Azure Minerals (ASX: AZS) is an emerging explorer and developer of precious and base metals projects in the richly mineralised Sierra Madre mining province of north western Mexico.
In total, Azure holds 100% ownership of 14 precious and base metal properties covering 1,690 square kilometres.
Azure Minerals to finalise San Francisco manganese project acquisition
With due diligence successfully completed on the San Francisco manganese project with favourable results, including a maiden JORC Resource of 1,045,000t at 30% manganese, Azure will now move the project to the next stage of development.
Mexican focussed Azure Minerals (ASX: AZS) due diligence at the San Francisco manganese project has confirmed that the deposit is of the size indicated by the vendor, and most importantly can be effectively mined and processed with a high operating margin.
Azure will now finalise the acquisition of the San Francisco project and move to the next stage of development.
Acquisition terms have been renegotiated, with the majority of payments delayed until after expected commencement of production and cash flow
The next stages of development at the project will include further drilling to expand the resource size, conversion of existing resources to reserves, and advanced development studies.
The San Francisco project now has a maiden JORC Resource of 1,045,000 tonnes grading 30% manganese, with Azure identifying significant potential for resource expansion.
Highlighting the potential, the company has placed an exploration target of an additional 2 million tonnes to 4 million tonnes at 30% manganese to 40% manganese at the project.
Metallurgical results has also identified a simple beneficiation process produces an above 43% manganese premium export standard.
Tony Rovira, executive chairman, added “This acquisition will deliver full ownership of a high quality, advanced stage manganese project with a near term pathway to a potentially very profitable mining operation.
"A very good relationship has developed with the vendor and this has enabled us to restructure acquisition payments so that the majority will now occur after the expected commencement of production and cash flow.”
Helping to build the prospectivity of the area, three holes drilled outside of the initial resource area intersected mineable widths of high grade manganese, with another two holes low grade manganese.
These results reveal continuity of mineralisation to the north and northwest of the existing underground mine development, demonstrating that the resource remains open at high manganese grades.
Additionally, there are several other prospects within the project area where manganese mineralisation is present at surface.
No modern exploration has been undertaken to date and Azure believes that further exploration is now warranted in these areas.
Importantly, road transport and port infrastructure are immediately available for San Francisco, including bulk mineral loading facilities with spare capacity at the nearby Manzanillo Port, Mexico’s largest deep-water Pacific port.
Project economics
Azure said that while the study was completed at a concept study level with an accuracy of +50%/-30%, the following initial estimates of operating and capital costs are promising with:
- Mine operating costs of around US$20/t ore;
- Process operating costs of around US$2.60/t of mill feed;
- Transport of concentrate from site to FOB at the Manzanillo port of around US$21/t of concentrate total operating costs of around US$100/t of concentrate; and
- Concentrate value of around US$300/t at 43% manganese and a $7/dmtu manganese price.
