Huancavelica, Peru – Silver X Mining has officially cemented its complete ownership of the Ccasahuasi gold project in Huancavelica, central Peru, a strategic move poised to enhance its regional operational footprint. The company announced the acquisition of the Lily 19 mining concession, a pivotal component within the Ccasahuasi project situated in the Nueva Recuperada district. This transaction, executed with Barrick Mining, signifies not only a consolidation of tenure but also a low-cost entry point into a promising gold system adjacent to Silver X’s existing producing assets.

The acquisition involved a structured agreement where Silver X Mining compensated Barrick Mining with staged cash payments totaling $30,000 (C$41,723). In addition to the direct purchase, the agreement includes a Net Smelter Return (NSR) royalty, which comes with a partial buyback provision. This type of royalty structure is common in the mining industry, allowing the previous owner to retain a future interest in production while providing the buyer with operational control and certainty over the asset.

Resource Definition and Project Overview

The Ccasahuasi project holds an inferred mineral resource estimated at 1,405,587 tonnes, grading an average of 0.936 grams per tonne (g/t) gold. This equates to a total of 42,303 ounces of gold, as detailed in Silver X’s NI 43-101 preliminary economic assessment for the Nueva Recuperada Project, with an effective date of May 31, 2025. Such an assessment is a critical benchmark in the mining industry, providing a standardized, publicly verifiable estimate of mineral resources and reserves, which is essential for investor confidence and regulatory compliance.

The inferred resource was principally defined through an initial, relatively limited diamond drilling campaign totaling 903.5 meters across four holes. Notably, three of these holes yielded significant gold intercepts, exceeding 26 meters in length with grades surpassing 0.7 g/t. A key aspect highlighted by Silver X is that this mineralisation remains largely untested at depth and along strike, indicating substantial potential for resource expansion through subsequent exploration efforts.

Geographically, the Ccasahuasi project area extends over approximately 1,350 hectares (ha), with a core exploration zone of about 160 ha that has been the focus of geological mapping and surface sampling since 2021, yielding over 1,200 samples. The project’s close proximity—approximately one kilometer—to Silver X’s operational Tangana mine represents a significant strategic advantage, potentially offering pathways for future production synergies and cost efficiencies.

Strategic Imperatives and Operational Synergies

For Silver X Mining, the full ownership of Ccasahuasi transcends the initial inferred resource figures. Speaking on the transaction, Silver X CEO José M. Garcia articulated the broader implications: “This transaction is not only about the current inferred mineral resource at Ccasahuasi. It is about securing control over a gold system that sits immediately beside our producing mine, was defined with limited drilling and remains open in directions that warrant additional exploration.”

This statement underscores a core strategy in mining: consolidating assets in proximity to existing infrastructure. If further drilling confirms the extension of the mineralised system towards Tangana, any additional gold production from Ccasahuasi could potentially be processed through Tangana’s established infrastructure. This could lead to substantial cost savings by leveraging existing processing plants, tailing facilities, and skilled labor, thereby enhancing the economic viability of future Ccasahuasi production without the need for extensive new capital expenditure for standalone processing facilities. Such a scenario would, of course, be contingent on thorough evaluations and detailed capital planning.

The decision by Barrick Mining, a global gold mining major, to divest a smaller, early-stage project like Ccasahuasi is consistent with the strategic focus of large-cap miners, who often streamline their portfolios to concentrate on larger, higher-grade assets that can significantly move their production needle. For Barrick, a $30,000 transaction for an inferred resource of this size is likely a non-core asset disposition. For Silver X, a junior or mid-tier producer, such an acquisition represents a high-upside opportunity to expand its resource base within its operational sphere for a modest capital outlay.

Geological Characteristics and Promising Drill Results

The gold mineralisation at Ccasahuasi is primarily hosted within andesitic volcanic rocks that are intimately associated with diorite intrusions. The gold is predominantly found within arsenopyrite in hydrothermal breccias and the surrounding altered host rocks, a geological setting often indicative of significant mineral deposits. This geological context provides a fertile ground for further exploration.

The 2023 drilling campaign at Ccasahuasi, despite its limited scope, delivered several compelling intersections that underscore the project's potential. Key highlights from this campaign include:

  • Hole DDH-CSH-2023-003: Intersected 9 meters (m) grading 0.97 g/t gold and 23.50 g/t silver.
  • Hole DDH-CSH-2023-001: Revealed a robust 40 m interval grading 0.88 g/t gold and 13.96 g/t silver.
  • Hole DDH-CSH-2023-002: Returned 2 m grading 0.72 g/t gold and 16.93 g/t silver.
  • Hole DDH-CSH-2023-004: Identified two distinct mineralized zones, measuring 30 m at 1.06 g/t gold and an additional 6.95 m at 0.46 g/t gold.

These results, particularly the extended intercepts at economic grades, are highly encouraging for an inferred resource and strongly support the rationale for further, more extensive exploration drilling. The presence of silver alongside gold also adds a valuable polymetallic component to the potential future economics of the project.

Future Outlook and Exploration Potential

Building on these promising early results and the strategic acquisition, Silver X Mining has outlined a conceptual follow-up drill program. This program is envisioned to encompass 5,320 meters of drilling, specifically targeting the south-western extension of the interpreted mineralised body and assessing its down-dip continuity. These are crucial steps to upgrade the confidence level of the resource from inferred to indicated or measured categories, which are necessary for feasibility studies and eventual mine planning.

It is important to note that, as of the latest update, this conceptual drill program has not yet received official approval, nor have a definitive budget or schedule been established. Such a process typically involves detailed planning, permitting, and securing financial resources, reflecting the iterative nature of mineral exploration and development.

Beyond the immediate focus on Ccasahuasi, Silver X Mining has identified additional gold exploration potential within the broader district. The Carboncuyocc target area, for instance, exhibits advanced argillic alteration according to Silver X’s internal analysis. Advanced argillic alteration is a geological indicator often associated with significant hydrothermal systems that can host epithermal or porphyry-style gold deposits. However, insufficient exploration has been completed at Carboncuyocc to define a mineral resource at this stage, indicating it as a longer-term exploration target that could unlock further value within the company’s consolidated land package.

The full ownership of Ccasahuasi positions Silver X Mining for potential organic growth by expanding its resource base and leveraging existing operational infrastructure in a geopolitically stable and mining-friendly jurisdiction like Peru. This acquisition, though modest in initial cost, represents a calculated bet on the largely untapped potential of a gold system that could significantly contribute to the company's future production profile and strengthen its position in the region's dynamic precious metals sector.