U. S. Antimony Announces Antimony Trisulfide Project and Progress on the Los Juarez Gold and Silver Plant

KEY HIGHLIGHTS

  1. USAC has received a significant award for the development and delivery military-grade antimony trisulfide.
  2. Mil, grade antimony trisulfide sells for significantly higher margins than antimony oxide or metal.
  3. This will make the US increasingly independent of Chinese supplies.
  4. At the same time, USAC is focused on starting the production of gold and silver from Los Juarez due to the sustained higher prices.

Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE American “UAMY”) announced the Defense Logistics Agency (DLA) of the Department of Defense (DOD) has awarded United States Antimony Corporation a grant of $510.528 to establish a North American source other than China of antimony trisulfide meeting the military specifications.

At its plant in Montana, USAC will process six 500 kg batches of antimony mined in Mexico. It will be ground, sized, packaged, and quality controlled by Perkins, Rouge and Paint (PRP) in Connecticut. PRP is a main supplier of trisulfide to the DOD. A report and the samples will be submitted to the contracting officer for DLA Strategic Materials. The operating period will be for one year starting on September 16, 2019. USAC will be part of the integrated product team (IPT) Including PRP, DLA Strategic Materials, and US ARMY (RDECOM-ARDEC PYROTECHNICS TECHNOLOGU DIVISION).

The award to US Antimony Corp. is being issued to establish a firm fixed price contract for the DLA Strategic Materials National Defense Stockpile. Antimony trisulfide is a major component in primers for all center-fired ordinance. The product has historically been supplied by the People’s Republic of China (PRC). Mil spec antimony trisulfide is priced on a multiple of the 70.5% antimony content plus the sulfur (the total weight of the antimony trisulfide rather than the antimony content) and the price of the contained antimony is typically two to three times the price of the antimony itself. Additional markets for antimony trisulfide include friction brakes.

At the gold, silver, and antimony Puerto Blanco mill for the Los Juarez mine, the fencing of the tailings pond, completion of the water well, and most of the major construction has been completed; Testing will proceed during the completion of the laboratory.

Photo of a bunch of rocks.

The COMUNIDADA (town) of Los Juarez is on the east end of the jasperoid ore body and rock walls and houses were built using the ore. At the time of construction, no one realized this was gold/silver/antimony ore.

Estimated sales during Q3 for 2018 and 2019 are as follows:

ITEMQ3 2018Q3 2019% change
Antimony pounds335,613381,683+13.7
Average price per pound $4.073.25-20.1
BRZ zeolite tons3,5563.563+0.1
Average price per ton $183.74185.02+0.69
Gold ounces2412.53-47.8
Silver ounces5,4153,444.7-36

The average Rotterdam price for antimony metal during Q3 2019 was $6,022.91 per metric ton or $2,731 per pound. Steps to lower the cost of antimony production are being established,

CEO John Lawrence said “The lower prices of antimony could be offset by by the production of antimony trisulfide, but antimony prices are expected to rebound. Antimony is a strategic metal used to harden lead in ordinance and lead-acid storage batteries. Following WW II, the United States built a 40,000 ton strategic stockpile of metal that was all sold by 2003. Antimony oxide is a flame retardant used with a halogen in plastics, paints and textiles in aircraft, vehicles, clothing, and insulation on all electronic wiring. The price of both silver and gold are sharply up and there is no problem selling them, so USAC is fast-tracking their production from the Los Juarez deposit.”

About U.S. Antimony

US Antimony is a growing, vertically-integrated natural resource company that has production and diversified operations in precious metals, zeolite and antimony.