United States Antimony reboots mine operations in Montana

[Redator]

United States Antimony (NYSE-A: UAMY) says it has been reacquiring mining claims next to its existing smelting operations in Montana since earlier this year, and is now ready to reboot mine operations in areas that have permits in place.

These mining claims, US Antimony said, have a history of antimony production dating back to the 1970s, and are all situated in or around its operating smelter — the only antimony smelting facility in the country.

Like with rare earths, the US has listed antimony as a mineral critical to its national and economic security. The grey-colored metal is used in a variety of high-tech and defence products, including flame-retardant materials, certain semiconductors and superhard materials. No antimony has been produced by the US on a commercial scale since 2016.

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The Dallas, Texas-based company revealed on Thursday that, after a review of geological and historical records, the newly acquired claims have “sufficient” quantities of antimony to restart mining, with as many as three vein systems present on the property.

Moreover, US Antimony said it could be feasible to establish surface mining operations with minimal pre-development expenditure in addition to the prior underground operations.

The company is currently permitted to begin immediate mining operations on the five acres of the patented property, having already filed a small miners exclusion statement (SMES) with the State of Montana. It plans to file a second SMES within the next 10 days in addition to filing exploration permit applications with both Montana’s Department of Environment Quality and the US Forest Service.

US Antimony’s stock gained 4% on the NYSE American exchange, with a market capitalization of $258.5 million.

First US antimony mine in years

Chairman and CEO Gary Evans said the decision to restart mining operations next to its smelter stems from a “significant price increase” experienced for worldwide supplies of antimony ore in the wake of China’s embargos initiated last year.

China, the world’s leading producer, holds around 80% of the world’s processing capacity. The US, meanwhile, has no domestic production and is highly reliant on Chinese imports.

Due to the tense relationship between the two nations, securing a US-based supply of antimony has become a key focus under the current Trump administration. Earlier this year, it fully permitted the Stibnite project held by Perpetua Resources (Nasdaq: PPTA) (TSX: PPTA) in Idaho, which is said to host one of the largest reserves outside Chinese control. 

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US Antimony, too, aims to bolster the US supply chain, leveraging its antimony oxide smelter in Thompson Falls, which it estimates could produce 5 million lb. per year of antimony metal. The new mining claims in Montana, according to CEO Evans, would make it the first company to restart US antimony production going back decades.

“Governments around the world are finally beginning to understand the need to secure their own supply chains, specifically for critical minerals. There continues to exist a worldwide shortage of this critical material necessary for our Department of Defense,” Evans stated in a press release.

In addition to its presence in Montana, the company also holds over 35,000 acres of mining claims in Alaska that could provide additional feed to the Thompson Falls smelter.