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Denarius Metals Corp. (TSXV: DSLV) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today the results of a Preliminary Economic Assessment ("PEA") for its 100%-owned Zancudo Project, which includes the historic producing underground Independencia Mine, located in the Municipality of Titiribi, Department of Antioquia, Republic of Colombia, approximately 30km southwest of Medellin. The PEA was prepared in accordance with the Canadian Institute of Mining Metallurgy and Petroleum ("CIM") Definition Standards incorporated by reference in National Instrument 43-101 ("NI 43-101") with an effective date of March 19, 2026. All figures contained herein are expressed in United States dollars ("USD"), except as otherwise stated.Â
Serafino Iacono, Executive Chairman of Denarius Metals, commented, "The updated PEA reaffirms the positive economic results from our underground mining operation at our Zancudo Project, generating production and cash flow from a long-life asset yielding attractive returns for our shareholders in a robust precious metals market. We are already in production at Zancudo and our plant construction and mine development activities are proceeding on schedule. The updated PEA, based on the Mineral Resource estimate ("MRE") announced by the Company on November 3, 2025, envisions an 11-year mine life over which the Company expects to generate revenue of approximately $2.0 billion and pre-tax gross profit of approximately $723 million  from the sale of approximately 466,000 payable ounces of gold and 2.2 million payable ounces of silver at a life-of-mine ("LOM") average all-in sustaining cost ("AISC") of $2,482 per ounce of gold. The Zancudo deposit remains open for further expansion in all directions and we are commencing the next 15,000 meters drilling program in early April".
Highlights of the Zancudo Project PEA
- The Zancudo Project PEA is based on an updated MRE, with an effective date of October 31, 2025 comprising 1.0 million tonnes grading 6.9 g/t gold and 84 g/t silver totaling 217,000 ounces of gold and 2.7 million ounces of silver in the Indicated Resources category and 4.6 million tonnes grading 5.6 g/t gold and 84 g/t silver totaling 832,000 ounces of gold and 12.5 million ounces of silver in the Inferred Resources category.
- Over the approximately 11-year mine life, production from the mining and processing of approximately 3.3 million tonnes of material containing 619,000 gold ounces and 7.2 million silver ounces is expected to produce 466,000 payable gold ounces and 2.2 million payable silver ounces through the sale of high-grade gold-silver concentrates to Trafigura Pte. Ltd. ("Trafigura") under a long-term offtake contract.
- Remaining initial capital costs of $11.0 million, of which $3.4 million will be funded by proceeds from the Trafigura Prepayment Facility.
- AISC of $2,482 per ounce of payable gold on a by-product credit basis based on a long-term gold price of $4,000 per ounce. Approximately 50% of the Zancudo Project's operating costs, mainly its mine contractor fees and its royalties, fluctuate with changes in the price of gold.
- At long-term gold and silver prices of $4,000 per ounce and $50 per ounce, respectively, total LOM undiscounted after-tax project cash flow amounts to $452 million. At a 5% discount rate, the net present value of the total LOM after-tax project cash flow amounts to $324 million.
- The Zancudo Project has an after-tax internal rate of return of 558% and payback in one year.
Please see "Cautionary Statement on PEA and Use of Inferred Resources" below for the limitations, explanations and cautionary language on the use of the PEA.
Table 1: Key Economic Parameters of the PEA
Assumption / Results | 2026 PEA |
Total tonnes processed over the LOM | 3,348,000 |
Total waste mined over the LOM | 715,000 |
Mine Life | 11 years |
Average LOM process rate (tonnes per day) | 834 |
Gold Equivalent ("AuEq") grade milled – LOM average (g/t) | 6.55 |
Gold grade milled – LOM average (g/t) | 5.75 |
Silver grade milled – LOM average (g/t) | 66.71 |
Contained gold (ounces) | 619,467 |
Contained silver (ounces) | 7,181,170 |
Gold recovery – LOM average | 85 % |
Silver recovery – LOM average | 87 % |
Gold recovered (ounces) | 527,116 |
Silver recovered (ounces) | 6,251,745 |
Total gold production (payable ounces) | 465,606 |
Expected long-term gold price ($/oz) | $4,000 |
Total silver production (payable ounces) | 2,188,111 |
Expected long-term silver price ($/oz) | $50 |
LOM revenue – gold and silver ($ millions) | $1,971.8 |
LOM operating costs and royalties ($ millions) (Table 3) | $1,249.1 |
LOM pre-tax gross profit ($ millions) | $722.7 |
LOM operating cash flow, net of tax ($ millions) | $479.2 |
Remaining initial capital costs ($ millions) (Table 2) | $11.0 |
Sustaining capital costs, including 2026 exploration drilling campaign ($ millions)Â Â Â Â | $16.0 |
LOM after-tax undiscounted Project Cash Flow ($ millions) | $452.2 |
LOM cash cost per ounce of gold ($) (Table 3) | $2,448 |
LOM AISC per ounce of gold ($) (Table 3) | $2,482 |
After-Tax NPV (5% discount) ($ millions) | $323.8 |
After-Tax IRR | 558Â % |
Payback year | 2027 |
Note:Â Please see "Cautionary Statement on PEA and Use of Inferred Resources" below for the limitations, explanations and cautionary language on the use of the PEA. |
Capital Costs
The estimated remaining capital costs to bring the Zancudo Project into commercial operation in 2026 are based on an underground mining operation utilizing local contract mining and a processing plant that will be installed under a "build and operate" arrangement with a local civil engineering and industrial construction services firm (the "Plant Contractor"). The local mine contractor is responsible for certain capital development and all operating development within the underground mine and will be compensated for such work through its mine operating contract with the Company. Â
The remaining initial capital expenditures for the construction period are estimated at $11.0 million, as set out in Table 2 below. An additional $16.0 million is estimated for sustaining capital, of which $13.5 million is associated with capital development in the Brisas area beyond the initial construction period and $2.5 million corresponds to the 15,000 meters exploration drilling program commencing in April and being carried out through 2026.
Capital cost estimates are based on industry standards. In the case of the remaining initial capital costs, the amounts are based on actual contracts and commitments or were developed using quotes provided by contractors and specialists experienced in mining development in Colombia.
Table 2: Capital Costs
Initial Capital Costs | Amount ($) |
Capital development at the Brisas area during the plant construction period    | 2,290,000 |
Completion of access road | 2,195,000 |
Crushing plant | 157,000 |
Processing plant, net of $3 million being financed by Plant Contractor | 361,000 |
Tailings storage facility | 687,000 |
Environmental permitting related works and programs | 3,333,000 |
Indirect costs | 1,150,000 |
Owner's costs, including lab and other site infrastructure | 450,000 |
  Total remaining initial capital costs before contingency | 10,623,000 |
Contingency | 417,000 |
  Total remaining initial capital costs | 11,040,000 |
Note:Â Please see "Cautionary Statement on PEA and Use of Inferred Resources" below for the limitations, explanations and cautionary language on the use of the PEA. |
Mining
The minable resource is accessed utilizing existing workings, new planned development including a new portal, ventilation/secondary escapeways, and rock handling systems. Nominal dimensions of the waste development is sized to accommodate a transition into mechanized mining. The minable resource will be extracted utilizing three mining methods, long hole open stoping and cut and fill for the steeply dipping veins and traditional room and pillar for the flat-lying mineralization. Most of the waste is planned to remain underground reducing the requirement for surface waste facilities. Mining costs in the PEA are based on an agreement arranged between the Company and a local contract miner wherein the contractor will be paid for their services at a rate tied to actual gold production and spot gold prices.
Processing
The Company is constructing a 1,000 tonnes per day processing plant that will produce a high-grade Au-Ag concentrate that will be shipped to a local port in Colombia and sold under a long-term offtake contract with Trafigura.
The Zancudo process scheme includes three-stage crushing followed by conventional grinding and product slurry conditioning. Processing of the conditioned slurry product will be followed by industry typical bulk sulfide flotation to produce a bulk sulfide concentrate for the recovery of gold and silver. The flotation concentrate will be thickened, filtered and prepared for shipment. Flotation tailings will be thickened and filtered for disposal as dry-stacked material in the tailings storage facility ("TSF").
Site preparations for the new processing plant have made good progress to date. Civil works will commence in the second quarter of 2026 followed by installation of the plant equipment and construction of the dry-stack TSF over the summer months. Commissioning is expected to take place in the third quarter this year.
The Company has recently engaged a Plant Contractor with extensive experience in extractive industries projects to build and then operate the new processing plant on a contract basis. The Plant Contractor has agreed to finance their fees for the plant installation services, valued at $3 million, through the issuance of 2,529,000 common shares of the Company at a price of CA$0.76 per share, equivalent to $1.4 million, and the balance to be settled through the processing fees to be paid to the Plant Contractor by the Company during the operation of the plant. Processing costs in the PEA are based on the rates specified in the agreement with the Plant Contractor for the comprehensive operation and maintenance of the plant, including labor, reagents, power, maintenance and overhead costs associated with the crushing, grinding, concentration and filtration areas.
Table 3: Operating Costs
Operating Costs | LOM ($ millions) | Per Oz Au ($) |
Mining | 782.7 | 1,681 |
Processing | 163.3 | 351 |
Site administration and social programs | 26.5 | 57 |
Shipping and port handling | 82.3 | 177 |
Selling and marketing | 38.7 | 83 |
Royalties | 155.6 | 334 |
  Total operating costs and royalties | 1,249.1 | 2,683 |
Less: silver by-product credits | (109.4) | (235) |
  Total cash costs | 1,139.7 | 2,448 |
Sustaining capital and 2026 exploration drilling    | 16.0 | 34 |
  All-in sustaining costs | 1,155.7 | 2,482 |
Note:Â Please see "Cautionary Statement on PEA and Use of Inferred Resources" below for the limitations, explanations and cautionary language on the use of the PEA. |
A summary of the key operating and financial metrics over the approximately 11-year mine life of the Zancudo Project according to the PEA is set out in Table 4 below.
Table 4: LOM Operating and Financial Data
Year | Production (3) | Revenue(4) | Operating | Operating | Sustaining | Initial | Project | AISC(9) | |
Gold | Silver | ||||||||
Kozs | US$ Millions | ||||||||
2026 (2) | 11 | 40 | 44.8 | 30.6 | 9.5 | 3.9 | 11.0 | (5.4) (8) | 3,029 |
2027 | 37 | 128 | 154.3 | 99.2 | 36.5 | 8.3 | - | 28.2 | 2,733 |
2028 | 41 | 287 | 177.5 | 112.2 | 43.2 | 3.8 | - | 39.4 | 2,493 |
2029 | 41 | 275 | 177.2 | 112.3 | 43.0 | - | - | 43.0 | 2,413 |
2030 | 45 | 150 | 187.3 | 120.5 | 44.3 | - | - | 44.3 | 2,513 |
2031 | 44 | 175 | 185.0 | 118.7 | 44.0 | - | - | 44.0 | 2,495 |
2032 | 44 | 147 | 183.4 | 118.4 | 43.2 | - | - | 43.2 | 2,522 |
2033 | 48 | 177 | 201.2 | 127.7 | 48.8 | - | - | 48.8 | 2,471 |
2034 | 54 | 253 | 229.4 | 141.9 | 58.0 | - | - | 58.0 | 2,385 |
2035 | 53 | 266 | 226.2 | 139.8 | 57.2 | - | - | 57.2 | 2,377 |
2036 | 48 | 290 | 205.5 | 127.8 | 51.5 | - | - | 51.5 | 2,374 |
Total | 466 | 2,188 | 1,971.8 | 1,249.1 | 479.2 | 16.0 | 11.0 | 452.2 | 2,482 |
Notes: | ||
1. | All figures are rounded to reflect the relative accuracy of the estimate. | |
2. | Includes production and cash flow from early-stage mining operations and sale of crushed material during the construction period. Processing plant operations and the sale of gold-silver concentrates are expected to commence with commissioning starting in August 2026. | |
3. | Production represents payable gold and silver from the sale of crushed material and concentrates. | |
4. | Revenue is based on spot gold and silver prices of $4,000 and $50 per ounce, respectively, and is based on the payability rates and other key terms in the Company's long-term offtake agreement with Trafigura. | |
5. | Refer to Table 3 for a breakdown. | |
6. | Operating cash flow is equal to gross profit (revenue less operating costs and royalties) less income taxes. | |
7. | Refer to Table 2 for a breakdown. | |
8, | Funded by $3.4 million available under the Trafigura prepayment facility and the Company's existing cash balances. | |
9. | AISC is a non-IFRS measure and is calculated on a by-product credit basis by deducting revenue from silver production from the sum of operating costs, royalties and sustaining capex, divided by the number of gold ounces produced. | |
10. | Please see "Cautionary Statement on PEA and Use of Inferred Resources" below for the limitations, explanations and cautionary language on the use of the PEA. |
Mineral Resource Estimate
The PEA is based on the MRE included in a technical report filed by the Company on SEDAR+ on December 18, 2025 entitled "Technical Report for the Zancudo Gold-Silver Mineral Deposit, Municipality of TitiribÃ, Department of Antioquia, Republic of Colombia, South America" prepared by Resource Development Associates ("RDA") in accordance with the CIM Definition Standards incorporated by reference in NI 43-101, with an effective date of October 31, 2025. The database for the updated MRE includes a total of 47,329 m of diamond drilling in 194 holes, including 7,225 m in 45 holes completed in the Company's 2024 drilling campaign.
Table 5: Zancudo Mineral Resource Estimate - Effective date October 31, 2025
Category | Cutoff | Tonnes | Grade | Material Content | ||||
Au | Ag | AuEq | Au | Ag | AuEq (6) | |||
  Indicated    | 3.25 | 979 | 6.90 | 84 | 7.9 | 217 | 2,657 | 249 |
  Inferred | 3.25 | 4,636 | 5.58 | 84 | 6.6 | 832 | 12,508 | 982 |
Cautionary Statement on PEA and Use of Inferred Resources
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted to mineral reserves. The PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. The PEA is based on mine plan tonnages and mill feed schedules, derived from the MRE. The PEA was prepared to allow the Company to update its evaluation of the economic viability of underground mining at the existing Independencia Mine and is subject to the assumptions and qualifications expressed in this news release and those that immediately follow. Mineral resources are assumed to be mined underground. The cutoff grade in the MRE of 3.25 g/t AuEq considered the following factors: (i) metal selling prices for gold at $2,400/oz and silver at $28/oz, (ii) recoveries of 85% for gold and 87% for silver, (iii) royalties of 6.7% and (iv) costs including mining of $105.00/t, processing of $42.00/t, general and administrative (G&A) and off-site realization (TCRC) of $21.00/t. Gold equivalent grade ("AuEq") was calculated by the formula "Au *Au Recovery (85%) * AuPrice + Ag *Ag Recovery (87%) * AgPrice)) / (Au Recovery (85%) *Au Price".
Qualified Person
Mr. Scott E. Wilson, CPG, President of RDA, is an independent consulting geologist specializing in Mineral Reserve and Resource calculation reporting, mining project analysis and due diligence evaluations. Mr. Wilson conducted a personal inspection of the Zancudo Project on March 5, 2026. Mr. Wilson has over 36 years of experience in the mining industry and is a Registered Member (#4025107RM) of Society for Mining, Metallurgy and Exploration, Inc. Mr. Wilson and RDA are independent of the Company under NI 43-101.
Mr. Wilson is acting as the Qualified Person, as defined in NI 43-101, for the overall technical report, and the mineral resource estimate. Mr. Wilson has reviewed and approved the scientific and technical information disclosed in this press release.
The PEA is preliminary in nature and it includes inferred resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the estimates presented in the PEA will be realized. The PEA will be supported by a NI 43-101 independent report which will be published and filed on SEDAR+ at www.sedarplus.ca and Denarius Metal's website at www.denariusmetals.com within 45 days of the issuance of this news release.
About Denarius Metals
Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of precious metals and polymetallic mining projects in high-grade districts in Colombia and Spain. Denarius Metals is listed on Cboe Canada where it trades under the symbol "DMET". The Company also trades on the OTCQX Market in the United States under the symbol "DNRSF".
In Colombia, Denarius Metals is producing gold and silver in an "early production" phase at its 100%-owned Zancudo Project while it completes construction a 1,000 tonnes per day processing plant that is expected to start producing high-grade gold-silver concentrates by the third quarter of 2026. The Zancudo Project is a high-grade gold-silver deposit, which includes the historic producing Independencia mine, and is located in the Cauca Belt, about 30 km southwest of Medellin.
In Spain, Denarius Metals has interests in three projects focused on in-demand critical minerals. The Company owns a 22% interest in Rio Narcea Recursos, S.L. and is the operator of its Aguablanca Project, which has been recognized by the EU as a Strategic Project. The Aguablanca Project comprises a turnkey 5,000 tonnes per day processing plant and the rights to exploit the historic producing Aguablanca nickel-copper mine, located in Monesterio, Extremadura. Denarius Metals also owns a 100% interest in the Lomero Project, a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian Pyrite Belt, approximately 88 km southwest of the Aguablanca Project, and a 100% interest in the Toral Project, a high-grade zinc-lead-silver deposit located in the Leon Province, Northern Spain.
Additional information on Denarius Metals can be found on its website at www.denariusmetals.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca.
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to statements with respect to Mineral Resource estimates, total revenue, AISC, future production, capital expenditures and projected financial results, future precious metals prices, future exploration and the timing and commencement of any of the foregoing, in addition to its anticipated business plans or strategies. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Denarius Metals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated March 31, 2025 which is available for view on SEDAR+ at www.sedarplus.ca. Forward-looking statements contained herein are made as of the date of this press release and Denarius Metals disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
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SOURCE Denarius Metals Corp.
