DPM Metals Announces Updated Feasibility Study Results and Provides Permitting Update for the Loma Larga Project
Executive Summary
- DPM Metals released an updated feasibility study for the Loma Larga project showing a post‑tax NPV₅% of $488 million and an IRR of 18.1 %, based on $1,900/oz gold, $27.50/oz silver and $4.00/lb copper price assumptions.
- The study estimates initial capital costs of $593 million for an 11‑year mine life producing ~173,000 gold‑equivalent ounces per year, with a projected after‑tax cash flow of $895 million.
- An environmental licence was issued in Q2 2025 but is now under review following stakeholder concerns; the planned 23,000 m drilling program has been paused pending resolution.
Key Details
- Economic Highlights
- After‑tax NPV₅%: $488 M
- IRR (after‑tax): 18.1 %
- Payback period: 3.4 years
-
Cash flow (after‑tax) over life of mine: $895 M
-
Cost Structure
- Initial capital estimate: $593 M (breakdown: Mine general $9.4 M, Underground mine $110.7 M, Processing plant $94.3 M, Tailings & water treatment $61.2 M, On‑site infra $48.9 M, Off‑site infra $63.1 M, Indirect costs $141.9 M, Contingency $47.7 M)
- Sustaining capital (life of mine): $75 M
-
Closure costs: $27.7 M (excluding non‑refundable VAT)
-
Production & Reserves
- Mineral reserves: 12.6 Mt @ 4.7 g/t Au, 28.6 g/t Ag, 0.29 % Cu → 1.9 M oz Au eq. (11‑year mine life)
- Annual throughput: 1.2 Mtpa
- Average gold grade processed: 4.7 g/t; recovery 89.7 %
-
Expected average annual payable production: ~173 k Au‑eq oz
-
All‑in Sustaining Cost
-
$873 per ounce of gold sold (life‑of‑mine average)
-
Permitting Update
- Environmental licence issued Q2 2025 by Ecuador’s Ministry of Environment, Water and Ecological Transition.
- Mid‑September 2025: local officials raised concerns; government considering suspension of the licence.
-
DPM asserts full compliance with environmental management plan and has paused the 23,000 m drilling program pending stakeholder engagement.
-
Project Optimization & Exploration
- Opportunities to reduce capital via power supply, mine fleet, equipment optimization.
- Identified multiple high‑sulphidation and low‑sulphidation epithermal/porphyry targets within the 7,960 ha land package.
-
Planned drilling program (23 km) to focus on geotechnical, groundwater monitoring, metallurgical, infill and extension holes once licence issues are resolved.
-
Sensitivity Analysis (Gold Price)
| Gold $/oz | NPV ($M) | IRR % | Payback (yr) |
|---|---|---|---|
| 1,500 | 210 | 11.2 | 4.6 |
| 1,700 | 349 | 14.8 | 3.9 |
| 1,900 | 488 | 18.1 | 3.4 |
| 2,300 | 767 | 24.1 | 2.7 |
| 2,500 | 906 | 26.9 | 2.5 |
| 3,500 | 1,603 | 39.1 | 1.9 |
- Social & Environmental Commitments
- Designed to minimize footprint; filtered tailings storage facility (4.3 Mt capacity) and water recycling per IFC standards.
- 50 % of project benefits retained in‑country via taxes, royalties, duties.
Notable Quotes
“The updated feasibility study demonstrates Loma Larga’s potential to deliver attractive returns for our investors and stakeholders,” – David Rae, President & CEO.
“We are committed to working collaboratively and transparently with stakeholders to demonstrate the significant economic and social opportunities that responsible development of the Loma Larga project offers local communities and the country of Ecuador.” – David Rae.