Global conflict and fractured supply chains
have strained U.S. ammunition supplies.
Grants will be used to evaluate if antimony
samples from the Stibnite Gold Project can meet military
specifications for U.S. ammunition supply chain.
The Stibnite Gold Project is expected to be
the only mined source of the critical mineral antimony in
the United States.
BOISE,
ID, Sept. 19, 2022 /CNW/ - Perpetua Resources
Corp. (NASDAQ: PPTA) (TSX: PPTA) ("Perpetua Resources" or
"Perpetua" or the "Company") announced today the Company was
awarded two funding grants from the U.S. Department of Defense
("DOD") Defense Logistics Agency ("DLA") to study the domestic
production of military-grade antimony trisulfide, an essential
component in ammunition and dozens of other defense materials.
Perpetua will receive $200,000 in
total to evaluate whether antimony from the Stibnite Gold Project
("Project") can meet military specifications ("Mil-Spec") to help
secure America's defense and commercial ammunition supply chain
while also evaluating alternate methods for purifying antimony
trisulfide.
"Antimony from the Stibnite Gold Project site served our
national defense needs during World War II ("WWII") and Perpetua is
confident we can be part of the solution again," said Laurel Sayer, President and CEO of Perpetua
Resources. "We are grateful for this opportunity to work with the
Department of Defense to demonstrate that our Project can develop
reliable and domestically sourced antimony trisulfide for defense
and commercial ammunition. It would be a great honor to support the
independence of our country's defense supply chains and the brave
men and women who serve our country."
Perpetua submitted two proposals to DLA's "Production of
Energetic Materials and Associated Precursors" Small Business
Innovation Research ("SBIR") grant solicitation. As described in
the grant's objective, the program is focused on reducing "foreign
reliance and single points of failure for the domestic
manufacturing of energetic materials" through the development of a
domestic source. After a competitive review process, Perpetua was
awarded SBIR Phase 1 funding of $100,000 for both programs. Each study is
expected to be completed within the next six to 12
months.
The first program will test existing samples of antimony
trisulfide ore from the Project for development into antimony
trisulfide to Mil-Spec. The second program will study alternative
processing opportunities to develop Mil-Spec antimony trisulfide
from high purity antimony metal. After the completion of the
proposed programs, Phase 2 funding could be made available for more
advanced stage pilot-scale testing within the next year. Together,
the Phase 1 and Phase 2 programs could confirm the Project's
ability to provide the domestic antimony source needed to meet the
defense procurement demand and support commercial markets.
Antimony trisulfide is produced from high purity antimony ore
feedstock and is used in small and medium caliber munitions,
mortars, artillery, mines, flares, grenades, shoulder launched
munitions and missiles. Currently, China, Russia, and Tajikistan control approximately 90% of the
world's antimony supply and the United
States has no domestically mined source of the critical
mineral. Perpetua's proposed Stibnite Gold Project hosts one of the
largest antimony deposits in the world independent of China, Russia
and their interests.
Recent global conflict and supply chain instability has impacted
access to the high purity antimony ore feedstock required to
produce Mil-Spec antimony trisulfide. In June 2022, the House Armed Services Committee
reported that Chinese and Russian geopolitical dynamics could
"accelerate supply chain disruptions, particularly for antimony"
and directed the Manager of the National Defense Stockpile to brief
the committee on the five-year outlook for the antimony stockpile
and supply chain.
The Stibnite Gold Project, located in central Idaho, is advancing through the sixth year of
review under the National Environmental Policy Act. The Project is
designed to restore environmental conditions in the historical
Stibnite mining district while responsibly developing one of the
highest-grade open pit gold resources in the United States and becoming the only
domestically mined source of the critical mineral antimony. Mining
activity first started in the district in the early 20th century
for gold and silver. During WWII and the Korean War, the U.S.
Government commissioned antimony and tungsten production from
Stibnite under the authority of the Strategic Metals Act of 1939.
The site produced over 90% of the antimony used by the U.S. during
WWII and was influential in establishing Mil-Spec for antimony
trisulfide.
About Perpetua Resources and the Stibnite Gold
Project
Perpetua Resources Corp., through its wholly
owned subsidiaries, is focused on the exploration, site restoration
and redevelopment of gold-antimony-silver deposits in the
Stibnite-Yellow Pine district of central Idaho that are encompassed by the Stibnite
Gold Project. The Project is one of the highest-grade, open
pit gold deposits in the United
States and is designed to apply a modern, responsible mining
approach to restore an abandoned mine site and produce both gold
and the only mined source of antimony in the United States. Further advancing
Perpetua Resources' ESG and sustainable mining
goals, the Project will be powered by the lowest carbon emissions
grid in the nation and a portion of the antimony produced from the
Project will be supplied to Ambri, a US-based company
commercializing a low-cost liquid metal battery essential for the
low-carbon energy transition. In addition to the company's
commitments to transparency, accountability, environmental
stewardship, safety and community engagement, Perpetua
Resources adopted formal ESG commitments which
can be found here.
Forward-Looking Information
Statements contained in
this news release that are not historical facts are
"forward-looking information" or "forward-looking statements"
(collectively, "Forward-Looking Information") within the meaning of
applicable Canadian securities legislation and the United States
Private Securities Litigation Reform Act of 1995. Forward-Looking
Information includes, but is not limited to, disclosure regarding
possible events, next steps and courses of action including
environmental clean up actions by us and our contractors; our
ability to comply with and obtain permits related to the Stibnite
Gold Project; actions to be taken by the USFS, the State of Idaho and other government agencies
and regulatory bodies and the expected results of their review;
plans with respect to the issuance of an SDEIS and any designations
thereunder; the anticipated timing for release of the SDEIS;
predictions regarding improvements to environmental conditions at
the site; reduction of the Project footprint and the anticipated
benefits and other effects thereof; our and Ambri, Inc.'s ability
to perform under the supply agreement, which agreement is subject
to certain conditions, including identification of one or more
refiners to transform our antimony concentrate into antimony metal,
and mutual agreement on certain material terms, including volume
and pricing: our ability to develop antimony to Mil-Spec; and the
anticipated timing and results of the DLA funded studies will be
successful and as expected.. In certain cases, Forward-Looking
Information can be identified by the use of words and phrases or
variations of such words and phrases or statements such as
"anticipate", "expect" "plan", "likely", "believe", "intend",
"forecast", "project", "estimate", "potential", "could", "may",
"will", "would" or "should". In preparing the Forward-Looking
Information in this news release, Perpetua Resources has applied
several material assumptions, including, but not limited to,
assumptions that the current exploration, development,
environmental and other objectives concerning the Stibnite Gold
Project can be achieved and that its other corporate activities
will proceed as expected; that we will be able to develop antimony
to Mil-Spec in connection with this testing and in the future; that
we and Ambri will be able to agree on the terms of the Ambri
agreement; that the general business and economic conditions will
not change in a materially adverse manner and that permitting and
operations costs will not materially increase; and that the
review process under the NEPA (including the review process
involving the USFS, any review process by the State of Idaho and other agencies and
regulatory bodies and consultation with Idaho tribes) as well as the public review
process and SDEIS will proceed in a timely manner and as expected;
and that all requisite information will be available in a timely
manner. Forward-Looking Information are based on certain material
assumptions and involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of Perpetua Resources to be materially different from
any future results, performance or achievements expressed or
implied by the Forward-Looking Information. Such risks and other
factors include those factors discussed in Perpetua Resources'
public filings with the U.S. Securities and Exchange Commission
(the "SEC") and its Canadian disclosure record. Although Perpetua
Resources has attempted to identify important factors that could
affect Perpetua Resources and may cause actual actions, events or
results to differ materially from those described in
Forward-Looking Information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that Forward-Looking
Information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
Forward-Looking Information. For further information on these and
other risks and uncertainties that may affect the Company's
business, see the "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" sections
of the Company's filings with the SEC, which are available at
www.sec.gov and with the Canadian securities regulators, which are
available at www.sedar.com. Except as required by law, Perpetua
Resources does not assume any obligation to release publicly any
revisions to Forward-Looking Information contained in this news
release to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events.
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SOURCE Perpetua Resources Corp.