Azure Minerals Limited. (“AZS”, “company”) is advancing its 100% owned Oposura project in Mexico, with an indicated plus inferred JORC resource estimate of 1 Million Tonnes (“Mt”) at 5.0% Zn, 2.7% Pb and 18 g/t silver.
A 2018 Preliminary Economic Assessment (“PEA”) showed a Before Tax – Net Present Value (“BT-NPV”) at 8% of US$84 million, and a very high Before Tax – Internal Rate of Return (“BT-IRR”) of 76%, using metal prices of US$1.4/lb Zn, US$1.1/lb Pb, and US$16.2/oz Ag.
The total initial CAPEX has been estimated at approximately US$52 million (includes a 25% contingency), with a Life of Mine (LOM) C1 cost of US$0.42/lb Zn, which we believe to be in the lowest quartile of global zinc producers.
Azure commenced small-scale mining of the Oposura deposit in July 2019, to potentially generate early positive cash flow to aid in financing of a Definitive Feasibility Study (“DFS”), which is expected to be released mid-2020.
Drilling performed by Azure included a 2017/2018 Phase 1 program of 173 holes totalling 11,109 m, and recent 2018/2019 Phase 2 drilling of 58 diamond drill holes totalling 4,567 m. The average hole depth was 68 m, and 87% of drill holes intersected mineralization highlighting what we believe to show both shallow and continuous mineralization.
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