Military Metals Corp (CNSX: MILI) (OTCMKTS: MILIF) (FRA: QN90) hit a potentially catastrophic setback on May 28. Slovakia’s Ministry of the Environment revoked the exploration license for the company’s flagship Trojarova antimony-gold project.
The ministry made this unexpected decision without clear justification, even though it had earlier listed the project in Slovakia’s National Program for the Exploration of Critical Mineral Raw Materials.
This blow came right after positive momentum. On Apr. 8, the company reported its maiden inferred mineral resource estimate (MRE) for Trojarova. It delineated 6.5 million tonnes grading 1.02 per cent antimony and 1.06 grams per tonne gold, containing 67,000 tonnes of antimony and 222,000 ounces of gold. It filed the supporting NI 43-101 technical report on May 22.
Investors viewed these results with modest optimism. Analyst Christopher Ecclestone of Hallgarten & Company, for instance, highlighted the MRE’s strategic importance for Europe’s critical minerals needs, the value of existing infrastructure and strong upside potential in his coverage updates.
The project sits near the nation’s capital Bratislava and features extensive historical underground workings from Soviet-era mining. This could speed up future development and keep costs low should the government change its mind.
The license news sent Military Metals shares sliding by up to 60 per cent to a 52-week low on Friday. The company quickly announced it will appeal the decision and pursue all legal options, including an appeal to the Minister of the Environment within 15 days. It sees the revocation as inconsistent with Europe’s goals for secure critical mineral supplies.
Read more: NevGold Corp. reports antimony grades up to 53.7 per cent at Nevada project
Military Metals continues mining efforts in North America
While the legal fight continues in Slovakia, Military Metals is continuing to advance its projects in Nevada and Nova Scotia.
In Nevada, the Last Chance property in Nye County has a history of antimony production. The company plans surface mapping, sampling and drilling to assess its full potential after an initial field campaign last year.
Nevada is one of the world’s top antimony mining jurisdictions. Nearby, NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) recently reported high antimony grades up to 53.7 per cent at its Limousine Butte project. The junior is pushing forward with drilling and producing a maiden resource estimate.
In Nova Scotia, Military Metals’ West Gore property produced antimony and gold during World War I. The company holds exploration licenses there and is currently engaged with data compilation, field work and drilling to confirm mineralization. Armory Mining Corp (CNSX: ARMY) (OTCMKTS: RMRYF) (FRA: 2JS) recently acquired the Ammo antimony project close by, showcasing growing interest in Nova Scotia’s antimony potential.
These North American assets give Military Metals other focuses on as it works through the European challenge with its lead asset.
Key notes about the critical mineral
Many people have never heard of antimony, but this silvery-grey metalloid plays hidden roles in everyday life and defence.
Ancient civilizations used it in cosmetics and medicine. During World War II, Idaho’s Stibnite mine supplied 90 per cent of America’s antimony needs after supplies from China were cut off, helping produce armour-piercing bullets, night-vision gear and more.
Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA) just secured billions in federal funding to propel a production restart at this critical site.
Today, antimony hardens lead for bullets, strengthens flame retardants in military gear and appears in semiconductors and infrared detectors. It also boosts efficiency in solar panels and next-gen batteries.
Without a reliable supply of antimony, manufacturers would struggle to make many modern electronics, certain batteries and even critical safety systems in nuclear reactors.
Read more: NevGold launches 20,000-metre drill campaign at Nevada antimony-gold project
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