United States Antimony Corporation (“USAC”, NYSE MKT “UAMY”) reported it has a lease on the San Jose Antimony Mines (“Wadley”) in San Luis Potosi, Mexico. USAC will lease the mine for a period of one year with renewal rights. During the first six months that started on June 20, 2013, the rental is $25,000 per month and thereafter it is $30,000 per month. The lease includes the mining concessions, mining equipment, the mill, and the infrastructure including a man-camp, assay lab, hospital, administrative office, railroad siding, shop, and warehouses. USAC has received a letter from the mine owner authorizing the company to commence operations at the Mines. The parties intend to memorialize the lease in a definitive agreement by the end of next week.
According to 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.) by 1943, the “San Jose mines have produced more antimony than any other district in Mexico, and they have been surpassed in production by only one or two other deposits in the world.” By 1943, the recorded production was 57,612 metric tons of contained antimony metal. Since that time the mine has produced a significant additional amount of antimony that was not recorded.
The mineralized zone is approximately 2 kilometers long and a kilometer in width and has been developed by 500 kilometers (300 miles) of underground workings. Historically, the antimony was recovered by hand-sorting “high-grade” for direct smelting. Since 2010, USAC purchased and smelted 481,028 pounds of antimony from the Wadley. In 1943, the U. S. Geological Survey noted, “If the mining of low-grade ore becomes feasible in the future, large tonnages can be blocked out in the mantos and in the veins. In addition, dumps resulting from more than 50 years of mining are readily available… The future of the San Jose mines depends to a large extent upon the development of a milling process by means of which antimony can be extracted from low-grade oxide ores…”