1 unchanged sentence
As a smaller reporting company, we are not required to provide disclosure under this item.
−Removed: Description of Properties .
−Removed: Our material properties are:
−Removed: Our antimony smelter and precious metals plant in Montana;
−Removed: Our Los Juarez antimony mining property and the associated Madero smelter and Puerto Blanco flotation mill in Mexico;
−Removed: Our Bear River zeolite mining property and the associated [plant] in Idaho.
−Removed: We also have the following properties that we do not consider material:
−Removed: A house in Preston, Idaho, which is used to house workers from our zeolite operation;
−Removed: Our corporate office located in Thompson Falls, Montana.
−Removed: We have a 100% ownership or leasehold interest in each of these properties, except as noted above.
−Removed: Although we extract minerals from the Los Juarez antimony property and the Bear River zeolite property that we later process and sell, S-K 1300 classifies each of our mining properties as an exploration stage property and our company as an exploration stage issuer because we have not prepared a technical report summary for any of our properties making a determination that the property contains proven and probable mineral reserves.
−Removed: The aggregate annual extraction from our mining properties during the three most recently completed fiscal years was as follows:
−Removed: WADLEY MINES YEAR
−Removed: DRY WEIGHT (lbs.)
−Removed: ANTIMONY CONTENT (lbs.)
−Removed: LOS JUAREZ PROPERTY YEAR
−Removed: DRY WEIGHT (metric tons)
−Removed: ANTIMONY CONTENT (metric tons)
−Removed: BEAR RIVER ZEOLITE YEAR
−Removed: DRY WEIGHT (metric tons)
−Removed: In addition to mineralized material extracted from our properties, our processing facilities process mineralized material extracted by the Company from third party properties such as Wadley and Sierra Guadalupe, or purchased from third parties, or provided to us for toll milling.
−Removed: MATERIAL PROPERTIES
−Removed: Antimony Smelter and Precious Metals Plant, Montana
−Removed: Our antimony smelter and precious metals plant is located in the Burns Mining District, Sanders County, Montana, approximately 14 miles west of Thompson Falls on Montana Highway 471, GPS coordinates 47.54735, -115.59219.
−Removed: ] This highway is asphalt, and the property is accessed by cars and trucks.
−Removed: The property includes two five-acre patented mill sites that are owned in fee-simple by us.
−Removed: The claims are U.
−Removed: Antimony Mill Site No.
−Removed: 1 (Mineral Survey 10953) and U.
−Removed: Antimony Mill Site No.
−Removed: 2 (Mineral Survey 10953).
−Removed: We also own five-acre Black Jack millsite.
−Removed: Page 28 of 91
−Removed: Page 29 of 91
−Removed: Antimony Mill Sites were used to run a flotation mill and processing plant for antimony that we mined on adjacent claims that have been sold.
−Removed: Presently, we run a smelter that includes furnaces of a proprietary design to produce antimony metal, antimony oxide, and various other products.
−Removed: We also run a precious metals plant.
−Removed: The facility includes 6 buildings and our main office.
−Removed: There are no plans to resume mining on the claims that have been sold or abandoned, although the mineral rights have been retained on many of the patented mining claims.
−Removed: Accordingly, we do not view the smelter and plant as a mining property for purposes of S-K 1300.
−Removed: It is a processing facility only.
−Removed: The mill site is serviced with three-phase electricity from Northwest Power, and water is pumped from a well.
−Removed: We claim no reserves nor mineral resources on any of these properties.
−Removed: Antimony mining and milling operations in the U.S.
−Removed: were curtailed during 1983 due to continued declines in the price of antimony.
−Removed: We are currently purchasing foreign raw antimony materials and extracting our own raw materials from our properties in Mexico.
−Removed: We continue to produce antimony metal, oxide, sodium antimonate, antimony trisulfide, and precious metals from our processing facility near Thompson Falls, Montana.
−Removed: The facility at Thompson Falls MT is outfitted with 6 operational Small Rotary Furnaces (SRF’s) and permitted for 9 SRF’s.
−Removed: The SRF’s are used to roast various antimony raw material inputs and are capable of producing either finished antimony oxide or finished antimony metal in the form of ingots.
−Removed: The equipment is maintained to modern standards.
−Removed: The facility also has 2 operational electric furnaces and permitted for 4 for the purpose of the production of antimony trisulfide.
−Removed: These furnaces are modern and maintained.
−Removed: The facility also has a small laboratory and various equipment for the treatment and production of precious metal bullion.
−Removed: The facility houses modern quality-control equipment.
−Removed: Page 30 of 91
−Removed: There are no material encumbrances
−Removed: The book value of the property as of December 31, 2022 is $1,667,758.
−Removed: Mexican Properties
−Removed: Los Juarez Antimony Property, Mexico
−Removed: Our Los Juarez property does not contain known mineral reserves;
−Removed: however, in 2019 we commenced extraction via open pit mining.
−Removed: However, extraction was halted in 2020 and the Company elected to conduct several rounds of geological study in addition to shipping a previously mined 2,000 metric ton test-batch to our flotation facility.
−Removed: Further study is ongoing and depending upon the results of these studies the Company will decide what course of action to take.
−Removed: GPS coordinates of the center of the Los Juarez property are 20.86528, -99.67590.
−Removed: Page 31 of 91
−Removed: Transportation
−Removed: The Los Juarez Property is located in the state of Queretaro Mexico and is approximately 40 kms by road from the town of Vizzaron.
−Removed: It is located within 4 kms of the ejido of Los Juarez situated near the top of the mountain.
−Removed: The property is accessible by truck by paved road except for the last 4 kms which is a dirt road made by the Company.
−Removed: Property and Ownership
−Removed: The Los Juarez property consists of:
−Removed: San Miguel I and II, which were purchased by a USAC subsidiary, Antimonio de Mexico, S.
−Removed: V (“ADM”), for $1,480,500, which was paid in full as of December 31, 2018.
−Removed: The property consists of 40 hectares (100 acres);
−Removed: San Juan I and II, which are concessions owned by ADM and include 466 hectares (1,152 acres);
−Removed: The San Juan III mining concession, which is held by a lease agreement by ADM in which we will pay a 10% royalty, based on the net smelter returns from another USAC Mexican subsidiary, named United States Antimony Mexico, S.
−Removed: It consists of 214 hectares (529 acres).We are leasing just the concessions for $1,000 US dollars/month.
−Removed: The concessions collectively constitute 720 hectares (1,780 acres).
−Removed: The claims are accessed by roads that lead to highways.
−Removed: The book value of the property, including the plant and smelter, as of December 31, 2022 is $6,825,404.
−Removed: Page 32 of 91
−Removed: Part of the USAC Mexican property, including San Miguel I, II and part of San Juan III, was originally drilled by the Penoles Company in 1970, when antimony metal prices were high.
−Removed: They did not proceed with the property, due to the complex metallurgy of antimony.
−Removed: Subsequently, the Mexican Government did additional work and reported a deposit of mineralized material in Consejo de Recursos Minerales.
−Removed: The report predated S-K 1300.
−Removed: The Company has not prepared a S-K 1300 report, nor has it declared any proven and probable mineral reserves on the property.
−Removed: The mineralized zone is a classic jasperoid-type deposit in the Cretaceous El Doctor Limestone.
−Removed: The mineralization is confined to silicified jasperoid pipes intruded upwards into limestone.
−Removed: The zone strikes north 70 degrees west.
−Removed: The dimension of the deposit is still conjectural.
−Removed: However, the strike length of the jasperoid is more than 3,500 meters.
−Removed: The mineralization is typically very fine-grained stibnite with silver and gold.
−Removed: It is primarily sulfide in nature due to its encapsulation in silica.
−Removed: Permitting and Licensing
−Removed: USAC via its subsidiaries with properties in Mexico pays Mexican mining taxes on all the mining concession it owns.
−Removed: The taxes average approximately 7,000 pesos per semester and are paid in a timely manner.
−Removed: The Company is unaware of any violations or fines regarding the retention of these mining claims nor is the Company in violation regarding permitting, timelines, or conditions.
−Removed: Page 33 of 91
−Removed: In October 2020, a 1000-meter initial drill program was conducted on the property with a total of 25 holes.
−Removed: The drilling was completed November 2020 and used a reverse-circulation drill rig.
−Removed: Samples were sent to a certified lab in Mexico for analysis.
−Removed: Drill hole location, depth, and angle were selected near mined pit areas and along suspected fault zones.
−Removed: A summary of the drill program was published in a news release of November 30, 2020 and subsequent news releases.
−Removed: This initial program was performed without the aid of a geophysical study.
−Removed: In 2022, the Company was engaged in a formal geological, geochemical, and geophysical study to help obtain subsurface mineralization data and better understand the system with an objective of partnering with a junior mining company with expertise in exploration/drilling.
−Removed: The results of the geological and geochemical studies are not yet complete.
−Removed: Mining Methods
−Removed: Mining of the Los Juarez has been halted pending our geological, geophysical, and geochemical studies which are ongoing and nearing completion.
−Removed: Additional mapping and geologic work is required to adequately evaluate the data collected thus far.
−Removed: If the Company should elect to reinitiate mining of the Los Juarez property, it will likely employ standard open-pit techniques and depending on the geologic results, underground methods.
−Removed: Infrastructure
−Removed: There is an excavator, an older Cat D-6, a gas welder/generator, a small break shack, an explosives magazine, and these are all functional.
−Removed: USAMSA Puerto Blanco Flotation Mill, Guanajuato, Mexico
−Removed: The flotation facility known as Puerto Blanco, is located approximately 15 kms north of the city of San Jose Iturbide along state highway 57 in the state of Guanjuato Mexico.
−Removed: It is accessible by highway to all vehicles.
−Removed: The GPS coordinates of Puerto Blanco are 21.07827,-100.54144 (see attached map with Mexican installations listed).
−Removed: Puerto Blanco is located approximately 144 kms from the Los Juarez property.
−Removed: The Puerto Blanco property was purchased by USAMSA in 2012 and is approximately 40 hectares in area.
−Removed: The flotation plant has a capacity of 100 metric tons per day.
−Removed: It includes a 30” x 42” jaw crusher, a 4’x 8’ double-deck screen, a 36” cone crusher, an 8’x 36” Harding type ball mill, and eight No.
−Removed: 24 Denver sub A type flotation machines, an 8’ disc filter, front end loaders, tools and other equipment.
−Removed: The flotation circuit is used for the processing of rock from Los Juarez and other properties.
−Removed: The crushing equipment currently in place is adequate for both flotation mills.
−Removed: An oxide circuit was added to the plant in 2013 and 2014 to mill oxide ores from Los Juarez and other properties.
−Removed: It includes a vertical shaft impactor, 3 ore bins, 8 conveyors, a 4’ x 6’ high frequency screen, jig, 8 standard concentrating tables, 5 pumps, sand screw and two buildings.
−Removed: The capacity of the oxide circuit is 50 tons per day.
−Removed: We have installed a cyanide leach circuit and settling pond that will be used to recover precious metals from our Los Juarez mine.
−Removed: In 2019 a cyanide leach circuit for recovery of gold was built and permits were obtained for this circuit.
−Removed: Test batches of Los Juarez antimony concentrates containing precious metals have been processed through the cyanide leach system and the processing of 2,000 tons of mined rock from Los Juarez is underway.
−Removed: One of three batches of gold-bearing carbon (the end product of the cyanide leach) have been saturated and awaits separation and analysis.
−Removed: Preliminary results are that the gold-recovery is acceptable.
−Removed: Page 34 of 91
−Removed: Page 35 of 91
−Removed: USAMSA Madero Smelter, Estacion Madero, Parras De La Fuente, Coahuila, Mexico
−Removed: The Madero smelter is located about 7 kms north of the gas station known as Paila Coahuila.
−Removed: It is located less than 1 km from railroad and the ejido Estacion Madero, Coahuila.
−Removed: Paila is about halfway in between Torreon and Saltillo both in the state of Coahila on state highway 40 and is accessible by pickup truck.
−Removed: USAC, through its wholly owned subsidiary, USAMSA, owns and operates a smelting facility at Estacion Madero, in the Municipio of Parras de la Fuente, Coahuila, Mexico.
−Removed: The property includes 13.48 hectares (30 acres).
−Removed: Seventeen small rotating furnaces (“SRF’s”) and four large rotating furnaces (“LRF”) with an associated stack and scrubbers.
−Removed: Other equipment includes cooling ducting, dust collectors, scrubber, laboratory, warehouse, slag vault, stack, jaw crusher, screen, hammer mill, and a 3.5’ x 8’ rod mill.
−Removed: The plant has a feed capacity of 14-25 metric tons of direct shipping ore per day, depending on the grade of the feedstock.
−Removed: If the feedstock is in the range of 45% antimony or higher, the smelter could produce as much as 10MM pounds of contained antimony annually.
−Removed: Concentrates from our flotation plant, and hand-sorted ore from Mexico sources and other areas, are being processed.
−Removed: In 2019, we completed the installation of a caustic leach circuit to process concentrates from the Puerto Blanco cyanide leach plant containing precious metals from our Los Juarez Mining property.
−Removed: The Madero production is either sold as metal to customers directly or crude oxide shipped to our Montana plant to produce finished antimony products and precious metals.
−Removed: Plans to dramatically improve and update the infrastructure at the Madero Smelter include erecting a building around all the furnaces to aid in the control, consistency, and quality of product and ease of processing.
−Removed: Additionally, the Company is considering producing finished antimony oxide with this control and purchasing quality-control instrumentation for the option of selling all finished antimony products from Madero just as we currently do in Montana.
−Removed: We have used part of our 2021 capital raise for improving equipment, relining furnaces, purchase of newer forklifts, scales, and general improvement.
−Removed: The Company is focusing its capital expenditures for the improvement of the facilities and Preston Idaho for its zeolite operation and secondary to this priority will be the potential enclosure of our smelter at Madero in order to allow improved recovery, efficiency, and quality-control by shielding it from the weather.
−Removed: Access to the plant is by road and railroad.
−Removed: Set forth below are location maps:
−Removed: Page 36 of 91
−Removed: Other Infrastructure
−Removed: Electricity is supplied by CFE, the socialized electricity provider in Mexico and provides adequate and fairly reliable power.
−Removed: Water is sourced from a well at the smelter that was drilled by USAC many years ago.
−Removed: Personnel is sourced, principally, from the local ejido, population approximately 100 people.
−Removed: Page 37 of 91
−Removed: Page 38 of 91
−Removed: Page 39 of 91
−Removed: Bear River Zeolite Property, Idaho
−Removed: Our zeolite property does not contain known mineral reserves;
−Removed: however, we have commenced extraction via open pit mining.
−Removed: This property is located in the southeast corner of Idaho, approximately seven miles east of Preston, Idaho, 34 miles north of Logan, Utah, 79 miles south of Pocatello, Idaho, and 100 miles north of Salt Lake City, Utah
−Removed: The mine is located in the N ½ of section 10 and the W ½ of section 2, section 3, and the E ½ section 4, Township 15, Range 40 East of the Boise Meridian, Franklin County, Idaho.
−Removed: The plant and the initial pit are located on the Webster Farm, L.L.C., which is private land.
−Removed: The plant has GPS coordinates of 42.14419, -111.77574.
−Removed: Transportation
−Removed: The property is accessed by seven miles of paved road and about l/4 mile of gravel road from Preston, Idaho.
−Removed: Preston is near the major north-south Interstate Highway 15 to Salt Lake City or Pocatello.
−Removed: Preston is a city in Franklin County, Idaho , United States.
−Removed: The population was 5,204 according to the 2010 United States census .
−Removed: The city is approximately 7 miles north of the Utah border and the nearest large city is Logan, UT which is located approximately 20 miles south of Preston.
−Removed: Several Union Pacific rail sidings may be available to the mine.
−Removed: Bonida is approximately 25 miles west of the mine via paved roads and includes acreage out of town where bulk rock could be stored, possibly in existing silos or on the ground.
−Removed: Three-phase power is installed at this abandoned site.
−Removed: Finished goods can also be shipped from the Franklin County Grain Growers feed mill in the town of Preston on the Union Pacific Railroad.
−Removed: The Burlington Northern Railroad can be accessed at Logan, Utah.
−Removed: Page 40 of 91
−Removed: Property and Ownership
−Removed: Bear River Zeolite leases 320 acres from the Webster Farm, L.L.C.
−Removed: The term of the lease is 15 years and it began on March 1, 2010.
−Removed: This includes the mill site and zeolite in the area of the open pit.
−Removed: The property is the NW ¼ and W ½ of the SW ¼ of section 3 and the N ½ of the W ¼ of section 10, Township 15 South, Range 40 East of the Boise Meridian, Franklin County, Idaho.
−Removed: The lease requires a payment of $10.00 per ton plus an additional annual payment of $10,000 on March 1st of each year.
−Removed: In addition, there are two other royalty holders.
−Removed: Nick Raymond and the estate of George Desborough each have a graduated royalty of $1.00 per ton to $5.00 per ton, depending on the sale price.
−Removed: Delaware LLC holds a royalty interest based on 3% of net sales (sales minus freight.
−Removed: In early 2021, Joe Bardswich a director and geologist, was able to renegotiate one of the royalty payments so that escalation due to the Consumer Price Index (CPI) that existed in the original contract was removed.
−Removed: The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
−Removed: Indexes are available for the U.S.
−Removed: and various geographic areas.
−Removed: The balance of the property is on Bureau of Land Management property and includes 480 acres held by 24, 20-acre Placer claims.
−Removed: Should we drop our lease with Webster Farms LLC., we will retain these placer claims.
−Removed: The book value of the property, including the plant, as of December 31, 2022 is $2,837,666.
−Removed: The plant had no prior history as it was built by founder John Lawrence and other U.S.
−Removed: Antimony personnel.
−Removed: The deposit is a very thick, sedimentary deposit of zeolitized volcanic ash of Tertiary age known as the Salt Lake Formation.
−Removed: The sedimentary interval in which the clinoptilolite occurs is more than 1,000 feet thick in the area.
−Removed: Thick intervals of the zeolite are separated by thin limestone and sandstone beds deposited in the freshwater lake where the volcanic ash accumulated.
−Removed: The deposit includes an 800-foot mountain.
−Removed: Zeolite can be sampled over a vertical extent of 800 feet on more than 700 acres.
−Removed: The current pit covers more than 3 acres.
−Removed: Despite the apparent size of the deposit, we claim no reserves.
−Removed: Page 41 of 91
−Removed: Permitting and Licensing
−Removed: The Company is in possession of all MSHA and operational permits and is regularly inspected and regularly performs required safety and training classes and exercises in compliance with State and Federal requirements.
−Removed: Exploration has been limited to the examination and sampling of surface outcrops and mine faces.
−Removed: No exploration was performed at Bear River Zeolite during the years ended December 31, 2022 and 2021.
−Removed: Mining Methods
−Removed: Depending on the location, the zeolite is overlain by 1 to 12 feet of zeolite-rich soil.
−Removed: On the ridges, the cover is very little, and in the draws the soil is thicker.
−Removed: The overburden is stripped using a tractor dozer, currently a Caterpillar D-8K.
−Removed: It is moved to the toe of the pit, and will eventually be dozed back over the pit for reclamation.
−Removed: Although near-surface rock is easily ripped, it is more economical to drill and blast it.
−Removed: Breakage is generally good.
−Removed: Initial benches are 20 feet high, and each bench is accessed by a road.
−Removed: Haulage is over approximately 4,000 feet of road on an uphill grade of 2.5% to the mill.
−Removed: On higher benches, the grade will eventually be downhill.
−Removed: Caterpillar 769 B rock trucks are being used.
−Removed: The trucks haul 18 to 20 tons per load, and the cycle time is approximately 30 minutes.
−Removed: In 2021, we experimented with mining principally by ripping using the Caterpillar D-9.
−Removed: This method worked but rendered rock that sometimes had to be drilled and broken in order to fit in the jaw crusher bin at the mill.
−Removed: Consequently, the Company is certain that blasting is the preferred method of mining.
−Removed: We may elect to supplement mining extraction by updating our D-9 with a secondary ripper.
−Removed: With the trucks and the other existing equipment, the mine is capable of extracting 80 tons per hour.
−Removed: Infrastructure
−Removed: The plant at Bear River Zeolite, in overview, has 7 distinct and important parts:
−Removed: Mining pit, explosives, mining equipment and hauling, 2.
−Removed: Primary crushing, 3.
−Removed: Secondary crushing, 4.
−Removed: Raymond mill crushing, 5.
−Removed: Screening/size selection, 6.
−Removed: Packaging, 7.
−Removed: Office and delivery/trucking.
−Removed: The majority of equipment at the plant has been updated and/or improved and this process of updating equipment is still underway.
−Removed: In 2021, the Jaw crusher was replaced with a better one.
−Removed: In December of 2022, the cone crusher was replaced with a new, modern cone that has a number of safety features preventing or greatly reducing the likelihood of failure.
−Removed: The plant currently employs 25 people, 74% of whom work in packaging.
−Removed: Starting in 2022, extensive improvement of the plant equipment commenced including the elimination of spill points, the improvement in bins, conveyors, chutes, bibs, bearings, dust-control, screens, feed rates, control, personnel, and management.
−Removed: The primary crushing circuit is a conventional closed circuit, utilizing a Stephens-Adamson 42” x 12’ apron feeder, Pioneer 30” x 42” jaw crusher, a Sepro 2.5 foot modern cone crusher, a 5’ by 12’ double deck Kohlberg screen, and has a self-cleaning dust collector.
−Removed: The rock is crushed to minus 1 inch and the circuit has a rated capacity of more than 50 tons per hour.
−Removed: In Oct/Nov 2021 the primary jaw crusher pitman arm broke due to incorrect greasing procedures.
−Removed: A replacement jaw crusher was purchased, delivered, installed and began operations 1.5 months after delivery.
−Removed: A delivery chute was designed and fabricated along with necessary bins and skirting.
−Removed: The new jaw crusher was outfitted with a hydraulic hand-pump greaser for the main pitman-arm assembly and the correct grease and greasing procedure has been implemented.
−Removed: Plans to fix or replace the old jaw crusher exist but require a major refit.
−Removed: The Company was able to repair the engine on its crane, a Linkbelt 3-stage boom crane of about 50-ton nameplate capacity.
−Removed: The transmission is now being repaired.
−Removed: With this crane, the Company will pull the old jaw crusher and determine if it is salvageable.
−Removed: In any case, the Company has earmarked that location for an entirely new and secondary jaw crusher in the event that bulk zeolite purchase opportunities increase.
−Removed: In December of 2022, the old cone crusher was no longer operative and was replaced with a Sepro 2.5’ modern cone crusher outfitted with a multitude of sensors that serve to prevent failure of all primary and secondary systems.
−Removed: The cone’s performance and throughput was increased from 5 tons per hour to around 12 tons per hour in Q2 of 2023, afforded by the modern monitoring and control capacity of the new cone.
−Removed: Page 42 of 91
−Removed: There are two lines to produce coarse products:
−Removed: Line 1 is a closed crushing circuit with a 100 HP hammer mill (that replaced the old vertical shaft impactor) and a 5 deck Midwestern Multi Vibe high frequency screen.
−Removed: The replacement of the Vertical Shaft Impactor (“VSI”) with the hammermill, also outfitted with a variable frequency drive, has decreased the ratio of fine-particle product to larger, higher-demand product.
−Removed: Two aggregate flow tests are underway that have the objective of determining if this crusher will be replaced with a different type of crusher to further optimize the efficiency/distribution of crush and production rate.
−Removed: A secondary concrete support form was poured under this hammermill in 2023 that aided to decrease vibration.
−Removed: A more efficient feed hopper was installed in March 2023 and the return conveyor rollers were replaced.
−Removed: Additionally, the hammers were hard-faced to increase longevity and decrease vibration by mitigating out-of-balance condition.
−Removed: This alteration also allowed a higher range of speeds for crushing and therefore improved throughput.
−Removed: Line 2 includes a Jeffries 30” by 24” 60 HP hammer mill that was custom-modified, in a closed circuit with two 5’ x 12’ triple deck Midwestern Multi Vibe high frequency screens.
−Removed: The circuits also include bucket elevators, (3) 125-ton capacity product silos, a 6-ton capacity Crust Buster blender, augers, Sweco screens, and dust collectors.
−Removed: Various improvements to this line were achieved in April and May of 2023 that have resulted in this line slightly out-performing Line 1.
−Removed: Further improvements to both lines have shown that the crushing production capacity for the entire plant has gone from around 4 tons per hour to around 12 tons per hour.
−Removed: The fine products circuit is in one building and it includes two (2) 3.5’ x 10.5’ Derrick 2 deck high frequency (3,450 RPM) screens and various bucket elevators, augers, bins, and Sweco screens for handling product.
−Removed: Depending on the screening sizes, the plants can generate approximately 150 tons of granules and 125 tons of fines per 24-hour day.
−Removed: The Raymond mill circuit includes a 6058 high-side Raymond mill with a double whizzer, dust collector, two 100-ton product silos, feed bin, conveyors, air slide, bucket elevators, and control booth.
−Removed: The Raymond mill has a rated capacity of more than 10 tons per hour.
−Removed: Water is sourced from the land owner during the early spring and summer months.
−Removed: Late summer, water is generally scarcer but is obtained from same source.
−Removed: We use this water, along with our new water truck for dust control near the office, on the road to the mill and on the road to the mine.
−Removed: We have contacted 3 local well-drillers with the objective of addressing the scarcity of water during the late summer months.
−Removed: Electricity is provided by the local electric company and is fairly reliable.
−Removed: Loss of electric power is rare and all of our equipment have safety protocols as well as, in some cases, automatic safety devices in the event of loss of electrical power.
−Removed: Personnel is sourced, mainly from Preston, but also from North Logan and is a concern because of the availability to expand our packaging plant (74% of our labor force at Preston works in packaging).
−Removed: Packaging is anticipated to be our next production restriction and the Company is planning either to augment, as much as possible, its packaging with more automatic packaging equipment and is even considering the establishment of an off-site packaging plant.
−Removed: NON-MATERIAL PROPERTIES
−Removed: The Soyatal mining district and USAC’s interest in them has evolved since the Company’s first discovery of them.
−Removed: The first interest of USAC in the Soyatal properties was as an additional source of antimony.
−Removed: In or around the period from 2011-2019, USAC received a low amount of good-grade antimony sulfide ores that were hand-selected.
−Removed: However, the ore volumes were sufficiently low that around 2019-2021, the Company was ready to abdicate its purchase-agreement (the volume of ores didn’t justify the cost).
−Removed: In late 2021, the Company decided to initiate testing of low-grade ores from the Soyatal District for the express purpose of provision of an auxiliary source for the production of antimony trisulfide.
−Removed: The concentrates produced from the ores at the Soyatal District have passed the tests that specify the minimum grade and maximum contamination-content, and therefore the Company has elected to retain its interest in the Soyatal District.
−Removed: The District historically was a non-trivial producer of stibnite and its mining has been primarily underground.
−Removed: The mines are remote and near the top of mountain, making shipping of the low-grade ores one of the major concerns regarding costs.
−Removed: Trucking in Mexico is much more economic than in the United States and the revenue from the sale of antimony trisulfide is approximately 1.7 times per pound more than that of the sale of antimony metal.
−Removed: USAC’s Sierra Guadalupe property (see below) has already been approved by the United States Department of Defense (“DOD”) as a source of antimony for the production of antimony trisulfide for the U.S.
−Removed: The interest the Company has in the Soyatal is as an auxiliary source and is seeking similar approval from the DOD.
−Removed: The Company has earmarked the Soyatal District as a back-up source for antimony trisulfide, which is an endangered, critical mineral, used by the military and open munitions market, specifically for primers.
−Removed: USAC retains the mining concession claims from the Soyatal and has a contract pending for the completion of the purchase of these claims with the previous owner for $550,000 US dollars.
−Removed: Concurrent to this USAC continues to purchase truckloads of stibnite ore from the Soyatal that it ships to the flotation facility at Puerto Blanco where the ore is made into high-grade antimony concentrate.
−Removed: This concentrate is then taken to the facility in Montana for purification and sale to both the open munitions market and the DOD.
−Removed: Page 43 of 91
−Removed: Sierra Guadalupe Property
−Removed: The Sierra Guadalupe property is located in the state of Zacatecas Mexico, (GPS coordinate 24.135107, -102.724499).
−Removed: USAC started processing dump rock from the mines at Sierra Guadalupe at its floatation plant in Puerto Blanco Guanajato approximately 10 years ago.
−Removed: The primary form of the geological species of antimony at these mines is very clean stibnite (no appreciable contaminants such as arsenic or lead as is common with many stibnite deposits).
−Removed: The initial dump rock ran about 7% antimony.
−Removed: The dump rock shipments halted about 2 years later when the average grade dropped below 1%.
−Removed: A very good (>65% antimony) concentrate was made with the dump rock and these concentrates were then sent to Montana and processed in electric furnaces into a purified antimony trisulfide crystal form with the goal of producing antimony trisulfide for sale to the ordinance market specifically for use in primers.
−Removed: USAC received a grant from the Department of Defense (DOD) to work on this project.
−Removed: The plan was for USAC to provide the DOD with samples to be tested and to pass the requirements of the US military specifications for purity.
−Removed: In 2023, USAC the final sample sent to the DOD for testing was approved which constituted an official approval by the DOD to accept antimony trisulfide sourced from the Sierra Guadalupe property.
−Removed: The advantage of the trisulfide market is the sale price which is in the range of $(9-12)/lb.
−Removed: compared with much lower sale price per pound for either pure antimony metal or pure antimony trioxide
−Removed: At the same time the dump rock was being shipped to Puerto Blanco, a total of about 20 tons of direct-roasting ore was sent to USAC’s smelter in Madero and was processed into antimony trioxide.
−Removed: The production of ore for direct smelting was limited chiefly due to mismanagement, lack of miners, lack of equipment, and poor maintenance of the principal road.
−Removed: However, average grade ore received at the Madero Smelter were in the neighborhood of 28% antimony and in lower quantities 45% antimony.
−Removed: This means that the Sierra Guadalupe may well be a significant additional source of antimony feed for the larger market of antimony and be able to provide USAC with both an approved source of antimony trisulfide as well as a source of antimony.
−Removed: On August 17, 2022, the Company executed a Management and Consultancy Services Agreement (the ‘Consultancy Agreement”) whereby a contractor was engaged to render professional services consisting of management and consultancy for the acquisition of surface rights and other technical services near San Guadalupe, Mexico.
−Removed: The parties agreed to total consideration of $1,035,025 plus associated Value Added Tax (“VAT”).
−Removed: During the first quarter of 2023, the Company contacted the primary surface right holders, came to an agreement with them, and is in the process of repairing equipment, fixing the road, and negotiating with a third party for the acquisition of miners.
−Removed: We are also examining for grade quality additional raw materials to ship to Puerto Blanco and additional processing.
−Removed: House in Preston, Idaho
−Removed: In 2021 the Company purchased a house in Preston Idaho for the purpose of attracting and retaining a full-time supervisor at its zeolite facility.
−Removed: The Company makes monthly payments towards the mortgage of this house.
−Removed: This house is occupied by the Supervisor that we obtained in 2021, Richard Lyon.
−Removed: As of June 30, 2023, the balance remaining on the house is $195,689 and monthly payments of $1,409 are being made.
−Removed: Corporate Office
−Removed: Our corporate office is located in Thompson Falls, Montana.
−Removed: Gustavsen, our Chief Executive Officer, operates from this office and also works on-site at the Company’s antimony processing operation.
−Removed: Antimony owns the offices and all associated buildings and infrastructure at its corporate headquarters in Montana.
−Removed: The facility has a shop, furnace buildings, laboratory, 6 offices, and a conference room.
+Added: Cybersecurity.
+Added: Risk Management and Strategy
+Added: Our cybersecurity strategy prioritizes detection, analysis and response to known, anticipated or unexpected threats, effective management of security risks, and resiliency against incidents.
+Added: Our cybersecurity risk management processes include accessing security controls, monitoring systems, tools and related services from third-party providers, and management oversight to assess, identify and manage material risks from cybersecurity threats.
+Added: We engage a third-party information security officer who maintains, monitors, and ensures the security of our digital assets.
+Added: We implement risk-based controls to protect our information, the information of our customers, suppliers, and other third parties, our information systems, our business operations, and our products.
+Added: We maintain security programs that include physical and technical safeguards.
+Added: We monitor cybersecurity vulnerabilities and potential attacks, and we evaluate the potential operational and financial effects of any threat and of cybersecurity countermeasures made to defend against such threats.
+Added: We continue to integrate our cyber practices into our enterprise risk management practices, which is overseen by our Board of Directors.
+Added: In addition, we assess the risks from cybersecurity threats, periodically engage third-party tools to assist us in enhancing and monitoring our cybersecurity risks, primarily spam and suspicious email filters, and regularly back up company information.
+Added: We have experienced cybersecurity incidents, primarily related to phishing emails, and may in the future experience, whether directly or indirectly, cybersecurity incidents.
+Added: While prior incidents have not materially affected our business strategy, results of operations, or financial condition, there is no guarantee that a future cyber incident would not materially affect our business strategy, results of operations, or financial condition.
+Added: See risks related to cybersecurity and business disruptions in “Risk Factors” in this Form 10-K.
+Added: Our Board of Directors is responsible for risk oversight.
+Added: Our chief executive officer and chief financial officer, with input from and potentially attendance by our third-party information security officer, provide presentations to the Board of Directors on cybersecurity risks or threats as necessary.
+Added: In the event of a potentially material cybersecurity event, the Chairman of the Board is notified and briefed, and a meeting of the full Board of Directors would be held, as appropriate.
+Added: Management and the Company’s third-party information security officer discuss information technology needs and activity and assess and manage material cybersecurity risks and the Company’s practices for the prevention, detection, mitigation, and remediation of cybersecurity incidents, as necessary and appropriate.
+Added: Our third-party information security officer has 30 years of experience in the IT management field and has consulted with large and mid-size corporations on proper IT processes and security.
+Added: Our CEO during the year ended December 31, 2023 and our CFO have managed information technology departments during their careers.
+Added: Our CFO was trained as an auditor and an information technology auditor at the public accounting firm of Ernst & Young LLP and audited public companies, information technology departments, and third-party information technology service providers for 12 years.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.