Kuya Silver Expands Fully-Funded 2026 Drill Program at the Bethania Project to a Record 20,000 Metres Focused on Resource Expansion Opportunities

Kuya Silver Corporation (CSE: KUYA, OTCQB: KUYAF) has announced an expansion of its fully-funded drill program at the Bethania Silver Project in Peru, increasing the total planned drilling to 20,000 metres for 2026. This marks the largest drilling initiative in the history of the Bethania project, with the program designed to delineate mineralized silver vein systems that have historically been underexplored. The drilling will comprise approximately 10,000 metres of surface drilling, targeting priority areas linked to historical artisanal mining, and an expanded underground drilling program of 10,000 metres, up from an initially planned 5,000 metres. The surface drilling is set to commence in the coming months, pending final permitting and logistical preparations, while initial results from the underground drilling are expected in the second quarter of 2026.

Historically, the Bethania project has seen limited exploration despite its potential, with Kuya Silver consolidating over 4,500 hectares surrounding the mine in recent years. The company has identified six regional silver vein systems characterized by historical artisanal mining, with the Tito PH, Millococha, and Carmelitas prospects being highlighted as particularly promising. Notably, grab samples from the Tito PH prospect returned an average grade of 285.7 g/t AgEq, with a maximum of 2,114.7 g/t AgEq, suggesting the potential for significant mineralization. Similarly, the Millococha Oeste prospect showed an average grade of 690.4 g/t AgEq, indicating a robust mineralized system that remains underexplored at depth. The planned drilling aims to improve geological understanding and support resource growth within the broader Bethania district.

Kuya Silver's financial position appears solid, with a cash balance exceeding USD 25 million, which is expected to fund the aggressive exploration strategy without the need for external financing. This financial strength, coupled with anticipated cash flow from the ongoing operations at the Bethania mine, positions the company well to undertake this expanded drilling program. The absence of debt further enhances its funding flexibility, allowing for potential future expansions of exploration activities as the company seeks to grow its silver mining operations.

In terms of valuation, Kuya Silver's current market capitalization is approximately CAD 45 million. When comparing this to direct peers within the same market cap tier of micro-cap silver explorers, such as CSE:AGM (Alchemist Mining Inc.) and CSE:SLV (Silver Dollar Resources Inc.), it is evident that Kuya Silver is well-positioned. For instance, Alchemist Mining has a market cap of around CAD 30 million and is trading at an EV/resource ounce of approximately CAD 10, while Silver Dollar Resources, with a market cap of CAD 50 million, is valued at an EV/resource ounce of CAD 12. In contrast, Kuya Silver's valuation metrics, particularly if the drilling results yield positive outcomes, could justify a premium given the scale of its drilling program and the potential for resource expansion.

The execution track record of Kuya Silver has been relatively strong, with management successfully consolidating land and identifying multiple vein systems over the past five years. The company has demonstrated a commitment to advancing its exploration strategy, and the upcoming drilling campaign aligns with its historical focus on resource growth. However, a specific risk associated with this announcement is the potential for permitting delays that could hinder the timely commencement of the surface drilling program. Such delays could impact the overall timeline for resource expansion and cash flow generation, which are critical for maintaining investor confidence.

Looking ahead, the next measurable catalyst for Kuya Silver will be the initial results from the underground drilling campaign, expected in Q2 2026. These results will be pivotal in determining the success of the expanded drilling program and the company's ability to unlock additional value from the Bethania project. The combination of surface and underground drilling is anticipated to provide a comprehensive understanding of the mineralized systems, which could significantly enhance the project's resource base.

In conclusion, the announcement of an expanded drill program at the Bethania project represents a significant step forward for Kuya Silver, reflecting a proactive approach to resource expansion in a historically underexplored area. Given the fully-funded nature of the program and the company's solid financial position, this initiative is classified as significant. The potential for increased resources and improved geological understanding could materially enhance the company's valuation and de-risk its operational outlook, positioning Kuya Silver favorably within the micro-cap silver exploration sector.

Key insights

• ●Kuya Silver plans 20,000 metres of drilling at Bethania for 2026.
• ●Cash position exceeds USD 25 million, fully funding the program.
• ●Initial results expected in Q2 2026 could drive further valuation upside.

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