EV Resources Secures 70% Stake in High-Grade Los Lirios Antimony Mine, Mexico

Strategic Acquisition in a Tightening Market

EV Resources Limited (ASX: EVR) has announced a significant move into the antimony sector with an agreement to acquire a 70% stake in the Los Lirios Antimony Mine, located in Oaxaca State, Mexico. This acquisition comes at a time when global antimony markets are experiencing unprecedented price increases and supply shortages, largely due to the depletion of Chinese resources and export restrictions.

The Los Lirios project spans 1,652 hectares across four mining licences and includes multiple historic open pit and underground workings. Notably, recent grab samples from the Los Lirios 3 pit have returned exceptionally high antimony assays of over 62% Sb, underscoring the project's potential as a source of direct shipping ore (DSO).

Geological and Operational Context

Situated within the northern Mixteca Terrane, the Los Lirios mine benefits from a complex geological setting characterized by Jurassic limestone, conglomerate, and shale formations hosting stibnite mineralization. The mineralization occurs along shear zones with significant lateral and vertical extents, suggesting promising exploration upside.

Historically, mining at Los Lirios has been small scale and focused on grades suitable for DSO sales, with no processing facilities established on site. Recent activity by current owners has prepared stockpiled material for sale, although proceeds remain with them pending the joint venture formation.

Joint Venture and Development Plans

The acquisition will be structured through a joint venture company, with EVR holding 70% and the existing owners and their associated Mexican mining company retaining 30%. The transaction is contingent on legal due diligence, shareholder agreements, and technical reviews.

EVR plans to fund exploration and development activities, aiming to establish a pilot mine and concentration plant with a capacity of 300 tonnes per day. This approach aligns with the company's strategy to leverage low-cost jurisdictions with established mining skills, particularly in Latin America.

Market Dynamics and Strategic Rationale

Antimony prices have surged beyond US$40,000 per metric tonne for high-purity ingots, driven by supply constraints and rising demand, including defence-related applications. EVR's Managing Director, Hugh Callaghan, highlighted the strategic importance of antimony as a critical mineral with mature markets and limited substitution risk.

EVR's entry into the antimony market complements its existing copper portfolio in Peru, providing diversification and potential near-term cash flow opportunities amid a challenging copper market environment.

Next Steps and Outlook

EVR has commenced due diligence and is planning a comprehensive exploration program, including sampling, trenching, and drilling to define resource targets. The company intends to identify a suitable processing plant location and advance trial mining to better understand the project's geology and metallurgy.

With the global antimony market under pressure and limited new supply options, EVR's acquisition of Los Lirios positions it to capitalize on a growing market deficit, potentially accelerating the development of a new, low-cost antimony source outside China.