THE BOURSE WHISPERER: Azure Minerals (ASX: AZS) informed the market of recent corporate-related activities regarding the company’s 100 per cent-owned Oposura project in Mexico.
Azure Minerals claims to have received plenty of interest from over a dozen metals trading companies and base metal smelters to purchase the high-quality zinc and lead-silver concentrates that will be produced from the development of the Oposura project.
The company intimated it has also received interest in upgraded, direct-shipping ore, which it said opens attractive, low capital cost production options for Oposura.
Azure said many of these prospective suitors have also indicated they may be willing to provide funding to assist in the development and construction of the project, although the company was quick to point out that it has made no decision as to its preferred funding model at this time.
Azure is currently completing a Preliminary Economic Assessment (PEA) study into the development and operations of the high-grade zinc-lead-silver Oposura project.
The company explained that although the PEA will meet the requirements for a Scoping Study as defined under ASX/JORC standards, it will be produced in the Canadian (NI43-101 report) format to enhance off-take marketing and project funding opportunities in North America, Europe and Asia.
“The current market conditions for Oposura’s direct shipping ore and its concentrates are very favourable,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.
“The high-grade and shallow nature of the mineralisation at Oposura lends itself to either or both of these processing options.
“The company is progressing quickly towards the completion of a quality Preliminary Economic Assessment in order to attract the best off-take offers and funding for the project.”