US Approves Antimony Mine, SS1 waiting in the wings?
Initial approval granted.
Adding further credence to the emerging antimony story in the US.
How does our Investment figure in recent events in the critical minerals space?
Overnight in the US, news broke that Perpetua Resources’ Antimony mine in Idaho, USA had been given initial approval by the Biden administration:
The mine is estimated to have 4.8 million ounces of gold reserves and a reserve of 148 million pounds of antimony.
Meanwhile, our US silver Investment, Sun Silver (ASX: SS1) is uncovering antimony on its massive silver project:
SS1 announced antimony potential… weeks before antimony became “cool”.
SS1 has ~200 historical drillholes that were NOT tested for antimony... so SS1 might also have an antimony resource if the historical holes are all retested for antimony.
We’re Invested in SS1 primarily for silver exposure - but antimony could be a yet to be fully priced in added upside for us.
Antimony has been a hot topic of late…
It’s used in stuff like infrared missiles, nuclear weapons and night vision goggles, and mostly as a hardening agent for bullets and tanks.
There’s a strong geopolitical dimension to antimony after China introduced export restrictions:
How does this news impact our SS1 Investment Memo?
Commodity price risk
The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract. Should silver and gold prices fall, this could hurt the SS1 share price.
Source: 18 May 2024 SS1 Investment Memo
While we did not know about SS1’s antimony potential prior to our Investment, we see SS1’s antimony as a potential force for reducing commodity price risk at the project if SS1 is able to include antimony as a credit to a potential future producing silver mine at their project in Nevada.
There’s much work to be done until that point is reached obviously, but we see good early signs here.
What’s next for SS1?
🔄More Assay results for the 7,500m drilling
SS1 is currently drilling out its project, assay results are expected any day now.
This is the area where SS1 is currently drilling and where the first pXRF results came from:
We covered the latest assay results in this article:
SS1 hits 605g/t silver outside of existing resource
🔄Further update on silver paste tax credit
Read more about SS1’s progress on this front in this Quick Take:
