U.S. government awards Nova Minerals US$43.4M to expedite antimony mine
American agencies have also sunk millions into US Antimony and Perpetua Resources
Rowan Dunne
Nova Minerals Ltd (OTCMKTS: NVAAF) FRAQM3 ASXNVA has become the latest mining company to receive millions in government backing for American antimony production.
The United States Department of War just revealed that it is awarding Nova’s subsidiary US$43.4 million to expedite development of Alaska’s Estelle project. The government agency is providing Alaska Range Resources (ARR) with the funding to help procure a reliable domestic source of antimony trisulfide needed for mass production of ammunition. Additionally, the move is aimed at reducing reliance on China, Russia and Tajikistan for essential antimony products.
Antimony trisulfide is a crucial component for low and medium caliber weapons. It is imperative for primer production and case hardening, as highlighted by the DoW.
“After conducting rigorous vetting and technical due diligence of the Estelle Project, ARR is proud to be the recipient of this award,” said Nova Minerals in an ASX announcement, “which provides further confidence in the quality of antimony mineralization and highlights the potential scale and scope of future antimony production from the Estelle Project.”
Nova’s subsidiary will utilize the funding to finalize the permitting process, conduct geological surveys and testing to craft the latest drill campaign strategy and extract stibnite ore. Additionally, it will be put toward finishing off a metallurgical study, building and commissioning a concentration plant and setting up a refinery.
In addition to having multiple drill-ready antimony targets, Estelle is estimated to hold 9.9 million ounces of gold. Nova is still working on producing a maiden antimony mineral resource estimate at the project.
A February report from the mining advisory firm RFC Ambrian deemed Estelle to be one of only nine operations globally with near-term antimony production potential.
Alaska hosts 49 out of 50 critical minerals identified by the U.S. government, making it a key mining jurisdiction for national security purposes.
From rare earths to copper, cobalt, and graphite, Alaska holds the critical minerals that power our defense, our tech, and our energy dominance. Mine, Baby, Mine, Alaska! ⛏️🇺🇸
From smartphones to national security, critical minerals power our modern world. Interior is fast-tracking responsible development to strengthen supply chains and meet America’s energy needs. Photo by @USNavy
Read more: NevGold Corp’s limousine Butte drill program targets first Gold-Antimony resource estimate
Government invests heavily in locally sourced antimony
The news follows the U.S. Defense Logistics Agency awarding United States Antimony Corp NYSEAMERICANUAMY with a US$245-million-dollar antimony ingot supply deal. The top American antimony refiner and processor’s contract will last for five years initially.
It also follows the Department of Defense investing over US$80 million into the Stibnite antimony and gold operation currently being constructed by Perpetua Resources Corp TSEPPTA NASDAQPPTA. Perpetua started receiving funding in late 2022.
Smaller companies involved in the American antimony sector like NevGold Corp CVENAU OTCMKTSNAUFF FRA5E50, EV Resources Ltd FRAR1EA ASXEVR and Arizona Gold & Silver Inc CVEAZS OTCMKTSAZASF FRAA9J0 have been inspired by the immense rate of recent government spending.
“There’s tremendous interest in antimony right now,” said Arizona Gold & Silver CEO, Mike Stark, in an interview last month. “The United States government is spending millions to self-secure opportunities for this product as opposed to buying it elsewhere in the world.”
American government agencies have invested approximately US$115 million into domestic antimony supply chain projects since the beginning of 2024.
Read more: GoldMining chooses to retain its NevGold shares for next 18 months
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