Presentation on theme: "U.S. ANTIMONY CORPORATION JOHN LAWRENCE, CEO RS – NOVEMBER, 2012."— Presentation transcript:
U.S. ANTIMONY CORPORATION JOHN LAWRENCE, CEO RS – NOVEMBER, 2012
USAC CORPORATE OVERVIEW 2 RS – NOVEMBER, 2012 USAC is a rapidly growing natural resource company that is making a concerted effort to increase its raw material supply from Mexican operations by new mining, additional milling and smelting capacity, and third party raw material feeds. USAC is strategically postured as a major player in the antimony market as a fully integrated producer from mine to finished product. World resources of antimony are diminishing and demand is increasing. USAC operates smelters in Thompson Falls, Montana and at Madero, Coahuila, Mexico, a gravity- and flotation mill in Guanajuato, Mexico, a mine at Los Juarez, Queretaro, Mexico, and a zeolite operation at Preston, Idaho. The Company is the only significant domestic producer of antimony products. 47 Cox Gulch Road Thompson Falls, MT Phone: Fax: USAC CORPORATE OFFICES AND PLANT
USAC is now operating the Puerto Blanco gravity-flotation mill in Guanajuato, Mexico 20 hours per day on third party antimony mine feed. Preliminary testing has been done on the Los Juarez antimony-silver-gold and negotiations are underway to sell the silver and gold. Production is anticipated later in Q USAC, with the exception of the natural gas pipeline and installation of a 500 ton per day (tpd) mill, will have finished the major CAPEX projects during Q This includes completing the Puerto Blanco mill and doubling of the smelter capacity at Madero. 3 RS – NOVEMBER, 2012 USAC became listed on the NYSE MKT under the symbol UAMY on May 7, 2012 USAC combined revenues through 3Q 2012 were $8,681,271
ANTIMONY BACKGROUND WORLD PRODUCTION AND MINE RESERVES 2011 IN METRIC TONS OF METAL (U. S. Geological Survey, Mineral Industrial Survey, Fourth Quarter 2011) SourceMine production 2011Mine reserves 5,000310, ,000950,000 3,000350,000 3,00021,000 2,00050,000 Other Countries 6,000150,000 World total169,0001,800,000 4 RS – NOVEMBER, 2012 EXPERIENCE AND PROPRIETARY TECHNOLOGY AND EQUIPMENT USAC has proven experience in underground and open pit mining, flotation and gravimetric milling, crushing and screening, dry grinding, cyanide leaching, precious metal refining, pyro-metallurgy, and marketing. The Company has developed proprietary technology to smelt a variety of raw materials and remove impurities such as lead, arsenic, bismuth, mercury, selenium, silver, and gold. MEXICAN ANTIMONY DEPOSITS Most of the Mexican antimony deposits are oxide ores or mixed oxide sulfide deposits. The oxides, primarily the mineral senarmontite, are recoverable by gravimetric methods, typically jigs and tables. The sulfide ores, typically the mineral stibnite, are recoverable by flotation. During World War II, the United States had relied on Mexico for antimony. Historically, Mexico was at one point the second largest producer of antimony in the world.
USES OF ANTIMONY USESPERCENTAGE Flame retardants36 Transportation including batteries 23 Chemicals16 Ceramics and glass12 Others13 STRATEGIC METAL Antimony is considered a strategic metal and wartime applications include antimony oxide used as a flame retardant in plastics and textiles for vehicles and aircraft, antimony metal used in storage batteries and in ordnance to harden lead. INVENTORY USAC has accumulated large inventories of raw materials at Madero, Puerto Blanco, and the Los Juarez property and is now planning to process and sell as much inventory as possible before the end of RS – NOVEMBER, 2012
PRICING Pricing of the metal is generally based on the London Metal Exchange average price C.I.F. Rotterdam per metric ton (a metric ton contains 2,204.6 pounds). Antimony oxide contains 83.1% antimony metal and it is typically the preferred product for pricing. YEARUSDAVG/lb 20011,286$ ,950$ ,405$ ,907$ ,808$ ,727$ ,985$ ,346$ ,459$ ,495$ ,360$ ,000$ RS – NOVEMBER, 2012
USAC has shipped 1,253,248 lbs of antimony through 3Q 2012 resulting in $6,678,725 revenues. 7 RS – NOVEMBER, 2012 USAC ANTIMONY DIVISION
MINING At the Los Juarez property in Queretaro, Mexico, USAC relied on a Mexican Government publication, Consejo de Recursos Minerales, Monografia Geologico-Minera del Estado de Querearo, pages The paper reported a reserve of 1,000,000 metric tons containing 253 grams per ton silver and 1.8% antimony. The deposit was interpreted as a manto (layered) deposit up to 5 meters thick. Although USAC used the report to start mining, it was disallowed by the S.E.C. as a basis for reserves. Preliminary progress includes surface mapping, analytic procedures, property acquisition, permitting, mining procedures, trucking negotiations, mill preparations, mill feed grade determinations, mill recovery, and smelting considerations. Los Juarez mine face, "Minas Grande West, is one of five faces, Los Juarez, Queretaro, Mexico. 8 RS – NOVEMBER, 2012 LOS JUAREZ PROPERTY, QUERETARO, MEXICO Detailed mapping and sampling delineated jasperoid mineralization over an east-west strike length of 3.5 kilometers with a maximum width of 1 kilometer. In all cases, the silver and gold mineralization is associated with antimony. Preliminary exploration indicates that this could be a deep-seated jasperoid.
9 RS – NOVEMBER, 2012 Drilling and blasting is establishing faces in the jasperoids. Truckload samples have assayed approximately 2% antimony, 8 ounces of silver and ounces of gold per ton. Presently, the Company has more than 8,000 tons of mill feed from Los Juarez. New paved road to Los Juarez, partially completed entire distance. The antimony, silver, and gold are recoverable by flotation methods. The concentrate grade will be improved by depressing carbonaceous material in the feed.
An initial mill trial of 250 tons of dump rock from Los Juarez has been completed. The dump rock was badly diluted with soil from the mine and mud from the mill yard. The results were as follows: ItemAntimony SilverGold Range of head assays % ounces per metric ton ounces per metric ton Range of tail assays % ounces per metric ton ounces per metric ton Range of concentrate assays % ounces per metric ton ounces per metric ton Average grade of concentrates 38.6% ounces per metric ton ounces per metric ton Preliminary smelting has indicated good recovery and an excellent product grade. 10 RS – NOVEMBER, 2012
11 RS – NOVEMBER, 2012 MILLING PUERTO BLANCO MILL, GUANAJUATO, MEXICO The crushing circuit is run one shift to operate the mill for three shifts. It also includes a large pre-crusher for oversize rock from the Los Juarez deposit. Currently, the combination flotation-gravity mill has a capacity of 150 metric tpd.
12 RS – NOVEMBER, 2012 Pre-crusher circuit Puerto Blanco mill Vertical shaft impactor (VSI) Puerto Blanco mill Cone crusher, Puerto Blanco mill Conveyors at crusher, Puerto Blanco mill
A straight oxide circuit is nearing completion that will have a capacity of tpd that can be run simultaneously with the flotation-gravity circuit. The permitting and installation of a 500 metric ton per day mill owned by the Company is planned for next year. This mill will be dedicated to Los Juarez and will utilize the present crushing circuit that is in place. Ball mill Puerto Blanco mill 13 RS – NOVEMBER, 2012 Puerto Blanco mill flotation cell Concentrating table, Puerto Blanco flotation-gravity circuit, showing recovery of oxide (yellow) minerals. Currently mill feed is from four satellite mines and from the Los Juarez deposit.
The Company had mined a property in the late 1980s known as Sierra Guadalupe in the State of Zacatecas. To our knowledge, there were no documented reports of on the geology, reserves, or production. Currently, the property is being mined by a third party who is delivering 2.5 to 5% mill feed at a rate of up to 1,000 tpm. They can produce up to 3,000 tpm when underground operations are resumed. USAC claims no reserves at this property. USAC is sourcing mill feed and Direct Shipping Ore (DSO) for Madero from the Soyatal District in the State of Queretaro, Mexico. The deposit was the third largest producer in Mexico. Donald E. White (U. S. Geological Survey Bulletin 960-B, Antimony Deposits of Soyatal District, State of Queretaro, Mexico, 1948) prepared an extensive report and said that the production (p. 40) was estimated through 1943 at 25,630 metric tons of metal contained. USAC has an option to buy this property but claims no reserves. 14 RS – NOVEMBER, 2012 Puerto Blanco mill, Guanajuato, Mexico showing lined tailings pond
SOURCE OF ANTIMONY YTD Thompson Falls Smelter Pounds of Antimony Contained 1,142,681908,1441,364,4851,179,973739,909 Madero Smelter Pounds of Antimony Contained n/a66,21259,152221,450242,441 Total Pounds of Antimony1,142,681974,3561,423,6371,401,423982,351 Gross Revenues$3706,240$2,567,107$6,174,062$10,406,636$6,678,725 Gross Profit$442,848$505,582$903,560$1,556,013$300, RS – NOVEMBER, 2012
SMELTING THOMPSON FALLS SMELTER, MONTANA The Thompson Falls smelter produces antimony oxide, metal, and antimony tri-sulfide from sources around the world including the Madero smelter in Mexico. Using antimony metal as a feed, the plant is capable of producing 12,000,000 ppy (pounds per year) of finished oxide. Aerial view of Antimony, Silver and Gold Smelter 16 RS – NOVEMBER, 2012
Madero Smelter, Coahuila, Mexico MADERO SMELTER, COAHUILA, MEXICO USAC is in the process of doubling the smelter capacity with the goal of completion by the end of The capacity to produce will depend on the grade of the feed. With low grade 20-25% feed, the furnaces will produce 2,000 to 3,000 pounds per day (ppd) of contained antimony metal. With high-grade feed, such as flotation concentrates, the plant will produce 8,000 to 10,000 ppd of contained antimony metal. More furnaces will be added in the future if supported by market conditions. Smelter feed is being provided by several satellite mines and also by the USAC flotation-gravity mill at Puerto Blanco. A natural gas pipeline is being installed that is intended to reduce current fuel costs by 78%. Fuel costs are second only to raw materials. USAC is also sourcing direct shipping ore (DSO) from the San Jose Mines near Wadley, San Luis Potosi, Mexico. The U. S. Geological Survey Bulletin 946-E, San Jose Antimony Mines Near Wadley, State of San Luis Potosi, Mexico, 1946, Donald E. White and Jenaro Gonzales R. prepared an extensive report and said the production through 1943 was 57,612 metric tons of metal contained. USAC claims no reserves at this property. 17 RS – NOVEMBER, 2012
PAYMENT We are expecting a 92%-94% payment for new precious metal (PM) production. COSTS The Company expects costs for PM will be minimal to include transportation and in some cases casting. Most of the historic production, that will continue, involves no cost. SILVER / GOLD YTD Ounces Gold Shipped Ounces Silver Shipped , SOURCES Silver and gold is shipped from the Thompson Falls plant from resources in Canada and Europe. PRODUCTION Later this year our silver and gold production will begin on a much larger scale from the Los Juarez deposit in Mexico. SILVER AND GOLD 18 RS – NOVEMBER, 2012
ZEOLITE OPERATIONS BEAR RIVER ZEOLITE (BRZ)www.bearriverzeolite.comwww.bearriverzeolite.com BACKGROUND. At the Bear River Zeolite (BRZ) operation, near Preston, Idaho, USAC began mining based on representations by George Desborough (deceased) of the U. S. Geological Survey. The zeolite is regarded as one of the best zeolites due to its high cation exchange capacity, low sodium content, hardness, and uniformity. BRZ plant, Preston, Idaho. BRZ has shipped 9,313 tons of zeolite through 3Q 2012 resulting in $2,002,546 revenues and a gross profit of $126, RS – NOVEMBER, 2012
MINING Mining is performed on open cut benches using an air track for drilling and blasting, loading with a Caterpillar 988 or excavator, and hauling with Cat 769 trucks. PROCESSING PLANT The plant includes a conventional closed-circuit primary crusher, rotary dryers, tertiary crushing, high-frequency three-deck screens, a 6058 Raymond roller mill, blending equipment, and semi- automatic bagging equipment. The plant capacity is dependent on product sizes and blending but varies from 300 to 500 tpd. BRZ open pit loading zeolite. Raymond roller mill, BRZ plant, Preston, Idaho. 20 RS – NOVEMBER, 2012
USES The products are sold in the United States and throughout the world. Markets include water filtration, soil amendments, animal nutrition, waste-water treatment, odor control, hydrogen sulfide gas control, nuclear remediation, pozzolan, plastic fillers, grout, ammonia control in underground mining operations, heavy metal and ammonia removal from water, remediation of produced water from oil and gas wells, mine remediation, and many others. Zeolite Production YTD Tons Shipped 12,109 11,51915,31912,1059,313 Average Price per Ton$131.79$133.37$157.71$168.83$ Gross Revenues$1,570,747$1,536,233$2,415,955$2,043,641$2,002,546 Gross Profit($185,981) $16,882 $470,172 $118,185$126, RS – NOVEMBER, 2012
USAC MANAGEMENT TEAM USAC BOARD OF DIRECTORS Gary Babbitt (Boise, Idaho) John C. Lawrence (Thompson Falls, MT.) Russell C. Lawrence (Deary, ID) Hart W. Baits (Missoula, MT) Whitney H. Ferer (Omaha, Nebraska) Bernard J.Guarnera (Denver, Colorado) CORPORATE OFFICERS John Lawrence: President and CEO Matt Keane: Director Sales Alicia Hill; Secretary Dan Parks: CFO Russell C. Lawrence: Director Latin America John C. Gustavsen: Executive Vice President CORPORATE COUNSEL Paul Boyd, Stoel Rives, LLP (Boise, ID.) AUDITORS Decoria, Maichel, & Teague (Spokane, WA.) TRANSFER AGENT Columbia Stock Transfer Company (Post Falls, ID) ANTIMONY, THOMPSON FALLS, MT. Marilyn Sink: Plant Manager Lance Sink; Assistant Manager Matt Keane: Director Sales Tony Lyght: Maintenance Foreman ZEOLITE,PRESTON,IDAHO Angie Bengtson: Office Manager, Quality Control, Safety Engineer Penny Avery: Assistant Office Manager Gerardo Sanchez: Plant Manager Dave Cole: Mine Manager MEXICO OPERATIONS Russell C. Lawrence: Director Jose Jesus Heriberto Torres Montes: Superintendent Ricardo Martinez Aguilera: Chief Metallurgist Rafael Morales Rivera: Flotation Mill Metallurgist Reynaldo Angles: Mine Manager Los Juarez 22 RS – NOVEMBER, 2012
UNITED STATES ANTIMONY CORPORATION PO Box 643 Thompson Falls, Montana Phone: Fax: NYSE: UAMY and 23 RS – NOVEMBER, 2012 Reclaimed tailings pond Thompson Falls, Montana USAC is environmentally conscientious
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events, including matters relating to the Companys operations, pending contracts and future revenues. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, USAC can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materialy are discussed in the Companys most recent filings, including Form 10-KSB as filed with the Securities and Exchange Commission. 24 RS – NOVEMBER, 2012