Palamina Completes Transfer of the Gaban Gold and Ica Copper Silver Projects from Winshear Gold

Rhea-AI Summary

Palamina Corp (OTCQB: PLMNF) has regained 100% ownership of the Gaban Gold and Ica Copper-Gold projects in Peru from Winshear Gold, following Winshear's offer to return the properties on April 11, 2025. The Gaban Gold Project, located in the Puno Orogenic Gold Belt, has shown promising results with surface samples yielding up to 32 g/t gold and initial drilling returning intersections of 4m at 5.04 g/t gold and 21m at 1.29 g/t gold. The Ica Copper-Gold Project, situated 45 km southeast of Ica city, is an early-stage exploration target covering 2,933 hectares with copper-gold veins and magnetite rich replacement bodies. Palamina plans to review both claim blocks and may reduce holdings that don't align with exploration objectives. The company's President, Andrew Thomson, has resigned from Winshear Gold's board, and Palamina no longer holds any equity or relationship with Winshear.

Positive

• Initial drilling at Gaban Gold Project yielded promising results with intersections of 4m at 5.04 g/t gold and 21m at 1.29 g/t gold
• Surface samples at Gaban showed high-grade potential with up to 32 g/t gold
• DIA environmental permit with approved drill pads remains active at Gaban
• Strategic consolidation of 100% ownership in both Gaban and Ica projects strengthens Palamina's position in Peru

Negative

• Drill program at Gaban was stopped early due to rainy season, preventing drilling of main targets
• Ica project is still at early-stage exploration with no significant discoveries reported
• Company may reduce claim holdings that don't align with exploration objectives, potentially decreasing total land position

Toronto, Ontario--(Newsfile Corp. - June 5, 2025) - Palamina Corp. (TSXV: PA) (OTCQB: PLMNF): On April 11, 2025, Palamina received notice from Winshear offering to return 100% ownership of the Gaban Gold and Ica Copper-Gold projects to Palamina (see April 14, 2025 news release). In accordance with the terms of the original purchase and sale agreement, Palamina confirmed its intention to take back ownership, and the transfer process is now complete.

Projects Overview

Gaban Gold Project: Located in the Puno Orogenic Gold Belt in southeastern Peru, the Gaban Gold Project has been the subject of significant exploration including an airborne geophysical survey completed in 2024. Previous sampling campaigns had outlined a gold-bearing mineralized shear zone extending over a 900m by 2,200m area. Surface samples collected in quartz-rich deformed shear zones returned assays of up to 32 g/t gold. The first-ever 1,005 meter drill program was completed in late 2024 and returned some notable intersections, including 4 meters of 5.04 g/t gold and 21 meters of 1.29 g/t gold hosted in shales. These were from the two southernmost drill holes in the Coritiri zone. The drill program was stopped earlier than anticipated due to the early onset of the rainy season, which prevented drilling of some of the main targets to the southwest. The DIA environmental permit with approved drill pads remains in place.

Ica Copper-Gold Project: Located 45 km southeast of the city of Ica at an elevation of 2,000 m and 300 km southeast of Lima along the Pan-American highway. The Ica iron oxide-copper-gold project is an early-stage exploration target that covers an area of 2,933 hectares. Initial reconnaissance mapping and sampling programs have delineated several laterally continuous copper-gold veins and magnetite rich replacement bodies hosted in a shallowly oxidized Jurassic aged volcanic sequence. An airborne magnetic survey was completed in early 2024 to assess the possibility of a large magnetite or sulfide rich mineralized body at depth.

Andrew Thomson, President of Palamina, commented: "We appreciate all the work and effort that Winshear has undertaken in advancing these projects. Regaining ownership of the Gaban and Ica projects, allows Palamina to strengthen its position as one of the most active junior exploration companies in Peru, strengthening our portfolio of precious and base metals projects in one of the world's premier exploration jurisdictions."

The Company is conducting a comprehensive review of the claim blocks for both properties and may choose to drop a portion of the claims that do not align with its exploration objectives. Mr. Thomson has resigned from the board of Winshear Gold. Palamina no longer holds any equity nor has any ongoing relationship with Winshear Gold.

Technical Information

The technical information herein has been reviewed and approved by Alvaro Fernandez-Baca P. Geo.; a Qualified Person as defined by National Instrument 43-101. Mr. Fernandez-Baca is Palamina's Vice President of Exploration.

About Palamina Corp.

Palamina is an exploration company with a land bank of gold projects in the Puno Orogenic Gold Belt in southeastern Peru. Palamina is primarily focused on adding value through drill discovery at its Usicayos gold project. Palamina land bank of copper-silver assets with an "acquire and hold" strategy in southeastern and northeastern Peru. Palamina has 71,634,836 shares outstanding and trades on the TSX Venture Exchange under the symbol PA and on the OTCQB under the symbol PLMNF.

On Behalf of the Board of Directors:

Andrew Thomson, President
Phone: (416) 204-7536 or visit www.palamina.com

Neither the 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.

This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements include, but are not limited to, the Company's future business and exploration plans. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. A more complete discussion of the risks and uncertainties facing the Company appears in the Company's continuous disclosure filings, which are available at www.sedarplus.ca.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254566

FAQ

What drilling results did PLMNF report from the Gaban Gold Project in Peru?

The first-ever drilling program at Gaban returned notable intersections including 4 meters of 5.04 g/t gold and 21 meters of 1.29 g/t gold from the Coritiri zone's southernmost drill holes.

What is the location and status of Palamina's Ica Copper-Gold Project?

The Ica project is located 45 km southeast of Ica city, Peru, covering 2,933 hectares. It's an early-stage exploration target with copper-gold veins and magnetite rich replacement bodies in Jurassic volcanic sequences.

Why did Winshear Gold return the projects to Palamina Corp?

Winshear offered to return 100% ownership of both projects to Palamina on April 11, 2025, though specific reasons were not disclosed in the press release.

What are the surface sampling results from PLMNF's Gaban Gold Project?

Surface samples collected from quartz-rich deformed shear zones at Gaban returned assays of up to 32 g/t gold, with mineralization extending over a 900m by 2,200m area.

What is Palamina's current relationship with Winshear Gold after the project transfer?

Palamina no longer holds any equity or maintains any ongoing relationship with Winshear Gold, and Andrew Thomson has resigned from Winshear's board.