Blue Moon Metals (TSX-V:MOON) has acquired a portfolio of 33 tungsten and antimony projects across the western US, significantly expanding its critical minerals footprint.
According to Blue Moon, the projects are located in some of the country’s most prolific tungsten and antimony-producing districts, with historical production either on or adjacent to the properties.
“This acquisition marks a meaningful step in Blue Moon’s strategy to build a leading US-focused critical metals platform,” head of US special projects Jason Dunning says.
“The portfolio represents a compelling collection of tungsten and antimony projects in the United States at a time when domestic sources are increasingly important.”
Close to past producers
Dunning says many of the projects historically produced high-grade antimony and tungsten, including reported tungsten grades of up to 14% tungsten oxide (WO3) during periods of strong strategic demand spanning the First World War through to the Vietnam War.
Since then, the properties have seen limited modern exploration, which Blue Moon believes presents a significant opportunity to identify additional mineralisation.
“While tungsten was the focus of the historical work, it should be noted that tungsten mineralisation may also provide important indications for copper and gold exploration potential,” Dunning adds.
Hub-and-spoke strategy
The acquisition complements Blue Moon’s existing US portfolio, including the Springer tungsten complex in Nevada and the Apex germanium-gallium-copper mine in Utah.
Springer, located in Pershing County, is a past-producing tungsten mining and processing complex that has gone through several phases of development, including previous investment by General Electric.
Blue Moon acquired Springer in February and is advancing a multi-phase work program aimed at restarting the mine. The company also plans to use the complex as the centre of a hub-and-spoke model, supported by smaller, high-grade underground critical metals mines.
The company expanded into Utah in March through the acquisition of the past-producing Apex mine from Teck Resources (TSX:TECK.A/TECK.B).
Dating back to the late 19th century, Apex represents one of the few identified primary gallium-germanium deposits in the US. Blue Moon is evaluating a phased work program to advance the mine towards potential redevelopment.
The company also sees potential synergies between Apex and its Blue Moon zinc-copper project in California, a brownfield underground mine that previously operated during the 1940s.
Of the new projects, Blue Moon has identified four – in each of Colorado, Idaho, Arizona, and Nevada – as priorities for potentially supplying high-grade tungsten ore directly to its Springer complex.
$29 million acquisition
Blue Moon is acquiring 100% ownership of the 33-project portfolio from a private owner. The properties are located on public lands.
The company will pay US$20.5 million ($29 million), including US$5 million cash and 2.8 million Blue Moon shares valued at US$5.55 each (for US$15.5 million).
Blue Moon will also be required to make development milestone payments based on resources delineated at the tungsten projects, with payments capped at US$8.5 million per project.
Annual holding costs across the portfolio are estimated at approximately US$162,000, the company estimates.
Blue Moon Metals is a critical minerals developer advancing five brownfield polymetallic projects in the US.
Write to Jackson Chen at Mining.com.au
Image: Blue Moon Metals
