Azure Minerals Ltd.'s scoping study for its Oposura zinc-lead-silver project in Mexico outlined a pretax net present value of A$112 million, at an 8% discount rate, with an internal rate of return of 76%.
Preproduction CapEx is pegged at A$69.9 million, with a payback period of 16 months, while average cash costs are estimated at 56 Australian cents per pound of zinc over an initial mine life of 5.3 years.
The study also delivered life-of-mine EBITDA of about A$237 million and gross revenue of about A$506 million.
Average annual production of metal in concentrate is estimated at 19,000 tonnes of zinc, 10,000 tonnes of lead and 145,000 ounces of silver.
The study assumes an optimal mining rate of about 500,000 tonnes per year at average grades of 4.6% zinc, 2.6% lead and 15.9 g/t of silver.
The company said Oct. 15 that first lead-silver and zinc concentrate shipments are targeted for 2020 to 2021.
Managing Director Tony Rovira said, "We're immediately progressing into the feasibility study stage with the intention of developing Oposura into the company's first operating mine as swiftly as possible."
In July, the company estimated an initial resource for Oposura of 2.9 million tonnes at 5.0% zinc, 2.8% lead, and 17.0 g/t of silver.