Magma Silver Corp. announced assay results from its Phase 1 work program at the Ninobamba silver-gold project in Peru.

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Magma Silver Corp. (MGMA:TSXV; MAGMF:OTCQB; FSE:BC21; WKN:A411DV) announced assay results from its Phase 1 work program at the Ninobamba silver-gold project in Peru, confirming and in some cases exceeding historical results from prior exploration by Newmont Mining Corp. The program, conducted in Q3 2025, focused on the Jorimina and Randypata concessions, part of the 4,100-hectare Ninobamba project wholly controlled by Magma.

The 10-day field campaign involved the collection of 75 samples, analyzed via fire assay at an independent lab in Huancayo, with quality control measures including reassay of every 10th sample at a second lab in Lima. Results from the Jorimina Central zone, where geophysical and alteration signatures are strongest, included 50 samples averaging 0.181 grams per metric ton (g/mt) gold and 0.227 ounces per metric ton (oz/mt) silver. One standout sample returned 1.0 g/mt gold.

Additional highlights included sampling from four historical mine workings north of Jorimina Central. Five samples from this area averaged 5.32 g/mt gold and 4.812 oz/mt silver, with individual results as high as 14.56 g/mt gold and 10.594 oz/mt silver. In the Rafaela area, sample SA-067 returned 0.4 g/mt gold and 7.0 oz/mt silver. These results reaffirm the mineralization previously reported by Newmont, which had invested C$10 million in exploration between 2009 and 2012, including over 7,800 meters of diamond drilling and extensive sampling.

Stephen Barley, Chairman and CEO of Magma Silver, noted that the Phase 1 program was designed to verify historical data and aid drill targeting. "The phase 1 results have confirmed the accuracy of the historical Newmont results and, in some instances, have exceeded the earlier results," Barley stated. The company also reported that Phase 2 fieldwork has begun, with results expected in the coming weeks.

Historical reports from Newmont included notable drill intercepts, such as 72.3 meters at 1.19 g/mt gold and 24.6 meters at 1.07 g/mt gold in hole JM1. While Magma does not treat Newmont's internal evaluations as current mineral resource estimates, they provide context for ongoing exploration planning.

Silver Faces Tight Supply and Rising Industrial Demand

On September 13, GoldFix reported findings from a Ghent University and Engie Laborelec study warning that silver demand from the solar industry could consume up to 14,000 tonnes per year by 2030, or roughly 40% of projected global supply. Lead researcher Vittoria Cattaneo stated, “It quantifies the scale of the challenge and shows that it is an issue the industry will have to address without delay.” The study modeled PV manufacturing growth from 500 GW in 2023 to as much as 1.3 TW annually by 2030, highlighting potential structural pressure on future silver availability.

According to the 2024 World Silver Survey cited by Ahead of the Herd on September 15, global silver mine production declined by 1% year over year in 2023, reaching 830.5 million ounces. This reduction was attributed to disruptions such as the four-month suspension of operations at a major mine in Mexico and reduced output in Argentina due to lower ore grades and mine closures. Even with recycling included, total supply reached only 1.01 billion ounces, while global demand climbed to 1.195 billion ounces—resulting in a supply shortfall of 185 million ounces. When excluding the 178.6 million ounces from recycling, the deficit widened to 363.6 million ounces. AOTH described this as a clear signal that “mined silver supply…was unable to meet total demand.”

The article also cited how FX Empire reported in mid-September that silver climbed close to US$42 per ounce, reaching its highest level since 2011. The publication noted that softening labor market conditions and expectations of a rate cut by the U.S. Federal Reserve had reinforced investor interest in silver. The report stated that “every indicator we track is flashing green,” citing accelerating ETF inflows, physical demand, and tightening market conditions as contributing factors.

On September 16, Reuters reported that silver hit its highest level since 2011, trading at US$42.64 per ounce. The surge came amid heightened safe-haven demand, central bank buying, and a weakening U.S. dollar. The report noted that bullion had “surged about 41% since the start of the year,” and that silver’s rally reflected broader investor concerns around global growth and interest rate policies.

Drilling Into Opportunity: Q4 and Beyond at Ninobamba

Magma Silver is preparing to advance exploration at Ninobamba with several near-term milestones. According to the company’s development timeline, a drill program is scheduled to commence in Q4 2025 targeting the Jorimina area. This follows the completion of community consultation and environmental studies, which were finalized ahead of the Phase 1 and 2 programs.

Permitting is underway for 20 drill platforms across the Jorimina and Randypata concessions, with a separate permitting track in progress for the Main Zone. In Q1 2026, Magma anticipates expanding geological mapping and trenching at the Main area while applying for drill permits there. Subject to regulatory approvals, a broader 20-platform drill program could begin across the project footprint in the first half of 2026.

The Ninobamba project spans an 8-kilometer mineralized corridor within Peru’s Ayacucho region, a mining-friendly jurisdiction with developed infrastructure. Historical work across the project includes more than C$14.5 million in exploration spending by previous operators, including Newmont, Bear Creek, AngloGold, and Rio Silver.

Magma has reported widespread high- and low-sulfidation epithermal mineralization at Ninobamba, with targets open in multiple directions. The company intends to use modern geological modeling to validate past work and potentially define a compliant mineral resource in future campaigns.

Ownership and Share Structure

According to the company, ownership breaks down this way: private individuals own 19%, management owns 16%, funds own 12%, and the rest is retail.

The company has a market cap of CA$14.12 million and a 52-week range of CA$0.07–CA$0.38 per share.