After “stealthily reacquiring mining claims and real property since earlier this year,” United States Antimony Corp (NYSEAMERICAN: UAMY) is starting mining activities on five acres adjacent to the only sizeable American antimony smelter in operation.
Land near the critical mineral processing complex was formerly exploited for antimony until the early 1980s. Now, the unprecedented price of the commodity has prompted the company to start digging up the metalloid around the plant while processing an increasing amount of it.
Its value has ascended by over 200 per cent within the past year. The ascension has been driven by newly implemented Chinese export restrictions; rising demand in the military and solar sectors; supply chain disruptions in Russia and Myanmar; and a growing number of depleted mines in other major producing nations like Tajikistan and Oman.
There is a major supply deficit at the moment, particularly due to government officials in Beijing tightening the grip on their major global contribution.
“There continues to exist a worldwide shortage of this critical material necessary for our Department of Defense,” said Gary C. Evans, Chairman and CEO of U.S. Antimony. “The significant price increase experienced for worldwide supplies of antimony ore have made this decision to reopen our existing antimony [Sb] mine adjacent to our smelting operations an easy one.”
Nonetheless, the company says it completed an extensive geological and historical review before receiving authorization for small-scale mining activities from Montana authorities. There are three highly promising vein systems estimated to hold significant Sb mineralization on the property.
The past-producing project in the vicinity of the smelter is one of a select few in the U.S. with promising production potential. The Stibnite operation under development by Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA), NevGold Corp‘s (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) Limousine Butte project, and the Antimony Canyon site held by Trigg Minerals Ltd (ASX: TMG) (OTCMKTS: TMGLF) are a few other notable prospects.
Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization
Heightened market activity inspires massive buildout
U.S. Antimony is currently in the midst of completing a 500 per cent expansion of its smelting operation to fulfill heightened processing demand. The additions will cost approximately US$15 million.
The Montana smelter is currently the only source of antimony oxide, trisulfide and metal products in the country.
Antimony oxide gets used in batteries and flame retardants; trisulfide is utilized for ammunition, semiconductors and pyrotechnics; and metal is used for multiple military applications, semiconductors and alloys. Their scope of applications is broad and listing them all would be a considerable task.
In other recent news, U.S. Antimony listed its shares on the newly launched NYSE Texas Exchange on Jul. 1.
BlackRock Inc (NYSE: BLK) also upped its holding in the company by 1.6 per cent to 5.1 per cent in May by acquiring an additional 1.8 million shares.
U.S. Antimony stock has flown over the past year, rising by over 500 per cent.
Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization
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