Location

Iberian Pyrite Belt, Spain

  • The Lomero-Poyatos deposit is located in the north-east part of the Spanish/Portuguese Iberian Pyrite Belt in the Huelva Province of Southern Spain
  • The Lomero-Poyatos deposit site is well serviced by water, power and paved highways to Seville, Huelva, Aracena
  • Multiple high capacity processing facilities in close proximity as well as shipping access at Huelva Port
  • Several surrounding nearby villages, which represent potential sources of labour, accommodation, and general services
Spain-Mao Iberian-Pyrite-Belt-Landscape
Denarius-Map
Logos-and-Info

Geology

Iberian Pyrite Belt

The Lomero-Poyatos deposit is located in the north-east part of the Spanish/Portuguese (Iberian) pyrite belt which extends about 230 km between Seville in the east (in southern Spain) and the Atlantic coast near Lisbon in the west (in Portugal). The Lomero-Poyatos deposit is located on the northern margin of the pyrite belt.

The Iberian Pyrite Belt is the largest concentration of massive sulphides in the world.

Deposit

The Lomero-Poyatos deposit has an average ENE (075°) strike and dips about 35°N. At the surface there are two separate mineral deposits: Lomero (east) and Poyatos (west) that combine to form a single deposit at depth.

Mineralization

Pyrite is the predominant sulphide, but the sulphide minerals of greatest economic importance are sphalerite, chalcopyrite, tetrahedrite and galena. The massive sulphide and semi-massive sulphide zones at Lomero-Poyatos are significantly enriched in gold. In terms of gold content, the Lomero-Poyatos deposit has the highest gold grades in the IPB with values of 2.0 m at 14.1 g/t Au and 0.55 m at 16.84 g/t Au being returned from CMR/Newmont drill holes in 2007. There is copper-enrichment in the central part of the mine, with some zinc-lead-gold enrichment towards the eastern and western margins of the deposit.

Geological-Info

Historical Estimate

Historical Resource Estimate

SRK Consulting has completed a review and assessment of the Lomero-Poyatos Project, confirming the potential exploration targets for a gold and copper polymetallic project. Gold grades at the Lomero-Poyatos Project are some of the highest known in the Iberian Pyrite Belt. SRK has consolidated available information from previous explorers in its Technical Report dated July 26, 2021.

SRK Technical Report, July 26, 2021

Behre Dolbear Technical Report, April 5, 2021 (2012 Historic Mineral resource Estimate)

Lomero-Poyatos-Mineral-Distribution-Block-Model-For-Au-Cu
Lomer-Poyatos-Historical-Resource-Estimate

The historical resource estimate Statement for the Lomero Poyatos deposit is presented in the table. The historical resource estimate is NI 43-101 compliant and was made by Behre Dolbear with an effective date of 2011 and based on the GEMCOM “global” resource model from 2011 with a 1 g/t Au cut-off, within a 25 % S shell, and a deemed SG of 3.3 g/cm3. Metal Equivalent grades were calculated using prices of US$1,500/oz gold, US$18/oz silver, US$3/lb copper, US$0.8/lb lead, US$1.00/ lb zinc. The prices used Assumes 100% recovery and 100% payable for all metals.

Initial Mineral Resource Estimate

INITIAL MINERAL RESOURCE ESTIMATE

Lomero Project – SRK Technical Report Mineral Resource Estimate, July 19, 2022

INITIAL MINERAL RESOURCE ESTIMATE

  • The initial Inferred Mineral Resource comprises 10.66 Mt at 0.45% Cu, 1.02% Zn, 0.41% Pb, 21 g/t Ag and 2.0 g/t Au (1.59% CuEq) containing an estimated 48 kt Cu, 109 kt Zn, 44 kt Pb, 7.4 Moz Ag, 0.7 Moz Au.
  • Based on the results from approximately 26,000 m completed in 83 diamond drill holes in the Phase 1 surface drilling program completed in July 2022, the initial Mineral Resource estimate provides a solid foundation for further mineral resource expansion in Denarius’ forthcoming Phase 2 program.
  • The initial Mineral Resource estimate assumes both open pit and underground mining and extends from surface to a depth of 350 meters.
  • Completing a directional drilling program to validate a high-grade dataset relative to this MRE associated with a historical drilling campaign of horizontal underground holes that is not yet included in the above initial Mineral Resource estimate.
  • Drilling to date has identified mineralization over a strike of over 1 km and with a vertical extension of 400 meters.
  • This initial MRE confirms the significant high gold grade potential of this project within the Iberian Pyrite Belt, as it remains open for further expansion down-dip and to the east.
  • Continued potential for further resource expansion, with compelling targets already identified via recent detailed helicopter-borne time-domain electromagnetic (“TDEM” or “TEM”) and ground-based gravimetric surveys.

SRK CIM Compliant Mineral Resource Statement effective July 19, 2022 for the Lomero - Poyatos Project, Spain, reported based on Copper Equivalent CuEq (2)

Class

Estimation
Domains


Mining
Type


Mass
(Mt)


Density

Average Value

Metal Content

 

Equivalent CuEq
Metal Content

Au
(g/t)

Ag
(g/t)

Cu
(%)

Pb
(%)

Zn
(%)

Au
(koz)

Ag
(koz)

Cu
(kt)

Pb
(kt)

Zn
(kt)

 

(%)

(kt)

Inferred

Massive
Sulfides

OP(3)

3.45

4.33

2.9

27

0.87

0.52

1.22

317

2,986

30.1

17.9

42.0

 

2.37

81.8

UG(3)

2.21

4.18

2.4

27

0.37

0.44

1.24

168

1,887

8.2

9.,6

27.3

 

1.71

37.8

Total

5.66

4.27

2.7

27

0.68

0.49

1.22

485

4,873

38.3

27.6

69.3

 

2.11

119.7

Semi
Massive
Sulfides

OP(3)

2.05

3.64

1.6

19

0.32

0.31

0.76

108

1,259

6,5

6.3

15.7

 

1.22

25.0

UG(3)

0.92

3.49

1.0

14

0.21

0.27

0.68

30

404

1.9

2.5

6.3

 

0.87

8.0

Total

2.97

3.59

1.4

17

0.28

0.3

0.74

138

1,663

8.4

8.8

22.0

 

1.11

33.0

Stockwork

OP(3)

0.7

3.38

1.1

11

0.13

0.38

0.78

24

237

0.9

2.7

5.5

 

0.84

5.8

UG(3)

1.33

3.04

1.1

14

0.04

0.35

0.92

47

587

0.5

4.6

12.3

 

0.81

10.8

Total

2.03

3.16

1.1

13

0.07

0.36

0.87

70

824

1.4

7.3

17.7

 

0.82

16.7

Total

OP(3)

6.20

3.99

2.3

22

0.6

0.44

1.02

448

4,482

37.4

27.0

63.1

 

1.82

112.7

UG(3)

4.46

3.70

1.7

20

0.24

0.37

1.03

245

2,878

10.6

16.7

45.8

 

1.27

56.6

Total

10.66

3.87

2.0

21

0.45

0.41

1.02

693

7,360

48.0

43.7

108.9

 

1.59

169.3

Source: Company press release dated September 19, 2022; SRK, effective as of July 19, 2022

  • Notes:
    (1) Mineral resources are not ore reserves and do not have demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Gold, silver, copper, lead and zinc assays were capped where appropriate. It is assumed based on regional benchmarking all the elements included in the Copper Equivalent (CuEq) calculation have a reasonable potential to be recovered and sold. Mineral resources have been depleted to reflect historical mining.
    (2) The Copper Equivalent calculation has been defined using the following formula:
    CuEq =((Au*19.65)+(Ag*0.37)+(Cu*67.36)+(Pb*14.76)+(Zn*22.45)/96.23)/ Cu Recovery        
    (3) Mineral resources are reported using an assumed CuEq cut-off grades based on metal price assumptions*, variable metallurgical recovery assumptions**, mining costs, processing costs, general and administrative (G&A) costs, and variable NSR factors***. Mining, processing, and G&A costs total US$30/t for Open Pit Mining and US$45/t for Underground Mining which includes assumptions for prices, recoveries and payabilities. The CuEq cut-off grade 0.4% CuEq (OP) and 0.6% CuEq (UG) is calculated by dividing the costs by the Cu Factor and recoveries.
    (*) Metal price assumptions considered for the calculation of NSR grades are: Gold (US$/oz 1,850.00), Silver (US$/oz 24.0), Copper (US$/lb 4.50), Lead (US$/lb 1.15) and Zinc (US$/lb 1.50)
    (**) Cut-off grade calculations assume variable metallurgical recoveries as a function of grade and relative metal distribution. Average metallurgical recoveries are: Gold (35%), Silver (50%), Copper (70%), Lead (60%) and Zinc (70%).
    (***) Cut-off grade calculations and metal equivalencies assume variable NSR factors as a function of smelting and transportation costs.
    (3) Open pit mineral resources are constrained within NPV optimized pits, which SRK based on assumed mining costs defined
    (4) Underground Mining resources represent all material below the proposed limiting pit shell which have been confirmed visually to form contiguous units and constrained using a stope optimizer limit
    (5) The mineral resources were estimated by Benjamin Parsons, BSc, MSc Geology, MAusIMM (CP) #222568 of SRK, a Qualified Person under the terms of CIM guidelines.