United States Antimony Corp Releases Initial Assessment for Fostung Tungsten Project, Ontario

Executive Summary

United States Antimony Corporation (USAC), through its wholly owned subsidiary UAMY Cobalt Corporation, has published an Initial Assessment-level Technical Report Summary for the Fostung Tungsten Project in Ontario, Canada. Prepared by SRK Consulting (Canada) Inc., this SEC-compliant report offers a comprehensive update on project status, resources, exploration, and recommendations for future work.

Key Highlights for Investors

• Location and Ownership: The Fostung Project is located in Foster Township, Sudbury District, Ontario, approximately 8 km southeast of Espanola and 70 km west-southwest of Sudbury. It comprises 50 contiguous single-cell mining claims covering 1,110 hectares, hosting a skarn-type tungsten deposit with associated molybdenum, copper, and silver mineralisation. USAC acquired the project in June 2025 from Transition Metals Corporation and 1930153 Ontario Limited.
• Resource Estimate: The updated resource model (January 31, 2026) reports Inferred Mineral Resources of 14.7 million tonnes at 0.17% WO₃, containing 54,005,000 lbs of WO₃. The resource is reported within a conceptual pit shell at a cut-off grade of 0.08% WO₃, based on a price assumption of US\$500/mtu and 59% process recovery. There are no Measured or Indicated resources at this stage; all resources are classified as Inferred.
• Project Status: The project is at an intermediate-stage exploration with no mineral reserves and no economic analysis conducted. Historical and recent drilling (50 holes, 10,295 m total) underpin the resource estimate, but additional technical work is required for advancement to a Preliminary Economic Assessment (PEA).
• Technical and Data Risks: Shareholders should note material risks, including:
  • Sample location uncertainty due to limited verification of historical drill collars and sparse downhole survey data.
  • Vandalism of core storage has resulted in loss of valuable data from the 2021 drilling program.
  • Limited metallurgical testwork; current recovery assumptions (59% WO₃) are not yet supported by tests on Fostung samples.
  • Absence of duplicates and umpire samples in the analytical quality control programs, affecting assay reproducibility.
  • Tungsten pricing volatility and reliance on Ammonium Paratungstate (APT) price as a proxy for project economics.
• Permitting and Community Engagement: The project is governed under Ontario’s Mining Act. USAC has initiated discussions with First Nations with traditional ties to the project area, and representatives have visited the site.
• Market Outlook: Fastmarkets provided a tungsten market study, projecting APT prices in the range of US\$450–US\$500/mtu. Recent Chinese export restrictions have led to global shortages and price spikes, but Fastmarkets expects prices to stabilize around \$400/mtu as new Western projects come online.
• Recommended Work Program: SRK recommends a substantial technical program (~US\$4 million), including:
  • 8,000 meters of in-fill, step-out, and regional exploration drilling (including twinning 25% of historical holes to improve data confidence).
  • Expanded metallurgical testwork (sensor sorting, comminution, flotation, gravity recovery, impurity analyses).
  • Improved sampling protocols and analytical quality control (insertion of duplicates, umpire samples, and increased QA/QC frequency).
  • Geotechnical and hydrogeological studies, environmental baseline studies, updated resource modeling, and preparation of a PEA.

  The program aims to upgrade the resource classification, validate recovery and grade assumptions, and address technical risks.

• Potential Price Sensitivity:
  • The project is not yet at a stage of demonstrating economic viability, and no mineral reserves have been declared.
  • Any positive results from future drilling, metallurgical testing, or resource upgrades could significantly impact share value.
  • Conversely, confirmation of technical, metallurgical, or market risks could negatively affect investor sentiment.
  • Chinese export restrictions and tungsten market volatility continue to be relevant risks and opportunities for price movement.

Detailed Project Findings

• Geology: The deposit is a skarn-type tungsten system with associated molybdenum, copper, and silver. Mineralization occurs primarily in calcareous siltstone units, with exploration targets in basal limestone and potential buried plutonic sources.
• Exploration: Drilling completed between 1966–2021 is the basis for current resource estimates. Recent drilling and geophysical surveys (VTEM, TMI) have identified additional targets along strike, particularly to the southwest.
• Sample Preparation and QA/QC: Transition Metals’ 2021 program included standard QA/QC protocols, but the lack of duplicates and umpire assays is a notable deficiency. Future programs must improve core security and QA/QC practices.
• Metallurgical Testing: Historical testwork (Union Carbide, 1981) did not achieve saleable concentrate grades. Preliminary sensor sorting tests (Steinert, 2021) show potential, but additional work is required to validate recovery assumptions.
• Mineral Resource Statement:
  

  Category	Quantity (000 tonnes)	Grade WO3 (%)	Metal WO3 (000 lbs)
  Measured	–	–	–
  Indicated	–	–	–
  Inferred	14,707	0.17	54,005

  Note: Mineral Resources are not mineral reserves and do not have demonstrated economic viability.

• Sensitivity Analysis: The resource is highly sensitive to cut-off grade selection. At a cut-off of 0.09% WO₃, resource drops to 14.7 Mt at 0.17% WO₃. Higher grades greatly reduce tonnage.
• Capital and Operating Costs: No studies have been conducted, as the project is still at the exploration stage.
• Environmental and Permitting: No environmental studies or permit applications have been initiated yet.
• Adjacent Properties: There are no immediately adjacent exploration properties.

Implications for Shareholders

• The Fostung Tungsten Project represents a significant potential asset for USAC, with large inferred resources and exposure to a tightening tungsten market.
• However, substantial technical, data, and market risks remain. The project is not yet at an economically viable stage, and all resources are inferred.
• Share price may be sensitive to news about:
  • Successful completion of recommended drilling and metallurgical programs.
  • Resource upgrades to Indicated or Measured categories.
  • Demonstration of saleable concentrate grades and improved recovery.
  • Further developments in tungsten market supply/demand, especially Chinese export policies.
  • Permitting progress and community engagement outcomes.
• Investors should monitor progress on the US\$4 million technical work program and any results that could materially impact project economics or resource classification.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The information is based on an Initial Assessment Technical Report Summary and should be considered preliminary. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. United States Antimony Corporation and its subsidiaries have not yet demonstrated economic viability for the Fostung Tungsten Project and all resource estimates are classified as Inferred. The share price may be subject to significant volatility based on technical, market, and permitting developments.

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