Global antimony markets are experiencing heightened demand and tightening supply, creating an opportune environment for new producers.
Larvotto Resources managing director Ron Heeks believes his company is well-positioned to capitalise on this dynamic with its Hillgrove project in New South Wales.
“Hillgrove will supply seven per cent of the world’s antimony by this time next year,” Heeks said. “All things being equal, it is the largest resource and reserve in Australia and the eighth-largest in the world.”
Heeks said the company has $200 million worth of capital in place, including 15km of underground development and a established processing plant.
Antimony is a critical mineral used in flame retardants, batteries, and other industrial applications.
Global antimony supply has been constrained in recent years due to mine closures and limited exploration, leading to rising prices and an increased focus on antimony’s strategic importance.
Heeks observed the buoyant market first-hand during a recent meeting with offtakers.
“I was sitting with our offtakers last week, and they were selling antimony at over $50,000 while we were having lunch,” he said.
“It’s a very strong market, with record prices in commodities, so there really is no better time to bring on a gold-antimony project.”
Larvotto acquired Hillgrove 14 months ago with the intention of developing both gold and antimony production.
The company plans to double the plant’s capacity from 250,000 tonnes per annum to 500,000 tonnes at a cost of approximately $30 million, with much of the necessary infrastructure already in place.
“We were pretty positive about the upside on gold and also antimony, but it’s fair to say that both have exceeded our expectations,” Heeks said.
The company has signed an offtake agreement with Wogen, the world’s largest antimony trader, to ensure stable sales and financing support.
“That put money into the bank and associated us with the world’s leading offtake experts,” Heeks said. “We look forward to getting the best prices and we are in a pretty strong financial position to move the project forward.”
With about $40 million in the bank and a low capital requirement of $75 million to bring Hillgrove into production, Larvotto is in a strong financial position.
Hillgrove’s production strategy is underpinned by high-grade reserves and a processing plant that is ready for expanded operations.
The broader exploration potential of the Hillgrove project also adds to its appeal. The current reserve is 600,000 ounces of gold, with a resource of 1.7 million ounces at 7 grams per tonne (g/t) gold equivalent.
Recent exploration results have revealed further upside, with a best hit of 31 m at 20g/t.
“Our exploration target is about another million ounces at about 8g/t equivalent, and that sits directly below the current resources and reserves,” Heeks said.
Larvotto expects to release its definitive feasibility study (DFS) in the first quarter and secure financing by mid-year.
The company plans to begin underground mining and stockpile ore during the four-to-five-month plant expansion.
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