Most of the historical production of 2.6 million tonnes came from underground operations, and the mined massive pyrite ore was used as a source of sulphur for sulphuric acid production. The property was initially mined in the late 1850’s as an open pit operation until 1905 when it became an underground mine until its eventual closure in 1991.
The Lomero-Poyatos deposit was discovered in 1853 and is a former sulphide pyrite mine with underground development on eight levels, which are currently flooded. Further, Lomero has one of the largest concentrations of gold mineralization in the region, having assayed 2.0 metres at 14.1 g/t gold as well as 0.55 metres at 16.84 g/t gold. Mineralization is said to consist of gold, as well as zinc, lead, and copper. The Lomero-Poyatos deposit has two separate near-surface mineral deposits, the Lomero to the east and Poyatos to the west, that combine to form a single deposit at depth. The site has a well established water, power and highway infrastructure, a reliable local workforce and services, as well as proximity to several high-capacity processing facilities and the port at Huelva. The Lomero-Poyatos deposit is located in the north-east part of the prolific Spanish/Portuguese Iberian Pyrite Belt in the Huelva Province of Southern Spain, one of the world’s most productive volcanogenic massive sulfide IVMS) belts. Positive exploration results could generate interest from larger players and could prompt an exit transaction or strategic partnership for Denarius. In Colombia, the two DSLV projects are close to Gran Colombia’s flagship Segovia Mine and host to past-producing silver-gold mines that the Company will restart and conduct more extensive exploration to expand the size and scope of the deposits. The Deep Dive views Denarius Silver as a development-stage exploration company with considerable upside potential and relatively low downside risk. The company has an experienced management team that is focused on building a business around production and cash flow, and developing its exploration projects to a point where the added value will attract potential merger and acquisition partners.The Colombia properties had historical production and vein structures offer significant discovery potential for new mineralized zones.Denarius’ Colombia projects are in close proximity to Gran Colombia’s Segovia Mine, and Gran Colombia is a major shareholder in DSLV.Denarius’ projects are supported by well established mining infrastructure. Spain and Colombia are both well established mining jurisdictions with a long history of mining.The Iberian Pyrite Belt been mined for over a thousand years and has produced over 2000 million tons of ore.The Lomero-Payatos project is located within the prolific Iberian Pyrite Belt in northern Spain, which is considered to be one of the world’s largest and most productive volcanogenic massive sulfide (VMS) structures.We base our investment thesis on the following factors:
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