Xtra Energy Ord Shs (OTCMKTS: XTPT) reported intercepting considerable antimony mineralization over a significant length at its American Antimony Project this week.
On Friday, Xtra Energy released new core assay results from the operation. Most notably, the prospector and developer intercepted 1.46 per cent antimony (Sb) over 87 metres along with 0.27 grams per tonne gold throughout. Certain sections of the core in Hole BC25-03 held grades as high as 5.6 per cent Sb and 1.3 g/t Au.
Anything higher than 5 per cent antimony is generally considered to be high grade. This concentration tends to be found in stibnite-rich veins and is attractive for potential underground mining. Nonetheless, favourable drill results do not necessarily mean that the broader deposit is economically viable.
As specified by Xtra Energy, these results come from a 3.2-kilometre felsite dike system with extensive stibnite mineralization. This system bears similarities to the Xikuangshan deposit in China, the world’s largest, as highlighted by the company in a news release on Oct. 3.
“Hole BC25-03 demonstrates the thickness and grade required to classify Arrance [drilled section within the project area] as a world-class antimony system,” said CEO Mac J. Shahsavar.
Xtra Energy purchases new equipment
Additionally, the junior company just bought a heavy-duty military-style vehicle to transport ore over rough terrain at the site. The Oshkosh Corp (NYSE: OSK) MKR18 LVSR can haul up to 55,000 pounds at a time.
“This machine is a ‘game-changer’ for monetizing our surface stockpiles [in Nevada] efficiently and cost-effectively,” Xtra Energy said on social media.
Shahsavar visited the project late last month to examine ore stockpiles. Samples taken from them have returned grades as high as 42.9 per cent Sb.
“The combination of scale, clean metallurgy, and associated gold credits positions us at the forefront of developing a strategically important U.S. domestic source of antimony,” he added.
Xtra Energy shares rose by 17.6 per cent by the time the market closed Friday on the back of the news. Company leadership considers the drill results to be “spectacular” and says they mark a breakthrough moment.
Xtra Energy is yet to produce a resource estimate for the antimony-gold project. In Nevada, the critical mineral miner is joined by others pursuing the metalloid like NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) and Arizona Gold & Silver Inc (CVE: AZS) (OTCMKTS: AZASF) (FRA: A9J0).
Read more: NevGold Corp’s limousine Butte drill program targets first Gold-Antimony resource estimate
Market analysts predict steady antimony sector growth
In September, Fortune Business Insights predicted that the American Sb industry will expand with 6.5 per cent annual growth until 2032. In the United States alone, the market will be worth more than US$106 million, the Indian analyst estimated in September.
Furthermore, Grand View Research and Mordor Intelligence are expecting similar compound annual growth rates in the immediate future.
Mordor expects the global sector have a US$550-million-dollar valuation by 2035 and Grand View anticipates US$487.6 million by the end of the decade.
Geopolitical concerns about China’s supply dominance have been fuelling heightened interest in procuring domestic sources of the commodity among nations. This is particularly true in the United States.
Read more: GoldMining chooses to retain its NevGold shares for next 18 months
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