- 01EVR inks four non-binding ore deals.
- 02Up to 2,430 tpm; ~60% Tecomatlan cap; seeks fifth supplier.
- 03Hub-and-spoke model lowers miner transport costs; de-risking.
EV Resources (ASX: EVR) has signed four non-binding agreements with third-party miners to supply ore feedstock to the Tecomatlán processing plant in Mexico.
The agreements represent up to 2,430 tonnes per month in feedstock — more than 60% of the plant’s operating capacity — sufficient to initiate sustainable operations at Tecomatlán when the current upgrade program is complete.
Material will be delivered at approximately 150 millimetres particle size as either low-grade (between 5% and 29% antimony) or high-grade (more than 30% antimony).
Each agreement will serve as a framework for future deals including definitive purchase contracts and ore delivery orders, with EV Resources hoping to lock in a fifth third-party miner in the near-term.
The company is undertaking metallurgical recovery testwork on representative samples from each of the suppliers to establish likely plant performance and concentrate characterisation.
Hub-and-Spoke Facility
The Tecomatlán plant is designed to operate as a hub-and-spoke processing facility, sourcing ore from diversified third-party antimony miners across the states of Puebla, Oaxaca, and Guerrero.
The model could deliver a compelling value proposition for regional miners by eliminating hefty transport costs to smelters up to 1,200 kilometres away while generating potential cash flow for EV Resources once the plant is operational.
The company has moved fast to establish relationships with a network of regional ore suppliers and expects the feedstock pipeline to sustain initial plant operations as throughput ramps up from targeted commissioning and first production towards the 150 tonnes per day nameplate capacity.
One of the suppliers can deliver up to 2,000tpm grading 5% antimony and has indicated a desire to sell EV Resources a stockpile of 400 tonnes of higher-grade ore at 16% antimony to fund the development of its own mine to fit with Tecomatlán’s start-up timeline.
EV Resources is evaluating this opportunity to provide immediate, high-grade commission feedstock prior to the first day of production.
De-Risking Milestone
Managing director Mike Brown said the four agreements was a significant achievement for the company.
“Establishing a pipeline of over 50% of Tecomatlán’s feedstock capacity through these agreements is a major de-risking milestone as we target a transition from developer to producer,” he said.
“By positioning Tecomatlán as a highly efficient regional hub-and-spoke facility, we are solving a significant logistical pain point for local miners who currently face prohibitive transport costs to distant smelters.”
“This is a mutually beneficial model that gives us a clear, low-CapEx pathway to near-term production.”
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