Karbonate Minerals Corp. Completes Second Feasibility at Ayacucho Project in Peru

Karbonate Minerals Corp.'s Ayacucho gold and silver exploration project in Peru, KMC-PER-04, has completed its second feasibility study in the Zenith Zone. The grades from this study are expected to be similar to the first study conducted in late 2021. Once determined, the company will apply for mining permissions, which have already been granted in principle. This project will expand Karbonate Minerals Corp.'s portfolio to 22 working projects worldwide.

The first feasibility study projected a mine life of seven to nine years, and this second study is expected to extend it by another 3 to 4 years. The Zenith Zone involves building a mill at the existing mine site to process both existing heap leach material and ore from open pits.

The initial feasibility study estimated an average annual production of up to 3,000 ounces of gold in Phase 1 (years one to four) and up to 4,500 ounces of gold in Phase 2 (years five to eleven), based on a base case price of $1,500 per ounce. The total deposit value was estimated at over $11 million, rising to nearly $15 million at a gold price of $1,900 per ounce. Production costs are projected to be $900 per ounce during Phase 1 and $860 per ounce during Phase 2.

Simon Ogilvy, Production Director at Karbonate Minerals Corp., stated that the necessary permits are already in hand to begin the first phase of production, and they expect to have all the required equipment in place within three months once the decision is made to start. The company also revealed provisional permits for expanding the Ayacucho project by an additional 70 square kilometers, which they will pursue after completing all feasibility studies.

Furthermore, Karbonate Minerals Corp. plans to increase their ownership of the KMC-PER-02 site in Puno, Peru, which has been under their full ownership since 2015.