American Tungsten & Antimony (ASX:AT4) has executed a binding agreement with Black Dragon Resources and Hinkinite Resources to acquire the Dutch Mountain Project in the Clifton Mining District in Utah.
Along with the acquisition of this asset, American Tungsten & Antimony will acquire the Dutch Mountain Processing Facility, which the company describes as a “strategic industrial asset”.
The company will pay the vendors an initial cash payment of US$250,000 ($356,667), which will be followed by another US$250,000 in cash three months after execution, and again six months after.
On the six month anniversary, American Tungsten & Antimony will issue US$250,000 in shares to the vendors.
The processing facility comprises a single gravity separation circuit which is optimised for coarse-grained scheelite, also known as tungsten ore.
Using a single gravity separation circuit eliminates the need for a complex flotation process for initial concentrate.
The facility processed around 275 tonnes of tungsten concentrate from the Fraction Lode mine in 2017, which American Tungsten & Antimony says validates the flowsheet under operating conditions.
Managing Director Andre Booyzen says the company is aiming to reduce its development timeline from the regulatory delays with its new asset.
“In the race for critical minerals, time is the most valuable asset,” Booyzen says.
“Within the Dutch Mountains Tungsten Project, which includes America’s last operating tungsten mine at Fraction Lode, ownership of the Dutch Mountain Processing Facility positions the company well to assess development options across the high grade Fraction Lode, E.H.B., and Star Dust deposits, which are all included in the acquisition.
“Critically, the mill removes a longstanding bottleneck in the Clifton Mining District, where numerous highgrade historical mines remain undeveloped under fragmented private ownership due to insufficient permitted processing capacity.”
At the Dutch Mountains, the company intends to conduct underground mapping and sampling of the Fraction Lode workings to validate historical grades. The company will also conduct an engineering review of the processing facility to define expansion parameters for treating regional stranded ores.
American Tungsten & Antimony has also obtained an option to acquire the Sage Hen Tungsten Project in the Stagg Mining District in Nevada.
At Sage Hen, the company will conduct a high-resolution ground magnetics survey to define the intrusive contact and “blind” targets, ahead of organising permitting for drill testing.
Write to Maddison Elliott at Mining.com.au
Images: American Tungsten & Antimony
