Kuya Silver Announces Letter of Intent to Accelerate Production at Bethania Project and Updates Ramp-Up Progress
Kuya Silver has announced a Letter of Intent with Novamera Inc. to implement their patented Surgical Mining™ process at the Bethania mine in Peru. This technology could add approximately 100 tonnes per day of production from surface operations, supplementing conventional underground mining.
Novamera will arrange financing of $4.0-4.5 million USD for the project, to be repaid from project cash flows. The Bethania mine is currently ramping up production, reaching nearly 40 tpd, with aims to achieve 350 tpd by Q3 2025. During development, a new mineralized branch of the Española Vein was discovered, showing above-average grades. The company is preparing a 2025 mine plan including a new production ramp and underground exploration program.
Kuya Silver ha annunciato una Lettera di Intenti con Novamera Inc. per implementare il loro processo brevettato di Surgical Mining™ presso la miniera di Bethania in Peru. Questa tecnologia potrebbe aggiungere circa 100 tonnellate al giorno di produzione dalle operazioni di superficie, integrando l'estrazione mineraria sotterranea convenzionale.
Novamera organizzerà un finanziamento di 4,0-4,5 milioni di USD per il progetto, che verrà ripagato dai flussi di cassa del progetto. La miniera di Bethania sta attualmente aumentando la produzione, raggiungendo quasi 40 tpd, con l'obiettivo di raggiungere 350 tpd entro il Q3 2025. Durante lo sviluppo, è stata scoperta una nuova branca mineralizzata della vena Española, con gradi superiori alla media. L'azienda sta preparando un piano minerario per il 2025 che include una nuova rampa di produzione e un programma di esplorazione sotterranea.
Kuya Silver ha anunciado una Carta de Intención con Novamera Inc. para implementar su proceso patentado de Surgical Mining™ en la mina Bethania en Perú. Esta tecnología podría agregar aproximadamente 100 toneladas por día de producción desde operaciones en superficie, complementando la minería subterránea convencional.
Novamera organizará un financiamiento de 4.0-4.5 millones de USD para el proyecto, que será reembolsado a partir de los flujos de caja del proyecto. La mina Bethania está actualmente aumentando su producción, alcanzando casi 40 tpd, con el objetivo de lograr 350 tpd para el Q3 2025. Durante el desarrollo, se descubrió una nueva rama mineralizada de la vena Española, con grados superiores a la media. La empresa está preparando un plan minero para 2025 que incluye una nueva rampa de producción y un programa de exploración subterránea.
쿠야 실버는 페루 베타니아 광산에서 그들의 특허받은 Surgical Mining™ 프로세스를 구현하기 위해 노바메라(Novamera Inc.)와 의향서를 체결했다고 발표했습니다. 이 기술은 약 하루 100톤의 생산량을 추가할 수 있으며, 전통적인 지하 채굴을 보완할 수 있습니다.
노바메라는 이 프로젝트를 위해 400만-450만 달러의 자금을 마련할 예정이며, 프로젝트 현금 흐름에서 상환될 것입니다. 베타니아 광산은 현재 생산을 증가시키고 있으며, 거의 40 tpd에 도달했으며, 2025년 3분기까지 350 tpd에 도달하는 것을 목표로 하고 있습니다. 개발 과정에서 스페인올라 광맥의 새로운 광물화 지류가 발견되었으며, 평균을 초과하는 등급을 보이고 있습니다. 이 회사는 새로운 생산 램프와 지하 탐사 프로그램을 포함한 2025년 광산 계획을 준비하고 있습니다.
Kuya Silver a annoncé une Lettre d'Intentions avec Novamera Inc. pour mettre en œuvre leur processus breveté Surgical Mining™ à la mine de Bethania au Pérou. Cette technologie pourrait ajouter environ 100 tonnes par jour de production à partir des opérations en surface, en complément de l'exploitation minière souterraine conventionnelle.
Novamera organisera un financement de 4,0-4,5 millions de USD pour le projet, qui sera remboursé grâce aux flux de trésorerie du projet. La mine de Bethania est actuellement en train d'accroître sa production, atteignant près de 40 tpd, avec l'objectif d'atteindre 350 tpd d'ici le T3 2025. Au cours du développement, une nouvelle branche minéralisée de la veine Española a été découverte, montrant des grades supérieurs à la moyenne. L'entreprise prépare un plan minier pour 2025 qui comprend une nouvelle rampe de production et un programme d'exploration souterraine.
Kuya Silver hat eine Absichtserklärung mit Novamera Inc. angekündigt, um ihren patentierten Surgical Mining™ Prozess in der Bethania Mine in Peru umzusetzen. Diese Technologie könnte etwa 100 Tonnen pro Tag an Produktion aus Oberflächenoperationen hinzufügen und die konventionelle Untertagebergwerke ergänzen.
Novamera wird eine Finanzierung von 4,0-4,5 Millionen USD für das Projekt organisieren, die aus den Projektcashflows zurückgezahlt werden soll. Die Bethania Mine erhöht derzeit ihre Produktion und erreicht fast 40 tpd, mit dem Ziel, bis Q3 2025 350 tpd zu erreichen. Während der Entwicklung wurde ein neuer mineralisierter Ast der Española-Ader entdeckt, der überdurchschnittliche Gehalte zeigt. Das Unternehmen bereitet einen Bergbauplan für 2025 vor, der eine neue Produktionsrampe und ein unterirdisches Erkundungsprogramm umfasst.
- Additional 100 tpd production capacity through Surgical Mining™ technology
- No upfront costs for new technology implementation ($4.0-4.5M funded by Novamera)
- Discovery of new high-grade mineralized vein branch
- Production ramp-up progressing with 40 tpd achieved
- Planned expansion to 350 tpd by Q3 2025
- Production delays in Q3 and early Q4 due to explosives procurement issues
- Current production (40 tpd) significantly below target (350 tpd)
Toronto, Ontario--(Newsfile Corp. - December 5, 2024) - Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the "Company" or "Kuya Silver") is pleased to announce a Letter of Intent ("LOI") with Novamera Inc. to deploy their patented Surgical MiningTM process from surface, which, if implemented, would provide additional production tonnage over and above the Company's conventional underground mining production at its flagship Bethania mine in Peru. Novamera's innovative technologies has been successfully deployed at projects spanning Canada to South America, focusing on both precious and energy transition metals. Kuya Silver sees this partnership as an opportunity to produce bonus tonnage, not previously expected in the conventional underground mine plan. In addition, Kuya Silver is pleased to provide an update on current silver mining activities at its flagship Bethania mine in Peru.
Key Highlights:
- Kuya Silver and Novamera plan to implement their state-of-the-art and environmentally friendly Surgical MiningTM process to gain additional production tonnage from surface as quickly as possible in 2025.
- This additional bonus production, expected to be approximately 100 tonnes per day ("tpd") could allow for a faster ramp-up to the initial 350 tpd production target, and potentially accelerate a production expansion beyond 350 tpd.
- Novamera has agreed to arrange financing for the Surgical MiningTM Project ("SM Project") at no up-front cost to Kuya Silver.
- Bethania ramp-up continues: Previously unknown mineralized structure branching off the Española vein was uncovered during normal development activities has provided additional higher-than-average grade material to date.
Surgical MiningTM Project
Kuya Silver is pleased to partner with Novamera Inc. with the aim of implementing its patented Surgical MiningTM technique at the Bethania project. The Bethania resource area consists of a swarm of structurally controlled silver-polymetallic veins, many of which extend to surface. Novamera's mining solution is well suited to the geology at Bethania, drilling large diameter holes from surface targeting vein mineralization. The resulting broken rock recovered consists of mineralized material similar to what would be mined using conventional underground mining methods. The technology consists of data driven hardware and software solutions to guide the drill process and minimize dilution. Once drilled, the holes can be immediately reclaimed to provide structural support to the mine with a minimal environmental footprint on surface.
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
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
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
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FAQ
What is Kuya Silver's (KUYAF) production target for Bethania mine by Q3 2025?
How much additional production will the Surgical Mining™ technology add to KUYAF's Bethania mine?
What is the current production rate at KUYAF's Bethania mine as of December 2024?
