PERTH (miningweekly.com) – ASX-listed Azure Minerals was investigating a number of development options at its Oposura zinc and lead/silver project, in Mexico.
The company told shareholders that over a dozen metals trading companies and base metal smelters had shown interest in purchasing the zinc and lead/silver concentrates planned at Oposura, with Azure also receiving interest in direct shipping ore (DSO) from the project site.
Additionally, Azure has also been fielding interest from parties willing to provide funding to develop the project, with the company telling shareholders that no decision has been made as yet on the preferred funding method for the project.
“The current market conditions for Oposura’s DSO and its concentrates are very favourable. The high-grade and shallow nature of the mineralisation at Oposura lends itself to either or both of these processing options,” said Azure MD Tony Rovira on Thursday.
The company is currently working on a preliminary economic assessment study into the development and operations of the project, assessing various potential mining and processing options, which Rovira said would assist in attracting the best offtake offers and funding for the project.
Azure’s previous metallurgical flotation testwork has demonstrated that the Oposura project could produce separate high grade zinc and lead/silver concentrates that are low in deleterious elements, and with high metal recoveries.
In addition, dense media separation testwork has also demonstrated that the project could be upgraded to produce a high-grade DSO product.
The preliminary economic assessment is scheduled for release in September this year.
Azure in September of last year acquired the Oposura project, paying the vendors $1.5-million in cash and committing to a net smelter royalty of 2.5% on future production.