Australian mining company to drill for gold, antimony near Yellow Pine after ‘transformative’ acquisition

An Australian mining company is clear to begin drilling for gold, antimony, and tungsten on land bordering Perpetua Resources’ Stibnite Gold Project. 

Last week, the Boise National Forest approved a plan of operations for the exploration work, which calls for drilling core samples from a 22-square-mile project zone, which is within a mile of Yellow Pine. 

The Boise Forest’s approval, signed by Cascade District Ranger Christopher Bentley, allows Resolution Minerals of Adelaide, Australia, one year to complete the work from the time it is started. 

A three-year review of the project that included wildlife studies and an evaluation of planned work determined it is unlikely to cause significant environmental harm. 

The approval only authorizes exploration work outlined in an operating plan submitted to the Boise Forest. Plans for any mining operations would be subject to further review. 

Resolution bought 699 mining claims known as the Horse Heaven Project last month for about $650,000 and $5.2 million in shares of the company’s stock, which is listed on the Australian Securities Exchange. 

The project was sold by a Nevada holding company owned by executives of Stallion Uranium Corp., a Vancouver, British Columbia, mining company that began exploring the Horse Heaven Project in 2021. 

Late last year, Stallion sold the project for $2.6 million after reporting “significant” evidence of gold and antimony found during early exploration work. Stallion initially acquired the project for $953,000.

Resolution cites critical minerals interest

Aharon Zaetz, the executive director for Resolution, said buying the Horse Heaven Project “has the potential to be a transformative event” for the company due to its potential access to antimony and tungsten.

“As many governments around the world look to onshore their supply of critical minerals, such as antimony and tungsten, we have secured a commanding ground position with known antimony occurrences,” Zaetz said in a statement. 

Antimony and tungsten are among 50 minerals deemed by the federal government to be “critical” to the country’s economic and national security.  Both minerals are used in military munitions, among other things. There are currently no mined sources of either mineral in the United States. 

In December, China, which is the world’s leading antimony producer, banned exports of the mineral to the United States. 

What does exploration involve?

Resolution expects to begin exploration work immediately in the 14,000-acre project zone, which is near the confluence of the East Fork South Fork Salmon River and Johnson Creek.

Exploration will focus on two main areas known as Golden Gate Hill and Antimony Ridge, both of which are sites of historic mining operations. 

Drilling work approved by the Boise Forest will take place on Golden Gate Hill, which is less than a mile from Yellow Pine. Meanwhile, soil samples will be collected from Antimony Ridge. 

Resolution expects to begin work soon on additional permitting that could allow drilling at Antimony Ridge. 

Drilling could take place 24 hours a day and seven days per week. A portable drill rig will be used to extract samples from as far as 1,000 feet underground. About three miles of existing roadway will be used to access the drill sites. No new roads will be built. 

Temporary drill pads will be removed after drilling is complete, and holes will be plugged to prevent groundwater contamination or public safety hazards, according to plans. 

Workers will commute to the exploration site in pick-up trucks using Warm Lake Road and Johnson Creek Road. A water truck will periodically wet gravel roads to limit dust. 

Small amounts of gasoline and diesel will be hauled to the site in pickup trucks. Each truck will be equipped with clean-up kits for spills. No fuel will be stored at the site. 

Resolution raised $1.9 million to fund the exploration work by issuing 146 million shares of the company’s stock to S3 Consortium Holdings, a Melbourne, Australia, conglomerate that controls several investment businesses.

Perpetua proximity

The Horse Heaven Project’s proximity to Perpetua’s Stibnite mine, which could produce nearly 150 million pounds of antimony and 4.8 million ounces of gold, is referenced multiple times in Resolution’s investor materials. 

Horse Heaven shares its eastern boundary with Perpetua’s gold and antimony mine at Stibnite. 

However, the project zone is about half the size of Perpetua’s 46.6-square-mile project zone, of which the company plans to mine about three square miles. 

Similar sampling results, historic operations, and geology make Stibnite and Horse Heaven “a direct analogue,” according to an investor presentation released last month.

Perpetua began exploration in 2009 and drilled 390 boreholes before deciding in 2015 that its Stibnite project was economically viable. Perpetua’s mining plan received approval from the Payette National Forest earlier this year. 

Resolution said this month it is coordinating with the federal government in hopes of fast-tracking permit approvals and securing Defense Department grants through programs that awarded $75 million to Perpetua. 

Horse Heaven is currently Resolution’s only project in the United States. The company is also exploring potential uranium, antimony, gold, copper, and silver deposits in Australia.