THOMPSON FALLS, Mont.--(BUSINESS WIRE)--United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported plans to start its Los Juarez gold-silver-antimony property in Queretaro, Mexico.
LOS JUAREZ DEPOSIT
ECONOMIC GEOLOGY. Los Juarez is a gold-silver-antimony deposit hosted by jasperoid (siliceous) pipes intruded into limestone from substantial depths that are exposed over 3.5 kilometers in length and up to 1 kilometer in width. Los Juarez resembles gold deposits in the Carlin trend in Nevada in terms of mineralogy and structure. A shallow reconnaissance drilling program was begun to delineate the higher grade zones for mining. The global average grade based on these drill holes and rock chip samples is 0.057 ounces (1.432 grams) gold, 2.43 ounces (75.24 grams) silver per metric ton, and 0.343% antimony. The gross value is $116.16 per ton based on gold at $1,100.00/oz, silver at $14.000/oz, and antimony at $2.36/lb. To date, less than 5% of the property has been drilled. USAC claims no reserves per SEC definitions, and the drilling does not comply with Canadian NI 43-101.
Following are some of the higher grade drill hole intercepts:
Management is not sure whether these higher grade intercepts can be selectively mined. However, in 2013 USAC milled 3,556 metric tons of legacy dump rock that averaged 0.049 oz (1.52 g) gold, 6.11 oz (189 g) silver, and 0.78% antimony. At today’s prices, the rock had a gross value of $180.00 per ton.
METALLURGY. The complex metallurgy of the deposit has been a deterrent to two major Mexican mining companies to exploit the deposit. USAC believes it has solved these problems.
ANTICIPATED COSTS. Utilizing the Puerto Blanco mill, the costs per ton of mined rock would include mining at $8.00, trucking $15.00, milling at $25.00, and concentrate smelting $15.00 – a total of $65.00. The addition of the cyanide plant would increase the cost $8.00 per ton of mine rock – a total of $73.00. The 500 ton per day mill placed close to the mine could reduce costs to $50.00 per ton.
STARTUP PLAN. This plan is designed to test every step of the operation on a pilot scale of up to 100 tons per day to prevent fatal engineering flaws.
Stage 1. is to complete the installation of the alkaline leach circuit at the Madero smelter that is currently underway. It will include the processing of Los Juarez concentrates in inventory.
Stage 2. will include milling campaigns of rock from different mine locations at to determine (1) whether selective mining is possible and (2) to determine the recovery of the gold. Recovery of the silver and antimony has varied from 75-90%, but the gold recovery has varied from 30-80%.
Stage 3. will be the installation of the cyanide leach plant at Puerto Blanco to increase the recovery of the silver but especially the gold.
Stage 4. will include the installation of the 500 ton per day mill close to the mine to reduce trucking costs estimated at $15.00 per ton.
The average price per pound for USAC’s antimony contained in oxide and metal has rose $0.05, and the demand for USAC antimony products remains strong. Currently USAC is exploring the possibility of selling the Guadalupe stibnite concentrates (antimony tri-sulfide) directly to the friction brake industry.
Gold is now being recovered from the Australian concentrates. When processing of the inventory has been completed, USAC may recover more than 1,000 ounces.
BEAR RIVER ZEOLITE
During the month of January, Bear River zeolite has sold about 1,089 tons of zeolite, which will contribute to the completion of the Los Juarez gold-silver-antimony project.
CEO John Lawrence said, “USAC is postured to start production of Los Juarez gold, silver and antimony and increase antimony and zeolite output. Continued growth during 2016 is being funded internally to prevent the dilution of the shareholder base.”
About U.S. Antimony
U.S. Antimony is a growing, vertically-integrated natural resource company that has production and diversified operations in precious metals, zeolite and antimony. Key operations currently generating revenues are located in Northwest Montana, Southern Idaho and Mexico. The Company also owns the only significant antimony smelter in North America and is increasing its raw material supply of antimony from Mexico and third parties around the world.
Forward Looking Statements:
This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events, including matters related to the Company's operations, pending contracts and future revenues, ability to execute on its increased production and installation schedules for planned capital expenditures and the size of forecasted deposits. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent filings, including Form 10-KSB with the Securities and Exchange Commission.