Peruvian Metals Announces Third Quarter Production at the Aguila Norte Processing Plant and Provides Sampling Update from the Tailings Area

Q3 throughput dipped 4.5%, but high tailings grades and expansion plans drive near-term focus.

What the company is saying

Peruvian Metals Corp reports that its Aguila Norte plant in Northern Peru processed 9,065 metric tonnes in Q3 2026, a 4.5% decrease from the 9,494 metric tonnes in Q3 2025. The company maintains it is on track to achieve full production capacity for 2026 and match or exceed the 2025 annual total of 36,616 metric tonnes. Management highlights the start of a detailed auger drilling program on the tailings area, citing recent sample results showing an average of 2.4 grams gold and 90 grams silver per tonne, with gold results ranging from 1.34 to 3.93 grams per tonne and silver from 1.24 to 4.37 ounces per tonne. CEO Jeffrey Reeder frames the narrative around operational stability, high recovery rates (93% gold, 87% silver), and the potential for significant Au-Ag concentrate production from both tailings and the Palta Dorada project in Q4 2026. The company also references ongoing reviews of civil engineering proposals to expand plant capacity and connect to the national grid, and notes that it holds an environmental permit allowing expansion beyond 100 tonnes per day. The tone is confident, with repeated emphasis on being 'on track' and planning for growth, but specifics on expansion timing or funding are not provided.

What the data suggests

The disclosed figures confirm a slight operational decline, with Q3 2026 throughput down 4.5% year-over-year to 9,065 metric tonnes. The plant has achieved full production capacity for 9 of the last 10 quarters, but no definition or supporting data for 'full capacity' is given. Tailings sampling results are robust, averaging 2.4 grams gold and 90 grams silver per tonne, with gold grades spanning 1.34 to 3.93 grams per tonne and silver from 1.24 to 4.37 ounces per tonne. Metallurgical tests on a composite sample returned 1.76 grams gold and 75 grams silver per tonne, with high recovery rates of 93% for gold and 87% for silver. Current gold and silver prices are $4,200 and $62 per ounce, respectively, translating to 0.108 ounce gold equivalent per tonne. The company is initiating an auger drilling program to further define tailings resources, with holes planned at 8–10 metre depths and 10 metre spacing. While the operational data is detailed for grades and recoveries, there is no disclosure of revenue, costs, or profit, and claims about future concentrate production and plant expansion remain unquantified and at the proposal or planning stage.

Analysis

The announcement presents a positive tone, highlighting operational continuity and future expansion plans. Realised data includes Q3 2026 throughput (9,065 mt, down 4.5% YoY), detailed sample grades, and high metallurgical recoveries. However, half of the key claims are forward-looking, such as plans to expand plant capacity, connect to the national grid, and reprocess tailings for gold-silver concentrate sales. The company is only reviewing engineering proposals and preparing regulatory documents, with no disclosed commitments or timelines for expansion. The capital intensity flag is triggered by the mention of plant expansion and grid connection, but there is no evidence of funding, contracts, or immediate earnings impact. The gap between narrative and evidence is most apparent in the repeated 'on track' and 'planning to expand' language, which is not yet supported by executed agreements or quantified milestones. The realised operational data is solid but shows a slight decline, and the expansion narrative is aspirational rather than milestone-based.

Risk flags

• ●Operational risk is present due to the 4.5% year-over-year decline in Q3 throughput, which could signal challenges in maintaining or increasing production levels despite claims of being 'on track' for full-year targets.
• ●Execution risk is elevated for the planned plant expansion and grid connection, as these are only at the civil engineering proposal review stage with no committed funding, contracts, or regulatory approvals disclosed.
• ●Resource conversion risk exists for the tailings reprocessing initiative; while grades and recoveries are promising, the actual volume, economic viability, and timing of concentrate production remain undefined until the auger program and regulatory submissions are complete.

Bottom line

Peruvian Metals delivered slightly lower Q3 throughput at Aguila Norte but continues to emphasize strong tailings grades and high metallurgical recoveries. The company is moving quickly to define and potentially monetize gold-silver resources in its tailings, with auger drilling and concentrate production from Palta Dorada expected in the coming quarter. Expansion ambitions for the plant and grid connection are still early-stage, with no firm commitments or timelines. The narrative is credible on operational detail but aspirational regarding growth and new revenue streams, as no sales contracts or expansion funding are disclosed. Investors should focus on upcoming results from the auger program, regulatory progress, and evidence of concrete steps toward plant expansion. The most important takeaway is that while near-term catalysts are in play, the step-change in value from expansion remains unproven and contingent on future execution.

Announcement summary

(TSXV:PER, OTCQB:DUVNF) Peruvian Metals Corp announced its third quarter 2026 production results and the commencement of a detailed auger drilling program on the tailings area at its 80-per-cent-owned Aguila Norte processing plant in Northern Peru. During Q3 2026, the Aguila Norte plant processed a total of 9,065 metric tonnes. This represents a slight decrease of 4.5% compared to Q3 2025, when 9,494 metric tonnes were processed. The plant has achieved full production capacity for 9 of the previous 10 quarters. The company remains on track to achieve full production capacity for 2026 and aims to match or exceed the 2025 annual production of 36,616 metric tonnes. Peruvian Metals is reviewing new civil engineering proposals to expand the plant's capacity and connect to the national energy grid. On September 9, 2026, the company announced new sample results from the tailings area, showing significant gold and silver content. Twenty samples from a dry area within the tailings returned an average of 2.4 grams Au/mt and 90 grams Ag/mt. At current gold and silver prices of $4,200 (U.S.) and $62 (U.S.) per ounce, respectively, this equates to 0.108 ounce Au equivalent per metric tonne. Gold results ranged from 1.34 to 3.93 grams Au/mt, and silver ranged from 1.24 to 4.37 ounces Ag/mt. The company plans to further sample the tailings area using hand augers capable of collecting samples at 8 to 10 metre depths, initially focusing on dry areas and expanding to wet areas once dried. Auger holes will be spaced 10 metres apart and sampled at 1 metre intervals. The auger sampling will assist in designing and planning the reprocessing of the tailings area as required by the Ministry of Mines. The company is preparing the required documents and will present findings upon completion of the sampling program. A composite sample collected for metallurgical test work assayed 1.76 grams Au/mt and 75 grams Ag/mt. Metallurgical results confirmed high recoveries of gold and silver at 93% and 87%, respectively. Lead and zinc content was determined to be insignificant, so future processing will focus on gold-silver recovery. Jeffrey Reeder, Chief Executive Officer of Peruvian Metals, stated the company is on track for another year at full capacity production and is planning to expand production levels for Q2 2027. New drying areas are a priority as reprocessing tailings material is expected to produce significant amounts of Au-Ag concentrates for sale. The company also expects to produce Au-Ag concentrates from Palta Dorada during Q4 2026. The metallurgical work was performed by Jose Orlando Moncada Rejas, Ing, the main metallurgist at Aguila Norte. Assaying was performed by Procesmin Ingenieros SRL in Caraz Ancash by fire assay for gold-silver. The Aguila Norte plant holds an environmental permit (IGAC) from the Peruvian government, allowing expansion past the current 100 tonnes per day level.

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