What's Happening?
The Department of Defense has allocated $6.2 million to Guardian Metal Resources' subsidiary, Golden Metal Resources, to advance the Pilot Mountain tungsten project in Nevada. This funding will support a pre-feasibility study for the project, which is located southeast of Hawthorne. Guardian Metal Resources is the only U.S.-based company to receive such an award for tungsten assets, and it is also working on another project in Nevada, the Tempiute. The tungsten market, valued at approximately $5 billion in 2023, is crucial for defense applications, particularly in the production of high-density, armor-piercing projectiles. The U.S. ceased tungsten production in 2015 due to low prices and competition from China, which currently dominates global production. The Pilot Mountain project is significant as it holds the largest tungsten deposit in the U.S., and Guardian Metals is strategically positioned to lead reshoring efforts for tungsten production in the country.
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Why It's Important?
This development is significant for U.S. national security and economic independence, as tungsten is a critical mineral for defense applications. The funding from the Department of Defense underscores the strategic importance of domestic tungsten production, reducing reliance on foreign sources, particularly China, which controls over 80% of global production. The project aligns with broader U.S. efforts to secure supply chains for critical minerals and enhance domestic production capabilities. Successful development of the Pilot Mountain project could bolster the U.S. defense industry and create economic opportunities in Nevada, potentially leading to job creation and increased local investment.
What's Next?
Guardian Metal Resources plans to continue de-risking its assets in Nevada and move towards production. The company is working on expanding its mineral resource estimate and has completed drilling to support an updated resource for the pre-feasibility study. Additionally, Guardian Metals has acquired new mining claims in the Walker Lane Mineral Belt to form the Pilot North tungsten project. The company is also experiencing favorable conditions for permitting under the current administration, which is keen on fast-tracking defense metal projects. This could accelerate the timeline for bringing the Pilot Mountain project into production, providing a domestic source of tungsten for the U.S. market.
