Mineros S.A. Reports Significant Progress on Nicaragua Expansion
MWN-AI** Summary
Mineros S.A. has announced significant progress in its expansion efforts in Nicaragua, particularly focusing on the Hemco processing plant and mine development. Currently, the plant has achieved a throughput of 2,000 tonnes per day (tpd), marking a 14.3% increase from the previous baseline of 1,750 tpd. The goal is to reach 2,500 tpd by December 2026, with an interim target of 2,200 tpd set for June 2026. The expansion process remains on track, fully compliant with environmental permits, and is supported by improvements in gold and silver recovery through metallurgical optimization.
The company is accelerating underground mine development at the Panama and Pioneer mines to create a stable feedstock for the expanding processing capacity, with current stockpiles exceeding 6,000 ounces of gold. This strategic move aims to optimize milled material by blending different grades.
Moreover, Mineros is implementing its most ambitious exploration drilling program in history, with plans for 75,000 meters across various projects in Nicaragua, using its own drilling fleet to maintain cost efficiency. This exploration effort is designed to enhance resource conversion and explore new high-grade targets, extending the lifecycle of existing operations.
The establishment of a new ore staging facility, or “Patio,” near Rosita is expected to further enhance the supply chain for the Hemco plant, adding 200 tpd of new mineral resources. Mineros reaffirms its commitment to sustainable development in the region, working alongside local communities and authorities while leveraging relationships through its Bonanza Mining Partners model. As the company progresses towards its ambitious targets, it remains focused on optimizing operations and reducing unit costs over the medium term.
MWN-AI** Analysis
Mineros S.A. (TSX: MSA; BVC: MINEROS; OTCQX: MNSAF) has made significant strides in its expansion initiatives in Nicaragua, particularly with the Hemco processing plant. The successful increase in throughput to 2,000 tonnes per day (tpd) marks a noteworthy improvement over the 1,750 tpd baseline. With plans for further capacity expansion to 2,500 tpd by December 2026, the company is positioned to capitalize on the robust gold market, especially given the region's geological advantages.
Investors should closely monitor the planned incremental throughput targets, as achieving the interim goal of 2,200 tpd by mid-2026 could bolster investor confidence and contribute to economies of scale. The consistent gold recovery rate exceeding 90% suggests that operational efficiencies are improving, which is integral to reducing unit operating costs and enhancing profitability.
Moreover, Mineros is actively engaging in an ambitious 75,000-meter exploration program, focusing on resource-to-reserve conversion. This aggressive drilling campaign, aided by a company-owned drill fleet, could uncover additional reserves and extend mine life, thereby providing a strong growth narrative for the company. The strategic partnership with Bonanza Mining Partners (BMP) further strengthens local relationships and ensures a stable supply of mineral feed, integral as throughput increases.
However, investors should also consider potential risks, such as fluctuations in gold prices, geopolitical issues, and operational challenges in Nicaragua. The current gold market remains volatile, which could impact revenues if prices dip. Thus, while Mineros S.A. demonstrates promising operational advancements and growth potential, a prudent approach would be to stay informed on market conditions and company progress before making investment decisions. Overall, the strategic moves Mineros is making could lead to substantial long-term value, making it an intriguing option for investors seeking exposure to gold mining.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Achieved Planned Plant Throughput Increase to 2,000 tpd - On Track for 2,500 tpd by December 2026
- Accelerated Mine Development to Support Growth
- Record Exploration Drilling Program Underway
Mineros S.A. (TSX: MSA; BVC: MINEROS; OTCQX: MNSAF) (“ Mineros ” or the “ Company ”) is pleased to report material advances on its Nicaragua expansion initiatives. Current activities include the phased expansion of Hemco’s main processing plant to 2,500 tonnes per day (“tpd”) by year-end, accelerated underground mine development, and the commencement of the most aggressive exploration drilling program in the history of the property.
Nicaragua's Autonomous Region of the North Caribbean Coast represents one of the most prolific gold-bearing geological corridors in Central America, and Hemco has maintained an uninterrupted operating presence in the region for decades. The Hemco Property benefits from a skilled and experienced local workforce, well-established community relationships, and access to a diversified energy supply that includes Company owned and operated hydroelectric generation. Mineros remains firmly committed to its long-term investment in Nicaragua and to the sustainable development of the region's considerable mineral endowment, in partnership with local communities and authorities.
Hemco Processing Plant Expansion - Key Milestones Achieved
The Hemco facility has achieved a sustained throughput of 2,000 tpd, a 14.3% increase over the 1,750 tpd baseline. Major capital equipment for the subsequent expansion phase has been procured and is expected on-site in the third quarter of 2026.
The expansion remains on schedule and within budget, while maintaining full compliance with all environmental legal permits. The expansion will achieve the following throughput capacity milestones:
June 2026: 2,200 tpd interim target.
December 2026: 2,500 tpd milestone.
In the last year the focus has been on improving metallurgical recoveries. Gold recovery is now consistently above 90%, and silver recoveries have improved in recent months following multiple process optimization initiatives.
Additionally, the Company is conducting technical and engineering studies to evaluate the incorporation of an additional 1,000 tpd mill circuit utilizing milling equipment already owned by Mineros, which, if advanced, would provide a further step-change in processing capacity.
Mine Development - Building Inventory and Recovering Economies of Scale
To ensure mill feed continuity commensurate with expanded capacity, the Company has accelerated development at the Panama and Pioneer underground mines, supporting surface stockpiles. As of the date of this release, the stockpiles contain more than 6,000 ounces of gold. This accumulation of inventory is intended to provide operational flexibility and allow the Company to optimize processing by blending various grade material.
Management expects the increased throughput to drive economies of scale, contributing to a projected reduction in unit operating costs over the medium term.
Bonanza Mining Partners (BMP) – Strengthening Valuable Relationships
The Company continues to leverage its BMP model, a multilateral framework involving local cooperatives and authorities. With the objective of being closer to our BMPs, Mineros recently built a physical space for storing and staging ore in anticipation (the “ Patio ”), located in the municipality of Rosita about 20 miles from Bonanza. Rosita is part of the Mining Triangle, along with Bonanza and Siuna. The new Patio is now fully operational, contributing an incremental 200 tpd of mineral to the Hemco processing plant. In the current gold price environment, the Company is reviewing opportunities to increase BMP mineral acquisitions to maximize ore availability ahead of the 2026 throughput capacity increases.
2026 Exploration Program - Most Ambitious Drilling Program in Property History
Mineros has initiated a 75,000-metre drilling program for 2026, with eight active rigs. The program focuses on resource-to-reserve conversion and greenfield exploration across the Nicaragua portfolio.
By employing a Company-owned drill fleet, Mineros maintains a significant cost advantage, with all-in internal drilling costs averaging approximately $100 per metre compared with $160 per metre for contracted services.
The exploration program is designed to extend the life of the existing Panama and Pioneer mines, advance the Porvenir Project, and explore high grade targets in the proximity of current mining operations as well as a wider investigation of the entire property package of the Company in Nicaragua.
A technical report for an update on the Prefeasibility Study (PFS) of the Porvenir project and the Hemco property is expected by the end of March 2026.
Technical Disclosure and Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Maria Vallejo, P.Eng., FAusIMM, Mineros’ Vice President, Growth and Technical Services for Mineros S.A., who is a "Qualified Person" as defined by National Instrument 43-101 — Standards of Disclosure for Mineral Projects.
ABOUT MINEROS S.A.
Mineros is a Latin American gold mining company headquartered in Medellin, Colombia. The Company has a diversified asset base, with mines in Colombia and Nicaragua and a pipeline of development and exploration projects throughout the region, including the La Pepa project in Chile.
Mineros has more than 50 years of operating history and a longstanding focus on safety, sustainability, and disciplined capital allocation. Its common shares are listed on the Toronto Stock Exchange (MSA) and the Colombia Stock Exchange (MINEROS), and trade on the OTCQX ® ? Best Market under the symbol MNSAF.
Election of Directors – Electoral Quotient System
The Company has been granted an exemption from the individual voting and majority voting requirements applicable to listed issuers under Toronto Stock Exchange policies, on grounds that compliance with such requirements would constitute a breach of Colombian laws and regulations which require the directors to be elected on the basis of a slate of nominees proposed for election pursuant to an electoral quotient system. For further information, please see the Company’s most recent annual information form, available on the Company’s website at https://www.mineros.com.co/ and from SEDAR+ at www.sedarplus.com .
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
In this news release, forward-looking statements relate, among other things, to: the Company’s ability to achieve a processing capacity of 2,500 tpd by year-end 2026; the timing of arrival for capital equipment; the achievement of interim throughput milestones; the potential for a further 1,000 tpd expansion; the results of the 2026 exploration and drilling program; and the timing of a technical study and initial resource statement for the Porvenir Project.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include:
Fluctuations in the spot and forward price of gold, silver, or certain other commodities;
Operating risks (including those related to the expansion of the Hemco facility and underground development);
Geopolitical and regulatory risks associated with operations in Nicaragua;
Changes in labor and energy costs, and the availability of skilled personnel;
Inaccuracies in mineral resource and reserve estimates;
Environmental and community relationship risks; and
General economic and financial market conditions.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The Company cautions that the foregoing lists of important assumptions and factors are not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information contained herein. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.
Forward-looking information contained herein is made as of the date of this news release and the Company disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260303604839/en/
For further information, please contact:
Ann Wilkinson
Vice President, Investor Relations
+1 (647) 496-3011
Ann.Wilkinson@Mineros.com.co
Juan Obando
Director, Investor Relations
(+57) 574 266 5757
Juan.Obando@Mineros.com.co
FAQ**
How does Mineros S.A. plan to manage potential geopolitical and regulatory risks associated with its operations in Nicaragua as it achieves its goal for increasing throughput to 2,500 tpd, impacting the performance of its Ordinary Shares MNSAF?
What specific strategies is Mineros S.A. implementing to optimize processing and recoveries in light of their aggressive exploration drilling program, and how might this affect investor sentiment toward MNSAF shares?
Given the ambitious 75,000-metre drilling program planned for 2026, how does Mineros S.A. intend to balance exploration with ongoing operations, and what impact might this have on the market performance of MNSAF?
With fluctuations in gold prices posing potential risks, how is Mineros S.A. planning to protect the profitability of its operations and maintain investor confidence in its Ordinary Shares MNSAF through this expansion phase?
**MWN-AI FAQ is based on asking OpenAI questions about Mineros S.A. (TSXC: MSA:CC).
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