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.
The stock market is off to a rocky ride so far in September, as the S&P 500 and the Nasdaq Composite are down more than 1%, while the Dow is down 2.2% for the month.
Gold continues to trade around $1800 as numerous exciting developments have surfaced the past month, ranging from Palantir buying gold bars as a hedge against a “black swan event” and continued strong demand for gold from central banks worldwide, specifically from countries in BRICS.
In addition to strong gold demand from major emerging economies, people in Germany have been very active so far in 2021 as demand for physical bullion in Germany has been at its highest since at least 2009.
The country is well known for being the most prominent gold coin and bar buyer in Europe.
Germans have a deep understanding of gold due to hyperinflation in the Weimar Republic a century ago.
Denarius Silver – The Hedge Against Inflation with Major Upside
Denarius has announced that it had received its drilling permit for the exploration program at its 100% owned flagship asset, the Lomero-Poyatos project.
The company has also commenced its 2021 drilling program at the Guia Antigua project in Colombia.
These are the first extensive drill programs at these assets since its reverse takeover in early 2021, which is exciting as in the coming months, the market should get a look at the quality of these two exciting assets located in two prolific geological regions.
Lomero-Poyatos Project, Spain
The company’s flagship asset is located in the northeast part of the Spanish/Portuguese Iberian Pyrite Belt in the Huelva Province of Southern Spain.
The Lomero-Poyatos deposit has an average ENE (075°) strike and dips about 35°N. There are two separate mineral deposits at the surface: Lomero (east) and Poyatos (west), which combine to form a single deposit at depth.
Before I get into the exploration program, I want to highlight the Iberian Pyrite Belt.
The Iberian Pyrite Belt is the largest concentration of massive sulphides globally, and the mining activity on this belt goes back thousands of years. Currently, over 250 deposits are in the belt.
From the eighth century BC, there was mining in the area, but it was the Romans who exploited the mines with greater intensity, thanks to its strategic position in the Mediterranean.
Ironically, the Romans used the “Denarius” silver coin in 211 BC, which contained an average of 4.5 grams of a Roman pound of silver. It became the standard currency of the roman republic and the early empire.
Sadly, the denarius began to undergo slow debasement toward the end of the republican period.
However, this shows the historical linkage between the word “Denarius” and the Iberian Pyrite Belt, where Denarius Silver will be advancing its flagship asset with the ambition of:
- Publishing an updated resource estimate in the second quarter of 2022
- Within 18 months, hopes to complete a pre-feasibility and, after that, develop a plan to move this project towards production
Exploration Program:
The company has announced (link to the July 26th PR) plans for the first phase of exploration at Lomero-Poyatos which will commence once the company has received an environmental permit, the final step of the regulatory process for exploration, expected in the coming weeks. The program aims to sure-up the historical estimate and test geophysical anomalies around the known margins of the deposit which remains open at depth and along strike.
Here is a full run-down of the 2021 exploration objectives at Lomero-Poyatos:
It is worth noting that the massive sulphide and semi-massive sulphide zones at Lomero-Poyatos are significantly enriched in gold. The resource has significant growth prospects as it is still open at depth and along strike.
Photo Below: Collar Plan showing Location of Proposed Validation Holes. Sources: SRK, 2021
Photo Below: Drilling Coverage from surface (current = red, proposed infill = green). Sources: SRK, 2021
The current mineralization remains open along strike and at depth, and if extensions are identified, Denarius has budgeted to increase the drilling program to 60,000 meters.
Photo Below: Significant historical drill hole intersections from Newmont/CMR Campaign:
Guia Antigua, Colombia
The Guia Antigua Project is located in the Segovia Mining district in Colombia.
The project is a mining license agreement is located approximately 5 km to the east of Gran Colombia’s Segovia Operations.
For new readers, it is worth highlighting that Denarius’s interim CEO and Chairman is also the Executive Chairman of Gran Colombia Gold.
This gives the company a huge advantage regarding advancing this asset as Serafino and his team have been working in this area for years, exploring, developing, mining, processing and producing gold from their flagship Segovia operations El Silencio.
Gran Colombia’s high-grade mines have been in continuous operation for over 150 years and have produced roughly 5 million ounces of gold.
The Guia Antigua project has already produced gold and silver as between 2014 – 2016, produced 78,558 oz silver and 1,174 oz gold from 6,034 tonnes of ore with an average head grade of 404.90 g/t Ag and 6.05 g/t Au.
In a 2018 drill program, three new veins were identified 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.
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 Segovia Operations. This is very exciting given that Segovia is one of the world’s highest grade global underground gold mines.
This program will consist of 17 drill holes totalling 3,460 m. To date, two in-fill drill holes have been completed confirming at least two main zones of mineralization. Assay results are still pending.
The next phase of this program, which is conditional on good results, will be a 35 hole 7,000-metre infill and down dip drill program to develop a preliminary mineral resource estimate.
Conclusion:
For the remainder of the year, be on the lookout for exploration news at Guia Antigua and Lomero-Poyatos.
The company’s other asset Zancudo is a joint venture with IAMGOLD. They are drilling 10,000-meters which is another advanced asset that I touched on in my previous article on the company. (Read Here)
In the coming weeks, I will be doing another Q&A with the Denarius Executive Chairman and Interim CEO, Serafino Iacono.
Review website, here
Review corporate deck, here
Legal Notice / Disclaimer
The Gold Telegraph, goldtelegraph.com, hereafter known as Gold Telegraph.
Please read the entire Disclaimer carefully before you use this website or read the newsletter. If you do not agree to all the Gold Telegraph Disclaimer, do not access/read this website/newsletter/article, or any of its pages. By reading/using this Gold Telegraph website/newsletter/article, and whether or not you actually read this Disclaimer, you are deemed to have accepted it.
Any Gold Telegraph document is not, and should not be, construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.
Gold Telegraph has based this document on information obtained from sources he believes to be reliable but which has not been independently verified. Gold Telegraph makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold Telegraph/Author only and are subject to change without notice.
The Gold Telegraph/Author assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, The Gold Telegraph/Author assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this The Gold Telegraph/Author report.
The Gold Telegraph/Author is not a registered broker/financial advisor and does not hold any licenses. These are solely personal thoughts and opinions about finance and/or investments – no information posted on this site is to be considered investment advice or a recommendation to do anything involving finance or money aside from performing your own due diligence and consulting with your personal registered broker/financial advisor. You agree that by reading The Gold Telegraph/Author articles, you are acting at your OWN RISK. In no event should The Gold Telegraph/Author be liable for any direct or indirect trading losses caused by any information contained in The Gold Telegraph articles. Information in Gold Telegraph/Author articles is not an offer to sell or a solicitation of an offer to buy any security. The Gold Telegraph/Author is not suggesting the transacting of any financial instruments but does suggest consulting your own registered broker/financial advisor with regards to any such transactions
The author does own shares of Denarius Silver Corp (TSX-V:DSLV). Denarius Silver is a paid advertiser on the Gold Telegraph.