8-K: United States Antimony Reports Substantial Zeolite Reserve and Extended Mine Life

United States Antimony Corporation announced the completion of its first Technical Report Summary, revealing a significant 5.13 million short ton zeolite mineral reserve at its Bear River Zeolite Project, supporting over 400 years of operations at current production rates.

Summary

• Completed the first Technical Report Summary (TRS) for the Bear River Zeolite Project in Preston, Idaho, in accordance with SEC Regulation S-K 1300.
• The project contains an estimated 5.127 million short tons of Proven and Probable Mineral Reserves of zeolite as of May 22, 2024.
• This includes 2.267 million short tons Proven at 147.0 meq/100g CEC and 2.860 million short tons Probable at 145.5 meq/100g CEC.
• The reserve supports a theoretical mine life exceeding 400 years at the current production rate of approximately 12,600 short tons per year.
• Even with a 20-fold increase in production, the reserve could support over 20 years of operations.
• The zeolite is high-purity clinoptilolite with average CEC values of 146.2 meq/100g.
• Operations are conducted by Bear River Zeolite Company (BRZ), a wholly-owned subsidiary, on a combination of 994 acres of federal unpatented placer mining claims and 320 acres of privately owned leased lands.
• A 2024 drilling program completed 80 vertical holes totaling 6,713 feet, confirming mineralization.
• The project generated a pre-tax cash flow of $2,149,856 per year, totaling approximately $10.75 million over a 5-year projection, based on 2025 assumptions.
• Total in-situ Mineral Resources (inclusive of reserves) are 5.466 million short tons Measured and Indicated, plus 426,000 short tons Inferred.
• Royalties range from 8% to 13% of zeolite product revenue.
• Q1 2025 production was 3,802 short tons, up from 2,273 short tons in Q1 2024, representing a 67% increase year-over-year.

Sentiment

Score: 9

Explanation: The filing presents a highly positive outlook, backed by a substantial, independently verified mineral reserve, strong economic projections, significant operational improvements, and clear growth strategies. The long mine life and high-quality product position the company very favorably.

Positives

• A significant Proven and Probable Mineral Reserve of 5.127 million short tons has been established.
• The theoretical mine life exceeds 400 years at current production rates, indicating exceptional long-term viability.
• The zeolite is high-quality clinoptilolite with average CEC of 146.2 meq/100g, considered among the highest quality globally.
• The project demonstrates strong positive pre-tax cash flow of over $2.1 million annually, with robust economics under sensitivity scenarios.
• Operational improvements in 2024 resolved major equipment failures and increased plant availability to nearly 100%.
• Q1 2025 production increased by 67% year-over-year, reflecting effective equipment and operational enhancements.
• A very low waste-to-ore ratio of 0.25 contributes to highly cost-effective mining operations.
• Processing methods are dry mechanical, requiring no chemical reagents or water, which minimizes environmental impact and waste streams.
• Existing infrastructure is fully constructed, operational, and deemed sufficient to support the life-of-mine plan.
• The company holds a strong market position with an estimated 22% share of the North American natural zeolite market.
• Product certifications (GRAS, OMRI, NSF/ANSI) enhance marketability and regulatory compliance.
• Minimal closure liabilities are expected due to the inert nature of the zeolite deposit, which does not produce acid rock drainage.
• Management is confident in doubling existing sales to both existing and new customers with little, if any, additional capital expenditures.

Negatives

• The Probable reserve category was adjusted downward by approximately 12,600 tons to account for material mined between the topographic survey date (May 22, 2024) and the report effective date (May 31, 2025).
• Some zones remain classified as Probable due to sparse drilling, and infill drilling is recommended to upgrade classification to Proven.
• Commercial standards were not available for natural zeolite, preventing the inclusion of certified reference materials in the QA/QC sample stream.
• No formal hydrogeological investigations or groundwater characterization studies have been conducted to date at the project.
• No historical records are available documenting geotechnical sampling methods, rock strength testing, or slope stability assessments, with reliance placed on visual assessments.
• Exploration efforts have been limited to approximately 10% of the private lease area, and no exploration has been conducted on the adjacent 994 acres of BLM-managed federal land.

Risks

• Market Volatility: Fluctuations in zeolite prices may impact the economic viability of the project.
• Geological Variability: Changes in mineral quality (CEC, % clinoptilolite) or continuity not fully captured by current drilling may affect reserve confidence.
• Cost Inflation: Increases in fuel, labor, haulage, and processing costs could reduce operating margins.
• Regulatory Risk: Future environmental or permitting constraints may limit mine operations or expansion, particularly if expanding onto federal (BLM) ground.
• Logistics and Infrastructure: Transport capacity or access limitations could restrict throughput.
• Drillhole Spacing: Some zones remain classified as Probable due to sparse drilling, requiring infill drilling to upgrade classification to Proven.
• Royalty Risk: The tiered royalty schedule and multiple overlapping royalty agreements could affect net cash flows if disputes or contractual amendments occur.
• Production Risk: Scaling up production significantly would require capital investment, additional staffing, and potential infrastructure upgrades, which may introduce operational or financial risk.
• Seasonal weather-related constraints may affect access and shipping schedules.

Future Outlook

Management expects continued positive financial and operational results in future quarters. The company is confident in its ability to double existing sales to both existing and new customers with little, if any, additional capital expenditures. The primary goal is to significantly increase sales volumes to maximize the benefits of the long reserve life, with a target throughput increase to 14-18 tons per hour projected by late 2025.

Management Comments

• "Over the last several years, BRZ has undergone a significant transformation."
• "We immediately brought on new highly qualified management, spent over $3.5 million repairing a severely broken-down facility, drilled a large number of test holes to confirm a reserve base on the active portion of our property, renegotiated our existing mining lease, increased sales prices and volumes, and recently added two new qualified sales personnel specialized in water filtration and cattle feed."
• "The financial results reported in the first quarter of this year began reflecting these significant changes. These improvements should continue reflecting positive financial and operational results in future quarters."
• "We are confident that we can double our existing sales to both existing and new customers with little, if any, additional capital expenditures."
• "A significant portion of the zeolite deposit located on our property has been determined by our third-party consulting engineers to have a reserve life of 400+ years."
• "Additionally, we believe it is the highest quality zeolite found anywhere in the world."
• "Now we need to significantly increase sales volumes in order to maximize the benefits of this long reserve life. All the ingredients are now in place to begin accomplishing that goal."

Industry Context

The global natural zeolite market is projected to grow at a 2.9% Compound Annual Growth Rate (CAGR), reaching $9.4 billion by 2032. This growth is driven by rising demand in agriculture, water treatment, and environmental sectors, alongside a global shift toward sustainable and eco-friendly industrial inputs. Bear River Zeolite (BRZ) holds an estimated 22% share of the North American natural zeolite market, positioning it as a strategic regional supplier. Unlike commodity metal markets, the value of BRZ's products is tied to their functional properties, such as ion-exchange capacity and adsorption performance, rather than market-based metal pricing.

Comparison to Industry Standards

• BRZ's clinoptilolite zeolite is recognized as one of the highest quality products on the market, boasting high adsorption capacities.
• Average CEC values of 146.45 meq/100g are classified as 'Very High' with 'Strong ion-exchange potential,' meeting industry standards for ion-exchange and filtration performance.
• The low waste-to-ore ratio of 0.25 is significantly lower than typical ratios for industrial mineral operations, contributing to highly economic conditions.
• The company's product certifications, including GRAS, CFIA, OMRI NOP/COR, and ANSI/NSF Standards 50, 60, and 61, demonstrate adherence to stringent industry and regulatory benchmarks.
• The absence of deleterious minerals such as calcite, dolomite, and sulfides, along with low impurity levels, makes the deposit highly favorable for applications requiring high purity, distinguishing it from less pure sources.

Management Changes

Legal Proceedings

• Historically, the Company has been assessed fines and penalties by the Mine Safety and Health Administration (MSHA).
• In 2024, Bear River Zeolite Company (BRZ) received four significant and substantial citations from MSHA, all of which have been rectified.
• No pending legal action before the Federal Mine Safety and Health Review Commission.

Related Party Transactions

• During 2002, the Company sold a 3% gross proceeds royalty on all zeolite extracted from BRZ to Delaware Royalty Company, Inc., a company controlled by Al Dugan, a major shareholder.

Stakeholder Impact

• Shareholders: Positive impact due to significant mineral reserve, long mine life, strong economic viability, and management's confidence in increasing sales and profitability.
• Employees: Positive impact due to stable, well-paying jobs, training and development opportunities, and improved working conditions (e.g., dust control, equipment repairs).
• Local Communities (Franklin County, Idaho): Positive economic impact through local workforce hiring and support for local businesses. The company is committed to maintaining strong communication and addressing social needs.
• Customers: Positive impact due to increased production capacity, improved product quality, and expanded product lines (e.g., CattleMax).
• Regulatory Authorities: The company maintains compliance with MSHA, Idaho DEQ, and IDL regulations, ensuring responsible operations.
• Landowners (Zeolite, LLC): Continued royalty payments and a renewed long-term lease agreement through 2034.

Next Steps

• Significantly increase sales volumes to maximize the benefits of the long reserve life.
• Continue reflecting positive financial and operational results in future quarters.
• Target throughput increase to 14-18 tons per hour by late 2025.
• Investigate creating custom Certified Reference Materials (CRMs) for zeolite material.
• Formalize mine planning, operational optimization, and resource development activities as part of routine operations.
• Direct waste material from stripping to designated reclamation areas, with concurrent topsoiling and reseeding.
• Future exploration drilling will be guided by operational needs, market demand, and strategic decisions by management.
• Install a meteorological weather station at the mine site by Q2 2025.
• Update the Stormwater Pollution Prevention Plan (SWPPP).
• Consider rotating out older equipment in favor of more reliable or cost-effective replacements.
• Continue contracting drill and blast services.
• Return existing explosives and magazines to the supplier and suspend or cancel magazine licenses.
• Advance backfilling of the legacy glory hole excavation.
• Evaluate plant and logistics expansion for long-term growth.
• Conduct infill drilling in the vicinity of the current pit (8 holes for a 100x100 ft grid) to upgrade Probable to Proven Reserves.

Key Dates

Recommendation

The filing reveals a robust and highly profitable operation with a massive, independently verified zeolite reserve capable of supporting operations for centuries. Recent management changes have led to significant operational improvements, a substantial increase in production, and strong positive cash flow. The company's strategic position in a growing niche market, coupled with its high-quality product and clear growth initiatives, makes it an exceptionally attractive investment for long-term value.

Keywords

Zeolite, Clinoptilolite, Mining, Mineral Reserve, Industrial Minerals, SEC S-K 1300, Idaho, Bear River, USAC, UAMY, Cation Exchange Capacity, Open Pit, Mineral Processing, Environmental Remediation, Agriculture, Animal Feed, Water Treatment, Odor Control