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EV Resources Limited has revealed major progress on its Tecomatlán plant production schedule alongside the completion of Phase 1 drilling at Los Lirios. Targeting operational status within 10-12 months, the company plans to utilize existing infrastructure and third-party ore supply agreements. These developments offer investors a promising outlook toward cash flow generation and enhanced production capacity.
Key Points
- EV Resources Limited (ASX:EVR)
- Acceleration of Tecomatlán plant production timeline
- Projected 10-12 months to achieve operational status
- Completion of Phase 1 drilling results at Los Lirios
- Investors advised to monitor ore supply contracts and permitting advancements
Tecomatlán Plant Set for 10-12 Month Operational Launch
EV Resources Limited has updated its Tecomatlán plant timeline, aiming to become operational within 10-12 months. This marks a strategic revision from prior plans by merging Stage 1 and Stage 2 into a unified construction phase. The company is expediting progress by securing third-party ore through non-binding Memorandums of Understanding (MoUs).
The timeline extension of roughly four months is justified by anticipated improvements in recovery rates and production of higher-value concentrates. Collaboration with environmental consultants is ongoing to ensure regulatory compliance and timely advancement, with the company committed to providing market updates on any timeline changes.
Hub-and-Spoke Strategy for Regional Antimony Ore Supply
The Tecomatlán plant is designed as a hub-and-spoke processing center, sourcing ore from third-party antimony miners in Puebla, Oaxaca, and Guerrero. This approach offers miners a cost-efficient alternative to distant smelters by significantly cutting transportation expenses. For EV Resources, this model establishes a clear route to cash flow once operations commence.
Currently, non-binding MoUs cover over 50% of the plant's nameplate capacity for ore supply. The company is actively pursuing additional agreements to boost throughput, reinforcing the plant’s strong business case.
Flotation Confirmed as Preferred Processing Method
Metallurgical testing on ore from the Chinantla antimony project confirms flotation as the optimal processing technique, achieving approximately 81% antimony recovery with concentrate grades of 42.4% Sb. In comparison, gravity concentration yielded only 29.25% recovery with lower concentrate quality.
EV Resources plans to continue developing the gravity circuit to maintain processing flexibility for varying ore types. This strategy enables the Tecomatlán plant to serve as a pilot facility for mixed-state ore from Los Lirios, where test work has demonstrated encouraging recovery results.
Conclusion of Los Lirios Phase 1 Drilling Program
The company has completed its Phase 1 drilling at Los Lirios. Drill hole DDH-L2-15-26 intersected a minor CRD unit but lacked significant mineralization and was not submitted for assay. EV Resources does not plan to assay this hole at this time.
All drilling results have been received and publicly announced, marking a key milestone in exploration. Investors will await future updates regarding resource modeling and potential assay submissions.
Cofradia Channel Assays Validate High-Grade Intercepts
Certified laboratory assays have confirmed high-grade channel samples from the Cofradia zone at Los Lirios, verifying a notable 2.2-meter interval grading 5.2% Sb. This is slightly lower than the previously reported pXRF interval of 5.66% Sb.
The approximate 20% variance between pXRF and lab results is considered reasonable by the company. Handheld pXRF serves as an exploration guide, while full laboratory assays support detailed reporting and resource estimation.
Strategic Focus on Cash Flow and Production Enhancement
EV Resources is prioritizing ore supply agreements and permitting progress to meet production goals. Its integrated flotation and gravity processing approach aims to optimize recovery rates and concentrate quality, improving the economic feasibility of the Tecomatlán plant.
Investors may find encouragement in the company’s advancements and the prospect of near-term cash flow upon plant commissioning. Key upcoming milestones include securing additional MoUs and advancing permit applications.
Environmental Permitting and Infrastructure Utilization
The company is leveraging existing infrastructure to accelerate production while progressing environmental permitting. The first of two permit applications, the Informe Preventivo, is ready for submission, representing a critical project development step.
By aligning permitting with infrastructure development, EV Resources aims to reduce delays and streamline the production timeline. Monitoring permitting progress will be essential for investors, as it significantly influences project readiness.
Outlook and Investor Insights
EV Resources’ recent update outlines a clear path toward operational readiness and potential cash flow generation. The company’s emphasis on ore supply security and processing optimization positions it favorably for future growth.
Investors should consider the hub-and-spoke model and integrated processing strategy as pivotal to EV Resources’ success. Continuous updates on ore supply deals, permitting status, and production milestones will be crucial for evaluating the company’s prospects.
