Red River Resources has entered into a binding agreement to acquire 100% of the Hillgrove gold-antimony project near Armidale in New South Wales for AU$4.0M (US$2.81M). Since 2004, over $180M (US$126.35M) has been invested in underground development, surface infrastructure and the processing plant by previous owners. The project includes a JORC 2012 compliant resource of 48kt of antimony grading 1.7% Sb. Red River is looking to evaluate the opportunities at Hillgrove by revisiting the resource estimates through exploration and developing an optimised restart study.
Australia produces 2–4ktpy of contained antimony from the gold-antimony Costerfield Mine owned by Mandalay Resources and the country accounted for 2% of global production in 2018. The antimony concentrate is exported mainly to China, where major ingot producers recover gold and antimony metal.
The Hillgrove mine produced 4.2kt of contained antimony over 2014 and 2015, after Hillgrove Mines, a subsidiary of Bracken Resources, acquired the mine from Straits Resources in 2013. The mine was put on care and maintenance in 2016 following rapidly declining antimony prices through 2015.
After remaining relatively stable at an average US$8,300/t over 2017 and 2018, the price of antimony metal has followed a declining trend in H1 2019, falling to below US$6,300/t as of July 2019, a year-to-date decline of 20.9%. Prices had previously declined to similar levels in September 2015 and bottomed out at around US$5,100/t in December 2015.
More information on the antimony market and the supply-demand dynamics that govern the industry can be found in Roskill’s 13th edition of the Antimony: Global Industry, Markets & Outlook to 2028 report published last year, which is kept up-to-date with quarterly reports and includes access to the analysts. For more information, please contact Nils Backeberg: email@example.com or Jack Bedder: firstname.lastname@example.org