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  • United States Antimony Corp. (UAMY) Leases San Jose Antimony Mines, Expanding Antimony Pipeline In Mexico 0 comments
    Jun 24, 2013 6:08 PM | about stocks: UAMY

    United States Antimony is breaking into a larger production envelope with today's news that they have secured a one-year (with renewals) lease on the San Jose Antimony Mines, including the concessions themselves, equipment, the mill, and accoutrements like the on-site administrative office and assay lab, as well as a small hospital, man-camp, railroad siding, shop, and the warehouses.

    This is a quality, furnished asset to add to UAMY's production pipeline, which already consists of beautifully integrated operations that span mining, milling, smelting, transportation, and the eventual sales. The company has already assembled an impressive footprint in Mexico and news of this latest acquisition, in the State of San Luis Potosi (near Wadley), represents a very good deal for shareholders at $25k for the first month and $30k for each thereafter (during the first six months, having started June 20).

    Letter in hand from the owner, UAMY is set to commence operations and projects resolution of a definitive agreement by the end of the first week of July, clearly raring to go at the new digs. With supply on the global market dwindling due to reduced output from the major supplier, China (whose domestic consumption has eaten away at the volume), 44-year industry veteran UAMY is strategically positioned with this acreage in Mexico.

    This company has been producing various antimony, silver, and gold products for quite some time (as well as taking in other raw materials from sources outside China) and actually got started up in Montana. Against the backdrop of today's announcement we have a recent acceleration of activity at their rapidly developing Los Juarez property and a doubling of the capacity at their Puerto Blanco antimony flotation mill located in Guanajuato (back in April).

    The main mineralized zone at the new lease is roughly 1.24 miles by 0.62 miles and according to USGS data on the San Jose mines, by 1943, more antimony had come out of here than any other district in the whole of Mexico, at just over 57.6k metric tons. Few deposits on earth are better by this comparison and since then a significant additional quantity has come out of the mine. With some 300 miles of underground workings and a historical production record where antimony was hand-sorted for high grade to be sent to the smelter, there are extensive dump materials on-site as well.

    From 2010 on the company bought and smelted roughly 481k pounds of antimony from the mine, and going off of modifications to the old 500 tons/day plant (20-25% recovery in the form of a low-grade concentrate) made and tested last year, the company is looking at recovery in the range of 40-50%, or as high as 55% antimony concentrate in reduced volume operations. While no reserves are currently claimed by the company here, mass dumps from over 50 years worth of mining and an economically viable milling workflow that puts the lower grade targets well in hand means UAMY is set up nicely to generate some serious production. The company is moving fast to get the permitting out of the way so they can start running the lower-grade mineralization, shipping out the higher-grade stuff to their own smelter at Estacion Madero near Coahuila, again expressing the exceptional economics of the company's vertically integrated antimony pipeline.

    To get a closer look at United States Antimony, please visit USAntimony.com

    Please see disclaimer on the MissionIR website


    Stocks: UAMY
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