EV Resources completes 70% JV acquisition of Los Lirios antimony mine in Mexico

EV Resources (ASX: EVR) has finalised its 70% acquisition of the operating joint venture (JV) at the Los Lirios antimony mine in Mexico.

The company announced it had moved to add Los Lirios to its global portfolio in late January and has now completed due diligence on the deal, including the establishment of wholly owned Mexican subsidiary Stibcorp.

It has also successfully executed a binding promissory agreement for the assignment of mining rights with the current titleholders.

In-depth research

The company’s decision to acquire a stake in Los Lirios followed several months of researching geology, metallurgy and antimony markets, which resulted in EV’s assessment that few such opportunities exist for large-scale antimony mining that can quickly emerge with new low-cost supply.

This research also confirmed Mexico as a location suitable for mining on a relatively small scale.

The Los Lirios antimony mine consists of four licences covering 1,652 hectares located in the district of Zapotitlán Lagunas in north-west Oaxaca State.

Direct shipping ore

Past production at Los Lirios has focused on grades sufficient for sale as direct shipping ore.

EVR received assays from an initial four samples of stockpiled material at Los Lirios in February that returned highlight antimony results of 29.17%, 20.44% and 18.08%.

The company conducted ore characterisation and mineralogy analysis on several 30-kilogram samples from Los Lirios several weeks ago and expect the results imminently.

It then plans to use the samples for recovery test work focusing predominantly on gravity recovery techniques.

Step-change strategy

Non-executive chair Luke Martino said the transaction represents a key step in the company’s strategy to secure early-stage access to antimony supply in the Americas and supports the company’s growing portfolio of critical mineral assets, which it has aligned with US and allied strategic interests.

EV has entered into discussions with owners of permitted sites with a view to building a pilot processing plant using predominantly gravity recovery methods, which have proved successful in processing antimony materials in Mexico.

As part of a reshaping of its portfolio, EV agreed to sell its Yanamina gold project in Peru to Daura Gold Corp earlier this month.

The company will receive $9.2 million for the project, which it originally acquired in late 2019 for a consideration of approximately $153,000.