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Oposura

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FLAGSHIP PROJECT

Oposura Project (AZS 100%): Zinc-Lead-Silver

Oposura is a rich lead-zinc-silver deposit that Azure is aiming to bring into production by late 2020 to early 2021.

Located in the northern, mining-friendly Mexican state of Sonora, Oposura is underpinned by the following highlights:

  • JORC Resource of 2.9Mt @ 5.0% Zn, 2.8% Pb and 17g/t Ag;
  • Simple mining methods comprising shallow open pits followed by underground room and pillar extraction;
  • Standard sulphide floatation processing to produce clean, high-grade zinc and lead-silver concentrates; and
  • Significant exploration upside with potential to at least double the current mineral resource.

Azure completed and released a positive Scoping Study at Oposura in October 2018. The Study highlighted Oposura as an economically and technically robust, high-margin project, underpinned by low operating and capital costs, high-value concentrate, strong operating cash flows and a 16-month payback period.

Most importantly, Oposura is expected to be in the lowest cost quartile of world zinc producers from a C1 cash cost perspective.

Highlights from the Scoping Study include:

A major advantage of Oposura is the simple geology and mining and processing methods. High grade, massive sulphide mineralisation commences at or very near to surface with ore grades of +20% Zn+Pb resulting in a quick payback period.

The initial 5 to 6 year mine life at a mining rate of 500,000tpa (1,500tpd) will commence by open pit mining for about 3 years followed by underground mining utilising room and pillar extraction for another 3 years.

Utilising standard sulphide floatation processing, Oposura expects to achieve annual metal production of about 19,000 tonnes of zinc, 10,000 tonnes of lead and 145,000 ounces of silver in separate zinc and lead-silver concentrates. Concentrate grades of +53% zinc, +60% lead and +320g/t silver are expected with both concentrates containing very low levels of deleterious elements, which are expected to make them very attractive to end-users.

Azure is continuing to progress its rapid timeline for development of Oposura with completion of the following workstreams targeted:

  • Pre-Feasibility Study by mid-2019
  • Feasibility Study by end of 2019
  • First production by late-2020 to early 2021