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Antimony-focused exploration nanocap EV Resources (ASX:EVR) has found itself at the juncture of a crucial supply chain and geopolitical crossroads in Mexico, as the country’s only known major antimony smelter fires back up.
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Why does EVR find itself at a crossroads? Two reasons.
Firstly, the company recently acquired a historical antimony project in the nation’s south, something which was even covered by the likes of The Sydney Morning Herald earlier this year.
Held on a 70% JV basis in EVR’s favour, the project covers some 1,652ha and boasts historical (and relatively recent samples) of high-grade antimony thought to be in the form of stibnite – otherwise known as antimony sulphide.
Antimony grades both above ground and within existing underground workings have been of great interest to the company in recent history. Called Los Lirios and located in Oaxaca state, it wasn’t just geology that attracted the company, but also the low-cost jurisdiction that Mexico reflects.
But the second issue is, perhaps, the more ‘crucial’ part of the component.
“There’s no new [Mexican domestic] supply coming in,” EVR Managing Director Hugh Callaghan told HotCopper’s Head of Growth Timothy Sylvester in a recent webinar.
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Even as U.S. Antimony Corp (USAC) has fired up Mexico’s only known major antimony smelter, the fact remains the country will still import feedstock from Australia in sea containers (just as it did back in 2015 sourcing material from Hillgrove).
While Mexico and Australia’s trade relationship is nowhere near as chaotic as that of the former with the States, it remains fairly clear that the Mexican government would likely be looking around for its own domestic supplies for critical minerals.
(After all, every other country on Earth currently is.)
EVR last closed at a half of a cent.
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