Denarius Metals begins work for Aguablanca restart

Executive Summary

• Denarius Metals Corp. has commenced activities to restart mining operations at its Aguablanca nickel-copper project in Spain, which is recognized by the EU as a strategic project under the Critical Raw Materials Act.
• The company has engaged Metso to lead the refurbishment of the 5,000-tonnes-per-day processing plant, with Metso providing financing for phase 2 (reconditioning) and phase 3 (commissioning).
• The company targets a return to production by mid-2026, with an expected output of approximately 70,000 tonnes per year of nickel-copper concentrates.

Key Details

• Restart Timeline: Underground mine back in production expected by mid-2026.
• Production Targets: Processing material at a rate of over 800,000 tonnes per year; producing an average of approximately 70,000 tonnes per year of nickel-copper concentrates.
• Processing Plant Refurbishment:
  • Metso engaged to lead work on the 5,000-tonnes-per-day processing plant.
  • Phase 1: Detailed assessment of existing facility condition commencing in September (signed with Metso Spain SA).
  • Phase 2: Reconditioning services financed by Metso.
  • Phase 3: Commissioning carried out by a Portuguese industrial maintenance company under Metso supervision.
  • Maintenance and commissioning activities expected to last no longer than eight months.
• Dewatering Program:
  • Pilot activities commenced in July with a 10-nozzle forced evaporation system for the tailings dam.
  • Two additional high-capacity evaporators to be installed in August.
  • Dewatering of the existing open pit to commence in October to gain access to underground workings.
  • Design and engineering completed; installation scheduled for September.
  • Dewatering activities expected to last no longer than six months.
• Underground Infrastructure:
  • Negotiations underway with Endesa for underground electrical connections.
  • Underground assessment of ventilation, ramp access, and power to commence after dewatering.
  • Construction of a new escapeway system to commence after dewatering of the main ramp is completed.
• Exploration Plans: Brownfield drilling program designed to commence in 2026, aimed at extending mine life, expanding reserves in known orebodies, and expanding the resource footprint of satellite mineralization.
• Ownership Structure: Aguablanca project is 100% owned by Rio Narcea Recursos SA (RNR). Denarius Metals owns 21% of RNR via its subsidiary Alto Minerals SLU and acts as the operator.
• Financing: In addition to Metso financing, Denarius is securing additional project financing directly through RNR for capital expenditures associated with start-up activities.

Notable Quotes

• "In our capacity as operator, we have initiated activities to restart mining operations at the Aguablanca project, the only nickel mine in Spain that has also been recognized by the EU [European Union] as a strategic project under the Critical Raw Materials Act." — Serafino Iacono, Executive Chairman