Perpetua Resources and the American reserve
In the US, Perpetua Resources is advancing the development of a domestic antimony supply with government support. The company is developing the Stibnite Gold Project in Idaho, which contains the only known antimony reserve in the United States. The potential is not limited to the already approved mining zones. In early November, Perpetua reported 109.7 m grading 3.2 g/t Au and 1.1% Sb at the Fiddle discovery. The discovery is located around 750 m south of the approved Yellow Pine open pit. Follow-up drilling is intended to determine its extent. For US industry, the project offers the prospect of reducing dependence on China over the medium term and establishing domestic primary antimony production.
Rheinmetall and demand from the defence industry
The importance of antimony is particularly tangible in the defence industry. In ammunition, the metalloid serves as a hardener: lead deforms under the gas pressure during firing and the friction in the barrel, while antimony ensures stability and ballistic precision. According to Fastmarkets, defence accounts for only a small share of global antimony demand, but is particularly sensitive in terms of security policy. Rheinmetall’s nine-month figures show how strongly military demand is growing. The Düsseldorf-based group increased sales of weapons and ammunition by 34% in the first nine months. A disruption to imports from China would therefore hit an industry that is currently expanding production significantly. If Beijing does not extend the deadline in time, procurement will become more difficult for Western ammunition manufacturers.
Antimony Resources and high-grade drilling in Canada
Against this backdrop, exploration companies in North America are trying to develop alternative sources. Antimony Resources is focusing on New Brunswick, Canada and advancing the Bald Hill project toward an initial resource estimate. Recent drilling on the site has repeatedly yielded high-grade intersections. In mid-October, the company reported 4.36% Sb over 13.0 m. Within this section was an interval grading 21.45% Sb over 1.10 m. According to the company, the true thickness is around 70 to 80% of the drilled length. Soil samples also revealed new zones on the new Second Run claim, around 3 km south of the Main Zone. These grades demonstrate the deposit’s geological potential. The resource estimate and further studies will determine its economic viability. Antimony Resources commissioned consultancy SRK to prepare the initial resource estimate back in March. The new drilling data are now being incorporated into the deposit model, which is intended to provide the basis for financing and permitting procedures.
Fresh capital for further project progress
Exploration requires capital and staying power. To finance drilling, geological modelling and the upcoming studies at Bald Hill, Antimony Resources has replenished its cash reserves. The company raised around CAD 8 million in two financing rounds in October. This gives the explorer room to manoeuvre through upcoming project phases. In a market environment where many smaller resource companies are competing for capital, ample cash reserves are an advantage. Antimony Resources intends to use the funds to advance its work with SRK and further exploration – with the aim of establishing an economically viable antimony source in North America.
Conclusion: North America needs its own antimony sources
The West’s dependence on China makes the development of a North American antimony supply urgent. Perpetua Resources and Antimony Resources represent the effort to provide North America with its own antimony source. With high-grade drilling results, ample cash reserves and the ongoing resource estimate, Antimony Resources is well positioned for the next steps at Bald Hill.
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