- Titiminas Silver is restarting the Madre Sierra mine in central Peru, a past-producing high-grade polymetallic deposit with a 1.2 million ton historical resource averaging 4-5 oz/t silver, targeting maiden resource estimate within 12 months and FID by Q3/Q4 2027
- Social license secured through 2032 (recently extended from 2-year to 6-year terms), existing 350 tpd mining permit in hand, 45 minutes from regional airport, 10 minutes from paved highway, electrical substation 14km away
- Only 3 of 6 identified veins historically developed across 300m of a 2.2km strike length, presenting multiple-fold growth opportunity from the ~20 million oz silver equivalent historical resource
- Phase 1 capex estimated at $35-45M for 350 tpd operation producing ~1.2M oz silver annually, with planned expansion to 800-1,200 tpd for 2.7-3.5M oz/year production
- CEO Luis Goyzueta’s 14 years in Peruvian mining private equity provides proprietary deal flow, targeting 10M oz/year silver production through acquisitions of similar Central Peru assets, plus high-grade molybdenum discovery (0.7-1.2% Mo) on northern property
Titiminas Silver represents a new entrant to the public markets with an unconventional value proposition of fast-tracking a past-producing high-grade polymetallic mine to production rather than pursuing traditional grassroots exploration. Chairman and CEO Luis Goyzueta brings three decades of Peruvian mining experience, including building and operating mines, running mining services companies, and most recently spending 14 years (2009-2023) in private equity investing in Peruvian mining projects.
This experience exposed him to virtually every significant project in Peru over the past decade and established relationships with private project owners and families controlling assets that have never entered public markets – relationships that form the foundation of the company’s M&A-driven growth strategy.
The Madre Sierra Asset: Historical Context and Current Status
The company’s flagship Madre Sierra project in central Peru operated until approximately 2008, with pilot programs conducted in 2019-2021 involving small-scale ore trucking to nearby processing facilities for metallurgical testing. The asset features a 1.2 million ton historical resource with compelling grades of 4-5 ounces per ton silver, approximately 0.8% copper, 0.8-1 gram per ton gold, plus 3% zinc and 3% lead.
This polymetallic profile delivers balanced revenue streams, with silver representing approximately 50% of revenue at October 2025 pricing, copper and gold each contributing 14-15%, and lead-zinc comprising the remainder. The historical resource contains just under 20 million ounces of silver equivalent. Critically, extensive historical work exists including geomechanical studies, ventilation engineering, equipment selection, and even site selection for plant and tailings facilities – all completed approximately 22 years ago.
Infrastructure Advantages and Social License
Infrastructure accessibility represents a significant de-risking factor. The project sits 45 minutes from the nearest regional airport (with three daily flights) and 10 minutes from a brand new paved highway. An electrical substation with available capacity is located 14 kilometers away in a straight line.
The social license component deserves particular attention. The company’s vendor negotiated a community agreement in 2019 with self-renewing two-year terms. Recently, the company announced an extension to a six-year agreement running through 2032. Goyzueta noted he had previously worked on another project approximately 10 kilometers south involving the same community, providing pre-existing relationships with community leaders. The agreement allows the company to pursue any activities legally permitted under Peruvian mining code, including mine construction, processing plant development, tailings facility construction, and all supporting infrastructure – all at “very low cost” according to management.
Development Timeline and Parallel Workstreams
The company is executing multiple parallel workstreams to compress development timelines. Drilling is scheduled to commence in the next months from underground positions across three veins on two different levels. The program will re-drill the historical resource while also conducting surface step-out drilling for expansion.
Simultaneously, metallurgical composites from different zones are currently being tested at a well-respected Lima laboratory, with additional composites scheduled for delivery in coming weeks. By August, management expects to define the metallurgical flowsheet and initiate plant design. Geomechanical work begins later this year to establish rock mass ratings for mine planning. Electrical connectivity studies commence in Q4 2026.
The aggressive timeline targets a maiden resource estimate approximately one year from drilling commencement, followed by a Preliminary Economic Assessment (PEA). Notably, the company plans to make its Final Investment Decision (FID) in Q3 or Q4 2027 based on the PEA rather than proceeding through traditional Prefeasibility and Feasibility studies, the same path successfully demonstrated by Silver Mountain Resources, a comparable Peruvian silver restart project that Goyzueta cites as both competitor and collaborator.
Interview with Luis Goyzueta, Chairman & CEO of Titiminas Silver
Expansion Potential
Perhaps the most compelling exploration upside emerged after the company closed a C$3 million private placement and began detailed on-site investigation. Historical work focused exclusively on three veins across a 300-meter strike length. The company confirmed additional veins existed based on historical documents. Upon mobilising teams to site and conducting detailed examination, geologists identified further veins, bringing the total to six across a 2.2-kilometer strike system.
Goyzueta emphasised the significance:
“The strike length of that system is 2.2 km and all the historical work was done in 300 m. So, the chances of this growing a few orders of magnitude are there.”
Artisanal workings with economic grades exist along the entire 2.2-kilometer strike, providing geological evidence supporting expansion potential.
The Molybdenum Discovery
The northern portion of the company’s 7,400-hectare property holds an unexpected asset: a past-producing molybdenum mine that operated from the late 1890s through the early 1950s. Historical documents show the operation shipped molybdenum concentrate to both the Allies and Axis powers at different periods during World War II – selling to Japan and Axis forces in the early 1930s, then to the U.S. and Allies during the war itself.
A December 1940 document references grades between 0.7-1.2% molybdenum which is potentially among the highest-grade molybdenum assets globally if confirmed. A 1970s university thesis mentions rhenium presence as well. The company recently secured community agreement for the northern property area and plans an initial sampling program to understand the asset, with a decision on spin-out, joint venture, or strategic partnership expected later this year. Historical reports mention 10-40 veins, some up to 5 meters wide, indicating substantial scale.
Phased Production Strategy and Capital Requirements
Phase 1 targets 350 tons per day production under the company’s existing small mining producer permit capable of generating approximately 1.2 million ounces of silver annually at historical grades. Operating costs for mines of this scale in Peru typically range from $100-130 per ton once infrastructure is established.
Capital expenditure for Phase 1 is estimated at $35-45 million, covering underground mine development, a processing plant, tailings facility, and supporting infrastructure. Management characterises this as “highly financeable” and plans a mixed financing approach: equity raise, offtake financing with a trading company, and royalty or stream financing on a portion of revenue (potentially copper, silver, or gold).
Phase 2 contemplates permit amendment to expand throughput to 800-1,200 tons per day, enabling production of up to 3.5 million ounces annually with lower cutoff grades as infrastructure is already in place. This modular expansion approach minimises initial capital while positioning for growth as resource confidence increases.
Long-Term Vision: The 10 Million Ounce Platform
Goyzueta’s ultimate objective extends beyond Madre Sierra. His private equity background and extensive Peruvian relationships provide access to what he describes as “proprietary deal flow”, projects that have never entered public markets and are controlled by families and private owners. The company expects M&A activity within 6-12 months to acquire assets meeting specific criteria: Central Peru location (easier social license), high-grade deposits, permits obtainable at small scale with expansion capability, and production potential of 2.5-3.5 million ounces annually.
The stated goal: build a 10 million ounce per year silver producer through strategic acquisitions following the Madre Sierra development template. As Goyzueta stated:
“My goal for Titiminas is get similar assets to Madre Sierra, assets that could deliver between 2.5 to 3.5 million ounces a year. Our plan is to become a 10 million ounces per year producer and I already know the assets.”
The Investment Thesis for Titiminas Silver
- De-risked restart versus exploration risk: Past-producing asset with 1.2M ton historical resource, extensive historical data including geomechanical work, metallurgical testing, and infrastructure studies eliminates discovery risk inherent in grassroots exploration
- Permits and social license in hand: Existing 350 tpd mining permit, community agreement through 2032 (recently extended to 6-year terms from 2-year), eliminates major permitting uncertainty that plagues Peruvian projects
- Superior infrastructure access: 45 minutes from regional airport, 10 minutes from paved highway, 14km from electrical substation with capacity – minimises logistics costs and infrastructure capital requirements
- Compelling economics at modest scale: $35-45M capex for Phase 1 producing 1.2M oz Ag annually, operating costs $100-130/ton, highly financeable through equity/offtake/royalty mix without massive dilution
- Significant organic growth potential: Only 3 of 6 veins developed, only 300m of 2.2km strike drilled historically, artisanal workings with economic grades along entire strike suggest multiple-fold resource expansion from ~20M oz Ag equivalent base
- Near-term catalysts and compressed timeline: Drilling commences in ~6 weeks, maiden resource in ~12 months, PEA and FID by Q3/Q4 2027, construction decision within 18 months – rapid pathway to cash flow generation
- Balanced polymetallic revenue: 50% silver, 14-15% each copper and gold, remainder zinc-lead provides commodity diversification and cash flow stability versus single-metal exposure
- Proven comparable model: Silver Mountain Resources successfully executing identical strategy (PEA-based FID for past-producing silver mine restart) 2 years ahead, validating development pathway and de-risking execution
- High-grade molybdenum optionality: Northern property contains past-producing Mo mine with historical grades 0.7-1.2% (potentially world-class), 10-40 veins identified, potential for spin-out/JV/strategic partnership creating additional shareholder value
- Favourable jurisdiction within Peru: Central Peru location where social license fairly easier to obtain as per management versus other regions, reduces community relations risk while maintaining attractive mining terms
- Scalable Phase 2 expansion: Existing permit amendment pathway to 800-1,200 tpd for 2.7-3.5M oz/year production with minimal additional infrastructure, lower cutoff grades improve economics once fixed costs absorbed
Macro Thematic Analysis
Titiminas Silver emerges at an inflection point for silver fundamentals, where industrial demand from solar, electronics, and electrification intersects with traditional monetary demand. Central Peru’s prolific polymetallic belt offers high-grade, infrastructure-proximate deposits with an established mining culture, contrasting favorably against permitting challenges in other jurisdictions. The company’s fast-track restart strategy bypasses the multi-year exploration-to-development cycle plaguing traditional juniors, potentially delivering cash flow while peers remain pre-revenue.
Management’s modular approach of 350 tpd initially expanding to 1,200 tpd mirrors successful mid-tier builders who scaled organically before M&A consolidation. The pivot from private equity to operator positions Goyzueta to acquire distressed or family-held assets unavailable to public markets.
TL;DR: Executive Summary
Titiminas Silver is fast-tracking the Madre Sierra high-grade polymetallic restart in central Peru, targeting FID by Q3/Q4 2027 based on a PEA for a 350 tpd operation producing 1.2M oz silver annually at $35-45M capex. The company holds permits and social license through 2032 for a past-producing mine with a 1.2M ton historical resource (4-5 oz/t Ag, 0.8% Cu, 0.8-1 g/t Au) that only developed 3 of 6 veins across 300m of a 2.2km strike, presenting significant expansion potential from the ~20M oz Ag equivalent base. CEO Luis Goyzueta’s 14 years in Peruvian mining private equity provides proprietary M&A deal flow targeting 10M oz/year production through acquisition of similar Central Peru assets unavailable in public markets.