Denarius Metals' Zancudo Project: A High-Grade Gold-Silver Play with Near-Term Production Potential in Colombia

The Zancudo Project, operated by Denarius Metals in Colombia, has emerged as a compelling case study in the strategic alignment of resource confidence and production readiness. With a recent surge in exploration activity and regulatory progress, the project now stands at a critical juncture, offering investors a rare combination of high-grade gold-silver potential and near-term operational timelines. This analysis evaluates the project's updated resource estimates, feasibility study status, and production roadmap, underscoring its position as a high-conviction opportunity in the polymetallic mining sector.

Resource Confidence: A Foundation for Strategic Investment

Denarius Metals' October 31, 2025, Mineral Resource Estimate (MRE) represents a significant step forward in de-risking the Zancudo Project. The 2024 in-fill drilling campaign, conducted at 50×50 m intervals, upgraded 979,000 tonnes to Indicated Resources, grading 6.9 g/t gold and 84 g/t silver-equivalent to 217,000 ounces of gold and 2.7 million ounces of silver according to the report. This conversion of low-grade Inferred Resources to higher-confidence Indicated categories not only strengthens the project's technical foundation but also enhances its appeal to capital providers.

The total resource base has expanded by 16% to 1.23 million ounces of gold equivalent (AuEq), with 20% now classified as Indicated. Meanwhile, Inferred Resources have grown by 13%, reaching 4.6 million tonnes at 5.6 g/t gold and 84 g/t silver according to Denarius Metals' announcement. These figures, prepared by Resource Development Associates Inc., reflect a disciplined approach to resource delineation and suggest that the deposit remains open for expansion in all directions. A new 15,000-meter drilling campaign, targeting high-grade structures, is already underway, further positioning the project for upside.

Feasibility and Economic Viability: A Timely PEA

The updated MRE is now feeding into a revised Preliminary Economic Assessment (PEA), scheduled for publication on December 18, 2025. This PEA will incorporate not only the latest resource data but also a more optimistic metals price environment, with gold assumed at US$2,400/oz and silver at US$28/oz. Such assumptions, while ambitious, align with current macroeconomic trends and could significantly enhance the project's net present value (NPV).

Operational parameters are also being refined. The PEA will assess recovery rates of 85% for gold and 87% for silver, alongside updated cost structures, to model a robust economic case. These metrics, combined with the project's high-grade profile, suggest that Zancudo could achieve a favorable internal rate of return (IRR) even under conservative capital expenditure (CapEx) scenarios.