Explorer Uncovers Strategically Important Antimony Potential

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NevGold Corp. (NAU:TSX.V; NAUFF:OTC; 5E50:FSE) announced it has discovered significant potential for recovering the critical mineral antimony at its Limousine Butte Project in Nevada.

The company said historical rock samples have been discovered at the project with up to 10% antimony (Sb). NevGold said in a release that the addition of antimony resources at Limousine Butte "creates a significant opportunity" at the project.

"After initial review of the historical data for antimony mineralization, we are encouraged by the footprint and grade in soils and rock chips," NevGold Vice President Exploration Greg French said. "Abundant soil samples over 500 ppm (parts per million) and rock chip samples exceeding 5% antimony are good indicators of a strong mineralizing system. Along with our focus on expanding the gold mineralization at Limo Butte, we will adapt our future exploration program to understand the controls and determine the extent of the antimony mineralization."

Considered a critical mineral by the United States Geological Survey and the Department of Defense, about 90% of the world's supply of the mineral currently comes from China, Russia, and Tajikistan, the company. China began restricting its exports to the U.S. in December.

Antimony is across the military in the manufacturing of ammunition, night vision golggles, infrared sensors, laser sighting, and nuclear weapons and production. It's also used in clean-energy storage, NevGold said.

"The identification and discovery of antimony is an exciting development at our permitted Limo Butte oxide gold-antimony project," said NevGold Chief Executive Officer Brandon Bonifacio. "Our significant gold potential coupled with the emerging antimony story separates Limo Butte from many other exploration projects in the United States. The highest-grade antimony targets at Resurrection Ridge and Cadillac Valley coincide with our priority gold targets, creating a compelling dual-commodity opportunity."

Future Drilling to Target Gold, Antimony at Project

Historical surface rock samples with significant antimony have been discovered at Limo Butte, including: 10% Sb, 7.9% Sb, 4% Sb, 2.8% Sb, 1.9% Sb, and 1.5% Sb, the company noted.

All areas at the project with gold-antimony potential are permitted and ready to drill under the Limo Butte Plan of Operations approved in November.

The company said it "plans to re-evaluate historical drilling from the project, focusing on both oxide gold and antimony potential," as most of the historical drilling was not analyzed for antimony.

Numerous areas have been identified with significant antimony potential in previously defined areas with strong oxide gold results, including the Resurrection Ridge area, which "has a large antimony mineralization footprint with a 3 kilometer by 1-kilometer geochemical anomaly, and up to 10% antimony grade."

NevGold said it will continue actively exploring the project this year by focusing on gold and antimony in historical geological data, re-analyzing past drilling, and drill-testing gold and antimony targets based on those evaluations.

"A review of historical geochemical data at the Limousine Butte Project has identified multiple zones of strongly anomalous antimony at surface," NevGold said in the release. "These zones correlate closely with outcrops of the Devonian Pilot Shale, the primary host rock for Carlin-type gold mineralization in the area. High-grade gold at Limousine Butte is typically associated with silicification and the formation of jasperoid breccias within the Pilot Shale, alteration features also observed in the high-grade antimony samples."

Planned 2025 drilling will target both gold and antimony prospects in these altered and largely untested intervals of the Pilot Shale, the company said.

The Catalyst: Prices of Vital Metal Surging

According to a report by Stockhead in The Australian on February 20, antimony prices have surged more than 400% from last year to exceed US$50,000 this week.

The article reported that Macro fund manager Fawkes Capital Management’s Xinyu Ru said the squeeze is compounded by the fact that antimony deposits are rare and typically found in only small and shallow veins.

RFC Ambrian added in a February report that the antimony market is under "severe stress," Stockhead reported.

"(RFC Ambrian) forecasts the record prices will continue into the medium term in order to lure new supply and identifies only nine projects globally," the article said.

Antimony may be a lesser-known mineral to many, but it has gained increasing attention due to its applications in defense, energy storage, and fire safety technologies. 

It's rising market has been attributed to tightening supply and heightened demand across multiple sectors, including clean energy technologies, lead-acid batteries, military applications, and flame retardants, according to a report by Investing News Network on January 2.

The critical role of antimony in fire retardants accounted for approximately 60% of annual demand, while its use in lead-acid batteries, solar panels, wind turbines, and ammunition further strengthened its market position.

Recent geopolitical tensions also impacted the market and heightened concerns about supply chain security for Western manufacturers and defense contractors. Christopher Ecclestone, a principal and mining strategist at Hallgarten & Company, noted that "the military uses of Sb (antimony) are now the tail that wags the dog. Everyone needs it for armaments, so it is better to hang onto it than sell it. This will put a real squeeze on the U.S. and European militaries."

In addition to national security concerns, the Business Research Company on January 29, projected that the global antimony market would grow from US$4.69 billion in 2024 to US$5.01 billion in 2025, reflecting a 6.9% compound annual growth rate (CAGR). This expansion was attributed to increased regulatory requirements for fire safety compliance, advancements in electronics, and growing demand in the electric vehicle (EV) sector. The report also highlighted supply chain disruptions and price volatility as persistent challenges.

Ownership and Share Structure

Strategic investors include GoldMining Inc., which holds 28.3% of the company on an undiluted basis, and McEwen Mining Inc. 

The company said about 30% is held by management and insiders. According to Refinitiv, these include Non-Executive Chairman Giulio T. Bonifacio with 4.39%, CEO Brandon Bonifacio with 3.46%, Independent Director Gregory French with 0.85%, and Independent Director Timothy Dyhr with 0.70%, Refinitiv said.

About 10% is held by institutions, and the rest is in retail.

As for its share structure, NevGold has 94.25 million outstanding shares and 57.25 million free-float traded shares. Its market cap is CA$27.69 million. Its 52-week trading range is CA$0.17 and CA$0.50 per share.