Palamina Corp: Gold Explorer Advances Peru Projects After Encouraging Results

• Palamina Corp is a junior mining company focused on making a major gold discovery in the under-explored Puno Orogenic Belt of southeastern Peru
• The company has completed a 2,300m drill program on its Usicayos project, identifying a new high-grade gold zone that will be followed up with additional drilling in 2025 to define a resource
• Palamina controls a large land package with seven gold and copper-silver exploration projects in the prospective Puno Belt, which is seeing increasing interest from major mining companies
• The company is considering spinning out its copper-silver assets into a separate vehicle to realize additional value
• Upcoming catalysts include drill results from Palamina's Usicayos project and its 15.4% owned Gaban project, being advanced by Winshear Gold, as well as potential copper-silver discoveries by other companies in the district

Palamina Corp (TSXV:PA) is a Canadian junior miner strategically focused on Peru. They have a highly experienced management team, a portfolio of highly prospective assets, and exposure to both gold and copper-silver.

Peru: A Mining-Friendly Jurisdiction

Palamina's primary operations are based in Peru, one of the world's top mining jurisdictions. Despite recent political changes, Peru remains supportive of mining, with several major gold and base metal miners thriving in the country. As Palamina's President Andrew Thompson explains,

For somebody like us, my business plan is to create or find a big deposit and sell it. From that perspective, Peru is a great place to be.

While permitting timelines can be lengthy, Peru has made significant strides in streamlining the process...everything can be done online and it's paperless. With no national elections until 2026, Palamina benefits from a stable operating environment conducive to advancing its projects.

Flagship Usicayos Gold Project Delivers High-Grade Results

Palamina's flagship asset is the Usicayos gold project in the Puno region of southeastern Peru. The company recently completed a 2,300m drill program at Usicayos, with encouraging high-grade intercepts including 24 g/t gold. Thompson is confident in the project's potential, stating

We want to follow up by adding drills and drilling off a big resource.

Usicayos lies within the Puno Orogenic Belt, a region that has seen minimal exploration but hosts several multi-million ounce gold deposits. Palamina has secured a dominant land position in the belt, providing a pipeline of future targets. With a new road in place, Palamina is hoping to reduce drilling costs to $300/m, well below the $600/m average in Nevada. This cost advantage should enable Palamina to rapidly build ounces and enhance project economics.

Copper-Silver Provides Additional Upside

In addition to its gold assets, Palamina offers exposure to copper-silver through a portfolio of projects being transferred into a 100% owned subsidiary. This structure provides flexibility to independently finance the copper-silver assets and crystallize further value for shareholders.

The crown jewel is the Pluma project, acquired from Aurania Resources in Sep 2024. Located along trend from sedimentary hosted copper-silver deposits being drilled by Hannan Metals, Pluma provides significant upside potential with minimal cost. As Thompson notes, "If Hannan hits, it'll justify our market cap."

Palamina also holds a strategic land position in the Santa Lucia district, near the major Berenguela copper-silver project recently acquired by Aftermath Silver in a $10M financing backed by Eric Sprott. With several other major miners active in the region, Palamina is well-positioned to benefit from growing interest in copper-silver deposits, which Thompson views as "the area of the market that really goes forward in a big way."

Interview with CEO Andrew Thomson

Proven Team with Track Record of Success

Palamina is led by a highly experienced team with a history of exploration success and value creation for shareholders. President Andrew Thompson is an entrepreneurial geologist who has sold eight companies, most recently Soltoro Ltd. to Agnico Eagle in 2015 for its 80Moz silver resource. He is joined by several ex-Minera IRL geologists with decades of experience in the Puno Orogenic Belt.

The company also benefits from the backing of several high-profile resource investors. Eric Sprott, one of the sector's most successful fund managers, owns 12.3% of Palamina. Sprott's involvement provides a strong vote of confidence and access to capital to fund future exploration.

Attractive Valuation with Multiple Catalysts

With a tight share structure and market capitalization below C$11 million, Palamina is significantly undervalued relative to the quality of its assets and upcoming catalysts. The company plans to aggressively drill Usicayos in 2025, aiming to delineate a multi-million ounce resource. Positive drill results could rapidly re-rate the stock towards the valuations of more advanced peers.

The planned spin-out of the copper-silver assets also provides a potential near-term catalyst. With Hannan Metals and Aftermath Silver actively exploring nearby, Palamina offers low-cost optionality to a regional discovery. Any success from its neighbors should draw attention to Palamina's strategic land position and enhance its ability to monetize these assets.

In a challenging market for gold exploration stocks, Palamina Corp provides exposure to:

• A portfolio of highly prospective gold and copper-silver assets in Peru's under-explored Puno Orogenic Belt
• A large, strategic land position near several major miners and active exploration projects
• Potential for a multi-million ounce gold discovery at the flagship Usicayos project
• High-grade copper-silver optionality through a planned subsidiary spin-out
• A proven management team with a track record of value creation and the backing of key resource investors like Eric Sprott

As Thompson summarizes,

We're in the land of elephants. Puno has really got some very serious potential and we've got big land positions. It's very difficult, as greenfield juniors are largely ignored right now, but I don't think that's going to continue.

The Investment Thesis for Palamina Corp

• Strategic land position in under-explored but geologically prospective Puno Orogenic gold-copper belt of Peru
• High-grade gold discovery potential at flagship Usicayos project with 24 g/t intercept and newly constructed road access to reduce drilling costs
• Portfolio of copper-silver assets to be spun out into separate vehicle, providing additional upside and financing flexibility
• Proven management team with history of exploration success and value creation through project sales to major miners
• Backed by resource investor Eric Sprott with 12.3% ownership stake
• Tight share structure and low valuation compared to peers provide attractive entry point ahead of aggressive 2025 drilling campaign
• Multiple near-term catalysts including drill results from Usicayos , potential copper-silver discovery at Pluma, and regional drilling activity by neighboring companies

Persistently high inflation, geopolitical tensions, and economic uncertainty have reignited interest in gold as a safe haven asset and inflation hedge. Central banks are now net buyers of gold for the first time in decades, providing a supportive demand backdrop.

Meanwhile, the global energy transition is driving strong demand for copper, silver and other "green metals" essential for electrification and renewable energy infrastructure. Declining grades and lack of new discoveries in major copper districts has led to a looming supply deficit, with prices expected to reach new highs over the next decade.

Peru is poised to benefit from these macro tailwinds as a major source of gold, copper and silver. However, much of the country remains under-explored, providing opportunities for new discoveries in emerging districts like the Puno Orogenic Belt where Palamina has a strategic land position. As Thompson sums up the opportunity:

We're actually pretty aggressive in looking at things and deciding whether we should own them [mining properties] ...I'm a big fan of high-grade copper-silver in the age of electrification, and gold in this next run up. It's the area of the market that I think really goes forward in a big way.