Australia-based emerging miner Azure Minerals on Wednesday announced that its board had approved the start of trial mining and processing of high-grade mineralisation from its Oposura zinc/lead project in Sonara, Mexico.
Operations would start in the September quarter and would be funded through A$2-million in financing that Azure secured from major shareholder Deutsche Batalon.
The mine production and processing rate would initially be between 1 500 t/m and 3 000 t/m, grading about 15% combined zinc and lead with ore processed on a toll treatment basis through a nearby sulphide flotation processing facility.
Azure noted that there was scope to increase the mine production rate if additional processing capacity became available.
“With minimum upfront capital required, this trial mining operation will provide early positive cash flow and Azure will start to realise value from the asset. Generation of this cash flow will assist in funding completion of the feasibility study and meeting other corporate expenses,” said MD Tony Rovira.
Oposura has a mineral resource of 3.1-million tonnes at 5% zinc and 2.7% lead, with 85% classified as indicated resources and 15% as inferred resources.