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, processing 12,179 ounces of silver and generating approximately US$1.3 million in revenue. A new high-horsepower winch system scheduled for commissioning in the coming weeks is expected to support the company's targeted mining rate of 350 tonnes per day, a milestone investors may be closely watching.

Key Points

  • Kuya Silver Corporation (CSE: KUYA, OTCQB: KUYAF, FSE: 6MR1)
  • Record 575 metres of underground development and 4,713 tonnes of development material extracted in Q3 2026
  • Q3 silver recovery improved to 83.3% from 79.7% in Q2 2026; US$1.3 million in revenue generated; Española vein batch averaged 10 oz/t silver with 91% recovery
  • Investors may watch for commissioning of the new winch system and early assay results from the 20,000-metre drill program

Bethania Q3 Production Reflects Strategic Trade-Off Between Output and Development

Kuya Silver mined 3,401 tonnes of mineralized material in Q3 2026, a reduction from Q2 but slightly above Q1 levels, as management deliberately shifted focus toward underground development to establish working areas for a targeted production increase in Q4 2026 and 2027. Silver recoveries improved to 83.3% despite processing lower-grade material averaging 5.4 oz/t silver, up from 79.7% in Q2. The company stated its production guidance remains unchanged and expects recoveries to continue improving toward previously achieved levels exceeding 90% as operations ramp up.

New Winch System and Redesigned Ramp Lay Groundwork for 350 TPD at Bethania

A higher-horsepower winch system is scheduled for commissioning in the coming weeks and is expected to increase underground haulage capacity sufficient to support the 350 tpd mining rate target without requiring the completion of a ramp project. In parallel, the company has approved a significant redesign of the planned ramp, intended to open access to the Hilltop zone, improve ventilation, reduce traffic congestion on the western slope, and support potential production growth beyond 350 tpd. The revised ramp is positioned as a longer-term development component rather than an immediate production requirement.

Española Vein Exposes Wider Mineralised Zone With Strong October Processing Results

Development on Level 640 of the Española vein exposed a 93-metre segment averaging 0.82 metres true width, with widths up to 1.1 metres. An initial 372-tonne blended processing batch containing material from this zone, processed in October, averaged 10 oz/t silver with 91% silver recovery. The company also reported first-ever underground access to the Carmen vein, which surface sampling previously indicated carries high gold grades and low base metals. Management noted that further underground sampling and drilling are required to assess grade and continuity at Carmen.

20,000-Metre Diamond Drill Program Underway at Bethania

The company confirmed that the first underground drill rig has been operating at Bethania since late September as part of its 20,000-metre diamond drilling program. Kuya Silver plans to mobilise two additional underground rigs within approximately one month before commencing surface drilling. The full program is expected to be completed by the second quarter of 2027. The company also clarified that 525,000 stock options granted on October 19, 2026 carry an exercise price of $0.52, correcting a previously disclosed price of $0.50.