Magma Silver Peru Silver Gold Project Update

Rhea-AI Summary

Magma Silver Corp has provided a significant update on its Niñobamba silver-gold project in Peru's Ayacucho Department. The company has secured full control of all three contiguous zones (Niñobamba, Jormina, and Randypata) within the 4,100-hectare project, with property payments completed and claims in good standing until June 2026. Historical exploration by major mining companies revealed promising results, including intercepts of 72.3m @ 1.19 g/t gold and 130m @ 87 g/t silver. Over US$10 million has been invested in exploration since 2002, with Newmont contributing US$7 million and completing a pre-feasibility study suggesting potential for a mid-sized mining operation. Magma plans to commence diamond drilling at Jormina in Q4 2025, supported by existing surface access agreements. Additional exploration activities planned for Q3 2025 include geophysical surveys, mapping, and channel sampling to define new high-grade drill targets.

Positive

• Full control secured over all three contiguous zones of the 4,100-hectare project
• Strong historical drilling results including 72.3m @ 1.19 g/t gold and 130m @ 87 g/t silver
• Over US$10 million already invested in exploration by major mining companies
• Existing surface access agreement and drilling permit application in progress
• Pre-feasibility study by Newmont suggests potential for mid-sized mining operation

Negative

• Drilling permit still pending approval
• True widths of historical drill intercepts remain to be confirmed
• Additional drilling needed to determine full extent of mineralization

Vancouver, British Columbia--(Newsfile Corp. - June 18, 2025) - Magma Silver Corp. (TSXV: MGMA) (OTCQB: MAGMF) (FSE: BC21) (WKN: A411DV) ("Magma" or the "Company") is excited to share a significant update on its flagship Niñobamba silver-gold project (the "Project") located in the mineral-rich Ayacucho Department of Southeast Peru.

Highlights:

• Property Payments Made: All payments to the Peruvian agencies have been made and all claims are in good standing until June 2026.

• Full Project Control Secured: Magma controls all three contiguous zones-Niñobamba, Jormina, and Randypata-within the Project.

• Drilling Planned for Q4 2025: A diamond drilling campaign is planned at Jormina, supported by an existing surface access agreement and a drilling permit application.

• Strong Historical Results: Previous exploration by Newmont and AngloGold revealed promising intercepts, including 72.3 m @ 1.19 g/t gold and 130 m @ 87 g/t silver.

• Extensive Exploration Investment: Over US$10 million has already been invested by Newmont, AngloGold, and Bear Creek, including a pre-feasibility study by Newmont suggesting potential for a mid-sized mining operation.

• Upcoming Exploration in Q3 2025: Planned activities include geophysical surveys, mapping, and channel sampling to define new high-grade drill targets at Niñobamba.

Magma holds a 100% option on the 4,100-hectare Niñobamba Project, which encompasses three high-potential mineralized zones: Niñobamba, Jormina, and Randypata. All three zones are under Magma's control, opening new avenues for exploration and development. A community surface access agreement is already in place for the Jormina and Ranypata zones, paving the way for an upcoming diamond drilling campaign at Jormina. The drilling permit has been applied for and is anticipated in Q3 2025.

The Jormina and Ranypata zones lie approximately 6.5 kilometers west of Niñobamba zone. Magma has secured an extensive exploration database from Newmont Mining Corp. ("Newmont"), including diamond drill logs, assay results, geophysical data, and metallurgical studies. Over US$10 million has been invested in exploration since 2002 by Newmont, AngloGold, Rio Silver and Bear Creek. Notably, Newmont alone contributed US$7 million to drilling and completed an internal pre-feasibility study highlighting the area's potential to support a mid-sized mining operation. The study also pointed to the possibility of a much larger discovery, with geological indicators suggesting proximity to a porphyry source (Newmont Internal Memo, 2012). Comparisons have also been drawn to Barrick's prolific Pierina gold mine, further underlining the Project's vast potential. (There is no guarantee Magma will achieve similar results.)

Historical exploration by Newmont (2009-2010) at Jormina included over 65 diamond drill holes totaling 4,377 metres. Highlight results include hole JOR-001, which intersected 72.3 metres grading 1.19 g/t gold from 53 metres depth. Additional drilling is needed to determine the full extent and geometry of the mineralization. Earlier, in 2002, AngloGold drilled the Niñobamba zone and reported standout intercepts including 87 g/t silver over 130 metres in DDH-2 and 54 g/t silver over 96 metres in DDH-4, starting near surface. The true widths of these intercepts remain to be confirmed.

A 2012 trenching program by Rio Silver at Niñobamba North uncovered new high-grade zones, with trench TR-01 returning 56 metres of 1.03 g/t gold and 98.9 g/t silver, and trench TR-04 yielding 21.77 metres of 1.32 g/t gold and 102.46 g/t silver. These findings demonstrate a strong gold component associated with high-sulfidation mineralization, warranting further study to better understand the zonation, alteration patterns, and widths.

Figure 1

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Looking ahead, Magma plans to initiate additional exploration activities in Q3 and Q4 2025. This includes Alpha IP geophysical surveys, detailed geological mapping, and channel sampling-with a focus on investigating the newly discovered high-grade gold zones at Niñobamba. These efforts aim to define compelling drill targets for upcoming campaigns. (Historical technical information from National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report authored by James A. McRae P. Geo and dated January 21, 2025).

Qualified Person

Jeffrey Reeder, PGeo, a qualified person as defined in National Instrument 43-101, has prepared, supervised the preparation or approved the scientific and technical disclosure contained in this news release.

About Magma Silver Corp.

Magma Silver Corp. is a natural resource company with a focus on the acquisition, exploration, development, and operation of precious metal mining exploration projects. The Company's primary focus is on exploring and developing the advanced Niñobamba silver-gold project in the mining-friendly country of Peru.

For further information, please contact Magma Silver Corp.:
Jason Baker, Chief Financial Officer
Phone: +1-604-252-2672
Email: info@magmasilver.com
Website: www.magmasilver.com

Reader Advisory

This news release may contain forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of current or historical facts contained in this news release are forward-looking information. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Magma's periodic filings with Canadian securities regulators. When used in this news release, words such as "will", "could", "plan", "estimate", "expect", "intend", "may", "potential", "should," and similar expressions are forward- looking statements. The information provided in this document is necessarily summarized and may not contain all available material information. Forward-looking statements include statements respecting: (i) the Company's exploration program for Q3 and Q4 of 2025, including the scope and timing thereof; (ii) the implication of having a community surface access agreement in place for upcoming drilling at Jormina; (iii) the expected timing of the issuance of required drill permits, (iv) the implications for Newmont's pre-feasibility study; (v) the potential of the Project; and (vi) the future confirmation of historical drill results. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can't make any assurances that its expectations will be achieved. Such assumptions may prove incorrect. Although the Company has attempted to identify important factors that could cause actual results, performance, or achievements to differ materially from those contained in the forward- looking statements, there can be other factors that cause results, performance, or achievements not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances, or results will materialize. As a result of these risks and uncertainties, no assurance can be given that any events anticipated by the forward-looking information in this news release will transpire or occur, or, if any of them do so, what benefits that the Company will derive therefrom. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this news release, and the Company disclaims any intention or obligation to update or revise such information, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/255874

FAQ

What are the key highlights from Magma Silver's (MAGMF) Niñobamba project update?

The company has secured full control of all three zones, made property payments through June 2026, plans drilling for Q4 2025, and has historical results including 72.3m @ 1.19 g/t gold and 130m @ 87 g/t silver.

How much has been invested in the MAGMF Niñobamba project historically?

Over US$10 million has been invested since 2002, with Newmont contributing US$7 million including a pre-feasibility study.

What are the three zones of Magma Silver's Niñobamba project?

The project consists of Niñobamba, Jormina, and Randypata zones, covering 4,100 hectares in total.

When is Magma Silver (MAGMF) planning to start drilling at the Niñobamba project?

Diamond drilling is planned to commence at the Jormina zone in Q4 2025, with additional exploration activities starting in Q3 2025.

What were the best historical drilling results at MAGMF's Niñobamba project?

Historical results include 72.3m @ 1.19 g/t gold at Jormina and 130m @ 87 g/t silver at Niñobamba zone.