Igor Project Permitting and Development Update

VANCOUVER - Peruvian Precious Metals Corp. reported on its Igor Project test mining and bulk sampling project in the Department of La Libertad in northern Peru.  Mining partner, Proyectos Patagonia S.A.C. (PLP) has been facilitating the permitting process, which is nearly complete.  The Plan de Minado, the key permit to begin test mining operations at Igor on the Callanquitas structure, has been referred to the Federal Ministry of Energy and Mines (MEM) by the Regional Government Ministry of Energy and Mines in La Libertad (GREMH-LL).  The MEM had observations (comments) on three areas: Expanding the area covered by the CIRA (Certificado de Inexistencia de Restos Arqueología (Certificate of the Non-existence of Archaeological Remains) to a small area north of our Camp.  This process is nearly complete and the updated CIRA will be presented to the MEM in early November; A final approval from the Ministry of Transport and Communications in La Libertad (MTC-LL) will be required for the use of public roads in the area of the project for the transport of personnel, materials and bulks samples; This approval is also expected in early November; Transfer of the Permiso de Aguas (water use permit) to PLP from our wholly owned Peruvian subsidiary, Sienna Minerals S.A.C.  (Sienna). The transfer is in progress and initial activities at the project can begin utilizing Sienna’s existing permit.

Following approval of the Plan de Minado, PLP will be able to receive its Explosives Permit and the Certificate of Mine Operations (COM) and begin initial activities at Callanquitas before the end of Q4 2015, on schedule to begin shipping bulk samples in Q1 2016.

AM Mining S.A.C. (AMM), who have partnered with Peruvian to construct a 350 tpd conventional milling and processing plant at the Igor project, have made significant early progress.  

AMM and its engineering team have finalized the site selection process and have identified a location at the project that has the appropriate topographic and other physical attributes that will facilitate plant construction and operation.

Also, AMM is finalizing a contract with a Lima-based environmental consulting firm to act as the lead for permitting the milling and processing plant at Igor.  Once the contract is signed, a definitive permitting time line will be announced with demonstrable benchmarks.

During a recent site visit, AMM collected additional samples for geochemical characterization of mineralized material that could be processed by the AMM plant.  The samples are intended to provide details on the minor element composition of various rock types found in the project area and to utilize this data for final plant design.

Brian J. Maher, President and CEO of Peruvian said, “The Company is pleased with the progress of the permitting process for test mining and bulk sampling at the Igor Project as well as the rapid progress reported by AMM.  All permitting paradigms require time and patience, but the thorough work done by PLP has facilitated the rapid review completed by the various governmental agencies.  With the Company on track to begin mine construction in Q4 2015, we are on schedule to begin shipping our first bulk samples for test processing at nearby processing facilities in Q1 2016.  Key corporate benchmarks are being met and we look forward to the coming year with optimism and expectation.”