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DENARIUS METALS ANNOUNCES POSITIVE PEA RESULTS FOR ITS 100%-OWNED ZANCUDO PROJECT IN COLOMBIA

Zancudo PEA Unveils 558% IRR on $4,000 Gold Assumption, But Execution and Dilution Risks Loom

By The Northwire Desk — AI Analysis Mar 30, 2026 · 07:01 DMET · 0.94 DENARIUS METALS CORP.

Executive Summary

Denarius Metals released a Preliminary Economic Assessment (PEA) for its 100%-owned Zancudo Project in Colombia, projecting an 11-year mine life with $1.972 billion in life-of-mine (LOM) revenue and $722.7 million in pre-tax gross profit.
The study forecasts production of 465,606 payable gold ounces and 2,188,111 payable silver ounces, utilizing a 1,000 t/d processing plant targeted for commissioning in Q3 2026.
Financial metrics are highly aggressive, relying on long-term price assumptions of $4,000/oz gold and $50/oz silver, resulting in an after-tax IRR of 558% and a one-year payback period.
Remaining initial capital expenditures are modest at $11 million, partially funded by a $3.4 million Trafigura prepayment facility, with sustaining capex estimated at $16 million.
All-in sustaining costs (AISC) are projected at $2,482/oz Au, with cash costs at $2,448/oz Au.
A new 15,000-meter drilling campaign is scheduled to commence in April 2026 to expand resources in all directions.
The project maintains a long-term offtake agreement with Trafigura Pte. Ltd. for high-grade Au-Ag concentrate.

Material Impact

The PEA provides the first formalized economic framework for Zancudo, confirming the project's viability on paper but heavily dependent on peak-cycle metal price assumptions.
The 558% IRR is mathematically inflated by the $4,000/oz gold assumption, which is not a conservative baseline. If gold reverts to $2,500/oz, the IRR and NPV would compress significantly, though the project would likely remain profitable given the low remaining capex.
The news aligns with prior guidance from November 2025, where management explicitly stated they were preparing an updated PEA following the resource upgrade and plant permitting. Therefore, the market was anticipating this release.
The $11 million remaining capex is low relative to typical junior mining builds, but the $16 million sustaining capex and $2,482/oz AISC indicate tight operating margins if metal prices soften or operational inefficiencies arise during ramp-up.
The release does not alter the near-term cash flow reality; the company remains pre-commercial with ongoing dilution from monthly share-settled debenture interest.

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Company Overview

Denarius Metals is a Canadian-listed junior mining company focused on precious and base metals in Colombia and Spain.
Flagship asset: Zancudo Project (Colombia), a 100%-owned high-grade gold-silver underground deposit located in the Cauca Belt. The project is fully permitted and transitioning from early artisanal production to mechanized mining with a new 1,000 t/d flotation plant.
Secondary assets: Aguablanca Project (Spain, 22.1% owned JV targeting Ni-Cu restart), Lomero and Cruzadillo exploration permits (Spain, Iberian Pyrite Belt).
The company operates in a development-to-production phase, with Zancudo representing the primary near-term value driver.

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