LKY finds previously unmapped extensions to its antimony mine in the USA.

Our US critical minerals Investment Locksley Resources (ASX: LKY) just identified possible extensions to its Desert Antimony Mine project in California, USA.

LKY’s project, during WW1 and WW2, produced between 100 and 1000 tonnes of antimony (source).

At the time it was one of the highest grade known antimony occurrences in the US.

Today LKY has mapped new structures, that could be potential expansions to that old Desert Antimony Mine:

(source)

The results from today’s announcement also align pretty well with the interpretations from LKY’s previous LIDAR surveys which showed there could be potential extensions trending east-west beyond the existing old workings:

(source)

LKY also mapped out new structures that sit between the old workings and the “Hendrick’s prospect” which LKY mapped late last year ~500m further to the east.

Here is one of those new target areas (10-15m wide north-south trending) and sitting across ~2.5km:

(source)

The key takeaway for us is that there could be extensions to the old workings at the Desert Antimony Mine… AND there could be repeats across LKY’s land package that have never been properly tested before.

LKY also confirmed in today’s announcement that drilling on its rare earth targets would be starting “imminently”, before the rig moves up to test the antimony targets around the old Desert Antimony Mine.

Interestingly, LKY said the results from this round of sampling would guide the targeting across the antimony targets - so we could see some of these new targets get tested pretty soon…

Fingers crossed LKY finds extensions to the old workings, that it can then model into its mine restart plan - which we have covered before: More on LKY’s historic antimony mine - can it be re-started?

For anyone who missed our last note, the following video is definitely worth checking out:

Locksley Resources - Desert Antimony Processing Facility

Can LKY land US government funding for its project?

LKY’s already managed to land a US$191M Letter of Interest from the EXIM bank.

(source)

Now with the US committing another A$17BN to a domestic critical minerals stockpile we are hoping LKY can position itself as one of the companies that receives some of that capital.

(source)

We note LKY has explicitly stated they have applied for US$43M in funding through the Defense Production Act Title III”.

We think that IF LKY can land anything remotely close to that US$43M number, then it could be a major catalyst for the company, not just because its is non dilutive funding BUT also because it would be a signal to the market that the company’s strategy is working.

(Source)

What’s next for LKY?

Drilling (drilling preparation works began last quarter) 🔄

LKY expects to be drilling its project very soon. (Source)

First will be the rare earth targets to the south (that sit within MP Material’s ground package).

There, LKY will be testing areas where previous rock chip sampling returned grades as high as ~6.87% TREO (rare earths) - here is where those targets sit.

Then, straight after that round of drilling, LKY will be drilling the antimony targets to the north (where the old Desert Antimony Mine sits):

(Source)

We are especially looking forward to seeing if LKY can prove whether or not its Desert Antimony Mine extends over the entire 1.2km of strike mapped earlier in the year…

(Source)

Updates on LKY’s processing tech partnerships 🔄

Now LKY has signed partnership agreements with Rice University, Columbia University and Hazen Research.

With Rice the next stage for this partnership will be to secure a larger licence deal over whatever technology is developed from the R&D agreement.

This will take some time to work out the IP sharing and mutual development of the technology

LKY also recently signed a MOU to develop for processing of its antimony ore with Hazen research.

Hazen Research is a Colorado based R&D firm with 55+ years’ experience. They can provide global laboratory, pilot plant, and analytical services, specialising in developing processing and refining solutions for base and critical minerals.

LKY has now also signed an agreement with Columbia University.

This agreement is focused on the REE processing side.

Between the three partners, LKY is working on:

• Pilot plant design and metallurgical test work
• Production of representative samples for US industrial and defence qualification
• Commercial analysis and process optimisation