Denarius Metals' Zancudo Project Shows Strong Economics in Updated PEA
Event summary
- Denarius Metals released a positive Preliminary Economic Assessment (PEA) for its Zancudo Project in Colombia, projecting an 11-year mine life with $2.0 billion in revenue and $723 million in pre-tax gross profit.
- The project expects to produce 466,000 ounces of gold and 2.2 million ounces of silver with an all-in sustaining cost (AISC) of $2,482 per ounce of gold.
- Remaining initial capital costs are $11.0 million, with $3.4 million funded by Trafigura's prepayment facility.
- The PEA is based on an updated Mineral Resource estimate effective October 31, 2025, including 217,000 ounces of gold and 2.7 million ounces of silver in the Indicated Resources category.
The big picture
Denarius Metals' positive PEA for the Zancudo Project underscores the growing interest in high-grade gold-silver deposits in Colombia. The project's strong economic metrics and strategic location near Medellin position it favorably in a robust precious metals market. The company's ability to secure funding from Trafigura and its focus on sustainable mining practices highlight its commitment to long-term value creation.
What we're watching
- Resource Expansion
- The Zancudo deposit remains open for further expansion in all directions, with a 15,000-meter drilling program commencing in April 2026.
- Market Conditions
- The project's economics are highly sensitive to gold and silver prices, with approximately 50% of operating costs fluctuating with gold prices.
- Execution Risk
- The success of the project hinges on the timely completion of the processing plant and the commencement of concentrate sales to Trafigura by the third quarter of 2026.
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