November 2, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported that it has sold 2,330 tons of zeolite in October which is a monthly record. The new sales have come from a variety of buyers and can be attributed to a better grade of zeolite, improved processing techniques, the ability to make a wider variety of particle sizes, the ability to blend additives, and better quality control. This segment of the USAC business may become the lead source of short term profit until metals prices recover.
Our cost per pound of antimony production has fallen due to the following factors:
1. An increase in production which lowers the cost per pound of fixed overhead,
2. The cost of raw materials has dropped significantly because the price is indexed to the sale price,
3. Realized savings from natural gas instead of propane in Mexico,
4. Sharply reduced propane costs in Montana,
5. Lower costs of operating in Mexico,
6. Byproduct silver and gold production,
7. The ability to ship finished metal from Mexico directly to customers,
8. The largest cost savings will result when all Mexican operations are on stream. The holding costs for Los Juarez, Wadley, Guadalupe, and Soyatal have been substantial.
The antimony business will realize much higher production and potentially better operating margins as Mexican operations are brought up to capacity. We believe that the price of antimony will recover following the liquidation of Chinese inventories.
ANTIMONY SMELTER PRODUCTION
At the Madero smelter in Coahuila, Mexico, the large furnace (“LRF”) is being fed concentrates from Australia. The use of the LRF will allow USAC to process the inventory of concentrates and ore from Wadley, Guadalupe, and Soyatal in the existing small furnaces (SRFs). The recovery of gold from the Australian concentrates will commence during Q4, 2015.
USAC has exercised its option to purchase the Sierra Guadalupe property in Zacatecas, Mexico for $2,000,000. After previously advancing $586,892.71 for developing the property, the balance is $1,413,107.29 that will be paid in graduated monthly payments starting at $5,000 per month and increasing overtime for 12 years. The property consists of 217.4 hectares. Unlike the “mantos” or layered deposits at Soyatal and Wadley that are oxidized, Guadalupe is sulfide and can be milled with a recovery of up to 90% to produce concentrates containing 65-70% Sb. The high- grade concentrates double smelter production, reduce costs, and are amenable to an LRF. The concentrate can be used for the production of antimony tri-sulfide for primers for ordnance and rockets sought by the U. S. Department of Defense.
USAC has been mining legacy dumps that average 4 to 9% antimony contained. The material is milled at the Puerto Blanco mill in Guanajuato, Mexico where the recovery has been 45-50%. The concentrates average 32% antimony with moisture at approximately 10%. Recently a 100 ton lot was sold for $98,800.00 FOB the mill which calculates to $1.50 per pound of contained antimony.
GOLD AND SILVER BUSINESS
The production of gold and silver from the Los Juarez deposit in Queretaro, Mexico is awaiting two circuit additions. The first addition is at Madero and the equipment is being built and installed. It is expected to result in high metallurgical recoveries of gold and silver from the flotation concentrates. The second addition will involve a cyanide leach circuit at the flotation mill at Puerto Blanco in Guanajuato to recover the rest of the gold and silver from the floatation tailings. The application for this permit is being worked on, and commencement of Los Juarez production could proceed during the first half of 2016. The Company does not claim any ore reserves by definition of the S.E.C. standards.
CEO John Lawrence said that “The Company is rapidly increasing the production of zeolite to take advantage of the growing market, increasing the antimony production to lower costs, and getting the Los Juarez gold and silver on line to generate more revenue and prevent dilution of the shareholder equity. All capital is being generated internally.”
NEW EQUIPMENT FOR PRECIOUS METAL OPERATIONS IN MADERO, MEXICO
Leach tank for gold and silver extraction from antimony at Madero, Mexico
Tank is heated with 20 HP agitator
Bottom of leach tank
Two new rubber lined pumps for leach plant
Sumps for pumps
Stainless steel reactor to precipitate antimony
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U. S. ANTIMONY REPORTS CONSTRUCTION FOR LOS JUAREZ GOLD & SILVER PLANT AND RECORD SALES
October 5, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) is pleased to announce it has commenced construction and installation of equipment at Madero, Mexico for the recovery of gold and silver from the Los Juarez deposit in Mexico. The Company also reported record sales for the third quarter as follows:
GOLD AND SILVER: LOS JUAREZ
The Company continues to complete work required for the addition of two circuits that will enable the production of gold and silver from the Los Juarez deposit in Queretaro, Mexico. Approval of the first change at Madero has been received earlier than anticipated. The necessary equipment is being built and installed and testing could begin before the end of 2015 on Los Juarez concentrates that are in inventory. It is expected to optimize the recovery of gold and silver from the flotation concentrates. The second addition involves a cyanide leach circuit at the flotation mill at Puerto Blanco, Guanajuato. The circuit is designed to recover additional gold and silver from the floatation tailings. The cyanide permit is underway with approval anticipated by the end of Q1 2016 or early Q2 2016.
ZEOLITE, BEAR RIVER ZEOLITE
Sales from Bear River Zeolite, a wholly owned subsidiary of USAC, were up more than 1,200 tons, an increase of 54.6%, during Q3 2015 compared to the same period in 2014 due to strong demand for animal feed, air filtration, water filtration, remediation, agriculture, compost, and oil and gas applications. The Company has expanded its customer base with fifteen new large customers and many smaller companies. The company has recently received orders for 746 metric tons from a new customer for the remediation of water from a gold mine in Canada. Two hundred sixty-six metric tons have already been shipped. Zeolite sales are expected to continue to grow due to increasing demand for the very high quality of the Bear River Zeolite product
Despite the decrease in the price of antimony, our revenues increased by $227,519 during Q3 2015 compared to the same period in Q3 20214. Costs have decreased due to (1) greater production, (2) the decrease in fuel prices, (3) the raw material purchases are indexed to our sale price, and (4) smoother production practices. At the Madero smelter in Coahuila, Mexico, the large furnace (“LRF”) refractory has been cured and the start up of production is underway. Finished metal will be sold directly from Mexico to further reduce costs during Q4 2015. Additionally, the recovery of gold from the Australian concentrates will begin during Q4, 2015.
Conversations continue between the U. S. Department of Defense (“DOD”) with USAC about the availability of (1) antimony metal for use in ordnance and deep-cycle batteries, (2) antimony oxide flame retarding plastics aircraft and vehicles, and (3) especially antimony tri-sulfide for use in primers in bullets and rockets. The DOD is concerned that China is the only source of antimony tri-sulfide and that there are no stockpiles for antimony metal or oxide. Further, they are interested in visiting our Mexican operations as it relates to our Montana operations to supply them with these products domestically.
CEO John Lawrence said that “With no long term debt and consistent revenues from operations, the Company is on track to fund the Los Juarez expansion. This combined with a large inventory of Mexican furnace feed and the increasing sale of zeolite, places the Company in an excellent financial position to fund our activities and prevent the dilution of shareholder equity.”
LRF furnace Madero, Coahuila, Mexico. Left to right cooling ducting, dust collector, stack.
LRF furnace left, cooling ducting, dust collector, stack on right.
Wadley Operation, San Luis Potosi, Mexico approximately 400 tons of product in inventory.
Sampling ore at Wadley.
Puerto Blanco Mill, Guanajuato, Mexico. Earthen dam for new tailings pond for Zacatecas and other mines not needing cyanide leaching.
Sergio Mota, Rebolledo on left in charge of Los Juarez permits and Juan Jesus Heriberto Torres Montes on right mill superintendent.
Puerto Blanco mill with pond that will be used for cyanide in foreground and mill in background.
Los Juarez gold silver rolled steel for 2 of 3 tanks.
Los Juarez cone bottom for one of tanks.
Los Juarez agitator for leach tank.
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September 14, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) today provided an update on Mexico operations and expansions efforts for the Bear River Zeolite project in Montana.
ANTIMONY. Madero Smelter, Coahuila, Mexico
The large furnace (“LRF”) at the Madero smelter in Coahuila, Mexico is being fired in to cure the refractory. This will be followed by the fuming of up to 10 metric tons per day of high-grade concentrate from Australia and will take the place of 20 small furnaces (“SRF”). The SRFs will then recommence processing a large inventory of the USAC's Mexican mine concentrates.
GOLD AND SILVER. Los Juarez Deposit, Mexico
Production of gold and silver from the Los Juarez deposit in Queretaro, Mexico has been put on hold until two circuit changes are approved. Phase one of the changes required at Madero involves a pre-furnace step to recover gold and silver from the concentrates. We are approved to start installation of this change. The second phase will involve a cyanide leach circuit at the flotation mill at Puerto Blanco in Guanajuato to recover the balance of gold and silver from the floatation tailings. Approval of this phase is expected shortly. Much of the necessary equipment for both circuits is currently on hand and implementation of the changes could move rapidly.
ZEOLITE. Bear River Zeolite, Idaho
A major expansion at the Bear River Zeolite (BRZ) project in southeast Idaho, is progressing since April 2015, with the addition of six hundred acres, increasing the land position to more than 1,300 acres. Permitting is underway with the US Bureau of Land Management to expand the open pit. At BRZ there is very little overburden, and mining costs are low. To manage the increase in production activities, a 9 cubic yard loader, two large excavators, and another 35 ton capacity rock truck have been added to the mining fleet. A second granule production line is being brought on-line at the mill to increase the granule production to 240 tons per day. In addition, the fine particle circuit has a capacity of 200 tons per day.
CEO John Lawrence said that “the commissioning of the LRF will allow the Company to process more Australian concentrates and also the large inventory of USAC’s own mine production in Mexico. Funds from the liquidation of the inventory are targeted to complete both circuits for the precious metal recovery from Los Juarez. Multiple applications of BRZ in the oil and gas industry are a major target for the Company going forward.”
U.S. Antimony is a growing natural resource company that produces antimony, zeolite and precious metals through its operations in Mexico, Montana, and Idaho.
Monique Hayes, recently appointed to handle Investor Relations, can be reached at (208) 699-6097. News releases will be posted on the USAC website www.usantimony.com on the first Monday of each month unless it is a holiday, then it will be posted on the next Monday. Additional information for U.S. Antimony can also be found on the Company’s web site at www.usantimony.com
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August 3, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported its strategy for increasing antimony, silver and gold production as follows:
To become the lowest cost producer.
To continue the rapid increase in production. The volume of production is one of the largest factors in reducing costs.
To bring the new large furnace (“LRF”) on stream during August. It will replace 20 small furnaces (SRFs), cut the natural gas consumption by 50% and cut the electric consumption by 80%.
To resume production from USAC’s four mine properties in Mexico to cut “Mexican non-operating expenses.”
To smelt some 300,000 pounds of USAC’s Mexican mine production that is in inventory and fully paid for.
To bring the Los Juarez gold-silver-antimony property into production as soon as permits have been granted.
To ship antimony metal directly from the Madero smelter to U.S. markets to cut freight and production costs.
To focus on metal production, because it is less expensive to make than antimony oxide.
To increase the customer base for metal and oxide. In the last 3 months, USAC has gained four new large customers for oxide and five large customers for metal.
The Company operates a smelter at Thompson Falls, Montana and another one at Madero, Coahuila Mexico
Feed for this smelter is from North America and Madero, Mexico, and the primary product is antimony oxide used as a flame retardant and opacifier for porcelain. This smelter has nine small furnaces (SRFs) that are capable of making metal or producing up to 12,000,000 pounds per year of oxide. Currently, a North American smelter ships approximately 1,500,000 pounds of antimony feed containing about 100 ounces of gold and 22,000 ounces of silver to the smelter. The balance of the smelter feed is from the USAC Madero smelter in Mexico.
MADERO MEXICO SMELTER
The Mexican smelter processes concentrates from Australia, USAC concentrates, and direct shipping ore (DSO) from four properties in Mexico: the Wadley, Soyatal, Guadalupe, and Los Juarez mines. This smelter has licenses to process more than 30,000,000 pounds per year of antimony in the form of metal and oxide. Currently, the plant is operating 12 SRFs and is completing the installation of another 5 SRFs, and one large furnace (LRF) which will produce as much as 20 SRFs. From mid February until the present time, the 12 SRFs have been used to process Australian concentrates, and almost all Mexican production has been put in inventory. The completion of the LRF will allow the Company to process the Mexican production.
LOS JUAREZ GOLD-SILVER-ANTIMONY PROPERTY, QUEREARO, MEXICO
A shallow drilling program indicated that the property had a global gross value of $114.56 per metric ton or $137.13 if it is mined selectively.
Approximately 30,000 tons of mill feed are stockpiled at the mine. Good recovery at the Puerto Blanco mill necessitates a cyanide leach of the tailings. A permit has been prepared for the leach and should be submitted in the next two weeks. A second permit for a process to increase the recovery of precious metals from the flotation concentrates has been prepared, submitted, and is in the review stage for the Madero smelter.
Production from Los Juarez is targeted by Q2 2016 after issuance of the two permits and installation of equipment.
WADLEY MINE, SAN LUIS POTOSI, MEXICO
USAC has an inventory of more than 320 tons containing approximately 179,381 pounds of antimony awaiting smelter availability. Mining is currently scaled back, but is expected to pick up following the start of the LRF at Madero.
SIERRA GUADALUPE, ZACETECAS, MEXICO
USAC is currently negotiating the purchase of the Sierra Guadalupe deposit in Zacetecas. The deposit is sulfide and recoverable at the Puerto Blanco mill in Guanajuato. Mill recovery is good and the concentrate contains 65-70% antimony. This may provide antimony tri-sulfide for sale to the ordnance and rocket market where it is used in primers. Currently there are more than 24,704 pounds of antimony in inventory at the Puerto Blanco mill awaiting smelter availability.
SOYATAL MINING DISTRICT, QUEREARO, MEXICO.
The Company has been mining dumps from legacy mines that have grades from 6-9% antimony. The material is hauled to the oxide circuit at the Puerto Blanco mill. Currently, there are more than 100 tons of concentrate containing more than 72,094 pounds of antimony at the Puerto Blanco mill awaiting smelter availability.
USAC does not claim any reserves by S.E.C. or Canadian National Institute 43-101 definitions.
CEO John Lawrence is happy to announce that the Company has retained Coeur Communications on a part time basis to provide investor relations services to the Company effective September 7, 2015. Coeur Communications is a north Idaho firm founded by Monique Hayes. Her professional career includes broad experience in corporate communications and investor relations with over 10 years of experience in the mining sector.
United States Antimony Corporation will hold an Investor Conference call on Monday August 10, 2015 at 4:00 PM Eastern time.
Overall view of the Madero Smelter, Coahuila, Mexico. Foreground is Hillgrove plant area. Background is USAMSA area with 12 SRFs.
Madero smelter. LRF installed, dust collector tower on left, off- gas cooling ducting in middle, LRF on right. Photo taken from 100 foot stack.
One ton of antimony metal before wrapping for shipment.
New Los Juarez mine road
Los Juarez deposit, Queretaro, Mexico. The pipe deposit is approximately 3.5 kilometers long and 1 kilometer in width. It is “open” on
three sides and to depth.
Stockpile of 30,000 tons of mill feed from Mina Grande at Los Juarez.
Reynaldo pit Los Juarez mine
Thompson Falls, Montana precious metal refinery.
Silver bars from Thompson Falls precious metal refinery
Wadley antimony gravity mill circuit, San Luis Potosi, Mexico.
Guadalupe Mine, Zacetecas, Mexico. Layered (“Manto”) antimony deposit of sulfide antimony (stibnite)
Soyatal Mining District, Queretaro, Mexico showing dumps to the left of the road.
Thompson Falls, Montana antimony oxide dust collector with Monique Haynes of Coeur Communications on left,
and Marilyn Sink, Plant manager on right.
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July 6, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported record antimony sales for Q2 of 2015 of 637,825 pounds, which is up 92% from Q2 2014 sales of 332,106 pounds, and is an increase of 22% from Q1 2015 sales of 521,956 pounds. The Company is in the final stages of completing 5 more small furnaces and one long furnace, which has the capacity of 20 small furnaces, for smelting Australian production. When the large furnace is completed, USAC will resume its own Mexican production from Wadley, Soyatal, and Guadalupe. These properties have been producing on a limited basis, and USAC has more than 400 tons of furnace feed in inventory. At Los Juarez, there are more than 30,000 tons of mill feed in inventory. Permits are being applied for to increase silver and gold recovery at the Puerto Blanco mill and at Madero to complete the recovery of silver, gold, and antimony from flotation concentrates from the Puerto Blanco mill.
At the Bear River Zeolite operation in southern Idaho, the Company reports sales of 3,280 tons for Q2 2015, up 36% from the 2,415 tons sold for Q2 of 2014, and an increase of 8% over the Q1 2015’s sales of 3,032 tons. The Company has seen an increase in sales for animal feed, water filtration media, composting material, air filtration, and soil amendment.
Management is happy to announce that Jeff Wright joined the USAC Board of Directors on July 1, 2015. Jeff has a background in investment banking as a managing director in natural resources. He has experience in mining and metals that have included operations around the world as well as those of USAC.
CEO John Lawrence said, “USAC will post a regular news update on Corporate progress on the first Monday of each month at 8:00 AM Eastern time on its websites www.usantimony.com and www.bearriverzeolite.com.
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- Results of recent Los Juarez assays justify further investment by the Company as gross value per ton is attractive relative to cost projections
- Plan to develop Los Juarez using bulk mining methods with 150 tpd pilot plant startup in 2016 pending permits at an estimated cost of $575k funded from internal cash flow
- Expect improvement in revenues and cash flow in Q2 2015 with production up at least 25% sequentially to 650,000 pounds
June 4, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported that the Company’s Los Juarez Mexican property had a gross value of $114.56 per metric ton (3.00 gpt) at current prices for gold, silver, and antimony based on its most recent assay results. By mining the jasperoid selectively, the gross value increased to $137.13 per metric ton (3.59 gpt). The mineralization is present in large pipes of jasperoid that intrude the limestone from depth. The pipes are present over a strike length of 3.5 kilometers and a width of up to 1 kilometer. The Company intends to drill selective areas of the property using a company owned drill. The most recent assay results and the methodology to support the calculations above are included in Table 1 at the end of this press release.
Based on the most recent assay results and prior assay results conducted over several years, the trial mining, milling, and smelting of the Mina Grande pit area, , the Company has concluded that the host rock should be bulk mined to depth at scale.
USAC has approached the property in a cautious, methodical manner to solve the metallurgical problems that prevented other companies from developing it. The Company has spent most of the money necessary to place the property in pilot production. The mining process will include the following steps in order: (1) bulk open pit mining (2) trucking to the mill (3) flotation milling (4) cyanide leaching of the mill tailings (5) separating the precious metals at Madero and (6) producing doré at Montana. The capital cost is estimated to be $575,000 and will be funded from internal cash flow. The individual projects necessary to complete the 150 tpd pilot mill, their current status and target completion dates are listed in Table 2.
In addition, the Company is identifying additional land adjacent to the Los Juarez property to reduce trucking costs. The Company knows of several sites that would be suitable for the initial 500 tpd mill as well as a substantially larger milling operation. Much of the equipment for the 500 tpd mill is currently owned by the Company and limited capital expenditures will be required to bring this mill into production. The ultimate size and capacity at a new mill site will be determined upon the completion and operation of the pilot mill and in discussion with local officials.
The economics of the Los Juarez project appear attractive. Ore processed with the pilot mill is estimated to cost $72 per ton. Ore processed at a larger 500 tpd mill is estimated to cost $40 per ton. The Company estimates that a larger mill will provide further economies of scale. Detail to support these costs calculations is included as Table 3.
CEO John Lawrence said, “The most recent assays confirm that the Los Juarez deposit compares favorably to other open pit gold deposits around the world. We are excited to continue its development. We will proceed with this exciting deposit using internal cash flow.”
As previously discussed, our 1st quarter 2015 financial results were impacted by the startup of our Australian customer contract. However, as expected, sales associated with this contract have begun and as a result we currently expect overall antimony sales volumes for the company to increase at least 25% sequentially in the 2nd quarter 2015 to approximately 650,000 pounds. With the installation of additional furnace capacity in July and throughout the 3rd quarter of 2015, we anticipate that antimony sales volumes should further grow sequentially in the 3rd quarter of 2015 as we are able to resume production of antimony ore and concentrate from our other Mexican sources of supply. The Company has substantially reduced its purchases of antimony feedstock until the Madero capacity expansion is completed. As a result, cash flow in the quarter has increased.
The BOD is currently exploring the addition of one new Director to augment its capabilities in finance, capital allocation, and accounting to fill a vacancy on the Board of Directors.
Management expects to identify a replacement for the Investor Relations function shortly. In the interim, contact the Company at (406) 827-3523.
TABLE 1 Most recent Los Juarez Assay Results
The holes were drilled to depths of 0.8 to 2 meters and samples were collected generally in one meter intervals. Following are the un-weighted average assays in ounces per metric ton, gross values based on gold at $1,185.00 per ounce, silver at $16.50 per ounce, antimony at $3.90 per pound, and gold equivalents in grams per metric ton from the three areas sampled:
Average all drill holes all areas
Polverine area all holes
Polverine area selective mining
Selective mining Polverine and Reynaldo
Number of drill holes
Note: USAC does not claim any reserves by S.E.C. or Canadian National Institute 43-101 definitions.
TABLE 2 Projects required to complete the 150 tpd pilot mill:
Truck to mill
Floatation mill (150 tpd pilot mill)
Permit cyanide leach circuit at Puerto Blanco
Construct leach plant at Puerto Blanco
Permit PM circuit Madero
Construct PM circuit Madero
PM Plant Montana
Total estimated Capex
Below are the estimated direct operating costs per ton for the current 150 ton pilot mill at Puerto Blanco and the 500 tpd mill to be located near the mine:
Costs per ton
150 Ton Per Day Mill
Costs per ton
500 Ton Per Day Mill
Cyanide leach tails
Smelting and refining
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May 18, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported that its Mexican subsidiary, USAMSA, has received IMMEX certification. This allows the Company to import raw materials without paying a 16% value added tax (“IVA”) as long as it exports 60% of the value of the raw materials in a twelve month period.
Prior to this certification, USAMSA has had to pay a substantial amount of tax on the importation of Australian concentrates from the Hillgrove mine. Further, it has held up the importation of 5 more small furnaces and one large furnace from Montana for the processing of Australian concentrates.
The Company has just received another 216 metric tons of concentrates containing approximately 220,000 pounds of antimony and 130 ounces of gold for processing at its Madero smelter. Presently, the Company is shipping the smelting equipment to Madero where we will have 17 small and one large furnace. The USAMSA accountants are expecting to recover the IVA taxes that were paid prior to the IMMEX certification.
CEO John Lawrence said, “We expect to be in full scale production of the Australian concentrates at a rate of 3,000,000 pounds per year in addition to our own Mexican production by Q3, 2015.”
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May 11, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported net income of $440,028 on
Q1 2015 on sales of $2,947,381, compared to a loss of $358,170 in Q1 2014 on sales of $2,952,314. The profit was due to a negotiated adjustment of $914,770 to the Company’s cost of raw materials. The price of antimony metal was at a multi-year low of $3.60 in January on the London Metal Exchange and is now at $3.91 reportedly due to the closure of numerous antimony smelters in China last month.
For the quarter, antimony sales were $2,239,956 for 521,956 pounds compared to $2,137,764 for 441,218 in Q1 2014. USAC’s average sale price had declined from $4.85 in Q1 2014 to $4.29 in Q1 2015, a decrease of $.56. The precious metal sales during Q1 2015 were $122,665 compared to $156,101 during Q1 2014. Zeolite sales were $ 584,761in Q1 2015 compared to $658,449. By the middle of Q1, all 12 small furnaces at the Madero smelter were dedicated to processing Australian antimony and gold concentrate. Five more small furnaces and one large furnace are being installed at the smelter. This brings the furnace capacity to the equivalent of 37 small furnaces compared to 8 a year ago.
USAC will host an investor call at 4:15 P. M. EDT to discuss the quarter as well as the initial drilling results at the Company’s gold-silver-antimony deposit at Los Juarez, Mexico.
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April 27, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported that a shallow reconnaissance drilling program at its Los Juarez deposit in Queretaro, Mexico was begun to delineate the higher grade zones for mining for the Puerto Blanco pilot mill in Guanajuato, Mexico and to direct the deeper drilling of the Los Juarez deposit in the future. To date, less than 5% of the property that is 3.5 kilometers long and up to 1 kilometer in width has been drilled. Eighty one holes were drilled, and with the exception of 5 holes that were drilled to 3-5meters, the balance of the holes were drilled to a total depth of 0.8-2 meters. Six of the drill holes were in mine pit areas, and the balance of the holes were all in unexplored areas over a distance of 1,600 meters. Most of the holes showed anomalous values of either gold, silver, antimony, or of two or three of these metals. Following are some of the assays from drill hole intercepts (values are per metric ton):.
USAC is actively drilling the property and will report the results accordingly.
Historically, the Los Juarez property was explored by one of the largest silver producers in the world for silver but was abandoned in about 1969 due to the complex metallurgy of separating the silver from the antimony. Little interest was shown for gold at $35 per ounce.
In 1979, Consejo de Recursos Minerales (Mexican Geological Survey) reported a potential of one million tons with a grade of 253 g/ton (8.1 opt) silver and 1.8% antimony in a layered deposit (“manto”) with a thickness of up to 5 meters. The Survey did not report any gold.
After 11 years and significant investments of management time and money, USAC reports that:
· the property is predominantly a gold property with substantial credits in silver and minor credits in antimony.
· the property is not a manto deposit but a series of deep-seated silica-rich pipes that carry the mineralization vertically for many meters.
· the Company has pilot tested every aspect of the project including the mining, milling, and smelting and has solved the metallurgical problems.
· the Company will dedicate its Puerto Blanco 150 tpd pilot mill to Los Juarez after permitting a cyanide leach plant at the mill site and various equipment at its Madero smelter.
USAC claims no reserves per SEC definitions, and the drilling does not comply with NI 43-101.
John Lawrence the USAC CEO said, “Following the successful operation of the pilot plants and permitting, the Company will explore the possibility of a mill adjacent to the deposit.”
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March 12, 2015, Thompson Falls, Montana 2014. United States Antimony Corporation (“USAC”, NYSE MKT, “UAMY”) reported all-time record antimony production of 1,727,804 pounds in 2014. The revenues for 2014 were $10,772,192, and the loss was $1,595,455 which included $780,782 of depreciation. In the fourth quarter, sales of antimony reached $1,881,018, but our loss dropped from $559,329 in the third quarter to $253,684 in the fourth quarter.
Your company made substantial progress on several fronts that were not fully reflected in the annual results due to completions late in the year. Two key projects were the savings from replacing propane with natural gas at our Mexican smelter and an additional 50% increase in production from four new furnaces that were completed in the fourth quarter.
The loss was primarily due to:
Following are the 2014 achievements as well as the outlook for 2015:
A major factor affecting our 2014 financial results was the decline in the average sale price of antimony. The sales price appears to have bottomed and the LME Rotterdam average quote has gone up by $0.09 per pound since March 6, 2015. We have focused on reducing our production costs to compensate for the decrease in the sales price as follows:
- mill. Initial feed is in the 8-9% antimony range with approximately a 50% mill recovery. The dumps at Soyatal are very substantial with no mining cost and should provide low cost feed.
Our Bear River Zeolite operation realized a profit of $330,670 on sales of $2,169,619 and had non-cash depreciation costs of $221,230. It contributed $551,990 to corporate growth. Unlike antimony, pricing for zeolite was not an issue. Market growth is expected in animal feed, water filtration, soil amendments, remediation, and the oil and gas industries. The plant has a large excess capacity and can increase production with little capital cost.
John Lawrence, CEO commented “USAC is now an international, vertically- integrated company that provides antimony and zeolite from the mine to end users around the world. The Company has enough raw material sources and is now a reliable domestic and international supplier. Our mission is to supply more of the domestic antimony market.”
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U. S. ANTIMONY ANNOUNCES INVESTOR CONFERENCE CALL
March 12, 2015. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) plans to hold an investor call
to discuss the 2014 10-K, and other developments.
March 12, 2015 at 4:00 pm EDT.
Dial In Information:
Conference ID: 1760017
Toll free: 1-888-428-9473
Remote Replay available for 7 days:
Conference ID: 1760017
Toll free: 1-888-203-1112
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November 18, 2014. Thompson Falls, Montana. United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported it achieved an all time record production of 1,358,518 pounds for the nine months ending September 30, 2014. Meanwhile, Q3 2014 sales were even stronger at 529,129 pounds up 59% from 332,106 pounds the previous quarter.
The surge in production and major factors that continue this rapid growth in the short and intermediate term include the following:
Mexican smelter capacity was increased by 50% with 4 more furnaces by October 2014 at a cost of more than $600,000. This new capacity allows us to process a substantial inventory of furnace feed previously paid for. A natural gas pipeline was connected in late September at a cost of $1,800,000 that reduced our Mexican smelter costs by $.80 per pound. The most recent Rotterdam average price per pound of antimony metal was $4.11.
Los Juarez silver-gold-antimony property will be brought on stream early in 2015. Recoveries per ton are expected to include 10 pounds of antimony, 5 ounces of silver, and .03 ounces of gold or approximately $150.00 per ton. Costs are estimated at approximately $75.00 per ton. Following the successful operation of the 150 ton per day mill at Puerto Blanco, an additional 500 ton per day mill will be completed and dedicated to Los Juarez. Since USAC owns the property and due to open pit methods of mining, costs are expected to be low.
Hillgrove Australian Mine Agreement is expected to provide 3,000,000 pounds of antimony and up to 1,500 ounces of gold per year starting in early in 2015. This could be expanded to 9,000,000 pounds per year of antimony and up to 4,500 ounces per year of gold. Capital expenditures for the installation are being financed by Hillgrove.
Bear River Zeolite is currently being tested for a large application in the Bakken and other oil and gas fields.
John Lawrence the USAC CEO said “the target production for 2015 is a new all time record of 5,000,000 pounds of antimony plus precious metals. We have a clear path for another record year in 2016.”