Kuya Silver Corporation (CSE: KUYA) has released its Q3 2026 operational update for the Bethania silver project in Peru, reporting record underground development of 575 metres during the quarter. The company deliberately reduced near-term production to prioritise mine development, positioning operations for a meaningful throughput increase in Q4 2026 and into 2027. The quarter also saw a promising encounter within the Española vein and the launch of a 20,000-metre diamond drilling program.

Key Points

  • Kuya Silver Corporation (CSE: KUYA) operates the Bethania silver mine in Peru
  • Record 575 metres of underground development advanced in Q3 2026, with 4,713 tonnes of development material excavated
  • Q3 revenue of approximately US$1.3 million; silver recoveries improved to 83.3% from 79.7% in Q2 2026
  • Investors may be watching the commissioning of the new high-powered winch system and early drill results from the 20,000-metre program

Bethania Mine Development Hits Record Pace in Q3 2026

Kuya Silver advanced 575 metres underground and excavated 4,713 tonnes of development material during the third quarter, establishing new working areas to support higher mining rates. The company mined 3,401 tonnes of mineralized material, a reduction from Q2 2026 though slightly higher than Q1 2026, as management opted to prioritise development over immediate output. Silver recoveries improved to 83.3% during the quarter, up from 79.7% in Q2 2026, despite processing lower-grade material averaging 5.4 oz/t silver. Q3 revenue reached approximately US$1.3 million. The company stated its production guidance remains unchanged.

New Winch System and Redesigned Ramp Target 350 TPD Milestone

A higher-horsepower winch system, scheduled for commissioning in the coming weeks, is expected to increase underground haulage capacity and support the company's targeted mining rate of 350 tonnes per day without requiring completion of the original ramp project. In parallel, Kuya Silver has approved a significant redesign of the planned ramp to improve access to the eastern extensions of the Bethania vein system, including the Hilltop zone where multiple mineralised silver veins have been identified at surface. The revised ramp design is also expected to improve ventilation and reduce traffic congestion, supporting potential production growth beyond 350 tpd over the longer term.

Española Vein Encounter and Carmen Vein Access Expand Project Potential

Development on Level 640 exposed a segment of the Española vein measuring 93 metres in length, with widths reaching up to 1.1 metres. An initial 372-tonne blended processing batch including material from this zone, processed in October, averaged 10 oz/t silver with 91% silver recovery. Separately, a crosscut on the 640 level provided the first-ever underground access to the Carmen vein, discovered in 2022 and not included in the project's most recent mineral resource estimate. Surface sampling of Carmen previously reported high gold grades; the company states further underground sampling and drilling are required to assess grade and continuity.

20,000-Metre Diamond Drill Program Underway at Bethania

The first underground drill rig began operating at Bethania in late September as part of the company's 20,000-metre diamond drilling program. Kuya Silver plans to mobilise two additional underground rigs within the next month before commencing surface drilling. The full program is expected to be completed by the second quarter of 2027. The company also signed a surface rights agreement with the Poroche community for exploration of the Carmelitas vein system, expanding the scope of its regional exploration activities. The immediate share price impact was not clear from available public information.