Xtra Energy Ord Shs (OTCMKTS: XTPT) just hopped over a major regulatory hurdle at its antimony (Sb) project in the renowned mining state of Nevada.
The junior mining company announced Monday that the United States Bureau of Land Management has provided authorization for drilling and road construction work at the American Antimony Project in Churchill County. This site hosts a trio of past-producing Sb mines: King Solomon, Arrance and Antimony King.
“With road access now approved, we are mobilizing immediately to begin drilling, which will help define the size and scope of our antimony deposits,” Chairman and CEO, Mac J. Shahsavar, said in a press release.
Once roads have been established throughout the massive 4,421-acre property, Xtra Energy plans to start a drill campaign and begin sampling multiple stockpiles of material said to contain high-grade antimony. Many of them have been sitting at the site since the first and second world wars, the junior says.
“Previous laboratory results from initial sampling returned antimony grades as high as 33 per cent,” Xtra Energy specified, “with an average grade of 12.8 per cent, highlighting their strong potential for near-term processing and revenue generation.”
Two of them are high-priority and there are at least 20 others. There is approximately 2,100 tons of material throughout the area.
Historically, the property has produced about 273 metric tons of Sb metal, according to a technical report from last year. Miners flocked to the site during the two global conflicts and Korean War particularly when the commodity was in high demand.
Stockpiles of antimony material, 2024. Image credit: Xtra Energy
Read more: NevGold pulls up even more promising antimony grades from Nevada property
Nevada pulls spotlight for national security
Following the Second World War and Korean War, antimony production in Nevada sharply declined due to lessened demand and the availability of cheaper imports from China. The Asian superpower has been dominating the Sb supply chain for decades now.
Unfortunately for the Americans, the Chinese implemented strict export controls on the critical mineral in December, making it much more difficult to import than it used to be.
As the U.S. military can’t live without antimony for many of its weapons and technologies, securing a steady domestic supply has become a high priority as a result. Currently, the only American Sb deposit of scale resides in Idaho, under development by Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA). But, this asset won’t enter the production phase for a couple more years.
The U.S. Department of Defense has provided Perpetua with millions to speed up its progression.
This heightened demand has prompted Xtra Energy to focus on establishing itself as a critical American supplier of antimony ore. The junior miner is not the only one in Nevada with this aim.
NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) recently secured a US$6-million-dollar brokered private placement to help fund exploration and development activities at its Limousine Butte antimony-gold project in White Pine County.
This operation is another one of the state’s most promising future production prospects.
Read more: NevGold raises $5.5M for promising gold-antimony prospects in Nevada
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