Red Mountain Mining to Acquire Yellow Pine Antimony Project in Historical Stibnite Mining District

Red Mountain Mining (ASX: RMX) has acquired 29 claims which make up the highly-prospective Yellow Pine antimony project located in Idaho’s historic Stibnite mining district, in a move to complement the Utah antimony project the company also acquired this month.

The project lies within 2 kilometres of the Stibnite gold-antimony project owned by Nasdaq-listed Perpetua Resources, the largest known deposit of its kind in the US with a proven and probable reserve of 4.8 million ounces gold and 148 million pounds antimony.

Red Mountain’s US-based technical team made the acquisition through direct staking with the US Bureau of Land Management for a total consideration of $52,000, funded by internal resources without third-party vendors.

Similar Geological Profile

Historical mapping shows the Yellow Pine claims have similar prospective geology to Perpetua’s project area, with folded Ordovician to Cambrian metasediments intruded by Idaho Batholith granite and associated tectonic brecciation.

The mapping also shows evidence of historical mining activity, although there is no evidence of any modern exploration activity within the claims area.

Red Mountain’s geologists also successfully located two eastern historical workings the Idaho Geological Survey had mapped, small shallow pits that appear to be targeting brecciated quartz veins likely seeking gold and/or antimony.

The company’s initial exploration program will focus on mapping and sampling of the northeast-striking fault to demonstrate evidence of antimony-gold mineralisation, which it will then target for drill testing.

Historic Antimony District

The Stibnite mining district was a major source of antimony in the first half of the 20th century, with 39,930 tonnes of production recorded at the Yellow Pine and Hangar Flats deposits between 1932 and 1952.

These two deposits – plus the West End discovery, which produced gold and silver from 1978 to 1997 – make up the Stibnite project’s proven and probable reserve of 104Mt at 1.33 grams per tonne gold and 0.06% antimony for 4.8Moz gold and 148Mlbs antimony.

Resolution Minerals (ASX: RML), which owns the Horse Heaven antimony project immediately west of Perpetua’s claims and approximately 5km north of Red Mountain’s project area, is another company that has recognised the district’s rich endowment and exploration potential.

$1.5m Capital Raising

Red Mountain will fund its exploration at the Yellow Pine and Utah projects with a $1.5 million share placement.

The company will issue an initial 60 million shares priced at $0.013 each, representing a 4.6% discount to the company’s five-day volume weighted average price, with issuance of the remaining 55 million shares subject to shareholder approval in November.

Xcel Capital will receive 6 million Red Mountain shares as consideration for its role as Lead Manager of the raising.