Announcement • Jul 04
Palamina Magnetic + Gravity Surveys Identifies Near Surface Drill Targets At the Galena Silver Copper Project
Palamina Corp. holds a 100% interest in its Canadian subsidiary, Colt Silver Corp. ("Colt") whereby Colt, through its Peruvian subsidiary, holds a 100% interest in the Galena silver copper project. Palamina is seeking shareholder approval at its 2026 annual and special meeting to spin out Colt Silver Corp. as a standalone public company. Colt Silver Corp. completed ground magnetic and gravity surveys at its Galena silver copper project located in the Santa Lucia mining district in Puno, southeastern Peru. A total of 112.53 line-kilometres of magnetic data and 1,119 gravimetric readings were collected across the Rosa, Gris and Azul zones. The historic Santa Rosa mine is located in the Rosa Zone while the historic Chaparro & Gaspar galena mines are situated in the Gris Zone. Results from Colt's ground magnetic and gravity surveys indicate that the Ayabacas Formation (blue), which hosts carbonate replacement mineralization in the Santa Lucia district, may lie close to surface within uplifted fault blocks. The bounding structures of these fault blocks represent attractive exploration drill targets, as do the intersections of northeast trending mineralized structures at the historic Santa Rosa, Gaspar and Chaparro mines. The gravity survey map suggests northwest trending block faulting where the less dense limestone of the Ayabacas Formation (blue) occurs in uplifted fault blocks. The limestone itself is a favorable host rock for CRD deposits, and the bounding faults may act as conduits for hydrothermal fluids. The magnetic map shows a persistent northeast trend, which parallels mapped mineralized structures in the Rosa, Gris, Verde and Azul zones. The mineralized structures in the Santa Rosa mine area follows the same northeast trend as the mineralized structures in the Gaspar and Chaparro mines. In the Gris Zone, there are two mineralized areas containing anomalous values of silver, lead, and copper that reflect both trends. The northwestern anomaly is estimated to be 750 meters by 500 meters, and the southeastern anomaly is estimated to be 600 meters by 500 meters. Mineralization exposed in and around small, historical mines consists largely of breccia containing argentiferous galena along with secondary copper, iron, and manganese minerals, hosted predominantly within a gangue of calcite. Veins in the mines strike to the northeast at 040o to 045o. Veins in the historical Santa Rosa mine within the Rosa Zone are also northeast trending. Notably, the magnetic low, which reflects the uplifted limestone shown in the gravity survey, shifts to the northeast at both ends of the northwest-trending magnetic low to parallel the mineralized structures. These structures appear to be an important local control on mineralization. Areas of interest identified from these surveys are currently being examined in the field, while the geophysical data are being further processed and integrated with other datasets, such as soil and rock sampling and geological mapping, to improve data interpretation. At Galena, a sequence of intermediate volcanic rocks of the Oligocene Tacaza Group overlies carbonate units of the Cretaceous Ayabacas Formation. These units generally strike northwest and dip moderately to the southwest. Although intrusive rocks have limited surface exposure on the property, subvolcanic stocks of diorite and porphyritic andesite are exposed along the margins of the Lagunillas structural trough, within which the property is located. Galena's geological setting suggests potential for Cordilleran polymetallic vein and exotic copper mineralization within the Tacaza Group, as well as carbonate replacement deposit (CRD) mineralization at depth within the Ayabacas Formation. Examples of these mineralization styles in the region include the exotic copper mineralization at the Tacaza Mine, located north of the property, and the CRD mineralization being developed at the Berenguela Ag-Cu-Zn-Mn project, northeast of the property. The objectives of this geophysical program were to identify structures favorable for mineralization and to detect concealed or poorly exposed intrusive bodies that may be associated with the target mineralization styles. The program significantly improved the understanding of structural controls at Galena; however, no clear intrusive centers were identified. In the second quarter of 2026, Palamina completed its first soil sampling of the area between the Santa Rosa and Azul zones with more than 800 samples collected. Samples were prepared by the commercial laboratory Certimin S.A., and pulps were analyzed using a portable X-ray fluorescence analyzer. Data are being compiled and analyzed at the time of this release. Drill permitting is well underway where drilling is expected to commence in early fall 2026 to test the best targets generated from these programs. The technical information herein has been reviewed and approved by Steve Preismeyer, C.P.G., a Qualified Person as defined by National Instrument 43-101. Mr. Preismeyer acts as a consultant to Palamina. The geophysical program was conducted by Deep Sounding E.I.R.L., based in Lima, Peru and was supported locally by Colt Silver personnel.
