U.S. Antimony Reports Plans for Los Juarez and Operational Update

  • 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

THOMPSON FALLS, Mont.--()--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.

“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.”

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


Polverine area
selective mining


Heriberto area


Reynaldo area


Selective mining
Polverine and Reynaldo

Number of drill holes     61     22     15     6     33     48
Number assays     101     24     15     6     41     56
Gold     0.046 opt

1.423 gpt

    0.054 opt

1.670 gpt

    0.086 opt

2.687 gpt

    0.017 opt

0.529 gpt

    0.046 opt

1.423 gpt

    0.057 opt

1.423 gpt

Silver     2.05 opt

63.8 gpt

    0.786 opt

24.44 gpt

    0.804 opt

24.996 gpt

    0.552 opt

17.152 gpt

    3.01 opt

93.626 gpt


2.43 opt

75.24 gpt

Antimony     0.305%     0.150%     0.187%     0.273%     0.400%     0.343%
Total value     $114.56     $89.86     $128.07     $52.76     $138.57     $137.13
Gold equivalent     3.00 gpt     2.89 gpt     3.36 gpt     1.38 gpt     3.64 gpt     3.59 gpt

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:

Project     Status     Priority     Target date     Capex
Mine     Equipped           Completed     $0
Truck to mill     Contract           Ready     $0
Floatation mill (150 tpd pilot mill)     Completed           Ready     $0
Permit cyanide leach circuit at Puerto Blanco     Commenced     High     Q2 2016     $25,000
Construct leach plant at Puerto Blanco     Not started     High     Q3-Q4 2016     $375,000
Permit PM circuit Madero     Not started     High     Q1 2016     $25,000
Construct PM circuit Madero     Not started     High     Q2 2016     $150,000
PM Plant Montana     Completed                 $0
Total estimated Capex                       $575,000


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:

Cost     Costs per ton

150 Ton Per Day Mill

    Costs per ton

500 Ton Per Day Mill

Mining     $10.00     $7.00
Trucking     $18.00     $3.00
Milling     $30.00     $20.00
Cyanide leach tails     $7.00     $5.00
Smelting and refining     $7.00     $5.00
Totals     $72.00     $40.00

Forward Looking Statements:

This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events, including matters related to the Company's operations, pending contracts and future revenues, ability to execute on its increased production and installation schedules for planned capital expenditures and the size of forecasted deposits. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent filings, including Form 10-KSB with the Securities and Exchange Commission.


United States Antimony Corporation
John Lawrence, 406-827-3523