Denarius Begins Mining at Zancudo as Project Nears Production Milestone
Denarius Metals has launched mining operations at its Zancudo Project in Colombia, with initial production expected in the second quarter of 2025. The development follows the company’s progress in securing a mining license and environmental approvals throughout 2024.
A mine contractor has begun opening four production fronts at the site over the next several months, while early-stage ore extraction is already underway in accessible areas. Ore stockpiling has commenced, and deliveries to Trafigura under an existing offtake agreement are set to begin by the end of April. The processing plant equipment has arrived on-site, and earthworks are about to start. Installation is scheduled for the summer, with commissioning anticipated in the fourth quarter.
In 2024, Denarius directed its investments toward both Zancudo and the Aguablanca Project in Spain. The company spent $22.1 million on investments last year, up from $15.7 million in 2023, with the bulk allocated to these two projects. Financing efforts in 2024 and early 2025 raised $24.9 million, including $4.7 million from a net smelter royalty sale and over $20 million through private placements. Executive Chairman Serafino Iacono contributed approximately 41% of total gross proceeds raised in the past year and currently holds about 20.6% of the company’s outstanding shares.
Offtake contracts were established in 2024 for 100% of the concentrate production from both projects. The Zancudo agreement with Trafigura spans eight years, while Aguablanca’s nickel-copper concentrate will be sold to Boliden under a contract extending to mid-2031. In early 2025, Denarius secured $2.5 million in prepayment from Trafigura as part of a financing agreement, with additional tranches to follow as construction milestones are met.
Exploration at Zancudo continued through 2024 with 7,225 meters of infill drilling aimed at converting Inferred Resources to Indicated. Drilling at the Los Albertos target yielded high-grade gold and silver results, suggesting extended mineralization and the presence of an ore shoot along the Manto Antiguo structure. A second phase at Las Brisas concluded late in the year, with assay results expected in the second quarter of 2025. Denarius plans further drilling this year.
In December 2024, the company secured approval from debenture holders to extend payment timelines, allowing more flexibility in ramping up operations. It also sold a 29% stake in Rio Narcea Recursos, owner of Aguablanca, to resolve outstanding acquisition payments while retaining a 21% interest and operational control.
Aguablanca was recently named one of the European Union’s Strategic Projects under the Critical Raw Materials Act. This designation offers financial support and streamlined permitting for projects that enhance the EU’s raw material supply chain. Aguablanca is one of only seven Spanish projects to receive this recognition.
Denarius reported a net income of $2.1 million in the fourth quarter of 2024, reversing a loss of $9.4 million in the same period the previous year. For the full year, the company posted a net loss of $9.9 million, down from $14.4 million in 2023, due in part to gains related to financing adjustments and asset sales.
