Mineros Works Toward a 3rd Producing Country: 6 Steps Across Its Pipeline

Where Mineros' Next Ounces Come From

Mineros S.A. (TSX: MSA | BVC: MINEROS | OTCQX: MNSAF) produces gold in Colombia and Nicaragua and is advancing growth projects in both countries and in Chile. Management is targeting more than 300,000 ounces a year in the short term and 500,000 gold-equivalent ounces by 2030; the 2030 target draws on projects in all 3 countries. Mineros has 6 steps to move from today's 2 producing countries to those targets, and 4 have stated timing: the Hemco plant expansion and the Porvenir construction decision in Nicaragua, the incorporation of Tolima's historical estimate in Colombia, and the La Pepa preliminary economic assessment (PEA) in Chile.

1. A Century-Old Colombian Base Is Targeting 30% to 40% More Production

The Nechí alluvial operation in Colombia has been in production for more than a century and holds approximately 2.2 million ounces in resources against 2026 production guidance of 83,000 to 93,000 ounces. Management is working on a growth plan targeting 30% to 40% more production, similar to what Mineros did in Nicaragua.

About 90% of Colombian costs are denominated in pesos, and management notes that the peso appreciated more than any other currency against the US dollar in the first half of 2026. Recovery gains and cost savings more than offset that pressure. Nechí runs entirely on Mineros' own hydroelectric plants, and it sells surplus power to the grid.

2. Hemco's Plant Expansion Drives the Near-Term Nicaraguan Build

Nicaragua is the larger of the 2 producing operations, and processing capacity has been its main constraint: the operation is producing more mineral than the plant can process, and the excess is building a stockpile. Mineros is adding 40% capacity for about US$25 million, taking the plant from 1,750 tons per day to a target of about 2,500 tons per day by the end of 2026. The plant is stable at 2,100 tons per day while the expansion proceeds, and management describes the project as on track and on budget.

Gold recoveries have risen from about 87% to above 90%. The Bonanza Mining Partnership supplied 83% of Hemco's ore in the first half of 2026, priced at about 45% of the gold price, so costs rise with gold and margins are protected when gold falls. Management sees Hemco heading toward 200,000 ounces and Nicaragua overall toward 300,000 ounces in a couple of years.

3. A Funded Porvenir Build Faces a Construction Decision in Early 2027

Porvenir sits about 14 kilometers southwest of the 2 producing mines, in a district where Mineros already operates. The pre-feasibility study (PFS) shows initial capital of US$206.8 million, an after-tax net present value at a 5% discount rate of US$460 million, an after-tax internal rate of return of 37.9% and a payback of 2.0 years at a gold price of US$3,150 per ounce. Management says the capital is already in treasury, so construction needs no outside financing.

The main permits for the plant, mine and tailings facility are in hand. The remaining permits, for water disposal and forestry, are targeted for the end of 2026, ahead of a construction decision in early 2027. Construction would take about 2 years, with production targeted for 2029, and management cites a 20% contingency on the capital budget.

The Porvenir expansion adds 55,000 to 72,000 gold equivalent ounces to annual production. Satellite targets beyond the current resource envelope are being drilled, and Mineros treats Porvenir as a phase one that can grow beyond its initial scale.

4. La Pepa's PEA Is the Next Step on the Path to Chile

La Pepa, 100%-owned in Chile's Maricunga Gold Belt, hosts 2.5 million ounces of mineral inventory in a district where Kinross, Gold Fields and Rio2 operate. The 2026 work program is US$6.3 million, including a 7,000-meter drilling program, hydrogeology, geomechanics and metallurgy studies, baseline studies and community engagement.

Chief Executive Officer of Mineros, Daniel Henao, described the PEA as the first approach to what the company would like to build in Chile:

"We are already working on a preliminary economic assessment that we expect to release in the first half of next year, and that will be the first approach to what we would love to build here. So hopefully Chile becomes our third producing jurisdiction in the near term."

Management is considering a phased approach similar to the one Rio2 took at Fenix. Phase one targets about 100,000 ounces using heap leach, with oxides making up 20% to 30% of the deposit and the sulfides also leaching well, and management is contemplating carbon-in-leach (CIL) processing for the sulfides in a later phase.

5. Tolima Adds a 2nd Colombian Project With a Smaller, Community-First Concept

Mineros acquired the Cajamarca, Tolima exploration project from AngloGold Ashanti with contingent consideration of up to US$60 million tied to Official Mining Plan tonnage and environmental license milestones. AngloGold Ashanti's December 2024 historical estimate shows 23.35 million ounces measured and indicated at 0.87 grams per tonne and 4.98 million ounces inferred at 0.71 grams per tonne. Mineros has not yet verified the estimate as a current mineral resource, and management is working toward incorporating the resources by the end of 2026, followed by technical studies.

AngloGold Ashanti invested over US$1 billion and pursued a project near 1 million ounces a year. Management says Mineros acquired the asset at a very attractive valuation. It is targeting a much smaller project of perhaps 200,000 ounces a year, with dry stack tailings under review and, because the deposit is mostly sulfides, most likely CIL processing. The inherited data package includes 2 PFS completed by Hatch. Management points to a supportive national government, with officials calling within 10 days of taking office to ask how they could support the project, and describes a 4-year window for development.

Henao outlined the design priorities for the project:

"We're optimizing the asset from a social and environmental point of view and leaving all that growth optionality there."

6. The 2030 Target Draws on All 3 Countries

Management is targeting 30,000 to 40,000 additional ounces from debottlenecking, which brings production toward 300,000 ounces, and the 3 growth opportunities, Porvenir, La Pepa, and Tolima, take it toward 500,000 ounces. Tolima's historical estimate and La Pepa's mineral inventory together total about 30 million ounces without economic studies, and the PEA at La Pepa and the technical studies at Tolima are the first to be added. Management is also evaluating acquisitions of producing assets of 70,000 to 130,000 ounces a year across the Americas, while maintaining dividends and buybacks through any transaction. Mineros has a stated step in each of its 3 countries between the end of 2026 and the first half of 2027, and each step adds production, a permit, or a study result to the 2030 target.

Key Takeaways for Investors

• Mineros produces gold in 2 countries today, and its 500,000 gold equivalent ounce target for 2030 draws on projects in Nicaragua, Chile and Colombia.
• Nicaragua leads the near-term build, with the Hemco plant targeting about 2,500 tons per day by the end of 2026 and the Porvenir construction decision targeted for early 2027, backed by initial capital that management says is already in treasury.
• La Pepa, which hosts 2.5 million ounces of mineral inventory, is targeted for a preliminary economic assessment in the first half of 2027, the step toward a 3rd producing country.
• Management is targeting incorporation of Tolima's 23.35 million-ounce measured and indicated historical estimate by the end of 2026, ahead of technical studies for a project near 200,000 ounces a year.
• Each country has a different cost structure, with about 90% of Colombian costs in pesos and Nicaraguan ore from the Bonanza Mining Partnership priced at about 45% of the gold price.