Denarius Metals Corp. [DSLV-TSXV, DNRSF-OTCQX] has released an update on startup activities related to its Zancudo gold-silver project in Colombia and Aguablanca nickel-copper project in Spain.
Denarius is carrying out construction activities at its 100%-owned Zancudo project, which includes the historic producing Independencia mine, affording the company the opportunity to develop near term production and cash flow starting this year through local contract mining and long-term growth via continued exploration at the Zancudo deposit, which remains open in all directions.
In Spain, the company recently acquired a 50% interest in Rio Narcea Recursos S.L., which has the rights to exploit the historic producing Aguablanca nickel-copper mine, including a 5,000 tonnes per day processing plant, located in Monesterio, Extremadura, Spain, approximately 88 kilometres from the company’s 100%-owned Lomero polymetallic project.
Denarius shares were unchanged at 53 cents and trade in a 52-week range of 63 cents and 30.5 cents.
The Zancudo project consists of three adjoining mining concession contracts and one exploration license covering an area of approximately 1,054 hectares. For concession 5521, which includes the historic Independencia Mine, the Mining Technical Work Plan was approved in December, 2023 by the Secretary of Mines of Antioquia. The permit allows the company to start mining activities within this area at Zancudo once the Environmental Impact Study is approved by Corantioquia, the local environmental authority. The company expects to receive approval by April, 2024.
Production at a rate of 200 tonnes per day (tpd), increasing to 500 tpd by the end of 2024, is expected to begin one month after the EIS is approved. Mining operations will initially focus on the existing mine workings and veins at the Independencia mine. The company intends to crush the ore from this initial production on site and then have it processed at a third party plant to generate some early cash flow while processing plant construction is in process. The company said it is in the final stages of formalizing the long-term offtake contract for the sale of gold and silver concentrates.
Meanwhile, the company said the underground mining plan for the Aguablanca mine in Spain was approved in August 2023 by the state mining authority. Within the next month, the company expects to begin a detailed assessment of the condition of the exsiting 5,000 tpd processing facility to determine the extent of the refurbishment program required to process nickel-copper ore from the Aguablanca underground mine. “As the processing facility has been maintained in good condition, maintenance activities to resume operation of the plant are expected to last no longer than six months,’’ the company said.
Once dewatering is completed, the underground assessment of ventilation, ramp access and power in the mine will commence.
Meanwhile, Denarius said it has hired Resource Development Associates to prepare a preliminary feasibility study for a 2,500 tpd operation based on material mined from the Aguablanca underground mine. The results of the study are expected to be available by the end of March, 2024.
The company currently expects to restart production at Aguablanca within a year, following the commencement of the dewatering program.
