Denarius outlines restart activities at Spanish nickel-copper mine

Denarius Metals Corp. [DMET-NE, DNRSF-OTCQX] said it has commenced activities related to the restart of operations at the Aguablanca nickel-copper Project in Spain.

“If all the work goes as currently planned, we expect to have the Aguablanca underground mine back in production by mid-2026, processing material at a rate of 800,000 tonnes per year and producing an average of 70,000 tonnes per year of nickel-copper concentrates,’’ said Denarius Executive Chairman Serafino Iacono.

The move comes after the company recently announce the results of a pre-feasbility study for the project, which is located in southwestern Spain approximately a 45 minute drive north of Seville. Aguablanca is one of the only deposits in Spain that is capable of producing both nickel and copper. It has been recognized by the EU as a Strategic Project under the Critical Raw Minerals Act.

Aguablanca is 100%-owned by Rio Narcea Recursos, S.A. Denarius, through its Alto Minerals S.L.U., owns 21% of RNR and is operator of the project.

Aguablanca consists of a turnkey 5,000-tonnes per day processing plant and the rights to exploit the historic producing nickel-copper mine.

RNR recently signed an agreement with METSO Spain S.A. to carry out a Phase 1 detailed assessment, commencing in September, of the condition of the existing processing facility to determine the extent of required expenditures in Phase 2 and Phase 3 of the refurbishment program that will be financed by METSO.

The company said the reconditioning services in Phase 2 and subsequent commissioning of the plant in Phase 3 will then be carried out by a Portuguese company with extensive experience in industrial maintenance under the supervision of METSO Spain.

“As the processing facility has been maintained in good condition, maintenance and commissioning activities to resume operation of the plant are expected to last no longer than eight months,’’ the company said. Refurbishment work on all plant services will run parallel with the dewatering activities, which began in July with the installation of a 10-nozzle forced evaporation system to accelerate the evaporation of water from the tailings dam. In October, the company expects to commence the dewatering of the existing open pit to gain access to the underground mine workings.

Over the projected six-year mine life, the PFS envisages production from mining and processing of approximately 4.8 million tonnes of material that is expected to recover 43.2 million pounds of nickel and 34.6 million pounds of copper via the sale of approximately 406,359 tonnes of nickel-copper concentrates.

Capital costs over the projected mine life are expected to total $36.2 million, including a10% contingency.

Proven and probable reserves stand at 4.7 million tonnes, grading 0.67% nickel and 0.59% copper, containing 69.6 million pounds of nickel, 61.7 million pounds of copper and smaller quantities of gold, platinum, palladium and copper.

On Monday, Denarius shares rose 2.08% or $0.01 to 49 cents.