Magma Silver is “Drill Ready” on a High-Grade Silver Play in Peru
CEO.CA May 1, 2026 6:58
Summary
Magma Silver says it is fully funded for at least 12 months of drilling at Peru's Niñobamba silver-gold project.
Drilling waits on one gate: signed access agreements with two local communities, the last item before rigs turn.
First 2,000 meters re-drill ground Newmont already tested, verifying 65 historic holes to build an independent data set.
A busy assay market means about two months from drilling to results, delaying Magma Silver's first hard news.
Eric Sprott's 13% stake and 4.25 million Canadian dollars in cash let Magma Silver work without returning to market soon.
Key points on Newmont
- The guest says Newmont previously drilled the Arena zone extensively — 65 holes — and that Magma Silver holds Newmont's full results, drill logs and assays for that historical work.
- The guest notes Newmont's earlier spend in the area left usable road access to Arena and that the resource Newmont produced has been described as non-compliant, which the first drilling is meant to clarify.
Eric Sprott's takeaways
- Top takeaway The guest says Eric Sprott's team completed the usual due diligence and concluded Nino Bamba has the potential to become a very good project, which he expects the company to demonstrate over the next 18 months to two years.
- The host states Sprott now holds more than 13% of the company; the guest describes him as an investor in many juniors who is particularly favourable on silver.
Stephen Barley's takeaways
- Top takeaway He argues Magma Silver is drill-ready today — a driller, the equipment and all parties in place, with sufficient funds for the next 12 to 18 months — and that only the community access agreements stand between the company and turning the rig.
- He says two agreements are still outstanding, a renewal with the Tansulia community and a new one with the Chuchi communities, which he expects to be forthcoming but does not yet have in hand, and that both are required before the project can proceed.
- He plans to bring in a bulldozer to clean up access roads on the Arena zone and to use small portable drills for shallow holes, then move to additional Arena drilling once the initial results are in.
- He expects the first assays about two months out and puts the delay on busy laboratories rather than on the drilling itself.
- Over the next 90 days he is most excited about consistent news flow, the start of the drilling program, and new surface work on Nino Bamba Main, which he believes has the potential to be a very large silver-gold deposit.