Anax Metals and Develop Global to investigate new revenue stream

Anax Metals Limited (ANX, ASX: $ANX) and Develop Global Limited (DVP, ASX: $DVP) have announced the commencement of a scoping study to investigate the feasibility of transporting oxide ores from DVP's Sulphur Springs deposit to Whim Creek for heap leaching. This study aims to evaluate the treatment of high-grade oxide/transitional ores, which are outside DVP's current mine plan, potentially creating a new revenue stream for the joint venture.

Executive commentary

The scoping study represents an exciting opportunity for Anax Metals and Develop Global to explore the potential of heap leaching Sulphur Springs oxide/transitional ore. This initiative aligns with our strategy to maximize the value of our assets and could lead to the development of a significant base metal business centered around Whim Creek. We are optimistic about the prospects of generating additional revenue through the processing of third-party ore from other Pilbara operations, further enhancing the economic potential of the joint venture.

Summary of scoping study and outlook

Anax Metals and Develop Global have initiated a scoping study to assess the viability of heap leaching high-grade oxide/transitional ores from DVP's Sulphur Springs project at the joint venture-owned Whim Creek. The study aims to explore the potential for creating a new revenue stream outside of DVP's current mine plan, with the possibility of processing third-party ore from other Pilbara operations. This endeavor reflects the companies' commitment to maximizing the economic potential of their assets and could lead to the establishment of a larger base metal business centered around Whim Creek. The joint venture's consideration of processing third-party ore demonstrates a strategic approach to unlocking additional value and diversifying revenue sources.