
Denarius Metals Corp. (TSX-V: DSLV) (OTCQB: DNRSF) announced that it has completed a maiden Mineral Resource estimate for its 100%-owned Zancudo Project in Colombia prepared by SRK Consulting (U.S.), Inc. in accordance with the Canadian Institute of Mining Metallurgy and Petroleum Definition Standards incorporated by reference in National Instrument 43-101 with an effective date of December 31, 2022. The Company also announced today that it has rationalized its assets in Colombia through a mutual agreement with Aris Mining Corporation (“Aris Mining”) to terminate the Guia Antigua license within Aris Mining’s Segovia mining title.
Serafino Iacono, Executive Chairman and CEO of Denarius, commented, “We are very excited about the potential for our Zancudo Project in Colombia where we see an opportunity to develop near-term production and cash flow through local contract miners and long-term growth through exploration. Reminiscent of how our group initiated operations in Segovia in 2010 after it was acquired by Gran Colombia Gold, we are preparing the Zancudo Project, which includes the former producing Independencia Mine, to start up operations later this year with mining within the existing mine workings and veins by a local contract miner while we will carry out in-fill drilling to upgrade current resources and for mine planning purposes. The maiden MRE we are announcing today gives us a solid foundation on which to execute our strategy for this project. ESG is an integral component of how we build our projects and we are working with the local community to ensure we incorporate them into this important project within the local economy. The local contract miner has already commenced activities to rehabilitate the mine workings and, with the decision to hand the Guia Antigua Project back to Aris Mining, we have secured approximately US$2.2 million of cash that will be used to fund our initial investments already underway at the Zancudo Project related to road construction, infrastructure rehabilitation and acquisition and installation of onsite crushing equipment.”
Highlights of the maiden MRE include:
The following table summarizes the maiden MRE for the Zancudo Project:
Class | Tonnes (kt) |
Grade | Material Content | ||||
Au (g/t) |
Ag (g/t) |
AuEq (g/t) |
Au (koz) |
Ag (koz) |
AuEq (koz) |
||
Inferred | 2,776 | 6.5 | 112 | 8.0 | 576 | 9,974 | 718 |
Notes:
The Mineral Resource estimation process was completed by SRK using the initial geological models provided by Zancudo geological staff and refined by SRK. The Company provided SRK with an exploration database with logging indicating the main geological features and units. In addition to the database, SRK has worked with the preliminary geological interpretations, which SRK has made minor alterations accordingly to incorporate additional intersections.
The resource estimation methodology involved the following procedures:
SRK has completed the geological modelling and Mineral Resource estimate using Seequent Leapfrog. The procedure involved construction of wireframe models for the fault networks, key geological/mineralization domains, data conditioning (compositing and capping) for statistical analysis, geostatistical analysis, variography analysis, block modeling and grade interpolation followed by validation. Grade was estimated using inverse distance weighted (power 2) estimates for gold and silver. Grade estimation has been based on parent block dimensions of 20 m x 20 m x 20 m, for the 2022 model. The block size reflects potential size variations for any underground smallest mining units, but the blocks have been subcelled to reflect the relatively narrow nature of the mineralization with a minimum block size of 0.3215 m. Classification has been limited to estimates within 125 m of the closest single hole, located in either vein or manto domains, and by more than two drillholes.
The resource evaluation work was completed by Mr. Benjamin Parsons, MAusIMM (CP#222568), according to CIM Definition Standards, who undertook a site inspection in January 2023. The MRE will be supported by a NI 43-101 independent report which will be published and filed on the Company’s website and SEDAR profile within 45 days. Mr. Parsons is a Qualified Person as defined by NI 43-101. The NI 43-101 report will include detailed information on the key assumptions, parameters and methods used to estimate the mineral resources.
Guia Antigua Project Update
In conjunction with the RTO Transaction in February 2021, Denarius Metals had acquired a license giving the Company the right for exploration, mining and processing operations and the commercialization of mineral products from the Guia Antigua Project, a 386-hectare area located northeast of Medellin within the Segovia mining title owned by Aris Mining in the Department of Antioquia, Colombia. In 2021 and 2022, the Company carried out an exploration campaign at the Guia Antigua Project, including approximately 6,700 m of drilling in 37 holes. Although the Guia Antigua Project continues to look promising, the Company concluded its potential would be enhanced if it is developed in conjunction with the neighboring mines in Aris Mining’s Segovia mining title. Based on this conclusion, the Company and Aris Mining agreed to terminate the license agreement effective February 22, 2023. Aris Mining has reimbursed the Company for exploration expenditures incurred by the Company in the amount of COP 10,692,000,000 (equivalent to approximately US$2.2 million) in cash.
About Denarius Metals
Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of polymetallic mining projects in high-grade districts, with its principal focus on the Lomero Project in Spain. The Company signed a definitive option agreement with Europa Metals Ltd. in November 2022 pursuant to which Europa has granted Denarius Metals two options to acquire up to an 80% ownership interest in the Toral Zn-Pb-Ag Project, Leon Province, Northern Spain. The Company’s 100%-owned Zancudo Project in Colombia provides an opportunity to develop near-term production and cash flow through local contract miners and long-term growth through exploration.
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