Perpetua Resources Receives US Forest Service Approval For Stibnite Gold Project After 8 Year Process
Perpetua Resources (TSX: PPTA) has finally received federal approval for its Stibnite Gold Project in Idaho. The approval comes from the United States Forest Service, who authorized the mine plan for the project via a Final Record of Decision.
With the approval in hand, which took eight years to obtain, the company will now move towards advancing the project to a construction decision, which includes finalizing the remaining federal and state permits and securing financing for the project.
The Stibnite Gold project, if put into operation, is expected to produce 450,000 million ounces of gold annually for the first four years of mine life, via an open pit operation. Over a fifteen year mine life the mine is expected to recover a total of 4.3 million ounces of gold at an average rate of 301,000 ounces a year, along with 118 million pounds of antimony based on 2020 feasibility study.
Antimony has become a critical aspect of the project, with the 148 million pound antimony reserve being the only identified reserve of antimony within the United States. The mine is expected to provide roughly 35% of annual demand within the first six years of operation.
The other angle of the project is that the mine, once in production, will also serve as an environmental restoration project for the historic mine that exists on site that was previously abandoned. The current mine plan calls for the removal of legacy tailings and waste, while restoring miles of river habitat that have been blocked for eight decades.
“This approval elevates the Stibnite Gold Project to an elite class of projects in America that have cleared NEPA. The Stibnite Gold Project can deliver decisive wins for our communities, the environment, the economy, and our national security,” commented Jon Cherry, CEO of Perpetua.
Perpetua began the process of receiving approval under the National Environmental Policy Act in 2016. A construction decision on the project is expected to be made later this year, with commercial operations expected to commence in 2028.
Perpetua Resources last traded at $15.96 on the TSX.
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