U.S. ANTIMONY CORPORATION
JOHN LAWRENCE, CEO
RS – NOVEMBER, 2012
USAC CORPORATE OVERVIEW
• USAC is a rapidly growing natural resource company
that is making a concerted effort to increase its raw
material supply from Mexican operations by new
mining, additional milling and smelting capacity, and
third party raw material feeds.
USAC CORPORATE OFFICES AND PLANT
• USAC is strategically postured as a major player in the
antimony market as a fully integrated producer from
mine to finished product. World resources of antimony
are diminishing and demand is increasing.
47 Cox Gulch Road
Thompson Falls, MT 59873
Phone: 406-827-3523
Fax: 406-827-3543
Email: tfl3543@blackfoot.net
www.usantimony.com
www.bearriverzeolite.com
• USAC operates smelters in Thompson Falls, Montana and at Madero, Coahuila, Mexico, a
gravity- and flotation mill in Guanajuato, Mexico, a mine at Los Juarez, Queretaro, Mexico,
and a zeolite operation at Preston, Idaho. The Company is the only significant domestic
producer of antimony products.
RS – NOVEMBER, 2012
2
• USAC is now operating the Puerto Blanco gravity-flotation mill in Guanajuato, Mexico
20 hours per day on third party antimony mine feed. Preliminary testing has been done on the
Los Juarez antimony-silver-gold and negotiations are underway to sell the silver and gold.
Production is anticipated later in Q4 2012.
• USAC, with the exception of the natural gas pipeline and installation of a 500 ton per day
(tpd) mill, will have finished the major CAPEX projects during Q4 2012. This includes
completing the Puerto Blanco mill and doubling of the smelter capacity at Madero.
• USAC became listed on the
NYSE MKT under the symbol
“UAMY” on May 7, 2012
• USAC combined revenues
through 3Q 2012 were
$8,681,271
RS – NOVEMBER, 2012
3
ANTIMONY BACKGROUND
Source
WORLD PRODUCTION AND MINE RESERVES
2011 IN METRIC TONS OF METAL
(U. S. Geological Survey, Mineral Industrial
Survey, Fourth Quarter 2011)
Other
Countries
World total
Mine production 2011
5,000
150,000
3,000
3,000
2,000
Mine reserves
310,000
950,000
350,000
21,000
50,000
6,000
150,000
169,000
1,800,000
EXPERIENCE AND PROPRIETARY TECHNOLOGY AND EQUIPMENT
USAC has proven experience in underground and open pit mining, flotation and gravimetric
milling, crushing and screening, dry grinding, cyanide leaching, precious metal refining,
pyro-metallurgy, and marketing. The Company has developed proprietary technology to smelt
a variety of raw materials and remove impurities such as lead, arsenic, bismuth, mercury,
selenium, silver, and gold.
MEXICAN ANTIMONY DEPOSITS
Most of the Mexican antimony deposits are oxide ores or mixed oxide sulfide deposits. The
oxides, primarily the mineral senarmontite, are recoverable by gravimetric methods, typically
jigs and tables. The sulfide ores, typically the mineral stibnite, are recoverable by flotation.
During World War II, the United States had relied on Mexico for antimony. Historically,
Mexico was at one point the second largest producer of antimony in the world.
RS – NOVEMBER, 2012
4
INVENTORY
USAC has accumulated large inventories of raw materials at Madero, Puerto Blanco, and the
Los Juarez property and is now planning to process and sell as much inventory as possible
before the end of 2012.
STRATEGIC METAL
Antimony is considered a “strategic metal” and wartime applications include antimony oxide
used as a flame retardant in plastics and textiles for vehicles and aircraft, antimony metal
used in storage batteries and in ordnance to harden lead.
USES OF ANTIMONY
RS – NOVEMBER, 2012
USES
PERCENTAGE
Flame retardants
36
Transportation including
batteries
23
Chemicals
16
Ceramics and glass
12
Others
13
5
PRICING
Pricing of the metal is generally based on the London Metal Exchange average price C.I.F.
Rotterdam per metric ton (a metric ton contains 2,204.6 pounds). Antimony oxide contains
83.1% antimony metal and it is typically the preferred product for pricing.
RS – NOVEMBER, 2012
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2001
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2002
TWELVE YEAR AVEAGE ANNUAL ANTIMONY
METAL PRICE
CIF U.S.A. PER METRIC TON
YEAR
USD
AVG/lb
2001
1,286
$0.583
2002
1,950
$0.885
2003
2,405
$1.091
2004
2,907
$1.319
2005
3,808
$1.727
2006
5,727
$2.598
2007
5,985
$2.715
2008
6,346
$2.879
2009
5,459
$2.476
2010
9,495
$4.307
2011
16,360
$7.421
2012
13,000
$5.897
6
USAC ANTIMONY DIVISION
USAC has shipped 1,253,248 lbs of
antimony through 3Q 2012 resulting in
$6,678,725 revenues.
RS – NOVEMBER, 2012
7
MINING
LOS JUAREZ PROPERTY, QUERETARO, MEXICO
At the Los Juarez property in Queretaro, Mexico,
USAC relied on a Mexican Government
publication, Consejo de Recursos Minerales,
Monografia Geologico-Minera del Estado de
Querearo, pages74-75. The paper reported a
reserve of 1,000,000 metric tons containing 253
grams per ton silver and 1.8% antimony. The
deposit was interpreted as a manto (layered)
deposit up to 5 meters thick. Although USAC used
the report to start mining, it was disallowed by
the S.E.C. as a basis for reserves.
Los Juarez mine face, "Minas Grande West“,
is one of five faces, Los Juarez, Queretaro, Mexico.
Preliminary progress includes surface mapping, analytic procedures, property acquisition,
permitting, mining procedures, trucking negotiations, mill preparations, mill feed grade
determinations, mill recovery, and smelting considerations.
Detailed mapping and sampling delineated jasperoid mineralization over an east-west strike
length of 3.5 kilometers with a maximum width of 1 kilometer. In all cases, the silver and gold
mineralization is associated with antimony. Preliminary exploration indicates that this could be
a deep-seated jasperoid.
RS – NOVEMBER, 2012
8
Drilling and blasting is establishing faces in the
jasperoids. Truckload samples have assayed
approximately 2% antimony, 8 ounces of silver
and 0.015 ounces of gold per ton. Presently, the
Company has more than 8,000 tons of mill feed
from Los Juarez.
New paved road to Los Juarez,
partially completed entire distance.
The antimony, silver, and gold are recoverable by flotation methods. The concentrate grade
will be improved by depressing carbonaceous material in the feed.
RS – NOVEMBER, 2012
9
Preliminary smelting has indicated good recovery and an excellent product grade.
An initial mill trial of 250 tons of dump rock from Los Juarez has been completed. The dump
rock was badly diluted with soil from the mine and mud from the mill yard. The results were as
follows:
Item
Range of head
assays
Range of tail
assays
RS – NOVEMBER, 2012
Antimony
0.47-1.12%
0.14-0.51%
Range of
concentrate assays
32.5-44.4%
Average grade of
concentrates
38.6%
Silver
3.26-6.38 ounces
per metric ton
0.47-3.33 ounces
per metric ton
270.8-306.86
ounces per metric
ton
288.9 ounces
per metric ton
Gold
0.006-0.057 ounces
per metric ton
0.018-0.077 ounces
per metric ton
0.46-0.6 ounces
per metric ton
0.548 ounces
per metric ton
10
MILLING
PUERTO BLANCO MILL,
GUANAJUATO, MEXICO
The crushing circuit is run one
shift to operate the mill for
three shifts. It also includes a
large pre-crusher for oversize
rock from the Los Juarez
deposit.
Currently, the combination flotation-gravity mill has a capacity of 150 metric tpd.
RS – NOVEMBER, 2012
11
Pre-crusher circuit Puerto Blanco mill
Vertical shaft impactor (VSI) Puerto Blanco mill
RS – NOVEMBER, 2012
Cone crusher, Puerto Blanco mill
Conveyors at crusher, Puerto Blanco mill
12
Ball mill Puerto Blanco mill
Puerto Blanco mill flotation cell
A straight oxide circuit is nearing completion that
will have a capacity of 75-100 tpd that can be run
simultaneously with the flotation-gravity circuit.
The permitting and installation of a 500 metric
ton per day mill owned by the Company is
planned for next year. This mill will be dedicated
to Los Juarez and will utilize the present crushing
circuit that is in place.
Currently mill feed is from four satellite mines
and from the Los Juarez deposit.
RS – NOVEMBER, 2012
Concentrating table, Puerto Blanco flotation-gravity
circuit, showing recovery of oxide (yellow) minerals.
13
The Company had mined a property in the late
1980s known as “Sierra Guadalupe” in the State
of Zacatecas. To our knowledge, there were no
documented reports of on the geology,
reserves, or production. Currently, the property
is being mined by a third party who is delivering
2.5 to 5% mill feed at a rate of up to 1,000 tpm.
They can produce up to 3,000 tpm when
underground operations are resumed. USAC
claims no reserves at this property.
Puerto Blanco mill, Guanajuato, Mexico showing lined
tailings pond
USAC is sourcing mill feed and Direct Shipping Ore (DSO) for Madero from the Soyatal
District in the State of Queretaro, Mexico. The deposit was the third largest producer in
Mexico.
Donald E. White (U. S. Geological Survey Bulletin 960-B, Antimony Deposits of Soyatal District,
State of Queretaro, Mexico, 1948) prepared an extensive report and said that
the production (p. 40) was estimated through 1943 at 25,630 metric tons of metal contained.
USAC has an option to buy this property but claims no reserves.
RS – NOVEMBER, 2012
14
SOURCE OF ANTIMONY
2008
2009
2010
2011
2012 YTD
Thompson Falls Smelter Pounds of
Antimony Contained
1,142,681
908,144
1,364,485
1,179,973
739,909
Madero Smelter Pounds of
Antimony Contained
n/a
66,212
59,152
221,450
242,441
Total Pounds of Antimony
Gross Revenues
Gross Profit
1,142,681
$3706,240
$442,848
974,356
$2,567,107
$505,582
1,423,637
$6,174,062
$903,560
1,401,423
$10,406,636
$1,556,013
982,351
$6,678,725
$300,097
RS – NOVEMBER, 2012
15
SMELTING
THOMPSON FALLS SMELTER, MONTANA
The Thompson Falls smelter produces antimony
oxide, metal, and antimony tri-sulfide from
sources around the world including the Madero
smelter in Mexico.
Aerial view of Antimony, Silver and Gold Smelter
RS – NOVEMBER, 2012
Using antimony metal as a feed, the plant is
capable of producing 12,000,000 ppy (pounds
per year) of finished oxide.
16
MADERO SMELTER, COAHUILA, MEXICO
USAC is in the process of doubling the smelter
capacity with the goal of completion by the end of
2012. The capacity to produce will depend on the
grade of the feed.
Madero Smelter, Coahuila, Mexico
With low grade 20-25% feed, the furnaces will
produce 2,000 to 3,000 pounds per day (ppd) of
contained antimony metal. With high-grade feed,
such as flotation concentrates, the plant will
produce 8,000 to 10,000 ppd of contained
antimony metal. More furnaces will be added in
the future if supported by market conditions.
Smelter feed is being provided by several satellite mines and also by the USAC flotation-gravity
mill at Puerto Blanco.
USAC is also sourcing direct shipping ore (DSO) from the San Jose Mines near Wadley, San Luis
Potosi, Mexico. The U. S. Geological Survey Bulletin 946-E, San Jose Antimony Mines Near
Wadley, State of San Luis Potosi, Mexico, 1946, Donald E. White and Jenaro Gonzales R.
prepared an extensive report and said the production through 1943 was 57,612 metric tons of
metal contained. USAC claims no reserves at this property.
A natural gas pipeline is being installed that is intended to reduce current fuel costs by 78%.
Fuel costs are second only to raw materials.
RS – NOVEMBER, 2012
17
SILVER AND GOLD
SOURCES
Silver and gold is shipped from the Thompson Falls plant from resources in Canada and
Europe.
PRODUCTION
Later this year our silver and gold production will begin on a much larger scale from the Los
Juarez deposit in Mexico.
PAYMENT
We are expecting a 92%-94% payment for new
precious metal (PM) production.
COSTS
The Company expects costs for PM will be
minimal to include transportation and in some
cases casting. Most of the historic production,
that will continue, involves no cost.
RS – NOVEMBER, 2012
SILVER / GOLD
2009
2010
2011
Ounces Gold
Shipped
31.797
Ounces Silver
Shipped
6870.10 31545.22 17,472.99 16.370.15
102.127 161.711
2012 YTD
72.609
18
ZEOLITE OPERATIONS
BEAR RIVER ZEOLITE
(BRZ™)www.bearriverzeolite.com
BACKGROUND.
At the Bear River Zeolite (BRZ™) operation, near
Preston, Idaho, USAC began mining based on
representations by George Desborough (deceased)
of the U. S. Geological Survey.
The zeolite is regarded as one of the best zeolites
due to its high cation exchange capacity,
low sodium content, hardness, and
uniformity.
BRZ plant, Preston, Idaho.
BRZ™ has shipped 9,313 tons of zeolite
through 3Q 2012 resulting in $2,002,546
revenues and a gross profit of $126,238.
RS – NOVEMBER, 2012
19
MINING
Mining is performed on open cut benches using an
air track for drilling and blasting, loading with a
Caterpillar 988 or excavator, and hauling with Cat
769 trucks.
BRZ™ open pit loading zeolite.
PROCESSING PLANT
The plant includes a conventional closed-circuit
primary crusher, rotary dryers, tertiary crushing,
high-frequency three-deck screens, a 6058
Raymond roller mill, blending equipment, and semiautomatic bagging equipment. The plant capacity is
dependent on product sizes and blending but varies
from 300 to 500 tpd.
Raymond roller mill, BRZ™ plant, Preston, Idaho.
RS – NOVEMBER, 2012
20
USES
The products are sold in the United States and throughout the world. Markets include water
filtration, soil amendments, animal nutrition, waste-water treatment, odor control, hydrogen
sulfide gas control, nuclear remediation, pozzolan, plastic fillers, grout, ammonia control in
underground mining operations, heavy metal and ammonia removal from water, remediation
of produced water from oil and gas wells, mine remediation, and many others.
Zeolite Production
2008
2009
2010
2011
2012 YTD
Tons Shipped
12,109
11,519
15,319
12,105
9,313
Average Price per Ton
$131.79
$133.37
$157.71
$168.83
$215.03
Gross Revenues
$1,570,747
$1,536,233
$2,415,955
$2,043,641
$2,002,546
Gross Profit
($185,981)
$16,882
$470,172
$118,185
$126,238
RS – NOVEMBER, 2012
21
USAC MANAGEMENT TEAM
USAC BOARD OF DIRECTORS
Gary Babbitt (Boise, Idaho)
John C. Lawrence (Thompson Falls, MT.)
Russell C. Lawrence (Deary, ID)
Hart W. Baits (Missoula, MT)
Whitney H. Ferer (Omaha, Nebraska)
Bernard J.Guarnera (Denver, Colorado)
CORPORATE OFFICERS
John Lawrence: President and CEO
Matt Keane: Director Sales
Alicia Hill; Secretary
Dan Parks: CFO
Russell C. Lawrence: Director Latin America
John C. Gustavsen: Executive Vice President
CORPORATE COUNSEL
Paul Boyd, Stoel Rives, LLP (Boise, ID.)
AUDITORS
Decoria, Maichel, & Teague (Spokane, WA.)
ANTIMONY, THOMPSON FALLS, MT.
Marilyn Sink: Plant Manager
Lance Sink; Assistant Manager
Matt Keane: Director Sales
Tony Lyght: Maintenance Foreman
ZEOLITE,PRESTON,IDAHO
Angie Bengtson: Office Manager, Quality Control,
Safety Engineer
Penny Avery: Assistant Office Manager
Gerardo Sanchez: Plant Manager
Dave Cole: Mine Manager
MEXICO OPERATIONS
Russell C. Lawrence: Director
Jose Jesus Heriberto Torres Montes: Superintendent
Ricardo Martinez Aguilera: Chief Metallurgist
Rafael Morales Rivera: Flotation Mill Metallurgist
Reynaldo Angles: Mine Manager Los Juarez
TRANSFER AGENT
Columbia Stock Transfer Company (Post Falls, ID)
RS – NOVEMBER, 2012
22
UNITED STATES ANTIMONY CORPORATION
PO Box 643
Thompson Falls, Montana 59873
Phone: 406-827-3523 Fax: 406-827-3543
email: tfl3543@black.net
NYSE: “UAMY”
www.usantimony.com and www.bearriverzeolite.com
Reclaimed tailings pond Thompson Falls, Montana
USAC is environmentally conscientious
RS – NOVEMBER, 2012
23
Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future
events, including matters relating to the Company’s operations, pending contracts and future revenues. Although the Company believes
that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, USAC
can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue
reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other
factors that could cause actual results to differ materialy are discussed in the Company’s most recent filings, including Form 10-KSB as filed
with the Securities and Exchange Commission.
RS – NOVEMBER, 2012
24