U. S. ANTIMONY ANNOUNCES PLANS FOR A MAJOR INCREASE IN MEXICAN PRODUCTION
September 10, 2018. Thompson Falls, Montana. United States Antimony
Corporation (“USAC”, NYSE American “UAMY”) reported major plans to increase the
production of antimony, gold and silver from Mexico.
On August 31, 2018, USAC closed on a Member Interest and Share Capital
Agreement between and among Great Lakes Chemical Corporation, LANXESS Holding
Company US Inc., the “seller”, and USAC, the “buyer.” The Seller has paid USAC
$1,500,000 to dismantle and transport all the equipment and cleanup an antimony
plant in Reynosa, Mexico which has become the property of USAC. The weight of
the equipment has been estimated at 1,500 tons, and it will involve numerous
large cranes and heavy equipment and has been estimated to take six months to
complete. The trucking will involve more than 50 truckloads. The equipment will
be used at all USAC Mexican mines and plants and also in the United States for
operations in Montana and Idaho.
At the Wadley Mine in San Luis Potosi, the main drift, the “General Level”
will be reactivated by cleaning up the waste with an Eimco 911 load-haul-dump (LHD)
loader and Plymouth locomotive with cars. This will provide access and
transportation of the lower grade for the mill that has not been run for more
than a year. Simultaneously, a larger primary power line and transformer will be
installed to run a 200 horsepower compressor. This will allow the use of
pneumatic chipping hammers in the mine. These two steps could double production.
The Santa Monica drift at Sierra de Guadalupe in Zacatecas will be restarted.
The mine is equipped with an Eimco 911 LHD, several compressors, drills, and an
explosives license. The ore is primarily sulfide and can be upgraded to a high
grade 60-70% antimony floatation concentrate at the USAC Puerto Blanco mill to
make antimony tri-sulfide for the production of primers in all center-fired
ordnance. The higher grade sorted ore (direct shipping ore or “DSO”) will ship
to the USAC smelter at Madero. There are no records from previous production at
Guadalupe, but the deposit is very similar in geology and size to Wadley.
At the Soyatal District in Queretaro, Mexico, a buying program will be
started to purchase DSO for the Madero smelter. The District rivaled Wadley
production in the past and is expected to go to sulfides at depth that can be
milled at Puerto Blanco.
Construction of the cyanide leach plant for the Los Juarez
gold/silver/antimony plant should allow pilot testing to commence during Q4 of
2018. Installation of the tailings pond liner should begin by the end of
September 2018. Meanwhile the construction of the leach tanks, acid wash
circuit, elutriation circuit, Merrill Crowe plant, and carbon regeneration kiln
are underway in Montana. Much of this equipment will be ready to put on the new
floor of the leach plant during October. The Los Juarez deposit is an open pit
bulk-mineable property with a grade of approximately $125.00 per metric ton. The
mineralized zone has a strike length of 3.5 kilometers and a width of more than
1 kilometer. Following the confirmation of the beneficiation, a drill program
will be initiated and the installation of the 400- ton mill will be resumed.
installed, the equipment from the Reynosa plant will increase the capacity of
the Madero Smelter in Coahuila, Mexico to approximately 30,000,000 pounds per
year of antimony oxide.
John Lawrence said “USAC has invested considerable capital in the exploration,
acquisition, permitting, and holding of the Mexican properties. By the end of
the year, all of the properties should be in production and revenue from
antimony, silver, and gold should be rapidly increasing as a result of our long
term investments and strategy.”