Madison Metals (CSE:GREN,OTCQB:MMTLF) has entered into binding letters of intent to acquire the Howells Lake antimony-gold project, a 13,990 hectare property in Ontario’s Thunder Bay area.
A historic resource estimate suggests that the site contains approximately 1.7 million metric tons at 1.7 percent antimony, representing around 51 million pounds of contained antimony.
Chairman and CEO Duane Parnham underscored the project’s strategic importance in a company release.
“The Howells Lake Project has enormous potential to have real economic significance, and Madison is seizing this rare opportunity to discover new areas of antimony-gold mineralization as well as define the known areas of antimony and gold mineralization on this very large, underexplored land position,” he said on Monday (December 2).
Parnham also spoke about antimony’s strong supply/demand fundamentals, saying it has tripled in price this year largely due to China’s export restrictions. The metal is currently trading above US$16 per pound.
Antimony is considered critical in various industries, including defense, electronics and renewable energy technologies.
Howells Lake has a diverse geological profile, with antimony and gold mineralization identified from surface levels to depths of 150 meters. It is located in what Madison is calling a ‘Hemlo Gold Camp setting.’
Exploration activity in the region peaked during the 1970s and 1980s, with over US$2 million invested in drilling and geophysical surveys. Mineralization remains open for expansion both laterally and at depth.
Madison has made acquisition agreements with three separate vendors for Howells Lake. The company intends to commence exploration activities aimed at delineating resources and expanding known mineralized zones.
No significant work has occurred on the property for over four decades, leaving much of its potential untapped.
Madison has brought on Bruce Durham as a technical advisor and lead manager for Howells Lake. Durham, a veteran in mineral exploration, will guide the company’s efforts to advance the site.
Antimony’s role as a critical mineral has grown in recent years. It is vital for applications ranging from fire retardants and semiconductors to defense technologies. It also plays a role in the production of solar panels and high-tech screens.
Despite its importance, global supply faces challenges. China, which accounted for nearly half of global antimony production in 2023, implemented export restrictions earlier this year.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
