Silver Explorer Discovers Historic Zones With High-Grade Upside

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Magma Silver Corp. (MGMA:TSXV; MAGMF:OTCQB; FSE:BC21; WKN:A411DV) announced the launch of its Q3 2025 fieldwork at the Niñobamba silver-gold project in Peru, marking the next step in advancing exploration on the company's flagship asset. The program is focused on target refinement in preparation for a planned Q4 drill campaign at the Jorimina and Randypata areas, two historically active areas within the 4,100-hectare property.

According to the company, the program includes geophysical surveys, mapping, and rock sampling, with early efforts directed at enhancing geological understanding and optimizing future drill site selection. Senior Geologist Edgar Leon is leading the field team, under the supervision of Jeffrey Reeder, P. Geo., who also serves as the company's Senior Technical Advisor.

Stephen Barley, Chairman and CEO of Magma Silver, said in a news release that the company is "excited to advise that our exploration team is now on site at the advanced Niñobamba silver-gold project," and emphasized that the work will refine drill targets and "expand our overall technical knowledge of the style and extent of the mineralized zones."

Magma's Niñobamba project has a long history of exploration, including significant historical drilling by AngloGold, Bear Creek, and Newmont. More than CA$14.5 million has been invested into exploration to date. Newmont's previous exploration included over 7,800 meters of drilling and defined an exploration potential estimate at Jorimina and Randypata that was structured to comply with NI 43-101 Section 2.3, although it is not currently classified as a mineral resource.

The property hosts multiple mineralized zones with high-sulfidation and low-sulfidation epithermal systems. Historical trenching and drilling have confirmed gold and silver mineralization, with intercepts such as 56 meters grading 1.03 grams per tonne gold and 98.9 grams per tonne silver, and 130 meters averaging 87 grams per tonne silver.

Niñobamba is situated in the Ayacucho region of Peru, approximately 500 kilometers southeast of Lima, with access to power infrastructure and transportation. The company holds 100% ownership rights through staking and acquisition agreements, and has secured community access agreements for the current work areas.

Silver: A Dual-Role Metal Amid Market Volatility

Silver prices hovered near US$38 per ounce through mid-August, shaped by a combination of geopolitical events, monetary policy expectations, and industrial demand trends. On August 18, FXStreet reported that silver was trading at US$38.12 per troy ounce, up 0.28% from the previous close. The article noted that silver prices had risen by 31.94% since the beginning of the year. According to FXStreet, silver's strength stemmed from both its safe-haven appeal and industrial applications, particularly in electronics and solar energy. "Silver is widely used in industry . . . as it has one of the highest electric conductivity of all metals," the publication explained, highlighting its relevance to sectors like clean energy and manufacturing.

That same day, Arslan Butt wrote for FX Leaders that silver was "hovering around US$38.10 an ounce . . .  after a wild ride," supported by a drop in U.S. Treasury yields and investor focus on geopolitical negotiations in Eastern Europe. Butt explained that silver "tracks gold during times of political or financial stress" but also benefits from economic growth due to its industrial uses. He added that Fed policy expectations had also boosted interest, noting, "With the Fed about to signal a more dovish stance, non-yielding metals look more attractive." Tim Waterer of KCM Trade commented, "Silver's dip-buyers are doing the same at US$37.50. The market's telling us there's demand for value."

On August 19, investor and commodities writer PauloMacro offered a broader historical perspective, comparing the silver market of the early 2000s to uranium in the current decade. He referred to silver's past bull market as a defining experience in commodity investing, writing, "In the prior cycle of the 2000s when U3O8 rallied...everything in commodities was rallying back then." The analogy underscored how long-term value in underrecognized metals can re-emerge after periods of disinterest. While his primary focus was on uranium, PauloMacro framed silver's past surge as a benchmark for cyclical commodity rebounds driven by macro shifts and investor psychology.

On August 22, Arslan Ali of FXEmpire wrote that silver had shown "modest gains, supported by safe-haven flows amid persistent geopolitical and political uncertainty." Market conditions included ongoing tensions in Eastern Europe and scrutiny of the Federal Reserve's internal policies, which encouraged investor caution and asset diversification. Analysts noted that silver's performance reflected its "dual role as both a safe-haven and an industrial metal," with consistent demand helping it remain steady despite a stronger U.S. dollar.

Mapping the Road Ahead

Magma Silver's near-term development plan for the Niñobamba project includes multiple milestones, beginning with the Q3 2025 fieldwork program currently underway. This program encompasses geophysical surveys, geological mapping, channel sampling, and rock sampling across the Jorimina and Randypata areas. The company expects to complete this pre-drilling work by the end of the quarter, with analytical results anticipated in the same period.

A follow-up drill campaign is scheduled to commence in Q4 2025 at Jorimina, focusing on previously identified mineralized zones. Permitting is also advancing for 20 new drill platforms across both the Jorimina and Randypata areas. Additional mapping, trenching, and rock sampling are planned for the Niñobamba Main zone in early 2026, followed by a second-phase drill program once permits are obtained.

Longer term, the company aims to re-drill Newmont's 2012 exploration zones, incorporating infill drilling and updated modeling to support a National Instrument 43-101 compliant resource estimate. The company has already completed community consultation and environmental baseline studies for the Jorimina area, with permitting underway for Main North and South. 

Magma is also evaluating acquisition opportunities to diversify its exposure to silver and gold projects. According to the presentation, the company continues to focus on assets with historical work, proven mineralization, and high exploration potential in established mining jurisdictions such as Peru.

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$2.7million with just over 34 million shares outstanding. It trades in a 52-week range of CA$0.060 and CA$0.255.