Stibnite gold-antimony project OK’d for construction

Perpetua Resources (Nasdaq: PPTA; TSX: PPTA) can start building its $1.3-billion Stibnite gold-antimony project in Idaho next month after receiving a notice to proceed from the U.S. Forest Service on Friday.

The Stibnite project is expected to begin commercial production by 2028, with a 15-year mine life that could supply more than 100 million lb. of antimony, meeting over 35% of U.S. annual demand of the metal vital for ammunition and other defence applications. The U.S., with no current output, relies heavily on China. 

“This is a monumental milestone,” said Jon Cherry, President & CEO of Perpetua Resources. “After eight years of review and over $400 million invested, it is finally time for the Stibnite gold project to deliver for America. We are ready to bring Stibnite back to life as a national strategic asset.”

Shares of Perpetua rose 3.8% on Friday afternoon in Toronto to $24.89, giving the company a market capitalization of about C$2.68 billion.

Strategic supply

The Foresty Service approval marks the last step before construction once financial assurance bonds are posted, expected within a few weeks. The company secured the service’s record of decision in January and received final federal approval in May. 

The project will also produce roughly 450,000 oz. of gold annually, providing a dual revenue stream. The project hosts 104.6 million proven and probable tonnes grading 1.43 grams gold per tonne and 0.064% antimony for 4.8 million oz. gold and 148 million lb. antimony, according to a 2020 feasibility study.

Last April, the US Export-Import Bank signaled support for the project with a letter of interest for up to $1.8 billion in financing, which remains under review.

The project has backing from billionaire investor John Paulson and has also drawn political attention in Washington, particularly after China’s decision last year to block exports of antimony to the U.S.

Environmental restoration 

Perpetua has emphasized the project’s dual focus on mineral production and environmental restoration. The final mine plan was redesigned to reduce the project footprint by 13%, improve stream and wetland conditions, and reconnect fish habitats.

Still, the project has faced opposition from Idaho’s Nez Perce tribe, which has raised concerns over potential impacts on salmon populations in the region.

Located in Idaho’s Stibnite-Yellow Pine district, about 222 km northeast of Boise, the site was once a critical supplier of antimony during World War II.