Idaho’s gold miner Perpetua Resources Corp (TSE: PPTA) achieved a major milestone on Thursday. The company’s Stibnite gold and antimony project has received a key federal authorization from the United States Forest Service (USFS).
The USFS has now completed a final environmental impact statement for the project and will be issuing a draft record of decision (ROD). This essentially means that Perpetua has now jumped over a major regulatory hurdle for its proposed open-pit mining operation.
A final ROD will be completed by year-end. Perpetua stock surged by over 11 per cent following the news. Commercial production is expected to commence in 2028, according to a recent corporate presentation.
“The decision comes after the completion of rigorous interagency permitting review, scientific evaluation, and public input,” Perpetua said in a news release. This draft decision has authorized a modified mine plan crafted by the company back in 2021.
Stibnite is expected to churn out 450,000 gold ounces per annum during its first four years of commercial production. In addition to holding 4.8 million ounces of gold, it will produce large quantities of antimony — a metal needed for weapon systems, electronics and a variety of other things.
The U.S. Department of Defense awarded the company US$34.6 million earlier this year to help secure a steady supply.
BREAKING NEWS! Huge win for U.S. National Security. This morning, Perpetua Resources announced they'll be receiving a favorable draft Record of Decision for the Stibnite Project from the U.S. Forest Service as soon as tomorrow.
After 8 years of federal permitting, this… pic.twitter.com/GxKwAae98e
— Better In Our Back Yard (@BIOBY_Official) September 5, 2024
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Stibnite faces significant opposition
The local Nez Perce Tribe in particular is outraged about the project. But, as Indigenous groups generally tend to oppose mining, this isn’t surprising. This group says that gold miners have historically ignored its rights to the land where the operation resides. Tribe members say they’ve been victimized by gold prospectors since the late 1800s.
“Projects of this scale and type present unique challenges, and that is particularly true as it relates to tribal interests, Kevin Knesek, USFS supervisor, said Thursday, “whether those interests be treaty-related or connected to cultural use and identity.”
Environmental groups such as the Center for Biological Diversity, Advocates West and the Idaho Conservation League have been upset about the site’s environmental implications for quite some time now too. The well-being of local fish and water quality are primary concerns.
Idaho River United, another opposed to Stibnite, claims that the mine will ruin about 20 per cent of the habitat for Chinook salmon and bull trout in the area.
The site was abandoned for many years beginning in the early 20th century. Mining companies that exploited its resources many years ago caused major environmental damage before contemporary standards existed.
Despite opposition and concerns, today’s approval from the USFS was praised by state senators.
“Advancing America’s only antimony reserve protects our national security and ensures the U.S. can continue to meet defense production needs to protect itself from bad actors,” Senator Mike Crapo said.
Perpetua plans to reopen two pre-existing pits and add a third as the mine becomes a producing asset once again.
rowan@mugglehead.com
