Azure Minerals sees great potential at its Oposura zinc-lead-silver project in Mexico after releasing what it believes is a strong initial resource estimate.
Based on 173 diamond drill holes completed across 11,108.6 meters, the asset holds a grand total of 2.9 million tonnes at 5 percent zinc and 2.8 percent lead. Meanwhile, contained metal comes in at 146,000 tonnes of zinc, 82,000 tonnes of lead and 1.6 million ounces of silver, with 75 percent of contained metal in the indicated resource category.
According to the company, Oposura has the potential to be expanded, with mineralization open in several directions. Further drilling is planned for later this year.
“This initial Oposura Mineral Resource is a very positive outcome for the Company’s development and production strategy,” Azure Managing Director Tony Rovira said in a statement.
“Open pit and underground mine planning and scheduling are now underway. The schedules will be used to optimise the proposed plant throughput rate and finalise the capital and operating cost estimates. Further information on the results of these studies will become available during the third quarter of 2018,” he added.
The Oposura project area contains 10 mineral concessions, all of which were previously owned by Grupo Minero Puma. However, in August 2017, Azure subsidiary Minera Piedra Azul paid Puma US$1.5 million for 100-percent ownership. Puma has retained a net smelter return royalty of 2.5 percent.
All nine of Azure’s ongoing projects are located in Mexico, with five in Sonora. Its flagship projects, aside from Oposura, are its Alacrán silver-gold–copper project, its Sara Alicia gold-cobalt project and its Promontorio copper-gold-silver project. The company’s other projects focus around gold, silver, copper, zinc, and graphite.
The company’s Alacrán project, while fully owned by Azure, was previously explored by Teck Resources (TSX:TECK.B,NYSE:TECK) when it acquired the property in 2013.
Azure acquired the rights to 100-percent ownership of the project in 2015, and in 2016 became its 100-percent owner after meeting its commitments. Teck then exercised its back-in right and took over operatorship of the project; it now maintains a 51-percent interest in the project.
At close of day Wednesday (July 4), Azure’s share price was at AU$0.22.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.