DLP Announces Positive Preliminary Economic Assessment ("PEA") for the Aurora Copper-Molybdenum Project, with Significant Multi-Phase Expansion Potential
Rhea-AI Summary
DLP Resources (OTCQB: DLPRF) reported a NI 43-101 Preliminary Economic Assessment for its 100%-owned Aurora copper-molybdenum-silver project in Peru. The base case outlines a 17.5-year mine life processing 402.9 Mt at 65,000 tpd, generating total gross revenue of about $26.1 billion.
The base case delivers an after-tax NPV8% of $2.7 billion, after-tax IRR of 18.5% and a 5.2-year payback, using long-term prices of $4.90/lb Cu, $25.40/lb Mo and $45.30/oz Ag. At August 26, 2026 spot prices, the after-tax NPV8% rises to $4.8 billion and IRR to 24.9%, with a 3.8-year payback.
The plan combines a 7-year open pit phase (237.3 Mt, 0.95:1 strip) and a 15-year underground phase (165.6 Mt, 0.20% Mo) with parallel stockpile processing. Average annual payable production is projected at 90.5 Mlb copper, 37.4 Mlb molybdenum and 1.21 Moz silver.
Initial capital is estimated at $2.38 billion, with $1.16 billion in sustaining and underground development capital and $121 million for closure. An updated MRE supports the study, with indicated resources of 614.84 Mt at 0.19% Cu, 0.06% Mo, 2.09 g/t Ag and inferred resources of 1,118.80 Mt at 0.18% Cu, 0.07% Mo, 1.95 g/t Ag. Only about 30% of the MRE is included in the current mine plan, leaving multi-phase underground expansion potential beyond the 17.5-year case.
Positive
- After-tax NPV8% $2.7B, IRR 18.5% base case economics at long-term metal prices
- Spot price case increases NPV8% to $4.8B and IRR to 24.9%
- Projected average annual payable production of 90.5 Mlb Cu, 37.4 Mlb Mo, 1.21 Moz Ag
- Total payable production of 1,629 Mlb Cu, 673 Mlb Mo, 21.8 Moz Ag over LOM
- Underground phase averages 0.20% Mo, positioning Aurora as a high-grade molybdenum project
- Updated MRE totals indicated 7,497.53 Mlb and inferred 14,265.23 Mlb copper-equivalent
- Open pit strip ratio of 0.95:1 suggests relatively low waste movement
- Six-year land use and exploration agreement extension supports social license and project advancement
Negative
- Initial capital cost estimated at $2.377B, plus $1.16B sustaining/UG capital and $121M closure
- PEA is preliminary and includes Inferred Mineral Resources without demonstrated economic viability
- Only about 30% of the MRE is in the current mine plan; expansion economics not yet evaluated
- Multi-phase underground expansion scenario has no economic analysis and may not be realized
AI-generated analysis. How Rhea-AI works. Not financial advice.
(All figures in United States Dollars unless otherwise stated)
The PEA establishes Aurora as a Large-Scale, Long-Life Copper-Molybdenum Asset; Deliberate Phased Development Approach Designed to Maximize Returns on Initial Capital and Preserve Potential Multi-Phase Underground Expansion
Highlights
- Base case after-tax NPV8% of
$2,703 M , after-tax IRR of18.5% , and payback period of 5.2 years from start of production, at long-term commodity price assumptions of$4.90 /lb copper,$25.40 /lb molybdenum, and$45.30 /oz silver. - At spot prices as of August 26, 2026 (
$6.47 /lb copper,$33.57 /lb molybdenum and$68.50 /oz silver), a spot price sensitivity case generates an after-tax NPV8% of$4,812 M , after-tax IRR of24.9% , and payback period of 3.8 years. - PEA establishes Aurora as one of the highest-grade molybdenum projects in the world, mining an average molybdenum grade of
0.20% Mo across 15 years of underground mining, peaking at0.25% in year 10. - 17.5-year mine-life with 402.9 million tonnes processed at 65,000 tonnes per day with multi-phase expansion potential beyond 17.5 years.
- a 7-year open pit phase mining 237.3 million tonnes of mineralized material at a 0.95:1 strip ratio
- a 15-year underground phase mining 165.6 million tonnes of mineralized material, with stockpile processing in parallel.
- Average annual production of 90.5 million pounds payable copper, 37.4 million pounds payable molybdenum and 1.21 million ounces payable silver with peak copper production of 154 million payable pounds in year 3.
- Total payable production of approximately 1,629 million pounds of copper, 673 million pounds of molybdenum and 21.8 million ounces of silver, generating total gross revenue of approximately
$26,072 million over the mine life. - Initial capital cost estimate of
$2,377 million , including contingency, with sustaining and underground development capital of approximately$1,160 million and closure costs of approximately$121 million . - Updated Mineral Resource Estimate contained in PEA establishes a strong foundation, with a combined open pit and out of pit resource:
- Indicated: 614.84 Mt grading
0.19% Cu,0.06% Mo, 2.09 g/t Ag (7,497.53 Mlbs Copper Equivalent at0.55% CuEq) - Inferred: 1,118.80 Mt grading
0.18% Cu,0.07% Mo, 1.95 g/t Ag (14,265.23 Mlbs Copper Equivalent at0.58% CuEq)
- Indicated: 614.84 Mt grading
Cranbrook, British Columbia--(Newsfile Corp. - September 1, 2026) - DLP Resources Inc. (TSXV: DLP) (OTCQB: DLPRF) (FSE: J8C) ("DLP" or the "Company") is pleased to announce the results of a Preliminary Economic Assessment ("PEA") for its
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"The results of the Aurora PEA confirm what our geological and technical work has long suggested: this is a copper-molybdenum-silver deposit with the scale, grade and production profile to support compelling development pathway. The PEA demonstrates robust cashflows, competitive operating costs, reasonable capital costs and robust financial returns, including an after-tax NPV8% of
Project Overview
The
The PEA represents an initial development case for Aurora, deliberately designed to maximize after-tax returns and capital efficiency on initial invested capital. The PEA mine plan encompasses 402.9 million tonnes of mineralized material, representing approximately
The Company notes the PEA is preliminary in nature and there is no certainty that the PEA will be realized. The PEA includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Company also notes that a multi-phase underground development scenario has not been evaluated in the current PEA, no economic analysis has been applied to potential additional resources, and there is no certainty that any multi-phase underground expansion would be realized. DLP views the multi-phase underground expansion opportunity as a significant source of longer-term value not captured in the PEA economics and intends to advance dedicated multi-phase underground scoping work as a priority workstream.
Table 1) PEA Economic Summary
| Metric | Unit | Base Case |
| Base Case After-Tax Economics | ||
| NPV8% | $M | 2,703 |
| After-Tax IRR | % | 18.5 |
| Payback Period | years | 5.2 |
| NPV / Initial CAPEX | ratio | 1.14 |
| Pricing Assumptions | ||
| Copper | $/lb | 4.90 |
| Molybdenum | $/lb | 25.40 |
| Silver | $/oz | 45.30 |
| LOM Gross Revenue Contribution | ||
| LOM Revenue | $M | 26,072 |
| Copper | % | 30.6 |
| Molybdenum | % | 65.6 |
| Silver | % | 3.8 |
| Mining Metrics | ||
| Mine Life | Years | 17.5 |
| OP Mineralized Material | Mt | 237.3 |
| OP Strip Ratio | w:o | 0.95 |
| OP Copper Grade (LOM) | % | 0.33 |
| OP Molybdenum Grade (LOM) | % | 0.01 |
| OP Silver Grade (LOM) | g/t | 3.52 |
| UG Mineralized Material (LOM) | Mt | 165.6 |
| UG Copper Grade (LOM) | % | 0.07 |
| UG Molybdenum Grade (LOM) | % | 0.20 |
| UG Molybdenum Grade (Peak - Year 10) | % | 0.25 |
| UG Silver Grade (LOM) | g/t | 0.72 |
| Processing Metrics | ||
| Mineralized Material Milled | Mt | 402.9 |
| Copper grade (LOM) | % | 0.22 |
| Copper grade (years 1-6) | % | 0.30 |
| Molybdenum grade (LOM) | % | 0.09 |
| Molybdenum grade (years 7-14) | % | 0.14 |
| Silver grade (LOM) | g/t | 2.37 |
| Copper recovery | % | 85.50 |
| Molybdenum recovery | % | 88.50 |
| Silver recovery | % | 74.00 |
| Payable Copper (Annual) | Million pounds per year | 90.5 |
| Payable Copper (LOM) | Million pounds | 1,629 |
| Payable Molybdenum (Annual) | Million pounds per year | 37.4 |
| Payable Molybdenum (LOM) | Million pounds | 673 |
| Payable Silver (Annual) | Million ounces per year | 1.21 |
| Payable Silver (LOM) | Million ounces | 21.8 |
| Payable Copper Equivalent (Annual) | Million pounds | 301.0 |
| Payable Copper Equivalent (LOM) | Million pounds | 5,418 |
| Cost Metrics | ||
| Initial Capital Cost | $M | 2,377 |
| Sustaining + UG Development Capital | $M | 1,160 |
| Closure & Reclamation | $M | 121 |
Mining Methods
The mine plan consists of two principal mining methods: a conventional truck-and-shovel open pit operation to year 4 of the mine life (including stockpiling mineralized material), followed by underground mining of the higher-grade molybdenum core between years 3 and 17. Underground mineralized material will be processed alongside stockpiled open pit material.
Open Pit Mining (Years -3 to 4)
The open pit mine plan is based on a conventional truck-and-shovel operation producing a total of 237.3 million tonnes of mineralized material at a design throughput of 65,000 tonnes per day. The open pit strip ratio of 0.95:1 (waste:mineralized material) reflects the favorable geometry and continuity of the near-surface mineralized body. The open pit mine plan will see average mined grades of
Underground Mining (Years 3 to 17)
Following completion of open pit mining, operations transition to underground extraction of the higher-grade molybdenum-enriched core of the Aurora deposit. Underground development commences simultaneously with the opening of the open pit mine, using a block cave mining method, with level access established during late open pit years. The underground mine plan will see 165.6 million tonnes mined at an average molybdenum grade of
Figure 1) Open Pit Mine Production
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Figure 2) Underground Cave Production
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Updated Mineral Resource Estimate
In connection with the PEA, an updated MRE has been completed for the Aurora deposit by Terre Lane of Global Resource Engineering, an independent Qualified Person as defined by NI 43-101. The MRE has an effective date of April 30, 2026. The updated MRE incorporates data from 28 drill holes totaling 22,613.38 metres and reflects revised geological modelling, updated metallurgical recovery assumptions, and the incorporation of recent infill drilling results.
The MRE is classified in accordance with the 2014 CIM Definition Standards on Mineral Resources and Reserves and was estimated in accordance with the CIM 2019 Best Practices Guidelines. The resource has been constrained by an open pit shell (OP domain) or by a conceptual underground extraction envelope (UG domain) demonstrating reasonable prospects for eventual economic extraction.
Table 2) Updated Mineral Resource Estimate (effective April 30, 2026)
| Classification | Tonnes (Mt) | Cu (%) | Mo (%) | Ag (g/t) | CuEq (%) | CuEq (Mlbs) |
| Open Pit (NSR Cut-off: | ||||||
| Indicated | 382.58 | 0.24 | 0.020 | 2.55 | 0.37 | 3,118.21 |
| Inferred | 537.86 | 0.25 | 0.023 | 2.96 | 0.40 | 4,737.91 |
| Underground (NSR Cut-off: | ||||||
| Indicated | 232.27 | 0.12 | 0.134 | 1.32 | 0.86 | 4,379.31 |
| Inferred | 580.94 | 0.11 | 0.117 | 1.02 | 0.74 | 9,527.32 |
| Total | ||||||
| Indicated | 614.84 | 0.19 | 0.06 | 2.09 | 0.55 | 7,497.53 |
| Inferred | 1,118.80 | 0.18 | 0.07 | 1.95 | 0.58 | 14,265.23 |
| Notes: CuEq(lb) = Cu(lb)+Mo(lb)*((Mo Price*Mo Recovery*Mo Payability)/(Cu Price*Cu Recovery*Cu Payability))+Ag(lb)*((Ag Price*Ag Recovery*Ag Payability)/(Cu Price*Cu Recovery*Cu Payability)), using | ||||||
QP Disclosure
The geological setting, mineralization, deposit characterization, exploration, drilling, sampling, analytical information, and data verification were prepared under the direction of Hamid Samari, Ph.D., QP, Principal Geologist at GRE. Dr. Samari meets the requirements for a QP as set out in his Certificate of Qualified Person.
Dr. Samari reviewed and verified the data supporting the Mineral Resource Estimate, including the geological and drillhole database, sampling information, analytical data, QA/QC results, and supporting documentation. As part of the data verification, Dr. Samari conducted a site visit to the Aurora Project on June 2-3, 2026, during which he reviewed the project geology, drill core, core logging and sampling procedures, and other relevant geological information. Independent check samples were collected and submitted for laboratory analysis. The copper (Cu), silver (Ag), and molybdenum (Mo) assay results obtained from the independent check samples were compared with the corresponding assay results reported in the project database. The comparison showed reasonable agreement between the two sets of results and provided additional verification of the analytical data supporting the Mineral Resource Estimate. Based on these verification procedures, Dr. Samari considers the data and information used to support the Mineral Resource Estimate to be sufficiently reliable for this purpose. No material limitations on the verification process or material failures to verify the data were identified.
Processing & Metallurgy
The Aurora PEA contemplates a conventional milling and froth flotation process plant designed to treat 65,000 tonnes of mineralized material per day. The process plant is designed to produce a copper concentrate grading approximately
Metal recoveries to concentrate average
Tailings from the flotation circuit will be filtered and placed in a drystack tailings facility and managed in accordance with applicable Peruvian regulatory requirements, including the standards established under the Environmental Impact Assessment (EIA-d) process overseen by Peru's Ministry of Energy and Mines (MINEM). The Company is evaluating tailings storage facility design options as part of ongoing engineering studies.
Figure 3) Processing Schedule
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Capital & Operating Costs
Initial capital is estimated at
Table 3) Breakdown of Initial Capital
| Initial Capital Expenditure | Cost ($M) |
| Mine (OP) | 530.9 |
| Mine (UG) | 202.4 |
| Plant | 502.1 |
| Tailings | 332.1 |
| Infrastructure | 219.1 |
| Indirects | 137.6 |
| Permitting | 4.0 |
| Owner's costs | 76.5 |
| Contingency | 372.3 |
| Total | 2,377 |
Sustaining and underground development capital over the life of mine (through year 20) is estimated at
Working capital of
Operating costs are estimated at
Table 4) Breakdown of Operating Costs
| Operating Cost | Cost ($/t mined)1 | Cost ($/t milled)2 |
| Mining (OP) | 1.72 | 1.08 |
| Mining (UG) | 6.90 | 2.35 |
| Processing | 5.19 | |
| Rehandling | 0.32 | |
| Tailings | 1.78 | |
| Water treatment | 0.07 | |
| G&A | 1.07 | |
| Contingency | 1.19 | |
| Total | 13.05* | |
| 1 Total mine operating costs per tonne mined, including pre-production mining costs 2 Operating costs less capitalized pre-production mining costs per total tonnes milled | ||
Life of Mine C1 cash costs are calculated on a co-product basis:
Economic Analysis Results
The PEA highlights an after-tax NPV8% of
Table 5) Commodity Price Assumptions
| Pricing Assumptions | ||
| Copper | $/lb | 4.90 |
| Molybdenum | $/lb | 25.40 |
| Silver | $/oz | 45.30 |
Table 6) Sensitivity to Copper and Molybdenum Prices, Capital Cost and Operating Cost
| Copper Price Sensitivity | |||
| - | Base Case | + | |
| After-Tax NPV8% | |||
| IRR | |||
| Payback | 6.2 | 5.2 | 4.4 |
| NPV to Initial Capex | 0.88 | 1.14 | 1.38 |
| Molybdenum Price Sensitivity | |||
| - | Base Case | + | |
| After-Tax NPV8% | |||
| IRR | |||
| Payback | 5.8 | 5.2 | 4.8 |
| NPV to Initial Capex | 0.73 | 1.14 | 1.54 |
| Base Case vs. Spot Pricing | ||
| Base Case | Spot* | |
| After-Tax NPV8% | ||
| IRR | ||
| Payback | 5.2 | 3.8 |
| NPV to Initial Capex | 1.14 | 2.02 |
| *Spot pricing as of Aug 26, 2026: Copper - | ||
| Capital Cost Sensitivity | |||
| - | Base Case | + | |
| After-Tax NPV8% | |||
| IRR | |||
| Operating Cost Sensitivity | |||
| - | Base Case | + | |
| After-Tax NPV8% | |||
| IRR | |||
Infrastructure & Site Layout
The site layout incorporates the process plant, tailings and waste management facilities, camp infrastructure, and water management systems within a consolidated footprint designed to support efficiency. Tailings are planned to be managed in a dry stack tailings facility (DSTF) and potential acid generating (PAG) waste rock storage facility (WRSF), utilizing favourable topographic conditions adjacent to the process plant site. The tailings and waste management facilities have been designed and sited with the long-term development potential of the Aurora deposit in mind, and the selected footprint provides a foundation from which future expansion capacity could be developed as the project advances. The Company will continue to refine site layout and infrastructure design as it advances Aurora toward a Pre-Feasibility Study ("PFS").
Figure 4) Site Layout
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Opportunities
The PEA mine plan has been deliberately designed to deliver the optimal after-tax return on initial invested capital. By focusing the first phase of development on the highest-value portions of the Aurora deposit, the Company has structured the mine plan as a compelling, financeable standalone project while simultaneously preserving the potential for future phases to capture the full resource potential of the Aurora deposit.
This disciplined, phased development philosophy is consistent with practices adopted at analogous large-scale porphyry copper-molybdenum development projects. DLP believes this approach at Aurora appropriately sequences capital deployment to maximize shareholder value at each stage of development.
Multi-phase Expansion Potential
Aurora's envisioned mine plan is contemplated as an approximate
As illustrated in Figure 5, mineralization at Aurora extends well beyond the boundaries of the Phase 1 mine plan, with the deposit remaining open to the west, east, and at depth. The current MRE boundaries are defined by drilling extent rather than geological limits, and all mineralized zones shown in the section, including lower-grade material at the margins, carry positive economic margins above projected operating costs.
A key feature of Aurora's long-term value proposition is the infrastructure leverage inherent in a phased development approach. The 65,000 tonne-per-day processing facility constructed under the Phase 1 capital program represents the single largest infrastructure investment required to bring the project into production. Advancing a potential Phase 2 underground expansion would require a materially lower incremental capital outlay, concentrated primarily on underground development and a new dry-stack tailings facility, while utilizing the processing infrastructure already in place. DLP intends to advance an infill and extensional drilling program to further define Aurora's resource base and support economic evaluation of a future Phase 2 expansion, with Phase 2 scoping work expected to advance in parallel with ongoing Phase 1 development studies.
Figure 5) Aurora Deposit Cross Section - NSR/tonne ($)
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A NI 43-101 Technical Report will be filed on SEDAR+ within 45 days of this news release.
Next Steps
The positive PEA results provide a strong technical and economic foundation for Aurora's advancement. DLP Resources intends to take the following steps:
- Continue engagement with potential strategic partners, major mining companies, and financial institutions regarding project-level investment and financing structures commensurate with Aurora's scale and economics.
- Initiate PFS planning, including infill and geotechnical drilling, metallurgical testwork, and engineering trade-off studies to advance the project toward a PFS-level cost estimate.
- Advance dedicated multi-phase underground expansion scoping, including infill and conversion drilling on resources currently outside the envisioned mine plan, conceptual underground engineering, and evaluation of development sequencing and capital structuring for a multi-phase program. Further studies for a second dry stack tailings location for Phase 2.
- Advance environmental baseline programs and initiate environmental assessment readiness planning.
- Continue respectful engagement with local communities, governments, and stakeholders as Aurora advances.
Qualified Persons
Mr. Gendall, CEO & President of the company is the qualified person as defined by National Instrument 43-101. Mr. Gendall has reviewed and approved the technical contents of this news release.
The following people are intendent qualified persons for the technical report and have reviewed and verified the disclosure in this news release against the information in the technical report they are responsible for:
The geological setting, mineralization, deposit characterization, exploration, drilling, sampling, analytical information, and data verification were prepared under the direction of Hamid Samari, Ph.D., QP, Principal Geologist at GRE. Dr. Samari meets the requirements for a QP as set out in his Certificate of Qualified Person.
The Mineral Resource Estimate, conceptual design of the open pit mine, waste rock storage facility, stockpile, primary crusher and open-pit mine equipment shop and related facilities, and economic modeling were prepared under the direction of Terre Lane, Principal Mine Engineer at GRE. Ms. Lane meets the requirements for a QP as set out in her Certificate of Qualified Person.
The process testwork results were interpreted and a process design prepared under the direction of Todd Harvey, President and Director of Process Engineering at GRE. Dr. Harvey meets the requirements for a QP as set out in his Certificate of Qualified Person.
The mine water balance, water treatment plant, remediation, and closure were prepared under the direction of Larry Breckenridge, Principal Environmental Engineer at GRE. Mr. Breckenridge meets the requirements for a QP as set out in his Certificate of Qualified Person.
The conceptual design of the underground mine, block cave production plan, and estimation of underground mining capital and operating cost were prepared under the direction of Josh Parsons, Senior Consultant at SRK. Mr. Parsons meets the requirement for a QP as set out in his Certificate of Qualified Person.
The underground geotechnical and block caving assessments were prepared under the direction of Jarek Jakubec, Corporate Consultant at SRK. Mr. Jakubec meets the requirement for a QP as set out in his Certificate of Qualified Person.
The conceptual underground infrastructure design was prepared under the direction of Carl Kottmeier, Principal Consultant at SRK. Mr. Kottmeier meets the requirement for a QP as set out in his Certificate of Qualified Person.
The conceptual underground ventilation design was prepared under the direction of Brian Prosser, Principal Consultant at SRK. Mr. Prosser meets the requirement for a QP as set out in his Certificate of Qualified Person.
The conceptual design of the dry stack tailings facility, filter plant, general site development, access roads and camp were prepared under the direction of Scott Elfen, Global Technical Leader - Mine Waste Solutions at Ausenco. Mr. Elfen meets the requirements for a QP as set out in his Certificate of Qualified Person.
The conceptual design of the power distribution on site was prepared under the direction of Kevin Murray, Principal Process Engineer at Ausenco. Mr. Murray meets the requirements for a QP as set out in his Certificate of Qualified Person.
Company Conference Call
The Company will host a webinar to discuss the results of the PEA at 1:00 PM ET / 10:00 AM Pacific Time on Tuesday, September 1, 2026. To join the webinar, please register at:
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About DLP Resources Inc.
DLP Resources Inc. is a copper-focused development company advancing two
Aurora is a large-scale porphyry copper-molybdenum-silver deposit containing a combined open pit and underground indicated resource of 614.84 million tonnes at
Esperanza is an emerging district-scale copper-gold discovery located 35km from Cerro Verde, one of the world's largest copper mines. A 5.0km × 2.5km magnetic anomaly is supported by high-grade surface and trench sampling results, with a maiden drill programme planned for Q3 2026.
DLP is listed on the TSX-V (DLP), on the OTCQB (DLPRF), and on the FSE (J8C).
FOR FURTHER INFORMATION, PLEASE CONTACT:
DLP RESOURCES INC.
Ian Gendall, President and Chief Executive Officer
iangendall@dlpresourcesinc.com
Gautam Iyer, VP Corporate Development & Investor Relations
gautamiyer@dlpresourcesinc.com
Cautionary Note Regarding the PEA and Forward-Looking Information
The results of the PEA are preliminary in nature. The PEA is based on a Mineral Resource Estimate that has not been upgraded to a Mineral Reserve and the economic analysis does not have as high a level of certainty as a Pre-Feasibility Study or Feasibility Study. The PEA includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be classified as Mineral Reserves. There is no certainty that the PEA will be realized. Actual capital costs, operating costs, production rates, metallurgical recoveries, and project economics may differ materially from those set out in the PEA. The PEA is subject to various risks and uncertainties, including those related to commodity prices, exchange rates, capital and operating costs, permitting timelines, and the availability of financing.
This news release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, statements regarding the results of the PEA, including projected NPV, IRR, payback period, capital and operating costs, production rates, mine life, grades, metallurgical recoveries, and revenue; the characterisation of the PEA as representing Phase 1 of a long-term, multi-decade mining district with multi-phase underground expansion potential; the Company's intention to advance an infill and extensional drill program to advance resource classification and support incorporation of material outside the mine plan into subsequent studies; the Company's plans to advance Aurora toward a PFS, including infill and geotechnical drilling, metallurgical testwork, and engineering trade-off studies; plans to advance dedicated multi-phase underground expansion scoping, including infill and conversion drilling, conceptual underground engineering, and evaluation of development sequencing; the potential for multi-phase underground expansion to materially extend Aurora's mine life and increase annual production rates beyond the PEA; plans to advance environmental baseline programs and initiate environmental assessment readiness planning; the Company's intention to continue engagement with local communities, governments, and stakeholders; expectations regarding potential strategic partnerships, major mining companies, and financial institutions regarding project-level investment and financing; the Company's plans to continue to refine site layout and infrastructure design as it advances toward a Pre-Feasibility Study; and the timing for filing of the NI 43-101 Technical Report on SEDAR+.
Forward-looking information is based on various assumptions, including the following material assumptions: long-term commodity prices of US
Forward-looking information is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Actual results, performance, or achievements could differ materially from those projected in the forward-looking information as a result of factors including, but not limited to: changes in copper, molybdenum, and silver prices; foreign exchange fluctuations between the U.S. dollar, Canadian dollar, and Peruvian sol; actual metallurgical performance differing from test results at commercial scale; capital and operating cost overruns; geotechnical and hydrological conditions, including risks related to the block cave mining method and production ramp-up uncertainty; the risk that infill drilling does not support resource conversion from Inferred to Indicated or Measured categories; delays in permitting, environmental assessment, or regulatory approvals; the availability of financing on acceptable terms; labour availability and costs; water treatment and tailings management costs exceeding estimates; the risk that the Parobamba Community agreement is not renewed beyond its current term; and political or regulatory changes in Peru, including changes in mining law, fiscal regime, consulta previa processes, and general political risk.
The Company does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking information.
Non-IFRS Measures
This news release refers to certain financial performance measures that are not defined or recognized under International Financial Reporting Standards ("IFRS"), including: after-tax and pre-tax net present value ("NPV") at various discount rates; internal rate of return ("IRR"); payback period from first production; operating costs per tonne milled (including mining, processing, general and administrative, and off-site/refining costs); initial capital cost; sustaining and underground development capital; closure costs; total life-of-mine capital; and total life-of-mine gross revenue. These non-IFRS measures are presented because the Company and its management believe they provide useful information regarding the economic potential of the Aurora Project as contemplated in the PEA and are commonly used by the mining industry and investors to evaluate development-stage projects.
These measures do not have any standardized meaning prescribed under IFRS and may not be comparable to similar measures presented by other companies. They should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As the Aurora Project is in the development stage, the Company does not currently have IFRS financial measures against which these non-IFRS measures can be reconciled.
For reference, the following definitions apply: NPV is calculated by discounting projected after-tax (or pre-tax, as applicable) free cash flows at the stated discount rate over the life of the mine plan. IRR is the discount rate at which the NPV of the project's after-tax free cash flows equals zero. Payback period is the estimated time to recover the initial capital investment from after-tax operating cash flows. Operating costs per tonne milled represent estimated total operating expenditures divided by total mineralized material tonnes milled over the applicable period or phase. Initial capital cost and sustaining and underground development capital represent the estimated capital expenditures required to construct and operate the project as contemplated in the PEA. Total life-of-mine gross revenue represents the estimated undiscounted gross value of payable metals produced over the Phase 1 mine life, calculated using the commodity price assumptions set out in the PEA, before deduction of smelting, refining, transportation, or royalty costs. All non-IFRS measures presented herein are based on the estimates, assumptions, and inputs described in the PEA and the NI 43-101 Technical Report to be filed on SEDAR+ within 45 days of this news release. Readers are cautioned not to place undue reliance on these measures. See also "Cautionary Note Regarding the PEA and Forward-Looking Information" above.
Additional information relating to the Company can be obtained under the Company's profile on SEDAR+ at www.sedarplus.ca, and on the Company's website at www.dlpresourcesinc.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/312322