Electric vehicle metals specialist EV Resources (ASX: EVR) is targeting a fast-track restart of the Los Lirios antimony mine in Mexico.

In-depth research into antimony markets, geology and metallurgy led the company to target the Mexican project.

The study, undertaken over several months, found that few opportunities for large-scale antimony mining exist that can quickly emerge with new low-cost supply, compared to lithium, graphite or rare earth markets.

Fast-track opportunity

Recent small-scale mining at the Los Lirios 3 pit has provided a fast-track opportunity, with stockpiled material already prepared for sale as direct shipping ore (DSO).

Located in Oaxaca state, the project is made up of four licences covering 1,652 hectares, with four historic open pits and several underground workings.

Two grab samples within an open pit on Los Lirios 3 returned antimony assays in excess of 62%.

Antimony prices on the rise

Managing director Hugh Callaghan said the company’s research also identified that prices for 99.65% purity antimony ingots had risen above approximately $64,000 per metric tonne.

“We have for some time been intrigued by antimony,” Mr Callaghan said.

“It has many deep and flexible markets with mature technologies and minimal risk of substitution.”

He added that the depletion of Chinese resources and consequent suspension of exports follows decades of minimal exploration for antimony and the closure of most mines outside of China.

Low inventories

The spike in antimony’s defence-related applications comes at a time of low military inventories, with indications of government funding for minerals with defence-related markets rising commensurately.

“Our driving philosophy is to look at markets and projects with strong fundamentals that are not based on new single-use markets, unproven technology or applications dependent on government policy,” Mr Callaghan said.

“We also intend to stay focused on the Americas – particularly Latin America – where we see the best mineral opportunities for juniors, matched with good infrastructure and a competitive cost structure.”

Due diligence underway

EV Resources has begun due diligence and planning for an exploration program.

The company will follow the search for a suitable plant location with a program of sampling and trenching to define drill targets at Los Lirios in the current quarter.

It also plans to investigate options for trial mining and processing to gain a better understanding of the geology and metallurgy of the project.