Mining Viability Hinges on Further Studies After Lode’s Maiden Resource

• Maiden Mineral Resource Estimate totals 1.57 million tonnes at 151 g/t silver equivalent
• Resource includes significant silver, zinc, lead, and copper grades
• Classification under JORC 2012 as Indicated and Inferred Resources
• High metallurgical recoveries demonstrated for key metals
• Mining assumptions suggest suitability for underground bulk mining

A Major Milestone for Lode Resources

Lode Resources (ASX – LDR) has taken a significant step forward with the release of its maiden Mineral Resource Estimate (MRE) for the Webbs Consol project, located in the historic New England Belt of northeastern New South Wales. The estimate quantifies a resource of 1.57 million tonnes grading 151 grams per tonne (g/t) silver equivalent (AgEq), encompassing a robust mix of silver, zinc, lead, and copper. This announcement marks a pivotal moment for the company, validating years of exploration and drilling efforts.

Geological and Metallurgical Highlights

The mineralisation at Webbs Consol is hosted within high-grade silver-zinc-lead sulphide pipes embedded in leucogranite, a geological setting that supports both the scale and quality of the deposit. The resource is classified under the JORC 2012 Code, with a substantial portion designated as Inferred and a meaningful segment as Indicated, reflecting confidence in the geological model and data quality.

Metallurgical testwork conducted by ALS Metallurgical Services has demonstrated excellent recoveries – 97.3% for silver, 98.7% for zinc, 94.7% for lead, 76.3% for copper, and 90.8% for gold. These results suggest that the metals can be efficiently extracted and sold, enhancing the project's economic prospects.

Mining Potential and Economic Considerations

Preliminary mining assumptions indicate that the deposit is amenable to underground bulk mining methods, such as sub-level stoping or sub-level caving. The break-even cut-off grade has been estimated at 140 g/t AgEq, based on current metal prices and industry-standard operating costs. This relatively low cut-off grade, combined with the high grades reported, points to potentially attractive mining economics.

Lode Resources’ Executive Director, Jason Beckton, emphasized the significance of this milestone, noting that the maiden MRE confirms the scale and quality of mineralisation associated with the Webbs Consol project. The company plans further drilling to extend and infill the resource, alongside advancing studies to refine mining and processing strategies.

Looking Ahead

The Webbs Consol project benefits from excellent access via sealed and unsealed roads and is situated in a region with a rich mining history. The resource remains open at depth and along strike, suggesting further upside potential. Ongoing exploration and drilling programs are expected to enhance the resource base and support future feasibility studies.

While no detailed mining or feasibility studies have yet been completed, this maiden resource estimate provides a solid foundation for Lode Resources to attract investment and advance the project towards development. The company’s methodical approach and strong technical data bode well for its next phases.

Bottom Line?

Lode Resources’ maiden resource at Webbs Consol sets a promising foundation, but the path to production will require further drilling and detailed feasibility work.

Questions in the middle?

• How will upcoming drilling campaigns impact the resource classification and size?
• What are the timelines and capital requirements for advancing to feasibility and development?
• How might fluctuating metal prices affect the project's economic viability?