Denarius Metals Corp. (CBOE Canada: DMET) (OTCQX: DNRSF) announced the results of an updated Preliminary Economic Assessment (PEA) for its 100% owned Zancudo Project located 30km SW of Medellin. The project includes the historic Independencia Mine and is already in an early production phase. The updated study envisions an 11 year mine life capable of generating $2.0B in revenue, driven by the production of 466,000 payable oz Au and 2.2M payable oz Ag (~42,400 oz Au and 200K Ag/year) at average grades of 5.75 g/t Au and 66.7 g/t Ag, with an after-tax tax internal rate of return of 558%, and a remarkably short one year payback period. At long term price assumptions of US$4,000/oz Au and US$50/oz Ag, the study calculates an after-tax Net Present Value (NPV) of US$324M at a 5% discount rate. These returns are supported by a relatively low remaining initial capital requirement of $11.0M, a portion of which is already covered by an existing prepayment facility.
The Zancudo Project is currently scaling its infrastructure, with a 1,000 tonne per day processing plant under construction and expected to begin producing high grade concentrates by the third quarter of 2026. The life of mine (LOM) all in sustaining cost (AISC) is estimated at US$2,482/oz Au on a by-product credit basis. Notably, the mine plan is based on a Mineral Resource Estimate (MRE) comprising 1.0M tonnes of Indicated Resources and 4.6M tonnes of Inferred Resources, with average grades of 6.9 g/t Au and 84 g/t Ag.
Exploration upside remains a core component of the Zancudo story. The deposit remains open for expansion in all directions, and the company is set to commence a new 15,000m drilling program in early April 2026. This technical work aims to further define and expand the current resource base, which already contains approximately 1.05M oz AuEq across all categories.
Strategic partnerships are also providing a clear path to market. Denarius has a long-term offtake contract with Trafigura for the sale of its concentrates, ensuring consistent revenue as the project transitions into full scale commercial operation. Plant construction and mine development activities are currently proceeding on schedule, positioning the company to capitalize on high precious metals’ prices.
DMET is currently trading at $1.00, up 6.38%, while U.S. listed shares (DNRSF) are up 4.19% at $0.7008, currently outperforming the GDXJ which is up 1.1% as of early-afternoon trading. As the company moves toward commissioning its new plant this summer and kicks off its spring drilling campaign, the market will be looking for continued execution in one of Colombia's most prolific gold belts. The combination of immediate cash flow, high grades, and a tier one jurisdiction reinforces the project's status as a key developer in the Latin American precious metals space.
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