Lode Resources reports robust high-grade antimony and silver drill results from its Montezuma and Magwood projects, alongside a strategic divestment of its Webbs Consol silver project to Rapid Critical Metals, strengthening its financial position.
- Strong high-grade antimony and silver drill intercepts at Montezuma and Magwood
- Initial assays reveal up to 31.1% antimony at Magwood and significant polymetallic mineralisation at Montezuma
- Binding agreement to divest Webbs Consol silver project for A$3.75 million plus shares and royalties
- Pro forma cash position expected to improve to A$4.58 million post-Webbs Consol sale
- Appointment of experienced mining executive Simon Milroy as Non-Executive Director
Robust Exploration Results Bolster Lode’s Antimony Portfolio
Lode Resources Ltd (ASX – LDR) has delivered a strong quarterly update for September 2025, highlighting significant progress at its flagship Montezuma Silver & Antimony Project in Tasmania and the Magwood Antimony Project in New South Wales. The company announced multiple high-grade drill intercepts confirming the presence of substantial antimony, silver, gold, and tin mineralisation, underpinning the potential for resource expansion in two critical metal projects.
At Montezuma, located in Tasmania’s renowned West Coast Mining Province, 18 drill holes have returned 62 mineralised intercepts with antimony equivalent grades reaching as high as 11.35% SbEq and silver equivalent grades up to 4,035 g/t AgEq. Notably, gold and tin assays, which are not included in the metal equivalent calculations, reached up to 3.62 g/t Au and 4.98% Sn respectively, highlighting the polymetallic nature of the deposit. The ongoing drill program, targeting 50 to 60 holes, aims to extend the mineralised structures both down dip and along strike, with the deposit remaining open in all directions.
Magwood Project Reveals Exceptional Antimony Grades
In New South Wales, inaugural drilling at the historic Magwood antimony mine has yielded impressive assay results, including intervals grading up to 31.1% antimony. These findings suggest significant unmined stibnite mineralisation remains, despite historical mining activity. The Magwood structure, traceable for 2.5km, offers a compelling exploration target in a region with limited recent drilling but a rich antimony mining heritage. Lode’s exploration efforts here are pioneering, with the project serving as a model for further discovery in the New England Fold Belt.
Strategic Divestment of Webbs Consol Silver Project
Complementing its exploration success, Lode executed a binding agreement to divest its Webbs Consol Silver Project in northeast New South Wales to Rapid Critical Metals Limited. The deal includes A$3.75 million in cash consideration; A$3 million payable upon completion in November 2025 and A$750,000 twelve months thereafter; along with 115 million Rapid shares subject to a 12-month escrow and a 2% net smelter royalty over the project. This transaction is expected to materially strengthen Lode’s balance sheet, with a pro forma cash position of approximately A$4.58 million post-completion, enabling continued investment in its core antimony projects.
Corporate and Market Context
Operating expenditure for the quarter was tightly managed at approximately A$301,000, with exploration and evaluation costs totaling A$1.317 million. The company ended the quarter with cash reserves of around A$1.6 million. Post-quarter, Lode appointed Simon Milroy, a seasoned mining executive with over 30 years’ experience including leadership roles at Atlantic Tin Ltd and Merdeka Copper Gold, as a Non-Executive Director. This addition strengthens the company’s governance and operational expertise as it advances its critical minerals projects amid a tightening global antimony market.
Antimony’s strategic importance has surged recently, driven by supply constraints and export restrictions from China, the world’s dominant producer. Prices have tripled in Western markets over the past year, underscoring the urgency for new, reliable sources. Lode’s Montezuma project is Tasmania’s only antimony project and benefits from existing beneficiation infrastructure, positioning it well to capitalize on these market dynamics.
Outlook
With ongoing drilling programs, metallurgical test work underway to better understand gold and tin recoveries, and a strengthened financial position following the Webbs Consol divestment, Lode Resources is strategically positioned to advance its portfolio of critical mineral assets. The company’s focus remains firmly on unlocking the value of its Montezuma and Magwood projects, which could become significant new sources of antimony and silver supply for Western markets.
Bottom Line?
Lode Resources is advancing rapidly in critical minerals exploration, but upcoming metallurgical results and shareholder approvals will be pivotal for its next growth phase.
Questions in the middle?
- How will further metallurgical testing impact the recoverability of gold and tin at Montezuma?
- What are the timelines and likelihood of shareholder approval for the Webbs Consol divestment?
- Can Lode expand the resource base significantly at Magwood given the historic selective mining and limited drilling?