Zancudo Project, Technical Report, May 14, 2026
The following table summarizes the current Mineral Resource Estimate for the Zancudo Project effective as at October 31, 2025:
| Category | Cutoff AuEq (6) (g/t) | Tonnes (kt) | Grade | Material Content | ||||
| Au (g/t) | Ag (g/t) | AuEq (g/t) | Au (koz) | Ag (koz) | AuEq (7) (koz) | |||
| Indicated | 3.25 | 979 | 6.90 | 84 | 7.9 | 217 | 2,657 | 249 |
| Inferred | 3.25 | 4,636 | 5.58 | 84 | 6.6 | 832 | 12,508 | 982 |
- Refer to “Technical Report for the Zancudo Gold-Silver Mineral Deposit, Municipality of Titiribí, Department of Antioquia, Republic of Colombia, South America” with an effective date of October 31, 2025.
- Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. Gold and silver assays were capped where appropriate.
- Scott Wilson, CPG, President of RDA is responsible for this mineral resource estimate and is an “independent Qualified Person” as such term is defined by NI 43-101.
- Reasonable prospects of eventual economic extraction were assessed by enclosing the mineralized material within a block model estimate. Mineralization is geologically constrained in 3D wireframe shapes that were constructed based upon geological interpretations as well as adherence to a minimum mining width appropriate for underground mining.
- Commonly used grade estimations techniques of Inverse Distance Cubed and Ordinary Kriging were used on a vein by vein basis, based upon sample support and vein geometry.
- The cutoff grade of 3.25 g/t AuEq in the current MRE considered the following factors:
- Metal selling prices of gold at US$2,400/oz and silver at US$28/oz;
- Recoveries of Au 85% and Ag 87%;
- Royalties of 6.7%; and
- Costs including mining US$105.00/t, processing US$42.00/t, general and administrative (G&A) and off-site realization (TCRC) US$21.00/t.
- Gold Equivalent is calculated with the formula AuEq = (Au *Au Recovery (85%) * AuPrice + Ag *Ag Recovery (87%) * AgPrice)) / (Au Recovery (85%) *Au Price).
Preliminary Economic Assessment
On March 30, 2026, Denarius Metals announced the results of a PEA for its the Zancudo Project based on the updated Mineral Resource Estimate. The PEA was prepared by Resource Development Associates and is preliminary in nature. The PEA includes Inferred Resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the estimates presented in the PEA will be realized. The PEA announcement is supported by a NI 43-101 independent technical report dated May 14, 2026.
Key parameters of the PEA are as follows:
| Assumption / Results | 2026 PEA |
| Total tonnes processed over the LOM | 3,348,000 |
| Total waste mined over the LOM | 715,000 |
| Mine Life | 11 years |
| Average LOM process rate (tonnes per day) | 834 |
| Gold Equivalent (“AuEq”) grade milled – LOM average (g/t) | 6.55 |
| Gold grade milled – LOM average (g/t) | 5.75 |
| Silver grade milled – LOM average (g/t) | 66.71 |
| Contained gold (ounces) | 619,467 |
| Contained silver (ounces) | 7,181,170 |
| Gold recovery – LOM average | 85 % |
| Silver recovery – LOM average | 87 % |
| Gold recovered (ounces) | 527,116 |
| Silver recovered (ounces) | 6,251,745 |
| Total gold production (payable ounces) | 465,606 |
| Expected long-term gold price ($/oz) | $4,000 |
| Total silver production (payable ounces) | 2,188,111 |
| Expected long-term silver price ($/oz) | $50 |
| LOM revenue – gold and silver ($ millions) | $1,971.8 |
| LOM operating costs and royalties ($ millions) (Table 3) | $1,249.1 |
| LOM pre-tax gross profit ($ millions) | $722.7 |
| LOM operating cash flow, net of tax ($ millions) | $479.2 |
| Remaining initial capital costs ($ millions) (Table 2) | $11.0 |
| Sustaining capital costs, including 2026 exploration drilling campaign ($ millions) | $16.0 |
| LOM after-tax undiscounted Project Cash Flow ($ millions) | $452.2 |
| LOM cash cost per ounce of gold ($) (Table 3) | $2,448 |
| LOM AISC per ounce of gold ($) (Table 3) | $2,482 |
| After-Tax NPV (5% discount) ($ millions) | $323.8 |
| After-Tax IRR | 558 % |
| Payback year | 2027 |