US Antimony’s Fostung buy to offer Canadian tungsten

United States Antimony (NYSEA: UAMY) plans to fast-track development of its new Fostung tungsten property in Ontario, it said Friday.US Antimony, based in Dallas, paid $5 million in cash and a 0.5% net smelter return royalty (NSR) split with Transition Metals (TSXV: XTM) and an Ontario numbered company. Additionally, they took on a 1% NSR owed to a previous owner.The Fostung claim block spans 11.14 sq km and lies 70 km west of Sudbury. It contains 12.4 million tonnes of inferred resources, with a grade of 0.213% tungsten trioxide for about 26,000 tonnes of metal.“Our first significant acquisition of a tungsten deposit fits well within our company policy of only seeking mineral deposits that we believe can be quickly and inexpensively developed,” executive vice-president and chief mining engineer Joseph Bardswich said in a news release. “The potential for an early open pit makes Fostung our company’s first tungsten choice.”Tungsten, a dense, hard metal with the highest melting point of any element, and used in everything from cutting tools to aerospace components, hasn’t been produced commercially in Canada or the US since 2016. China holds around 80% of the world’s processing capacity.The company pegged its hopes on helping plug a widening North American tungsten supply gap triggered by February’s Chinese export curbs that sent prices to record highs.But broader critical-minerals names slipped Friday as tungsten prices fell. At $2.32 per share in New York, US Antimony shares were down $0.315 or 12%. It has a market capitalization of $275.7 million.Shanghai Metals Market quotes for ‘#1 Tungsten Bar’ Friday stood at $50.49 per kg, averaging $51.41 per kg over the past 12 months, up from roughly $45 per kg a year ago – a near 14% year-on-year rise.Ore sortingVendor tests show fluorescent ore sorting can upgrade Fostung material ahead of flotation, the company said. US Antimony plans to fine-crush on site, ship concentrates to local plants and tap existing North American smelters – moves designed to accelerate first production.The company is to start work an updated SK 1300‐compliant resource report this summer to incorporate recent vendor drill results.The Espanola Formation host rocks date to 2.1–2.5 billion years ago and mirror geology at the company’s nearby Iron Mask cobalt project. Fostung lies near paved roads, power lines and several mills in the Sudbury hub.The company has budgeted for building 24 km of new road access and expects to secure permits this year.US Antimony’s Montana smelter 24 km west of Thompson Falls relies on imported antimony. Its Mexican unit runs the Madero smelter, Puerto Blanco mill and Los Juarez antimony deposit.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com