated that prior exploration by Newmont primarily targeted gold and may have overlooked potential silver-rich zones. The Randypata deposit, in particular, contains a 2-kilometer-long surface silver anomaly that remains untested by drilling.

The current work program is led by Senior Geologist Edgar Leon and supervised by Jeffrey Reeder, P. Geo., who is also identified as the company's qualified person under National Instrument 43-101.

Magma Silver will provide additional updates during its upcoming investor appearances at the Precious Metals Summit in Beaver Creek from September 9 to 12, 2025, and at 121 Mining Investment conferences in London and Dubai later this year.

Silver Market Attracts Institutional Interest Amid Strong Price Gains

The silver sector saw renewed investor interest in mid-July as prices reached levels not seen in more than a decade. On July 16, analyst Peter Krauth reported that silver had climbed to a 13-year high of US$38 per ounce, representing a 31% increase since the start of the year. Krauth noted that silver's rise above the US$34 threshold marked a significant technical breakout, particularly as gold remained within a trading range during the same period.

While acknowledging that short-term technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggested a possible period of consolidation, Krauth emphasized that demand fundamentals remained a key factor. He cited Silver Institute data showing that exchange-traded funds had recorded 95 million ounces in net inflows by June 30, already surpassing total inflows for all of 2024. He attributed the increased demand to ongoing geopolitical instability and broader economic uncertainty.

Additional analysis from Morris Hubbartt of Super Force Signals on July 18 supported the positive outlook, describing silver as entering a "blastoff" phase characterized by bullish chart patterns and momentum indicators. Hubbartt ranked silver among the market's strongest-performing assets based on its technical setup.

On the same day, Chen Lin discussed silver's rising strategic relevance in his What's Chen Buying? What's Chen Selling? newsletter. Lin pointed to emerging reports that Russia's 2026 federal budget includes provisions for silver accumulation. He suggested that if central bank interest in silver were to increase more broadly, it could introduce a new dimension of support for the market.

Technical analyst Captain Ewave applied Elliott Wave Theory to silver's July performance in a report issued July 20, identifying the metal as being in a "wave iii" phase — typically associated with strong price movement. His analysis outlined several subwaves driving the rally and projected price targets of US$41.71, US$44.28, and US$48.63, while noting that resistance levels were likely to emerge along the way.

On July 28, UBS raised its silver price target to US$42, citing a 34% year-to-date gain and favorable macroeconomic conditions. According to commentary published by VBL, UBS highlighted a combination of investment inflows, renewed industrial demand, and a weakening U.S. dollar as contributing to silver's momentum. The firm stated that silver had been among the top-performing metals in 2025 and viewed current conditions as broadly supportive of the sector.

Project Momentum and Sector Positioning

Magma Silver's Niñobamba project spans an 8-kilometer mineralized corridor within a high-sulphidation epithermal system and covers a total area of 4,100 hectares. The project's three key target areas are Main, Jorimina, and Randypata. They have seen over CA$14.5 million in historical exploration investment. The company's current work builds on legacy exploration by firms including AngloGold Ashanti, Bear Creek Mining, and Rio Silver, in addition to Newmont. 

According to the company's July 2025 investor presentation, environmental studies and community consultations for Jorimina are complete, supporting the current drill target refinement. Magma Silver is also pursuing permits for drilling at Niñobamba North and South, with regulatory approvals anticipated in the fourth quarter of 2025.

Niñobamba benefits from access to infrastructure, including proximity to highways, a nearby power grid, and the city of Ayacucho, which offers daily flights to Lima. Peru remains a major silver and gold-producing nation, and the company notes that the project is situated in one of the country's largest high-sulphidation gold-silver districts.

The company's strategic development plan includes potential re-drilling of historical inventory and establishing a resource estimate compliant with NI 43-101, although no current resource has been declared.

Ownership and Share Structure

According to the company, approximately 10.90% of the company is held by insiders and management, 22.90% is held by close associates, and the remaining 66.20% retail and public float. 

Leading shareholders include Michael Townsend with 7.37%, Dave Schmidt with 4.41%, and Cannon Bridge Capital Group with 4.95%, according to Refinitiv. 

Its market cap is CA$4.7million with just under 34 million shares outstanding. It trades in a 52-week range of CA$0.060 and CA$0.255.