Felix Gold (ASX:FXG) has exercised its option to acquire the Treasure Creek Project in the Fairbanks Mining District of Alaska from Goldstone Resources and Oro Grande Mining Claims.
The acquisition comprises two upland mining leases and 25 mining claims, with the decision made to exercise its option shortly after Felix confirmed that hand-sorted bulk ore exceeds the US Military Concentrate Specification as direct shipping ore, as reported by Mining.com.au.
Felix paid US$850,000 to the owners in the option period and will be required to pay an additional US$1.4 million within 30 days of exercise, bringing the total purchase price to US$2.25 million ($3.29 million).
After the completion of the acquisition, Felix will be required to make milestone payments including US$2 per troy ounce of gold contained in an inferred mineral resource of at least 1 million troy ounces of gold, as well as a top-up payment under the same conditions of a completed preliminary economic assessment of decision to mine.
The company’s milestone payments will be extinguished if the minimum inferred resource of 1 million troy ounces of gold has not been calculated by 1 October 2031.
Treasure Creek hosts an inferred JORC-compliant resource of 467,000 ounces of gold and is home to an emerging antimony deposit.
The acquisition consolidates the company’s position as the largest landholder in the Fairbanks Mining District with more than 388,000 acres of land in a gold and critical minerals region.
Executive Director Joseph Webb says Felix has completed a “significant sequence of milestones” at Treasure Creek required for any critical minerals project with the confirmation of ore quality, processing pathways, and secured ownership, as the company moves forward with “clarity and conviction”.
“This is the only proven source of high-grade antimony ore in the United States, with ore that exceeds military-grade concentrate specifications straight out of the ground,” Webb says.
“Securing 100% ownership removes any uncertainty over our access to the project. From a strategic perspective, the timing is highly relevant. The United States has no integrated domestic antimony supply chain, China has banned exports, and the need for a proven domestic source has never been more urgent.
“Treasure Creek is uniquely positioned to address that gap – with ore quality that simplifies every step from mining to metal production, and a brownfields setting with established infrastructure that supports near-term development.
“With approval to extract bulk sample ore now in place two and processing pathways demonstrated, our focus is on evaluating the most efficient route from ore to metal production.”
The US domestic supply of antimony is virtually non-existent, with around 90% of global antimony production sourced from China, Russia, and Tajikistan, as reported by Mining.com.au.
With ongoing export bans from China, Western nations such as Australia, Canada, and the US are suffering significant supply risks, as the need for critical minerals continues to grow.
Mining.com.au reported last year that antimony has gone from niche to indispensable in short order, due to export bans.
The Treasure Creek Project, located in Alaska, hosts one of the only proven sources of antimony ore in the US.
Felix Gold is a gold and critical minerals explorer, focused on the Tintina Gold Province in Alaska, US.
Write to Maddison Elliott at Mining.com.au
Images: Felix Gold
