Nasdaq- and Toronto-listed Perpetua Resources announced on Thursday that it had been awarded more funding from the Department of Defence (DoD) to demonstrate a fully domestic antimony trisulphide supply chain.
Perpetua Resources Idaho was awarded an ordnance technology initiative agreement (OTIA) of up to $15.5-million under the prototype other transaction authority of the DoD.
Managed by the US Army Joint Center of Excellence for Guns and Ammunition at the Picatinny Arsenal in New Jersey, the objective of the OTIA is to demonstrate a fully domestic antimony trisulphide supply chain using ore from the Stibnite gold project site for use in munitions.
To meet this objective, Perpetua plans to obtain additional core samples from the project site, conduct a pilot plant study to produce mil-spec antimony trisulphide from the samples, design a full-scale process circuit, and deliver a modular pilot plant for the DoD to use in further investigations.
Under the OTIA, Perpetua will be reimbursed for these activities on a cost-plus fixed fee basis over the 24-month period of performance.
“We are excited to expand our partnership with the DoD and are proud to help demonstrate a fully domestic supply chain solution for the ammunition our troops need to keep our Nation and our allies safe,” said Perpetua president and CEO Laurel Sayer.
“Our vision remains unchanged, which is to redevelop a world-class gold deposit, provide the country with the critical mineral antimony, and restore an abandoned brownfield site. Perpetua is ready to be part of the solution and support our country’s defence supply chains from ground to round.”
Antimony trisulphide is essential to national defence as a key component for munitions. Currently, China, Russia, and Tajikistan control about 90% of the world’s antimony supply and the US has no domestically mined source of the critical mineral.
Perpetua plans to re-establish a domestic supply of the critical mineral antimony as a by-product of one of the highest-grade openpit gold resources in the US.