EV Resources Ltd
- ASX Code: EVR
- Market Cap: $15,200,016
EV Resources Secures High-Grade Antimony Ore for Tecomatlán Processing Campaign
EV Resources (ASX: EVR) has executed a binding agreement to purchase 200 dry tonnes of high-grade antimony ore from stockpiles held by Lucero Grupo Minero de Puebla S.A. de C.V. ("Chinantla") in Puebla, Mexico. This purchase completes the plant, flowsheet, and feedstock inputs required to commence the Tecomatlán Proof-of-Concept ("PoC") processing campaign, marking a significant operational milestone for the company.
The ore parcel is stockpiled approximately 8 kilometres from the plant gate, with haulage scheduled to commence within two weeks of signing. EVR's main processing circuits have been individually commissioned and dry tested, leaving feedstock as the final input before wet processing can begin.
Key metrics disclosed in the announcement include:
- Ore grade: 13% to 16% Sb sulphide, reported to be well above regional benchmarks
- Prior metallurgical performance: 81.1% antimony recovery and a concentrate grading 42.4% Sb, upgradeable to 62.9% Sb, from flotation testwork on Chinantla material
- Total consideration: MXN$3,200,000 (approximately US$200,000) plus VAT
- Capital outlay on signing: MXN$400,000 (approximately US$25,000), representing 12.5% of estimated total consideration
- Haulage distance: approximately 8km from stockpile to plant gate
"The plant's main circuits are individually commissioned and ready for feed and Proof of Concept campaign commencement. This purchase provides characterised, high-grade ore only eight kilometres from the plant, and gives us what we need to commence the first Tecomatlán processing campaign. This is the point where the strategy moves from assembling the pieces to demonstrating the complete commercial cycle, buying regional ore, processing it through our own plant and producing a marketable antimony concentrate." — Shane Menere, Executive Chairman of EV Resources
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What the Proof-of-Concept Campaign Is Designed to Test
According to the announcement, the Tecomatlán PoC campaign is intended to validate EVR's regional hub model across its full commercial cycle rather than metallurgical performance alone. The campaign is structured to test each link in the chain:
- Ore procurement through third-party regional purchases on benchmark-linked terms
- Logistics, hauling ore a short distance to the plant gate
- Processing through crushing, grinding and flotation circuits
- Concentrate production, generating a marketable antimony concentrate
- Commercialisation, progressing concentrate to an end buyer
Each stage is expected to generate operating data on pricing, recovery rates, throughput and cost structure. Furthermore, EVR has stated this data will inform how it contracts and operates at commercial scale.
Why This Ore Parcel Was Selected for the First Campaign
The company has outlined several reasons for choosing Chinantla material to launch the inaugural campaign. Laboratory results on the stockpile returned grades of 13% to 16% Sb, which the announcement describes as materially above typical regional feed.
The material has also previously been characterised through EVR's metallurgical programme. Flotation testwork on Chinantla ore returned 81.1% antimony recovery and a concentrate grading 42.4% Sb, upgradeable to 62.9% Sb, as reported in the company's 24 June 2026 announcement. Starting with known material is intended to reduce the risk of an inconclusive result and provide a baseline read on plant performance ahead of lower-grade regional feedstock being introduced.
In addition, the ore is already mined and stockpiled, removing mining lead time or extraction risk from the equation entirely.
| Metallurgical Parameter | Result |
|---|---|
| Antimony recovery | 81.1% |
| Concentrate grade (as produced) | 42.4% Sb |
| Concentrate grade (upgradeable) | 62.9% Sb |
| Stockpile grade (laboratory results) | 13%–16% Sb |
| Haulage distance to plant | approximately 8km |
A Payment Structure Weighted Behind Delivery
EVR has structured the purchase so that capital commitment follows the ore through three instalments tied to operational milestones, rather than paying full consideration upfront. Consequently, this approach reduces financial exposure at each stage of the campaign.
| Instalment | Amount (MXN) | Amount (US$ approx.) | Trigger | Indicative Timing |
|---|---|---|---|---|
| 1st | $400,000 | ~$25,000 | Execution of agreement | On signing |
| 2nd | $1,200,000 | ~$75,000 | Commencement of operations | ~4 weeks after execution |
| 3rd | $1,600,000 | ~$100,000 | Completion of processing stage | ~2 weeks after operations commence |
| Total | $3,200,000 | ~$200,000 | Subject to final reconciliation | – |
Final consideration is reconciled against the actual dry tonnes processed and the assayed average grade of that material, meaning EVR pays according to contained metal received rather than an upfront estimate.
Understanding the Tecomatlán Regional Hub Model
What Is a Regional Processing Hub, and Why Does It Matter?
Small antimony miners across the Puebla, Oaxaca and Guerrero regions of Mexico face a logistical constraint: according to the company's 6 August 2026 announcement, alternative processing capacity is located up to approximately 1,200km away. Transporting ore across that distance adds significant cost and time, and can erode the economics of smaller operations.
Tecomatlán is positioned to function as a regional hub — a local facility that purchases ore from multiple nearby producers, processes it through its own flowsheet, and sells the resulting concentrate. For regional miners, this represents a considerably closer processing option. For EVR, it is intended to create a recurring feedstock pipeline through third-party ore supply agreements without requiring ownership of every mine in the region.
The five-year Ore Supply Agreement executed with Chinantla on 6 August 2026 underpins this model, and the 200-tonne purchase is the first commercial transaction under that agreement.
Glossary of Key Terms
- Proof-of-Concept (PoC): A campaign designed to test whether a process or business model works in practice before scaling it commercially
- Flotation: A mineral processing technique that separates valuable minerals from waste material using differences in surface chemistry
- Concentrate: The product of mineral processing, containing a significantly higher grade of the target mineral than the original ore
- Sb: The chemical symbol for antimony
- JORC Mineral Resource: A publicly reported estimate of mineralisation prepared in accordance with standards set by the Australasian Joint Ore Reserves Committee
Near-Term Pathway Following the Agreement
EVR has outlined a clear sequence of priorities following execution of the agreement.
| Priority | Activity | Timing |
|---|---|---|
| Haulage | Transport 200-tonne Chinantla parcel to Tecomatlán | Commencing within two weeks |
| Wet processing | Launch PoC campaign through crushing, grinding and flotation circuits | ~4 weeks post-signing |
| Results reporting | Report throughput, metallurgical recovery and concentrate grade | Following campaign completion |
| Commercialisation | Produce first marketable concentrate; progress buyer and offtake discussions | Post-campaign |
| Feedstock expansion | Convert additional regional ore sources into binding supply agreements | Ongoing |
| Proprietary feed | Progress maiden Los Lirios JORC Mineral Resource | Parallel workstream |
EVR also holds an option over the remaining approximately 300 tonnes from the same Chinantla stockpile, which can be purchased once the initial parcel has been fully commercialised to an end buyer. However, the company has stated there is no obligation to acquire this material, and no commercial terms have yet been agreed. It nonetheless represents a potential pathway to a second processing campaign should the first deliver expected results.
Investment Considerations Around the Tecomatlán Campaign
The PoC campaign carries implications that extend well beyond the 200 tonnes being processed. Antimony has been designated a critical mineral by the United States, European Union and Australian governments, reflecting its use in energy storage, battery technology, defence and high-tech manufacturing applications.
According to the announcement, Chinese export controls introduced in 2024 have tightened supply available to Western markets. Concentrate produced at Tecomatlán is therefore positioned for buyers seeking supply outside Chinese-controlled channels.
EVR has stated the campaign is intended to generate operating data on throughput, recovery, concentrate grade and cost that will inform how the company contracts and operates at commercial scale. A successful outcome would provide Tecomatlán with demonstrated processing parameters rather than projected ones.
The company's broader asset base spans multiple jurisdictions:
| Asset | Location | Role |
|---|---|---|
| Tecomatlán Processing Plant | Puebla, Mexico | Regional processing hub; PoC campaign underway |
| Los Lirios Antimony Project | ~50km from Tecomatlán, Mexico | Potential future proprietary feed source; maiden JORC Resource in progress |
| Dollar Project | Nevada, USA | US exposure within North American antimony platform |
| Milton Project | Nevada, USA | US exposure within North American antimony platform |
EVR has stated it is funded through its planned PoC phase, with only US$25,000 committed on signing and the remaining balance tied to operational milestones.
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What Investors Should Watch Next
EVR's processing circuits are commissioned, and the company has now secured characterised, high-grade feedstock located close to the plant. The payment structure is milestone-linked, and the five-year ore supply agreement provides a contractual basis for feedstock beyond this initial parcel.
The EV Resources secures high-grade antimony ore agreement for Tecomatlán marks a decisive shift from plant assembly toward operational testing. Reported results on throughput, recovery and concentrate grade following the campaign are expected to inform subsequent scale-up planning, offtake discussions and feedstock expansion across the Puebla, Oaxaca and Guerrero regions.
Key takeaway: EV Resources has secured the ore required to commence its Tecomatlán Proof-of-Concept campaign, with high-grade, pre-characterised antimony ore located approximately 8km from a mechanically ready plant. With a milestone-linked payment structure, a binding five-year ore supply agreement in place, and a defined operational sequence, the company is moving toward its first marketable antimony concentrate and the operating data required to test the Tecomatlán regional hub model at scale.
Ready to Follow EV Resources Into Its First Antimony Processing Campaign?
EV Resources (ASX: EVR) has secured high-grade feedstock, commissioned its processing circuits, and structured a milestone-linked payment agreement — placing the Tecomatlán Proof-of-Concept campaign firmly within reach. With a five-year ore supply agreement in place and a defined operational sequence from haulage through to concentrate commercialisation, the company is transitioning from assembly to execution. Investors looking to understand the full scope of EVR's regional hub model, its broader asset portfolio, and the near-term catalysts ahead should head to the EV Resources website for further information.
