Denarius Metals Corp. has released the findings of its pre-feasibility study, supporting the relaunch of the Aguablanca Nickel-Copper Project in Extremadura, Spain. Located approximately 88km southwest of the company’s Lomero Project, the Aguablanca Project is owned 50% by Denarius Metals through its wholly-owned Spanish subsidiary, Alto Minerals S.L.U.
Serafino Iacono, Denarius Metals’ executive chairman and CEO, expressed confidence in the project’s potential, stating, “The PFS validates our decision to invest in the Aguablanca Project, which boasts one of Spain’s few deposits capable of producing nickel and copper. We are already witnessing significant interest from various off-takers and manufacturers across Europe, seeking resources for renewable energy and battery technologies.”
Key highlights from the pre-feasibility study include plans to restart the existing 5,000tpd plant, de-water the open pit mine, and commence underground mine development, with the first production of nickel-copper concentrates expected in early 2025. Notably, only 50% of the processing plant’s capacity is utilized for the Aguablanca Project, leaving room for potential expansion to accommodate the development of the nearby Lomero Project.
The study also incorporates an updated Mineral Resource Estimate (MRE) for the underground mine, as of 24th March 2024, indicating 5.3 million tonnes in the measured and indicated category, grading 0.65% nickel and 0.58% copper. This translates to a total of 76.8 million pounds of nickel and 68.0 million pounds of copper, along with smaller quantities of gold, platinum, palladium, and cobalt.
Furthermore, the pre-feasibility study outlines proven and probable mineral reserves, also as of 24th March 2024, totaling 4.7 million tonnes, with grades of 0.67% nickel and 0.59% copper. These reserves contain approximately 69.6 million pounds of nickel, 61.7 million pounds of copper, and additional quantities of gold, platinum, palladium, and cobalt.
Over the projected six-year Life of Mine (LOM), production from mining and processing approximately 4.8 million tonnes of material is anticipated to recover 43.2 million pounds of payable nickel and 34.6 million pounds of payable copper. This will be achieved through the sale of approximately 406,359 tonnes of nickel-copper concentrates. The LOM all-in sustaining costs are projected to average C$4.04 per pound of payable nickel on a by-product credit basis.
