DPM Metals Announces Updated Feasibility Study Results and Provides Permitting Update for the Loma Larga Project

2025-09-30

TSX - Toronto Stock Exchange · Gold · Copper · Silver · Arsenic · Sulfur · Zinc · Lead · Antimony · Canada

TORONTO, Sept. 30, 2025 (GLOBE NEWSWIRE) -- DPM Metals Inc. (TSX: DPM, ASX: DPM) (“DPM” or “the Company”) announced the results of an updated feasibility study (“FS”) and provided a permitting update for its Loma Larga project in Ecuador. The FS updates project economics, including updated metal price assumptions and revised capital and operating cost estimates.

FS Highlights: (All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.)

Robust FS results demonstrating strong margins and attractive scale: After-tax NPV 5% of $488 million and an internal rate of return of 18.1% (based on metal price assumptions of $1,900 per ounce gold, $27.50 per ounce silver, and $4.00 per pound copper). Strong margins with a life of mine average all-in sustaining cost 1 of $873 per ounce of gold sold. Attractive scale with 1.9 million payable gold equivalent ounces 2 over an 11-year mine life, and annual payable production estimated to average approximately 173,000 gold equivalent ounces. Initial capital cost estimate of $593 million, well-within DPM’s funding capacity.

Potential to add additional Mineral Resources: The deposit remains open in numerous directions, with multiple high sulphidation and low sulphidation epithermal and porphyry targets identified within the 7,960-hectare land package. Value enhancing opportunities: Includes potential to reduce initial capital through optimization of the power supply infrastructure, mine fleet and equipment. Commitment to responsible mining: Project design and execution plan optimized to minimize footprint and reflect high standards of environmental stewardship and responsible water management.

“The updated feasibility study demonstrates Loma Larga’s potential to deliver attractive returns for our investors and stakeholders,” said David Rae, President and Chief Executive Officer.

“Loma Larga has been designed in line with the highest environmental and water management standards, and DPM is committed to working collaboratively and transparently with stakeholders to demonstrate the significant economic and social opportunities that responsible development of the Loma Larga project offers local communities and the country of Ecuador.

“As we progress through our investment decision process, we will continue to take a disciplined approach in line with the best interests of our shareholders.”

1 All-in sustaining costs and all-in sustaining cost per ounce of gold sold are non-GAAP measures or ratios. These measures have no standardized meaning under IFRS Accounting Standards (IFRS) and may not be comparable to similar measures used by other issuers. Refer to the “Non-GAAP Financial Measures” section of this news release for more information, including a detailed description of these measures. 2 Gold equivalent calculations are based on the metal prices selected for the project: gold price of $1,900/oz, silver price of $27.50/oz, and copper price of $4.00/lb.

Permitting Update

The environmental licence for the Loma Larga project was issued by the Ministry of Environment, Water and Ecological Transition in the second quarter of 2025. This was the result of a rigorous process by the government to ensure high Ecuadorian standards are applied in the development of Loma Larga.

Subsequent to the receipt of the environmental licence, stakeholders in the city of Cuenca expressed concerns regarding the environmental performance of the project. In mid-September, media statements by officials indicated that the government would initiate a process to suspend Loma Larga’s environmental licence in response to these concerns.

DPM is confident that its environmental management plan and the robust environmental protection measures in place for the Loma Larga project are in full compliance with those standards and reflect DPM’s proven development practices and adoption of international standards and best practices which meet or exceed national standards.

The Company has paused its 23,000-metre drilling program, previously expected to commence in the second half of the year. The Company will continue to engage with stakeholders to address their concerns, and work with the government to understand its expectations for resuming DPM’s planned activities.

Feasibility Study Overview

Loma Larga benefits from well-established national and regional infrastructure, including nearby roads and proximity to the national power grid and is located approximately 30 kilometres southwest of the city of Cuenca, in the Azuay province of Ecuador. The project is a strong fit with the Company’s operating expertise, leveraging DPM’s strengths and long-standing track record as an environmentally and socially responsible mining company.

The FS is based on total Mineral Reserves of 12.6 million tonnes (“Mt”) grading 4.7 grams per tonne (“g/t”) gold, 28.6 g/t silver and 0.29% copper for 1.9 million ounces of gold, 11.6 million ounces of silver and 80 million pounds of copper.

The FS assumes a 24-month construction and commissioning period (excluding any pre-construction activities).

The following table summarizes key inputs, operating statistics and results of the updated FS:

| Key operating and financial assumptions and metrics | | | | Macroeconomi c parameters | | | | Gold price | $/oz. | $1,900 | | Silver price | $/oz. | $27.50 | | Copper price | $/lb. | $4.00 | | Corporate tax rate | % | 20% | | Royalty | % | 5% NSR 1 | | Production (life of mine averages, unless otherwise noted) | | | | Mineral Reserve | Mt | 12.6 | | Annual throughput | Mtpa | 1.2 | | Average gold grade processed | g/t | 4.7 | | Average gold recovery | % | 89.7 | | Total gold recovered | Moz. Au | 1.7 | | Total gold equivalent recovered | Moz. Au eq. 2 | 2.0 | | Total gold payable production | Moz. Au | 1.6 | | Total gold equivalent payable production | Moz. Au eq. 2 | 1.9 | | Average annual gold equivalent payable production | Koz. Au eq. 2 | 173 | | Capital estimates 3 | | | | Initial capital | $ million | $593 | | Sustaining capital (life of mine) | $ million /year avg | $7 | | Closure costs 4 | $ million | $28 | | Project economics | | | | Cash flow (after-tax) | $ million | $895 | | NPV (after-tax, 5% discount) | $ million | $488 | | IRR (after-tax) | % | 18.1 | | Payback period | years | 3.4 | | 1. Feasibility study assumption. The royalty rate will be subject to an exploitation agreement between the Government of Ecuador and the Company. 2. Gold equivalent calculations are based on the metal prices selected for the project: gold price of $1,900/oz, silver price of $27.50/oz, and copper price of $4.00/lb. 3. Initial capital and sustaining capital include import duties. 4. Closure costs do not include non-refundable VAT of $4.2 million. | | |

| Operating and all-in sustaining cost (life of mine averages) | | | | | | $ millions | $/t of ore processed | $/oz. payable gold | | Mining | $385 | $30.6 | – | | Processing & filtered tailings storage facility | $320 | $25.4 | – | | General & administrative | $135 | $10.7 | – | | Royalty and production taxes | $407 | $32.4 | – | | Total cash cost 1 | $ 1,247 | $ 99.1 | | | Offsite cost | – | – | $349 | | By-product credits | – | – | $300 | | Cash cost per ounce | – | – | $ 809 | | All-in sustaining cost per ounce | – | – | $ 873 | | 1. Cash cost; cash cost per tonne of ore processed; cash cost per ounce of gold sold; and all-in sustaining cost per ounce of gold sold are non-GAAP measures or ratios. These measures have no standardized meaning under IFRS and may not be comparable to similar measures used by other issuers. Refer to the “Non-GAAP Financial Measures” section of this news release for more information, including a detailed description of these measures. | | | |

Mining and processing

The FS is based on underground mining of the Loma Larga deposit via long-hole stoping with a combination of transverse and longitudinal accesses. Ore will be processed using a crushing, grinding and flotation circuit to process approximately 1.2 million tonnes of ore per annum (“Mtpa”), producing copper and pyrite concentrates. The limited portion of tailings not placed underground as backfill, will be filtered and stored in a 4.3-million tonne filtered tailings storage facility (“FTSF”). DPM has optimized the layout of the process plant and FTSF to minimize land use and ensure responsible management of surface and ground water.

The production schedule as outlined in the FS is presented in the following table:

| Metric | Unit | Total / average | Pre production | Y-1 | Y-2 | Y-3 | Y-4 | Y-5 | Y-6 | Y-7 | Y-8 | Y-9 | Y-10 | Y-11 | | Ore mined | Kt | 12,585 | 160 | 963 | 1,229 | 1,230 | 1,241 | 1,232 | 1,239 | 1,228 | 1,238 | 1,240 | 1,107 | 477 | | Gold grade | g/t | 4.7 | 7.4 | 6.1 | 6.8 | 5.6 | 4.5 | 5.1 | 4.3 | 3.6 | 4.1 | 3.7 | 3.6 | 3.7 | | Silver grade | g/t | 28.6 | 24.9 | 30.2 | 37.4 | 35.5 | 37.2 | 35.1 | 28.3 | 19.9 | 20.0 | 19.7 | 24.8 | 23.7 | | Copper grade | % | 0.29 | 0.45 | 0.42 | 0.48 | 0.38 | 0.36 | 0.33 | 0.23 | 0.18 | 0.19 | 0.17 | 0.19 | 0.15 | | Ore processed | Kt | 12,585 | – | 988 | 1,241 | 1,241 | 1,241 | 1,241 | 1,241 | 1,241 | 1,241 | 1,241 | 1,095 | 575 | | Gold grade | g/t | 4.7 | – | 6.2 | 6.8 | 5.7 | 4.6 | 5.1 | 4.3 | 3.7 | 4.1 | 3.7 | 3.6 | 3.7 | | Silver grade | g/t | 28.6 | – | 28.9 | 36.8 | 35.7 | 37.1 | 35.3 | 28.8 | 20.5 | 20.0 | 19.7 | 24.5 | 23.9 | | Copper grade | % | 0.29 | – | 0.41 | 0.48 | 0.40 | 0.36 | 0.33 | 0.24 | 0.18 | 0.19 | 0.18 | 0.19 | 0.15 | | Recoveries | | | | | | | | | | | | | | | | Gold | % | 89.7 | – | 85.8 | 91.9 | 91.0 | 89.9 | 90.3 | 89.7 | 89.1 | 89.4 | 89.1 | 89.1 | 89.1 | | Silver | % | 94.8 | – | 91.9 | 95.0 | 95.0 | 95.0 | 95.0 | 95.0 | 95.0 | 95.0 | 95.0 | 95.0 | 95.0 | | Copper | % | 95.1 | – | 91.2 | 97.4 | 96.6 | 96.2 | 95.9 | 95.0 | 94.5 | 94.5 | 94.4 | 94.5 | 94.2 | | Production | | | | | | | | | | | | | | | | Gold | Koz. | 1,705 | – | 170 | 248 | 209 | 163 | 182 | 155 | 130 | 145 | 131 | 114 | 60 | | Silver | Koz. | 10,953 | – | 842 | 1,396 | 1,354 | 1,406 | 1,338 | 1,093 | 778 | 760 | 747 | 819 | 419 | | Copper | Mlbs. | 76.1 | – | 8.2 | 12.8 | 10.5 | 9.5 | 8.7 | 6.2 | 4.7 | 4.9 | 4.5 | 4.3 | 1.8 | | Gold equivalent 2 | Koz. | 2,024 | – | 199 | 295 | 250 | 204 | 220 | 184 | 151 | 166 | 151 | 135 | 70 | | All-in sustaining cost 1 | $/oz. | 8.73 | – | 909 | 691 | 742 | 791 | 743 | 883 | 1,018 | 947 | 1,054 | 1,088 | 1,173 | | 1. All-in sustaining cost per ounce of gold sold is a non-GAAP ratio. Refer to the “Non-GAAP Financial Measures” section of this news release for more information, including a detailed description of these measures. 2. Gold equivalent calculations are based on the metal prices selected for the project: gold price of $1,900/oz, silver price of $27.50/oz, and copper price of $4.00/lb. | | | | | | | | | | | | | | |

Capital estimates

DPM’s design for Loma Larga reflects an optimized project layout in order to minimize the environmental impact of surface area and includes certain changes reflecting the Company’s responsible practices in mine development, mining and processing.

The FS initial capital costs are estimated to be $593 million, including development of the underground mine, construction of a 1.2 Mtpa processing plant, including a paste backfill plant, FTSF, water treatment plant, diesel power plant and electrical infrastructure upgrades, and additional infrastructure. The capital cost estimate reflects inflationary cost pressures on materials and labour, as well as an additional power plant to supplement Ecuador’s power grid.

The following table breaks down the initial capital cost estimate:

| | $ millions | | Initial capital estimates 1 | | | Mine general (surface facilities, explosives) | $9.4 | | Underground mine (including mine development and mobile equipment) | $110.7 | | Ore handling | $15.7 | | Processing plant | $94.3 | | Filtered tailings and water treatment facilities | $61.2 | | On-site infrastructure | $48.9 | | Off-site infrastructure | $63.1 | | Total direct costs | $ 403.4 | | Owners cost (including EPCM) | $55.9 | | Operational readiness | $19.9 | | Taxes, duties and freight | $31.3 | | General indirect costs | $34.7 | | Total indirect costs | $ 141.9 | | Contingency | $47.7 | | Total initial capital expenditures | $ 592.9 | | Sustaining and closure | | | Sustaining capital expenditures (life of mine) 1 | $75.0 | | Closure costs 2 | $27.7 | | 1. Initial capital and sustaining capital estimates include import duties. 2. Closure costs do not include non-refundable VAT of $4.2 million. 3. Rounding of figures may result in totals not adding precisely. | |

Responsible water management

Responsible management of water and the sensitive environmental ecosystem near Loma Larga were key considerations in the project’s design. DPM’s approach to water management focuses on minimizing the use of freshwater and maximizing recycling of process water.

The project includes development of wastewater treatment and storage facilities, as well as fully lined tailings and contact water storage ponds. Contact water will be collected and recycled within the mine’s processing facilities and treated at the water treatment plant, in-line with International Finance Corporation and Ecuadorian standards. Non-contact water will be diverted away from the project area with lined diversion channels.

Social benefits

According to Ecuadorian law, 50% of the benefits of the project remain in-country, through taxes, royalties and duties. The Company’s intention is to develop Loma Larga in accordance with Ecuadorian and international best standards, with a focus on maximizing benefits for local communities and stakeholders while delivering the best value for shareholders.

DPM intends to utilize local suppliers to the extent possible, and, as it does in all of its operations globally, maximize the proportion of local workforce employed at the operation.

Gold Price Sensitivity Estimates

The table below shows the gold price sensitivity on project economics for Loma Larga, including at $3,500 per ounce gold to provide investors with a view of the project’s economics across varying gold prices.

| Sensitivity of project economics to gold price | | | | | | | | Average gold price ($/oz.) | $1,500 | $1,700 | $1,900 | $2,300 | $2,500 | $3,500 | | NPV (after-tax, 5% discount) | $210 | $349 | $488 | $767 | $906 | 1,603 | | IRR (after-tax) | 11.2% | 14.8% | 18.1% | 24.1% | 26.9% | 39.1% | | Payback (years) | 4.6 | 3.9 | 3.4 | 2.7 | 2.5 | 1.9 |

Project Optimization Opportunities

The Company will continue to optimize the capital cost estimate for the project, including incorporating results from drilling, once the drilling campaign is recommenced, as well as optimization of mining fleet and power supply options.

DPM will continue to take a disciplined approach with respect to future investments in the Loma Larga project, based on key permitting and project evaluation milestones, overall operating environment in-country, and other capital allocation priorities.

Prospective Exploration Targets

Numerous opportunities have been identified to find additional Mineral Resources at Loma Larga, including:

Confirmatory infill drilling and optimization of existing Mineral Resources , with numerous areas identified as targets for infill drilling to potentially upgrade Mineral Resources from the Inferred to Indicated category, for inclusion in the mine plan and Mineral Reserves. Adding additional resources in the near-mine area as interpretation of previous resource drilling results indicates that sub-horizontal stratabound mineralization remains open for extension in numerous locations within the deposit. Evaluating camp exploration potential , where DPM has identified multiple high sulphidation and low sulphidation epithermal and porphyry targets within the Loma Larga concession area.

The Company envisages a 23,000-metre drilling program at Loma Larga, which would prioritize geotechnical and surface and groundwater monitoring holes, as well as metallurgical and resource infill and extensional drilling.

Mineral Resource and Mineral Reserve (“MRMR”) Estimate

The Company updated the Loma Larga MRMR estimate in 2023 to update the feasibility study completed in 2020 by the previous owner. The Mineral Reserve Estimate for Loma Larga is shown below and is effective as of September 29, 2023.

| Loma Larga Mineral Reserve Estimate (As of September 29, 2023) | | | | | | | | | Classification | Tonnes | Grades | Metal Content | | | | | | (Mt) | Au (g/t) | Ag (g/t) | Cu (%) | Au (Moz.) | Ag (Moz.) | Cu (Mlbs.) | | | Proven | 2.72 | 6.83 | 33.23 | 0.43 | 0.60 | 2.91 | 25.58 | | Probable | 9.86 | 4.12 | 27.35 | 0.25 | 1.31 | 8.67 | 54.39 | | Total | 12.59 | 4.70 | 28.56 | 0.29 | 1.90 | 11.58 | 79.96 | | 1. Mineral Reserve is estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines (Nov 29 th , 2019) and CIM Definition Standards for Mineral Resources & Mineral Reserves, May 19 th , 2014. 2. Mineral Reserves include long hole stopes and development in ore. 3. Mineral Reserves are reported at an NSR cut-off value of $75/t for long hole stopes and $55/t for development in ore. 4. Mineral Reserves are estimated using average gold price of $1,500 per ounce, silver price of $17.00 per ounce, and copper price of $3.25 per pound. 5. Average bulk density is 2.7 t/m 3 . 6. Numbers may not add due to rounding. 7. Metallurgical recoveries are not included in the contained values calculation. 8. The Mineral Reserve Estimation was completed under the supervision of Dr. Lewis Meyer, ACSM, MCSM, CEng, QMR, FIMMM Associate Principal Engineer at Global Mine Design Ltd., who is an independent Qualified Person (“QP”) QP as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). | | | | | | | |

The Mineral Resource Estimate, exclusive of Mineral Reserves, is shown below and is effective as of September 29, 2023.

| Loma Larga Mineral Resource Estimate (As of September 29, 2023) | | | | | | | | | Classification | Tonnes | Grades | Metal Content | | | | | | (Mt) | Au (g/t) | Ag (g/t) | Cu (%) | Au (Moz.) | Ag (Moz.) | Cu (Mlbs.) | | | Measured | 0.3 | 4.80 | 20.8 | 0.23 | 0.05 | 0.2 | 1.7 | | Indicated | 5.7 | 2.79 | 21.9 | 0.16 | 0.51 | 4.0 | 19.8 | | Total | 6.0 | 2.90 | 21.8 | 0.16 | 0.56 | 4.2 | 21.5 | | Inferred | 2.2 | 2.54 | 37.0 | 0.19 | 0.18 | 2.7 | 9.3 | | 1. CIM (2014) definitions were followed for Mineral Resources. 2. The Mineral Resources have been reported within underground reporting shapes generated with Deswik Stope Optimizer (DSO) using a net smelter return (NSR) cut-off value of $65/t. 3. Mineral Resources are estimated using a long-term gold price of $1,700 per ounce, silver price of $20 per ounce, and copper price of $3.75 per pound. 4. Mineral Resources are exclusive of Mineral Reserves. 5. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 6. Average bulk density is 2.7 t/m³. 7. Numbers may not add due to rounding. 8. Mineral Resources have been estimated by Katharine Masun, M.Sc., MSA, P. Geo., of SLR, an independent QP as defined by NI 43-101 | | | | | | | |

About DPM Metals Inc.

DPM Metals Inc. is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Bosnia and Herzegovina, Serbia and Ecuador. Our strategic objective is to become a mid-tier precious metals company, which is based on sustainable, responsible and efficient gold production from our portfolio, the development of quality assets, and maintaining a strong financial position to support growth in mineral reserves and production through disciplined strategic transactions. This strategy creates a platform for robust growth to deliver above-average returns for our shareholders. DPM trades on the Toronto Stock Exchange (symbol: DPM) and the Australian Securities Exchange (symbol; DPM).

For further information please contact:

Jennifer Cameron Director, Investor Relations Tel: (416) 219-6177 jcameron@dpmmetals.com