U.S. Forest
Service to publish Final Environmental Impact Statement and
favorable Draft Record of Decision tomorrow.
Stibnite Gold Project is poised to
become the next world class gold mine and the only U.S. mined
source of the critical mineral antimony.
Decision comes days before China's antimony export restrictions go into
effect.
BOISE,
Idaho, Sept. 5, 2024 /CNW/ - Perpetua Resources
Corp. (Nasdaq: PPTA) (TSX: PPTA) ("Perpetua Resources" or
"Perpetua" or the "Company") today announced that the United States
Forest Service ("USFS") has completed the Final Environmental
Impact Statement ("FEIS") and is issuing a Draft Record of Decision
("DROD") authorizing the Stibnite Gold Project ("Project").
According to a USFS press release, both documents will be published
tomorrow, September 6, in the US
Federal Register. Based on the USFS schedule published in
July 2024, the Final Record of
Decision ("ROD") is anticipated by the end of 2024.
The USFS release confirmed that the "Draft Record of Decision
outlines the Forest Services' decision to authorize the 2021
Modified Mine Plan". The decision comes after the completion of
rigorous interagency permitting review, scientific evaluation, and
public input. The Project is designed to provide environmental
benefits to an abandoned mine site while producing gold and
unlocking the only reserve of antimony within the United States.
"We believe that the Stibnite Gold Project is a win-win-win,"
said Jon Cherry, President and CEO
of Perpetua Resources. "It's a win for Idaho, it's a win for the environment, and
it's a win for America's national security. Our independence from
Chinese control over antimony is right here in our backyard, and
Perpetua Resources is honored to provide a critical part of the
solution to the United States'
strategic need for antimony, while also delivering an economically
robust gold mine that will create new jobs in Idaho. It's time
for the Stibnite Gold Project to help secure our future."
Perpetua's Stibnite Gold Project is positioned to be one of the
highest-grade open pit gold projects in the United States with
4.8 million ounces of estimated gold reserves. The Project is
expected to produce over 450,000 ounces of gold annually over
the first four years with all-in sustaining costs under
$450 per gold ounce based on the
2020 Feasibility Study.
As a by-product of gold production, the Project has a reserve of
148 million pounds of antimony. Antimony is essential for national
defense, clean energy and technology applications, yet no
domestically mined supply currently exists. Beginning on
September 15, 2024, China, which is responsible for nearly half of
all global mined antimony output and dominates global refinement
and processing, has announced that it will restrict antimony
exports. The Stibnite Gold Project has one of the largest reserves
of antimony not under Chinese influence and the only U.S. domestic
reserve.
"The business case is clear," Cherry continued. "Our project has
exceptional economics, with an expected payback period of less than
3 years, while providing net environmental benefits and the
critical mineral antimony. We have never been closer to unlocking
the value of this unparalleled asset."
The Stibnite Gold Project has undergone a rigorous multi-year,
science-based review process that balances environmental outcomes,
community and national interest and project
economics.
Altogether, the Stibnite Gold Project has undergone:
- 14 years of scientific study, community engagement, and
engineering (2010-2024);
- 8 years in the National Environmental Policy Act ("NEPA")
permitting process (2016-2024); and
- 150 days of formal public comment in which 28,000 letters were
received, with approximately 85% expressing support for the
Project.
Following the Draft Record of Decision, there will be a required
fixed 45-day objection period and another 45-day resolution period
prior to the publication of the final Record of Decision, which is
expected at the end of the year based on the USFS's published
schedule.
"It is time for the Stibnite Gold Project," said Deb Filler, a resident of Yellow Pine, the closest community to
Stibnite. "We want to see Stibnite restored, and the Stibnite
Gold Project is going to make our backyard better. Perpetua
Resources has been an exceptional community partner, earning our
trust and taking the long and high road to make this Project right
for Idaho. We are proud of what
this Project will do for our nation, and excited for how it will
restore our corner of Idaho."
The Stibnite Gold Project is designed to restore a historic
mining district abandoned after 100 years of mostly unregulated
mining. As part of the proposed mine plan authorized in the draft
Record of Decision, Perpetua Resources will:
- Restore native fish passage, opening miles of pristine spawning
habitat that has been inaccessible for 80 years;
- Improve water quality by reprocessing and safely storing legacy
tailings, reducing arsenic in rivers on site up to 90%; and
- Restore 450 acres of wetlands for a 63% net increase in wetland
acres over existing conditions.
There has been a whole-of-government approach to bring antimony
production home to the United
States. From $75 million in
awards from the Department of Defense, to a $1.8 billion Letter of Interest from U.S. EXIM,
there is a profound recognition at the highest levels of government
that we need domestic antimony production as soon as possible. With
a Final EIS and DROD to be published tomorrow and a Final ROD
expected this year, Perpetua has engaged RBC Capital Markets and
Endeavour Financial to assist with the evaluation of potential
strategic and financing opportunities and to support the Company's
application process in connection with the U.S. EXIM $1.8 billion Letter of Interest received in
April 2024.
About Perpetua Resources and the Stibnite Gold
Project
Perpetua Resources Corp., through its wholly
owned subsidiaries, is focused on the exploration, site restoration
and redevelopment of gold-antimony-silver deposits in the
Stibnite-Yellow Pine district of central Idaho that are encompassed by the Stibnite
Gold Project. The Project is one of the highest-grade, open pit
gold deposits in the United States
and is designed to apply a modern, responsible mining approach to
restore an abandoned mine site and produce both gold and the only
mined source of antimony in the United
States. Further advancing Perpetua
Resources' ESG and sustainable mining goals, the
Project will be powered by one of the lowest carbon emissions grids
in the nation and a portion of the antimony produced from the
Project will be supplied to Ambri, a
U.S.-based company commercializing a low-cost liquid metal
battery essential for the low-carbon energy transition.
Perpetua Resources has been awarded a Technology Investment
Agreement of $59.2 million in Defense
Production Act Title III funding to advance construction readiness
and permitting of the Project. Antimony trisulfide
from Stibnite is the only known domestic source of antimony
that can meet U.S. defense needs for many small arms,
munitions, and missile types. In addition to the company's
commitments to transparency, accountability, environmental
stewardship, safety and community engagement, Perpetua
Resources adopted formal ESG commitments which
can be found here.
Forward-Looking Information and Cautionary
Note
Investors should be aware that the publication by
the USFS of the FEIS and the draft ROD, and the publication of the
USFS permitting schedule, does not indicate any commitments on the
part of the USFS with regard to the content or timing of a final
ROD. The draft ROD is subject to a 45-day objection period,
followed by a 45-day resolution period, which may be extended by
the USFS in its sole discretion. Furthermore, the USFS is not bound
by the permitting schedule and anticipated milestones may be
delayed materially or not be satisfied.
In addition, investors should be aware that the U.S. EXIM
Letter of Interest is non-binding and conditional, and does not
represent a financing commitment. A funding commitment is
conditional upon completing the application, due diligence and
underwriting process and receiving all required Project
approvals.
Statements contained in this news release that are not
historical facts are "forward-looking information" or
"forward-looking statements" (collectively, "Forward-Looking
Information") within the meaning of applicable Canadian securities
legislation and the United States Private Securities Litigation
Reform Act of 1995. Forward-Looking Information includes, but is
not limited to, disclosure regarding the content and timing of
final Record of Decision and other actions to be taken by the
Department of Defense, USFS, the State of
Idaho and other government agencies and regulatory bodies;
the timing and resolution of any objection to the FEIS or draft
ROD; our plans to submit a financing application to US EXIM; the
prospects of successfully securing financing from EXIM or from
other sources on acceptable terms, or at all; environmental clean
up actions by us and our contractors; that the Stibnite Gold
Project results in the outcomes we expected, including our reserves
and resources and anticipated production and costs; our ability to
comply with and obtain permits related to the Stibnite Gold
Project; our ability to successfully implement and fund the Project
and the occurrence of the expected benefits from the Project,
including creation of jobs and environmental benefits; and our and
Ambri Inc.'s ability to perform under the supply agreement.
Statements concerning mineral resource and mineral reserve
estimates may also be deemed to constitute forward-looking
information to the extent that such statements involve estimates of
the mineralization that may be encountered if a property is
developed. In certain cases, Forward-Looking Information can be
identified by the use of words and phrases or variations of such
words and phrases or statements such as "anticipate", "expect"
"plan", "likely", "believe", "intend", "forecast", "project",
"estimate", "potential", "could", "may", "will", "would" or
"should". In preparing the Forward-Looking Information in this news
release, Perpetua Resources has applied several material
assumptions, including, but not limited to, assumptions that the
USFS will publish the FEIS and draft ROD on September 6; that the public review process of
the Record of Decision will proceed in a timely manner and as
expected, and that the final ROD will be published based on the
USFS schedule; that we will be able to successfully complete the US
EXIM application process and secure financing, through US EXIM or
other sources to finance permitting, pre-construction and
construction of the Project; that the current exploration,
development, environmental and other objectives concerning the
Stibnite Gold Project can be achieved and that its other corporate
activities will proceed as expected; that general business and
economic conditions will not change in a materially adverse manner
and that permitting and operations costs will not materially
increase; and that we will be able to discharge our liabilities as
they become due and continue as a going concern. Forward-Looking
Information are based on certain material assumptions and involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Perpetua
Resources to be materially different from any future results,
performance or achievements expressed or implied by the
Forward-Looking Information. Such risks and other factors include,
among other things, risks related to unforeseen delays in the
review and permitting process; risks related to opposition to the
Project; risks related to increased or unexpected costs in
operations or the permitting process; risks that necessary
financing will be unavailable when needed on acceptable terms, or
at all; risks related to the outcome of litigation and potential
for delay of the Project, as well as those factors discussed
in Perpetua Resources' public filings with the U.S. Securities
and Exchange Commission (the "SEC") and its Canadian disclosure
record. Although Perpetua Resources has attempted to identify
important factors that could affect Perpetua Resources and may
cause actual actions, events or results to differ materially from
those described in Forward-Looking Information, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
Forward-Looking Information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on Forward-Looking Information. For further
information on these and other risks and uncertainties that may
affect the Company's business and liquidity, see the "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" sections of the Company's filings with
the SEC, which are available at www.sec.gov and with the Canadian
securities regulators, which are available at www.sedar.com. Except
as required by law, Perpetua Resources does not assume any
obligation to release publicly any revisions to Forward-Looking
Information contained in this news release to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Cautionary Statement Regarding Reserve and Technical
Information:
The reserves, production and cost
information in respect of the Stibnite Gold Project in this press
release, is based upon information contained in the technical
report titled "Stibnite Gold Project, Feasibility Study Technical
Report, Valley County, Idaho"
dated effective December 22, 2020 and
issued January 27, 2021 (the "2020
Feasibility Study"), which is summarized in the Company's Technical
Report Summary ( "TRS"), dated as of December 31, 2021, and amended as of June 6, 2022. Such information is as of
December 30, 2020 and is subject to
the assumptions, exclusions and qualifications set forth in the
2002 Feasibility Study and the TRS. In particular, we have not
updated our capital cost estimates since 2020, and these cost
estimates may increase materially due to inflation, competition or
other unforeseen challenges at the Project site. The 2020
Feasibility Study was prepared in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
and the TRS was prepared in accordance with the mining property
disclosure rules specified in Subpart 1300 promulgated by the SEC.
The 2020 Feasibility Study and TRS are intended to be read as
a whole and sections should not be read or relied upon out of
context.
View original
content:https://www.prnewswire.com/news-releases/perpetua-resources-announces-key-federal-decision-to-authorize-the-stibnite-gold-project-302239380.html
SOURCE Perpetua Resources Corp.