EV Resources Advances Drilling and Production Milestones at Los Lirios and Tecomatlán

Maiden Drilling and Metallurgical Breakthrough at Los Lirios

EV Resources Limited (ASX:EVR) has launched its maiden diamond drill program at the Los Lirios Antimony Project in Oaxaca, Mexico, marking the first modern drill testing of this historically mined, high-grade antimony system. The initial 1,500 to 2,000-metre HQ drilling campaign targets two distinct mineralisation styles along approximately 900 metres of strike within the 6-kilometre-long Lirios Fault Zone (LFZ), a major hydrothermal conduit.

Channel sampling has already confirmed exceptional surface grades, including 30.2% antimony (Sb) over 0.5 metres at Lirios 2 East Pit and 22.6% Sb over 0.8 metres at Pit 5, Lirios 1. These results underpin the presence of both structurally controlled vein mineralisation and carbonate replacement (CRD) styles within limestone units, indicative of a significant hydrothermal system. Notably, 10 of 11 drill holes have intersected a laterally extensive CRD limestone unit, with a strike length of at least 400 metres and thickness ranging from 1 to 2.25 metres, remaining open in multiple directions. This system aligns with some of the largest global antimony sources, supporting EVR’s ambition for a maiden JORC Mineral Resource Estimate (MRE) targeted for Q3 2026.

Compounding the technical progress, EVR achieved a major milestone by producing its first antimony ingots from Los Lirios material sourced from Pit 1 and East Pit. This success validates a simple, low-cost mine-to-metal pathway, critical for de-risking the project’s processing route and aligning with strategic and defence end-use applications. Further metallurgical work is underway to refine processing and confirm ingot purity.

Assay protocols have been optimised to address previous underreporting due to high stibnite content, with the adoption of an XRF15c fusion method providing enhanced accuracy and repeatability for high-grade samples.

Drilling progress and assay results will be closely watched as the company advances toward its maiden resource estimate. This phase is a vital step in EVR’s transition from explorer to producer, supported by a robust funding position and focused operational execution.

These developments build on the company’s earlier drilling and assay updates, including the confirmation of the large-scale CRD system, as detailed in the recent extensive shallow CRD antimony system report and the Mexico antimony hub drilling and refurbishment progress.

Tecomatlán Processing Plant Refurbishment and Strategic Acquisition

Parallel to exploration, EVR is advancing the Tecomatlán Processing Plant in Puebla, Mexico, a strategically located, low-capital facility poised to become a centralised antimony processing hub for North America. The company has restructured the plant acquisition agreement to a milestone-based payment model, significantly reducing upfront capital risk. Payments are now aligned with permitting and operational milestones, preserving balance sheet flexibility.

Refurbishment of the grinding circuit is underway, focusing on three previously uncommissioned ball mills. This five-week campaign involves full overhauls, installation of upgraded discharge and safety systems, and conversion to high-efficiency motors, with completion targeted by late April 2026. The refurbishment represents a rare low-cost pathway to rapid production capability, with capital expenditure estimated at around US$73,000.

EVR has secured the first of two Falcon Concentrators, critical long-lead equipment for the plant’s gravity circuit, locking in favourable pricing and accelerating commissioning timelines. Metallurgical test work on Los Lirios samples supports an expected antimony recovery of approximately 90.8% through simple gravity separation, underpinning the economics of the staged production strategy.

The staged approach comprises Phase 1 gravity circuit commissioning with minimal permitting hurdles, followed by a Phase 2 flotation circuit targeting recoveries up to 99.2%. The plant is positioned to process both EVR’s own ore and third-party artisanal feedstock, with supply agreements in progress to optimise utilisation and early cash flow generation. Plant commissioning is targeted for the second half of 2026.

The refurbishment and milestone-linked acquisition strategy echo the company’s earlier announcements of milestone-linked plant deal and plant refurbishment underway, reinforcing EVR’s production pathway.

Expanding Critical Minerals Footprint in the United States and Peru

EVR’s US portfolio continues to gain momentum with high-grade reconnaissance results from the Dollar and Milton Antimony Projects in Nevada. Rock chip sampling at Milton returned up to 9.82% Sb, 24% copper, and 434 ppm silver from historic workings, confirming a polymetallic vein system with no prior modern exploration. Similarly, Dollar has yielded polymetallic mineralisation with critical and precious metals, including verified gold assays up to 3.88 g/t, supporting its classification as a high-grade system.

Systematic soil geochemistry programs have been completed at both projects, with assays pending. These data will guide drill target definition ahead of planned maiden drilling campaigns, positioning EVR to contribute to securing domestic US critical minerals supply chains. The projects’ proximity to the Hawthorne Critical Metals Army Depot and strategic US government facilities enhances their potential eligibility for critical mineral incentives.

In Peru, EVR has consolidated 100% ownership of the Don Enrique Copper-Silver Project by acquiring the remaining 50% interest. The combined 2,684-hectare land package covers a continuous 5.5 km strike over a substantial, undrilled IP chargeability anomaly. The project is drill-ready with permits in place and shows potential for a large-scale epithermal polymetallic vein system with porphyry characteristics at depth. While EVR’s primary focus remains on its North American antimony assets, the company is exploring strategic options to maximise value from Don Enrique amid favourable copper, silver, and gold market conditions.

Strategic US Government Engagement and Funding

Recognising the strategic importance of antimony supply security, EVR has engaged New York-based MineMaker LLC to navigate US federal and state agency interfaces and pursue non-dilutive funding avenues. MineMaker’s expertise includes engagement with the Department of Energy, Department of War, and the Export-Import Bank, alongside programs such as the Defense Production Act and Inflation Reduction Act. This partnership aims to align EVR’s assets with US defence and supply chain priorities, potentially unlocking critical capital and permitting support.

This engagement complements EVR’s capital position, which includes a $25 million equity drawdown facility and a cash balance of approximately A$1.87 million at quarter-end. The company also completed the sale of its Khartoum Project, reallocating proceeds to high-priority activities like the Los Lirios drill program.

Upcoming Catalysts and Operational Readiness

EVR enters the June 2026 quarter with a clear production runway and multiple catalysts ahead. Investors will watch for initial assay results from the Los Lirios Phase 1 drill program, expected within the quarter, and the completion of Tecomatlán grinding circuit refurbishment. Permitting milestones for the plant, securing artisanal ore supply agreements, and commissioning of the gravity circuit are targeted for the second half of 2026.

Simultaneously, drill targeting at the Dollar and Milton projects will progress, supported by pending soil assay results. Continued engagement with US government agencies and advancement of funding pathways remain priorities, alongside strategic evaluations of the Don Enrique asset.