Disclaimer: Denarius is a paying advertiser on the Gold Telegraph and the author owns shares in the company. Please see full disclosure at the bottom of the article.
Denarius is an exciting under-the-radar development story with an advanced portfolio of assets located in Spain and Colombia.
The company’s flagship asset is Lomero-Poyatos which is 100% owned and was acquired by the company in April 2021.
It is an advanced polymetallic deposit located on the Spanish side of the prolific copper-rich Iberian Pyrite belt with a historical estimate in the inferred category of 20.93 Mt of 3.08 g/t gold, 62.38 g/t silver, 0.90% copper, 0.85% lead, and 3.05% zinc that remains open at depth and along strike.
Five key drivers guide the company:
Diverse Portfolio:
Having three assets in two different countries allows investors to invest in an international mining portfolio with exposure ranging from exploration to near-term production of multi-metal assets offering leverage across multiple markets.
Great Proximity:
The company’s three assets are located close to massively productive operations with robust infrastructure to help quickly advance the projects.
Rich History:
The Denarius team is encouraged by the historically productive mining districts the mine sites occupy, particularly the Copper Rich Iberian Pyrite Belt, which has production dating back to Roman Times.
High Grades:
Exploration programs on all three projects have returned high-grade mineralization consistent with the rich history of the properties and the prolific neighboring deposits.
Experienced Team:
The company offers a board and management team with international experience and operational expertise to quickly advance projects and maximize shareholder value.
Now, let’s dive into the company’s assets:
Lomero-Poyatos Project (Spain)
The project is located in the northeast part of the Spanish/Portuguese (Iberian) Pyrite Belt, which extends about 230 km between Seville in the east (in southern Spain) and the Atlantic coast near Lisbon in the west (in Portugal).
The Iberian Pyrite Belt is the largest concentration of massive sulphides in the world, and world-class deposits surround the project.
The company is currently working on a new resource estimate, but as previously mentioned, the historical estimate in the inferred category is 20.93 Mt of 3.08 g/t gold, 62.38 g/t silver, 0.90% copper, 0.85% lead, and 3.05% zinc that remains open at depth and along strike.
The estimated historical production at the Lomero-Poyatos Project was at least 2.6 million tonnes of massive sulphide ore grading 5g/t Au, 80g/t Ag, 1.20% Cu, 1.10% Pb and 2.91% Zn.
The project deposit site is well serviced by water, power, paved highways, and port access. It is also positioned in close proximity to the Matsa JV project, which has processing facilities with the capacity to process 4.4M tons of copper and polymetallic ore annually.
Here are some historical drilling results on the project:
The company will be drilling 22,000 metres at the project which will consist of:
- 14 verification drill holes to verify results of historical drilling
- 59 infill drill holes to infill previous drilling to become more confident on resource
- 15 extension drill holes as the deposit is still open at depth and along strike
This is going to be a very exciting remainder of the year as a new resource estimate should be announced in the coming weeks alongside on-going drilling for the remainder of the year.
Guia Antigua Project (Colombia)
The Guia Antigua Project is on the adjacent property of a complex, highly productive vein system.
The project is a mining license agreement for the eastern part of Gran Colombia’s mining title RPP-140.
Gran Colombia carries out mining, processing, and production of gold from their flagship Segovia operations El Silencio, Providencia, and Sandra K mines on the adjacent, western part of the mining title RPP-140 and these high-grade mines have been in continuous operation for over 150 years and over that time have produced roughly 5 million ounces of gold.
A 2018 drill program identified three new veins with excellent grades, including a high mineralized intercept of 3,268 g/t Ag, 8.57 g/t Au across a 1.2m drill length on the project.
The Guia Antigua vein is the current focus of the Guia Antigua Project, which is similar in geology, structure, vein style, and mineralogy to the veins of the high-grade Segovia operations owned by Gran Colombia.
It is worth noting that Gran Colombia Gold will provide country operational expertise to Denarius to help advance their projects in Colombia.
To provide some context on Segovia, over the last ten years, under the operation of Gran Colombia, Segovia has produced over 1.3 million ounces of gold with an average head grade of 13.8 g/t and in 2020 produced 196,000 with an average head grade of 14.5 g/t.
Here are the 2021 exploration objectives for the project:
Zancudo Project (Colombia)
The Zancudo Project is located in the Titiribí mining district of Antioquia, about 27 km south of Medellin.
The property includes the historically productive Independencia Mine and also sits very close to GoldMining’s Titiribí Project (TSX: GOLD)
- M&I resource 285.8 Mt at 0.50 g/t Au (4.63 Moz), 0.10% Cu (654 Mlb) or 0.68 g/t AuEq (6.20 Moz)
- Inferred resource 207.9 Mt at 0.49 g/t Au (3.25 Moz), 0.02% Cu (77.9 Mlb) or 0.51 g/t AuEq (3.44 Moz)
Total production from the Titiribí district has been estimated at between 48,230 kg and 64,300 kg (1.5 to 2.0 Moz) of Gold Equivalent.
Option Agreement in place with IAMGOLD for further mineral exploration.
Here are the 2021 exploration objectives:
I recently had the opportunity to ask Denarius’ CEO and executive chairman, Serafino Iacono, a few questions about the company and its plans for the remainder of the year:
Alexander Deluce:
Hi Serafino, thank you for taking the time today to provide the Gold Telegraph readers and subscribers an introduction to Denarius.
First off, can you provide a bit of an overview of the company’s flagship asset, the Lomero Project in Spain, in addition to the Guia Antigua and Zancudo projects located in Colombia?
Serafino Iacono:
Lomero is a project in Spain in the famous Iberian Pyrite Belt. It is a massive deposit with historical drilling where we have outlined 20 million tonnes with 4.9 percent copper equivalent.
Zancudo is our JV with IAMGold. It’s a gold/silver mine with very large potential to develop a multi million oz silver deposit. Guia Antigua is our advance silver/gold project with a very high silver content, 350 grams per tonne and gold 7 gm per tonne that will be drilled starting next month. It’s a mine that was in operation 3 years ago.
Alexander Deluce:
Clearly, the Lomero-Poyatos project is an advanced asset with its significant tonnage in au, ag, cu, pb and zn.
Can you touch on the exploration program at this asset for the remainder of the year in addition to the upcoming resource estimate?
Serafino Iacono:
In August 2021 we plan on starting a 60,000-meter drilling campaign at Lomero. 20,000 meters August to December 2021 where we will do confirmation drilling and 40,000 meters in 2022 to define reserves and finish prefeasibility by end of 2022.
Alexander Deluce:
What type of exploration programs are planned for the remainder of the year at the Colombian assets?
Serafino Iacono:
In Colombia, we plan on the following:
Zancudo. Iamgold is completing a 10,000-meter drilling campaign
Guia Antigua, we plan on drilling 8,000 meters in 2021.
Alexander Deluce:
One of the things I find unique about the value proposition of Denarius is its diverse portfolio of assets.
By having an international mining portfolio of advanced mineral assets, can you touch on the advantages this brings to investors? Also, are further acquisitions something the company is focused on, or is developing these three assets the primary focus for Denarius?
Serafino Iacono:
Our primary focus will be to develop the Lomero project, there is over $8 billion dollars in minerals at Lomero. Within the next 18 months a prefeasibility will be completed and after that we will develop a plan to take this mine to production, hopefully using the Matsa plant which is only 6 kilometers away.
Alexander Deluce:
Finally, Serafino, can you touch on the experienced team you have assembled? The team truly consists of individuals such as yourself who have proven to be mine-builders with international experience.
Serafino Iacono:
We have a fantastic exploration and management team in Colombia, IAMGold is developing the Zancudo property and in Guia Antigua Gran Colombia is directing exploration – we have all the know how and personal to develop it. In Lomero, we have assembled a team of geologist metallurgical and personnel to manage the take to feasibility with the help of SRK.
Thank you, Serafino, I am looking forward to catching up with you again in a few months for another update.
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The author does own shares of Denarius Silver Corp (TSX-V:DSLV). Denarius Silver is a paid advertiser on the Gold Telegraph.