Azure has received strong interest in Mexico zinc project

According to Mining News Pro -ASX-listed Azure Minerals on Monday revealed that the project could produce 19 000 t/y of zinc, 10 000 t/y of lead and 145 000 oz/y of silver, over an initial mine life of 5.3 years.

First base metal concentrate shipments have been targeted for 2020/21.

The scoping study estimated a pre-tax net present value of between A$106-million and A$113.5-million, with the internal rate of return estimated at between 73% and 77%, while gross life-of-mine (LoM) revenues have been estimated at between A$494-million and A$508-million.

LoM earnings before interest, taxes, depreciation and amortisation have been calculated at between A$229-million and A$239-million.

“The completion of this study with its very positive project economics represents a key milestone for the company. We’re immediately progressing into the feasibility study stage with the intention of developing Oposura into the company’s first operating mine as swiftly as possible to take advantage of the strong zinc thematic,” said Azure MD Tony Rovira.

“The style of the deposit will deliver exceptionally low estimated operating costs, driven by the near-surface, high-grade mineralisation and efficient openpit and underground mining methods which will see Oposura’s costs in the lowest quartile of zinc producers globally.”

Rovira said there was also excellent potential that additional exploration, which was currently under way, would significantly expand the project’s resource, and further improve the economics and increase the mine life.

“We see this project as technically and financially robust, and eminently financeable, and the company has received strong expressions of interest from debt providers, concentrate offtakers and strategic parties interested at the asset level.”

Prefeasibility and definitive feasibility studies are now both slated for completion at the end of 2019, with additional drilling being undertaken with the aim of converting the inferred resource into the indicated category.