Denarius tables PFS for Spanish nickel-copper project
Denarius Metals Corp. [DMET-NEO, DNRSF-OTCQX] has announced the results of a pre-feasibility study (PFS) that supports the restart of the Aguablanca nickel-copper project in Spain.
The Aguablanca project 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. Denarius holds its 50% interest in Aguablanca via its Spanish subsidiary Alto Minerals S.L.U.
The mine operated for 11 years from 2005 to 2015, much of that time by Lundin Mining Corp. [LUN-TSX; LUMI-Sweden], milling over 14 million tonnes of ore. The mine and its associated 5,000 tonne-per-day processing plant have remained idle since 2015 but have been well maintained. Underground mining has been approved by the state mining authority and the Environmental Impact Study approved in 2017 is still in force.
The company said Aguablanca is currently in a position to quickly restart mining and processing operations.
Highlights of the pre-feasibility study are as follows:
Over the projected six-year mine life, the PFS envisages production from mining and processing of approximately 4.8 million tonnes of material 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.
Life-of-mine all in sustaining costs (AISC) are expected to average US$4.04 per pound of payable nickel on a by-product credit basis.
Capital costs over the projected mine life are expected to total $36.2 million, including a 10% contingency.
The PFS is based on an updated mineral resource estimate for the underground mine, consisting of 5.3 million tonnes in the measured and indicated category grading 0.65% nickel, and 0.58% copper, containing 76.8 million pounds of nickel and 68 million pounds of copper. The estimate includes smaller amounts of gold, platinum, palladium and cobalt.
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.
Activities to be carried out at the Aguablanca Project in 2024 to restart the existing 5,000 tonnes-per-day processing plant and de-water the open pit mine and underground mine development will culminate in first production of nickel-copper concentrate in early 2025, the company said.
Denarius is engaged in the acquisition, exploration, development eventual operation of polymetallic mining projects in high-grade districts. The company owns a 100% interest in the Lomero Project, a polymetallic deposit located on the Spanish side of the prolific copper-rich Iberian Pyrite belt, one of the largest districts of pyrite-rich massive sulfide deposits in the world.
The company recently released an update on startup activities related to its 100%-owned Zancudo gold-silver project in Colombia and the Aguablanca nickel-copper project. Aguablanca is located approximately 88 kilometres southwest of the Lomero Project. Denarius holds its 50% interest in Aguablanca via its Spanish subsidiary Alto Minerals S.L.U.
Denarius shares were unchanged at 58 cents on Thursday. The shares trade in a 52-week range of 82 cents and 30.5 cents.