Magma Silver Corp. (MGMA:TSXV; MAGMF:OTCQB; FSE:BC21; WKN:A411DV) has announced the addition of key personnel and the establishment of a new Peruvian subsidiary to support its upcoming drill program at the Jorimina and Randypata advanced silver-gold deposits , part of the company’s Niñobamba Project in south-central Peru. The drill program is scheduled for the fourth  quarter of 2025  

The company confirmed that it has formed a local team in Peru, supported by the newly incorporated “Minas Sami Plata S.A.C.,” which translates to “Lucky Silver Mines” in the Quechua language, native to the Ayacucho region. “Magma has established an experienced operating team in Peru,” said Stephen Barley, Chairman and CEO, in the news release. “We have successfully created the team in record time, thanks to the guidance of Jeffrey Reeder, our Senior Technical Advisor, and his extensive experience in mining operations in Peru, spanning over 30 years,” Barley added. 

Environmental baseline studies and community engagement are being carried out by Ecosoul Environmental Impact Consultants, a firm based in Ayacucho. Ecosoul is also involved in the company’s ongoing drilling permit application for the Jorimina target. The scope of work includes archaeological assessments, citizen participation monitoring, and collaboration with local ministries. The firm previously supported Rio Silver in reaching a community access agreement for the same region, which allowed exploration to move forward.

The Q4 drill program will be managed by Edgar Leon Choque, a Senior Geological Engineer with over 30 years of experience in Peru and Brazil. Mr. Choque has led programs at notable projects such as the Rio Blanco and Aguila copper-molybdenum projects and the Zafranal copper project in Peru.

Silver Sector Sees Historic Surge Amid Shifting Economic Forces

The silver market experienced a substantial upswing during the first half of July, driven by a combination of geopolitical uncertainty, shifting monetary policy expectations, and strong industrial demand. On July 14, Michael Ballanger of GGM Advisory Inc. described silver’s sudden rise past the US$35–36 resistance range as a “bold statement,” noting it closed at US$39.08 after a single-day gain of nearly 5%. Ballanger attributed the rally to short-covering activity and increased participation from retail investors, stating that “‘FOMO’ has finally arrived in the silver arena.”

Despite the potential for near-term pullbacks, structural factors continued to support demand for physical silver. According to a July 15 commentary by Jesse Colombo on Kitco, “Silver has decisively broken through these critical levels,” referencing the US$32 to US$35 resistance range. Colombo highlighted the breakout as a significant technical milestone, marking what he described as the official start of a new bull market for silver.

Colombo also pointed to substantial investment inflows, reporting that “as of June 30, silver ETFs have seen net inflows of 95Moz, surpassing the total for all of 2024.” The Silver Institute, cited by Krauth, attributed the price strength in part to geopolitical tensions and economic uncertainty, which have historically driven demand for precious metals.

On the supply side, structural deficits remained a concern. Colombo wrote that “over the past five years, silver demand has consistently exceeded supply,” estimating a shortfall of 117.6 million ounces in 2025 alone. He noted that solar energy applications were a major contributor to this surge in demand, with photovoltaic silver use rising sharply.

The macroeconomic environment has also played a role. Krauth noted that higher inflation figures in June, with a Consumer Price Index of 2.7% and a Core CPI of 2.9%, may cause the Federal Reserve to maintain current interest rates. This stance could temporarily affect safe-haven demand for metals like silver, although underlying demand fundamentals remain intact.

Peter Krauth echoed this momentum in a July 16 market update, writing, “Once silver was able to break through the US$34 ceiling, it was a rapid jump to the $36 level, and in the last few days it has rallied another US$2 to the US$38 level.” He added that silver was up 31% year-to-date. However, Krauth also observed that technical momentum indicators had begun to diverge, suggesting the market could be entering a consolidation phase following this rally.

Path Forward at Niñobamba

Magma Silver’s operational momentum is anchored by the Niñobamba Project, which spans 4,100 hectares in the Ayacucho region and includes three mineralized deposits  : Niñobamba Main, Randypata, and Jorimina. According to the company’s July 2025 investor presentation, over CA$14.5 million has been invested in historical exploration at the project to date.

The company is advancing permitting for multiple zones across the project area. Environmental and community consultation milestones have been completed for the Jorimina and Randypata depositsdeposits , allowing for the Q4 drill program to proceed. The company also plans to re-drill previous mineralized zones first explored by Newmont in 2012, with the goal of establishing a resource compliant with Canadian National Instrument 43-101 (NI 43-101). The Niñobamba Project is situated in a region recognized for its high-sulfidation epithermal systems and hosts gold and silver mineralization across an 8-kilometer mineralized corridor. Previous drilling by companies including Newmont, Bear Creek, and AngloGold yielded notable intercepts, such as 72.3 meters of 1.19 grams per tonne (g/t) gold and 24.6 meters of 1.07 g/t gold at the JM1 drill hole. 

Magma Silver holds an option to acquire 100% of the Niñobamba Project and continues to develop the site with a focus on systematic exploration and compliance with local regulations. 

Ownership and Share Structure

According to the company, approximately 10.90% of the company is held by insiders and management, 22.90% is held by close associates, and the remaining 66.20% retail and public float. 

Leading shareholders include Michael Townsend with 7.37%, Dave Schmidt with 4.41%, and Cannon Bridge Capital Group with 4.95%, according to Refinitiv. 

Its market cap is CA$4.9million with 34 million shares outstanding. It trades in a 52-week range of CA$0.060 and CA$0.255.