Silver has reached a historic milestone, breaking above $100 per ounce for the first time, marking one of the strongest rallies in the modern commodities cycle. The move reflects a powerful combination of safe-haven demand and accelerating industrial consumption, positioning silver as one of the most closely watched metals markets heading into 2026.
As silver prices surge to record levels, exploration companies with advanced, drill-ready assets are increasingly gaining attention. Among them is Magma Silver Corp. (TSXV: MGMA), which is advancing its flagship Niñobamba silver-gold project in Peru, supported by recent financing, permitting progress, and ongoing technical work.
Silver’s Breakout Reflects a Rare Dual Demand Cycle
Silver’s rally has been exceptional. Prices surged nearly 150% last year, with a further 40% gain year-to-date, significantly outperforming gold. Analysts have pointed to silver’s unique position as both an investment metal and an industrial commodity, a dual role that has amplified recent volatility and momentum.
Support for the breakout has been reinforced by a weaker U.S. dollar, lower real yields, and heightened investor appetite for hard assets amid ongoing policy uncertainty. At the same time, industrial demand continues to expand, particularly from sectors such as solar power, electrification, and grid infrastructure, tightening the physical silver market.
Because much of global silver production comes as a by-product of other metals, mine supply has been unable to respond quickly to higher prices, contributing to persistent deficits that continue to underpin the broader bullish narrative.
Magma Silver Positioned with a Drill-Ready Silver-Gold Asset in Peru
Against this backdrop, Magma Silver is advancing the Niñobamba Project, an advanced silver-gold exploration asset in Peru. The project spans an 8-kilometre mineralized corridor within a prolific geological belt and has seen more than C$14.5 million in historical exploration investment by major mining companies, including Newmont Corporation, AngloGold Ashanti, Bear Creek Mining, and Rio Silver.
Magma has described Niñobamba as its primary focus and is working to advance the project through modern geological modelling, systematic exploration, and a strategic development plan supported by local infrastructure and community engagement.
Key Milestone: Drill Permit Granted for the Joramina Zone
One of Magma’s most important recent developments is the granting of a drill permit for the Joramina zone, issued by Peru’s Ministerio de Energía y Minas on October 17, 2025.
The permit is valid for 14 months and allows drilling from 20 drill pads, with multiple directional holes possible from each pad. Magma believes the permit provides sufficient capacity to complete planned drilling at Joramina.
Stephen Barley, Chairman and CEO, has emphasized that obtaining drill permits in Peru requires detailed preparation and significant effort, supported by Magma’s Peru-based technical team led by General Manager Carlos Agreda and supervised by Senior Technical Advisor Jeffrey Reeder.
Exploration Results Strengthen the Geological Case
Magma has also reported results from its Phase 2 Q3 work program at Niñobamba, which included sampling at Joramina and Randypata.
Highlights included:
- Drift sampling returning 10 metres of 2.32 grams gold per tonne
- A 5-metre composite returning 4.085 ounces silver per tonne
- Sampling near the drift returning 0.70 metres of 17.41 grams gold per tonne and 13.94 ounces silver per tonne
The company also noted that it discovered a drift in the Joramina zone that had not been reported by Newmont, which may provide future underground drill positioning, subject to permit modification.
Fully Funded Exploration Program Following $5 Million Financing
Magma completed a $5 million private placement financing in October 2025, providing funding to substantially increase its planned drill program. The financing included a $1 million investment from Eric Sprott, who acquired 6,666,667 units and now holds a reported 13.6% partially diluted interest assuming warrant exercise.
Magma has allocated US$1 million (CAD$1.4 million) specifically for the Joramina exploration and drill program, representing a significant increase from earlier plans.
Outlook: Advancing Through a Strong Silver Market Cycle
Silver’s historic move above $100 highlights the strength of the current cycle, driven by both precious-metal momentum and industrial demand. While risks remain—including volatility and potential demand destruction at sustained high prices—the broader setup continues to support long-term interest in quality silver assets.
With a permitted drill program, recent financing, and an advanced exploration-stage project in one of the world’s leading silver-producing jurisdictions, Magma Silver is moving forward at a notable moment in the silver market’s evolution.
https://think.ing.com/articles/silver-hits-100-oz-for-the-first-time/
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