Geopolitical risk sparks renewed interest in US domestic mining

ASX explorers are intensifying exploration efforts at silver, gold and lithium projects in Nevada as the US looks to boost local supply.

Pic: Getty Images

• Mining jurisdictions like Nevada are gaining increased exploration and investor attention 

• The region is renowned for its stable regulatory framework and proven history of mine development 

• ASX companies are scaling up activities to meet demand and reduce foreign control over critical mineral supply chains 

Local US mining jurisdictions such as Nevada are undergoing a ‘multi-commodity’ boom for resources such as gold, silver and lithium as the country continues its mission towards breaking China’s stranglehold on critical minerals.

The state currently accounts for nearly 80% of US gold output, is home to the only operating lithium mine in the US (Albermarle’s Silver Peak mine) and is officially known as the ‘Silver State’ – a nickname dating to 1859 when the metal was first discovered in the area.

It is home to major processing facilities, skilled labour and reliable energy sources, as well as a stable regulatory framework and proven history of mine development, which consistently ranks in the world’s top three mining jurisdictions.

Consequently, investors looking for high-quality, low-risk projects are increasingly turning to Nevada-based opportunities as both major mining corporations and junior exploration companies intensify their efforts in the state with strategic acquisitions or expanded exploration initiatives.

New gold acquisition

One example is recently established lithium explorer James Bay Minerals (ASX:JBY)who stuck another big feather in its cap last year with the acquisition of the Independence gold project in Nevada’s Battle Mountain region.

The 627-acre asset area features a non-JORC NI43-101 resource of 1.18Moz gold and 7.6Moz silver, including a high-grade component of 769,200oz gold at a grade of 6.53g/t that is open in all directions.

Evidence of the upside the company can pursue is clear from a near-surface drill hole outside the existing resource, which returned a tidy, high-grade assay of 24m grading 9.1g/t gold and 25.2g/t silver.

Exploration and drilling to upgrade the resource classification of the inferred resource kicked off within months of the acquisition with a 2000m combined RC and drilling program.

Results so far have confirmed gold is present outside the non-JORC resource area with assays returning 18.3m at 1g/t gold from 36.6m.

Other planned initiatives include upgrading the completing preliminary Economic Assessment to include the updated resource once that has been released and progress permitting for a starter heap leach operation.

The largest early-stage project on the ASX

In the silver space, Sun Silver (ASX:SS1)is fast-tracking development of the Maverick springs silver project by starting environmental assessments and regulatory compliance surveys early.

As well as providing critical data to support regulatory approvals, the surveys will help minimise project risks and improve operational efficiency. Sun Silver was one of the most successful IPOs of 2024 after raising the maximum $13m over several days, which resulted in a 170% share price surge during its first month on the bourse.

Maverick Springs represents the largest early-stage silver development project on the ASX or TSX with a resource of 423Moz at 67.25g/t silver equivalent or 253Moz at 40.25g/t silver.

It is 85km from the fully serviced mining town of Elton and is surrounded by world-class gold and silver mining operations such as Barrick's Carlin mine, host to proven reserves of 4.1Mt grading 1.66g/t gold.

A 7500m inaugural drilling campaign delivered multiple, thick, high-grade extensional hits outside the resource with plans for 2025 including building on the impressive results.

The ‘Silicon Valley’ of lithium

In 2023, the US Department of Energy funded several projects to help Nevada achieve its goal of becoming the ‘Silicon Valley’ of lithium with more than 17,000 prospecting claims in place for the battery metal.

The region is also gaining prominence amongst startups with Silicon Valley company Lyten announcing plans to build a lithium-sulphur battery factory in Reno to make electric vehicles accessible to a wider market.

ASX explorer Future Battery Minerals (ASX:FBM)had been jumping from strength to strength at the Nevada project after confirming the enormous scale of the asset in 2023 and slapping a 1.5bt resource at 783ppm lithium for 6.2Mt LCE on the project shortly thereafter.

Despite its strategic location, only 45km to the west of Albermarle’s Silver Peak lithium mine, and impressive tenor, the company started evaluating a range of commercialisation options in October last year.

FBM eventually sold its 80% interest to Austroid Corporation for $4m in cash to focus on its lithium assets in WA’s Goldfields region but other ASX explorers with lithium exposure such as Red Mountain Mining (ASX:RMX) and West Cobar Metals (ASX:WC1) are still in the region.

At Stockhead we tell it like it is. While James Bay Minerals, Sun Silver and Future Battery Minerals are Stockhead advertisers, they did not sponsor this article.

Originally published as Geopolitical risk sparks renewed interest in US domestic mining