Denarius Metals Advances Aguablanca Project with Promising Pre-Feasibility Study
Denarius Metals has announced the results of a Pre-Feasibility Study (PFS) for the Aguablanca Nickel-Copper Project in Spain, signaling the project's viability and the company's readiness to restart operations. Located within the Monesterio municipality, Extremadura, and approximately 88 km southwest from Denarius's Lomero Project, Aguablanca stands as a significant development in Spain's mining sector, capable of producing nickel and copper.
The PFS, aligning with Canadian Institute of Mining Metallurgy and Petroleum standards, outlines a robust path for the project, with Denarius owning a 50% interest through its subsidiary, Alto Minerals S.L.U. Serafino Iacono, Executive Chairman and CEO, highlighted the project's potential in meeting the demands for technologies pivotal to renewable energy and battery power, spurred by increasing interest from European manufacturers and offtakers.
Key Highlights from the Aguablanca Project PFS:
- Project Life and Production: Over its six-year life, the Aguablanca Project is set to process 4.8 million tonnes of ore from the underground mine, projecting a life-of-mine net revenue of $480.3 million and after-tax cash flow of $105.7 million. The project boasts an impressive after-tax internal rate of return of 213% and a quick payback period of 1.2 years.
- Mining and Processing: The PFS outlines a mining strategy utilizing local contract mining, enhancing the local economy. The existing 5,000 tonnes per day processing plant, maintained in good condition, is poised for a restart, with the PFS planning for half of the plant's capacity to be dedicated to the Aguablanca Project.
- Mineral Reserves and Grades: The updated Mineral Resource Estimate reports 5.3 million tonnes in the Measured & Indicated category with notable grades of nickel and copper, and additional minerals including gold, platinum, palladium, and cobalt. The proven and probable reserves stand at 4.7 million tonnes.
- Economic Outlook: The project is projected to yield substantial returns, with long-term price assumptions for nickel and copper at $7.30 and $3.50 per pound, respectively. The PFS anticipates significant after-tax cash flows, supported by a strong NPV and IRR.
- Community and Environmental Impact: Aguablanca's operation is expected to positively impact the local community in Extremadura, through direct and indirect employment, local sourcing of services and supplies, and community programs funded by Denarius.
- Future Developments: Denarius views the Aguablanca Project as the first phase towards establishing a long-term mining operation in the region, with potential expansion opportunities through the exploration potential of the Aguablanca and nearby Lomero Project.
