Global conflicts and fractured supply chains have strained the United States’ ammunition supply.
The grants will be used to evaluate whether antimony samples from the Stibnite Gold Project can meet military specifications for the United States ammunition supply chain.
The Stibnite Gold Project is expected to be the only exploited source of the critical mineral antimony in United States.
BOISE, ID, September 19, 2022 /PRNewswire/ – Perpetua Resources Corp. (NASDAQ: PPTA) (TSX: PPTA) (“Perpetua Resources” or “Perpetua” or the “Company”) today announced that the Company has received two funding grants from the U.S. Department of Defense (“DOD”) Defense Logistics Agency (“DLA”) to study domestic production of weapons-grade antimony trisulfide, a critical component of munitions and dozens of other defense materials. Perpetua will receive $200,000 in total to assess whether antimony from the Stibnite Gold Project (“Project”) can meet military specifications (“Mil-Spec”) to help secure America’s commercial and defense ammunition supply chain while evaluating alternative methods to purify antimony trisulfide.
“Antimony from the Stibnite Gold Project site served our national defense needs during World War II (“WWII”) and Perpetua is confident that we can once again be part of the solution,” said Laurel Sayer, President and CEO of Perpetua Resources. “We are grateful for this opportunity to work with the Department of Defense to demonstrate that our project can develop reliable, domestically sourced antimony trisulfide for defense and commercial munitions. It would be a great honor to support the independence of our country’s defense supply chains and the brave men and women who serve our country.”
Perpetua has submitted two proposals under DLA’s “Production of Energetic Materials and Associated Precursors” Small Business Innovation Research (“SBIR”) tender. As described in the grant objective, the program is focused on reducing “foreign dependence and single points of failure for domestic manufacturing of energy materials” through the development of a domestic source. After a competitive review process, Perpetua was awarded SBIR Phase 1 funding to $100,000 for both programs. Each study is expected to be completed within the next six to twelve months.
The first program will test existing samples of antimony trisulfide ore from the project for development into antimony trisulfide according to Mil-Spec. The second program will investigate alternative processing possibilities to develop Mil-Spec antimony trisulfide from high purity metallic antimony. After the proposed programs are completed, Phase 2 funding could be made available for more advanced pilot-scale testing over the next year. Together, the Phase 1 and 2 programs could confirm the Project’s ability to provide the domestic source of antimony needed to meet defense supply demand and support commercial markets.
Antimony trisulfide is produced from high purity antimony ore raw materials and is used in small and medium caliber munitions, mortars, artillery, mines, flares, grenades, shoulder-launched ammunition and missiles. Currently, China, Russiaand Tajikistan control about 90% of the world’s supply of antimony and United States does not have a nationally mined source of the critical mineral. The Stibnite Gold Project proposed by Perpetua hosts one of the largest deposits of antimony in the world, regardless of China, Russia and their interests.
The recent global conflict and supply chain instability has impacted access to the high purity antimony ore feedstock needed to produce Mil-Spec antimony trisulfide. In June 2022the House Armed Services Committee reported that Chinese and Russian geopolitical dynamics could “accelerate supply chain disruptions, particularly for antimony” and asked the National Defense stockpile manager to brief the committee on five-year antimony inventory and supply chain outlook. .
The centrally located Stibnite gold project Idaho, is progressing into its sixth year of review under the National Environmental Policy Act. The project is designed to restore environmental conditions in the historic Stibnite mining district while responsibly developing one of the world’s richest open pit gold resources. United States and become the only national source of the critical mineral antimony. Mining activity began in the district in the early 20th century for gold and silver. During World War II and the Korean War, the U.S. government commissioned production of antimony and tungsten at Stibnite under the authority of the Strategic Metals Act of 1939. The site produced over 90% of the antimony used by the United States during World War II and played an important role in establishing Mil-Specification for antimony trisulfide.
About Perpetua Resources and the Stibnite Gold Project
Perpetuates Resources Corp., through its wholly owned subsidiaries, is focused on the exploration, site reclamation and redevelopment of gold-antimony-silver deposits in the Stibnite-Yellow Pine district of central Idaho which are encompassed by the Stibnite gold project. The project is one of the richest open pit gold deposits in United States and is designed to apply a modern and responsible mining approach to restore an abandoned mine site and produce both gold and the only source of antimony mined in United States. Advance further Perpetuates Resources’ ESG and sustainable mining objectives, the project will be powered by the lowest carbon emitting grid in the country and a portion of the antimony produced by the project will be supplied to Ambri, a US-based company that markets a low-cost liquid metal battery essential to the low-carbon energy transition. In addition to the company’s commitments to transparency, accountability, environmental stewardship, safety and community engagement, Perpetuates Formal Adopted Resources ESG commitments that we find here.
Statements contained in this press release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable Canadian securities laws and the Private United States Securities Litigation. Reform Act of 1995. Forward-looking information includes, but is not limited to, disclosure of possible events, next steps and plans of action, including environmental cleanup actions by us and our sub- contractors; our ability to comply with and obtain permits related to the Stibnite Gold Project; action to be taken by the USFS, the Idaho State and other governmental and regulatory agencies and the expected results of their review; plans for the issuance of an SDEIS and any designation thereunder; the planned timetable for the publication of the SDEIS; forecasts regarding the improvement of environmental conditions at the site; reduction of project footprint and anticipated benefits and other effects; our ability and that of Ambri, Inc. to perform the supply agreement, which agreement is subject to certain conditions, including the identification of one or more refiners to process our antimony concentrate into antimony metal, and mutual agreement on certain important terms, including volume and pricing: our ability to develop antimony under Mil-Spec; and the timing and expected results of DLA-funded studies will be successful and as expected. “, “expect to”, “plan”, “likely”, “believe”, “intend”, “expect”, “project”, “estimate”, “potential”, “could”, “may” , “will”, “would”, or “should”. In preparing the forward-looking information contained in this press release, Perpetua Resources applied several important assumptions, including, but not limited to, assumptions that current exploration, development, environmental and other objectives regarding the Stibnite Gold Project can be achieved and that its other business operations will proceed as planned; that we will be able to develop antimony to Mil-Spec in these tests and in the future; that we and Ambri will be able to agree to the terms of the Ambri Agreement; that general business and economic conditions will not change materially adversely and permitting and operating costs will not increase materially; and that the review process under NEPA (including the review process involving the USFS, any review process by the Idaho State and other regulatory agencies and bodies and consultation with Idaho tribes) as well as the public review process and the SDEIS will proceed in a timely manner and as planned; and that all required information will be available in a timely manner. Forward-looking information is based on certain important assumptions and involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Perpetua Resources to be materially different from future results, performance or achievements. expressed or implied by the forward-looking information. These risks and other factors include factors discussed in Perpetua Resources’ public filings with the United States Securities and Exchange Commission (the “SEC”) and its Canadian disclosure filings. Although Perpetua Resources has attempted to identify important factors that could affect Perpetua Resources and cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause actions, events or results not to be as intended, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. For more information on these risks and on other risks and uncertainties that could affect the Company’s activities, see the sections “Risk factors” and “Management’s discussion and analysis of the financial situation and results of ‘use’ of documents filed by the Company with the SEC, which are available at www.sec.gov and with the Canadian securities regulators, which are available at www.sedar.com. Except as required by law, Perpetua Resources undertakes no obligation to publicly release any revisions to the forward-looking information contained in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events. .
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