Massive Silver-Gold Deposit Being Reopened in Peru

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Magma Silver Corp. (MGMA:TSXV; MAGMF:OTCQB; FSE:BC21; WKN:A411DV) announced  all obligations under the community access agreement with the Comunidad Campesina De Tunsulla have been fulfilled. The agreement secures continued exploration access to the Jorimina and Randypata deposits, part of the company's Niñobamba Project in Ayacucho, Peru. This development allows Magma to commence its 2025 exploration program on schedule, with the agreement remaining in good standing through the end of the exploration season and into 2026.

The Jorimina and Randypata deposits were the subject of over CA$10 million of extensive historical exploration by Newmont Mining Corp. According to Newmont's internal reports, historical channel samples from the Jorimina deposit include 17.4 meters grading 3.06 grams per tonne (g/t) gold, 60 meters of 0.40 g/t gold, and 200 meters of 0.26 g/t gold. Silver results from the same area include 128 meters grading 1.31 ounces per ton (oz/t), 96 meters of 0.62 oz/t, and 60 meters of 0.82 oz/t.

Newmont also conducted drilling on the property, completing 4,377 meters at Jorimina and 3,504 meters at Randypata. Notable drill results include 150 meters of 0.69 g/t gold in Hole JOR-001, with higher-grade intervals such as 72.3 meters of 1.19 g/t gold and 24.6 meters of 1.07 g/t gold. These results have not yet been verified by Magma's geological team.

Magma's Chairman and CEO, Stephen Barley, emphasized the importance of local partnerships in the exploration process. "A community access agreement is the foundation for all exploration in Peru," Barley stated in a company news release. "We will endeavor to treat the land and local communities with the utmost care and respect at all times."

Silver Market Builds Momentum Amid Price Gains and Strategic Positioning

The silver sector drew increased attention through mid-July as prices reached multi-year highs and strategic developments supported investor interest. According to a July 16 report by Peter Krauth, silver reached a 13-year high of US$38 per ounce, marking a 31% increase year to date. Krauth noted that silver had "been on fire" even as gold remained rangebound since mid-April, highlighting a sharp move following the metal's breakout above US$34. While he flagged technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) as potential signs of short-term pressure, he pointed to sustained demand as a key support.

Krauth referenced data from the Silver Institute showing 95 million ounces of net inflows into silver exchange-traded funds as of June 30, already surpassing 2024 totals. He linked the buying activity to continued geopolitical tensions and economic uncertainty, which have contributed to silver's appeal as a safe-haven asset.

In a July 18 analysis, Morris Hubbartt of Super Force Signals described silver as entering a "blastoff" phase, citing technical chart patterns that indicate a bullish breakout. He placed silver among the top-performing momentum assets based on current market signals.

That same day, Chen Lin of the What's Chen Buying? What's Chen Selling? newsletter addressed silver's strategic value in the global economy. Lin observed that silver appeared poised to break out once again and highlighted reports that Russia's 2026 budget includes silver accumulation. He remarked that if central banks begin adding silver to their reserves, the metal could see significant price movement. While framed as an opinion, his comments reflected growing attention on silver's potential role in sovereign asset strategies.

On July 20, Captain Ewave offered a detailed analysis of silver's price trends using Elliott Wave Theory, which interprets market cycles based on investor behavior. The analysis identified silver as being in a "wave iii" rally, a phase characterized by multiple subwaves and continued upward momentum. Key price targets included US$41.71, US$44.28, and US$48.63, with resistance levels expected along the way. Despite the technical complexity of the model, the outlook indicated strong bullish momentum within the current market structure.

Ongoing Development and Exploration Strategy

Magma Silver's Niñobamba Project covers 4,100 hectares and includes three main mineralized deposits:  Main, Jorimina, and Randypata. Located less than 500 kilometers southeast of Lima and approximately 60 minutes by national highway from the city of Ayacucho, the project benefits from nearby infrastructure, including highways and power lines.

According to the company's July 2025 investor presentation, community consultations and environmental studies have been completed in preparation for drilling at Jorimina during the fourth quarter of 2025. Magma also noted that permitting is in progress for additional drilling at Main North and South.

The company plans to re-drill previously identified mineralized zones first explored by Newmont in 2010 and 2011, with the goalof establishing a National Instrument 43-101 compliant resource estimate. The exploration focus includes both high- and low-sulfidation silver-gold systems, with trenching and drill highlights indicating mineralization at surface and at depth across a trend exceeding 8 kilometers.

Ownership and Share Structure

According to the company, approximately 10.90% of the company is held by insiders and management, 22.90% is held by close associates, and the remaining 66.20% retail and public float. 

Leading shareholders include Michael Townsend with 7.37%, Dave Schmidt with 4.41%, and Cannon Bridge Capital Group with 4.95%, according to Refinitiv. 

Its market cap is CA$5.3million with just under 34 million shares outstanding. It trades in a 52-week range of CA$0.060 and CA$0.255.