Lode Resources has confirmed a high-grade 8.2 million ounce silver-equivalent resource at Montezuma, accelerated exploration with two new discoveries in Tasmania, and secured $4.5 million to fund its next growth phase.
- Maiden JORC resource of 8.2Moz AgEq at Montezuma
- Tasmanian exploration footprint nearly doubles to 250 km²
- Two new high-grade prospects: Silver Hills and Blocks East
- Drilling underway at New England Antimony and Uralla Gold projects
- $4.5 million capital raise to fund PFS and exploration
Montezuma Delivers High-Grade Resource Milestone
Lode Resources Ltd (ASX:LDR) has taken a major step forward at its flagship Montezuma Silver–Antimony Project in Tasmania, announcing a maiden JORC (2012) Mineral Resource Estimate (MRE) that confirms a high-grade, polymetallic system with significant underground mining potential. The resource totals 480,000 tonnes at 533 grams per tonne silver equivalent (AgEq), equating to 8.2 million ounces AgEq, with 65% classified as Indicated. This robust grade profile is reported at a 200 g/t AgEq cut-off, underscoring the project's value.
Drilling results during the March quarter extended mineralisation to 270 metres depth and 270 metres strike, with standout intercepts including 1.7 metres at 1,220 g/t AgEq and 10 metres at 302 g/t AgEq. The system remains open in all directions, and ongoing drilling will focus on infill and resource extension to support a Pre-Feasibility Study (PFS) targeted for completion by end-2026. Metallurgical testwork has shown strong recoveries for antimony, silver, lead, and copper, with further tests underway to include gold and tin recoveries.
This milestone resource announcement builds on recent drilling success that extended mineralisation deeper at Montezuma, as detailed in the company’s earlier extended mineralisation to 270m depth update. The deposit’s polymetallic nature, with silver and antimony as dominant metals, is complemented by gold, lead, copper, and tin, offering multiple potential value drivers.
Tasmanian Expansion Uncovers Two High-Grade Prospects
Lode Resources has nearly doubled its Tasmanian exploration footprint from 155 km² to 250 km² through the formal transfer and granting of two exploration licences (EL2/2020 and EL6/2025). This expansion has already yielded two new high-grade discoveries, Silver Hills and Blocks East, both showing exceptional early-stage results.
The Silver Hills Project, surrounding the historic Mt Bischoff Mine near Waratah, returned grab samples from waste dumps with up to 9,370 g/t silver, 8.48% antimony, and 16.05% lead. Notably, reconnaissance sampling at the North Valley prospect within Silver Hills identified tin grades up to 3.64%, potentially augmenting Lode’s Granville Tin Project. These findings align with the company’s strategy to build a critical minerals pipeline in Tasmania, consistent with the high-grade tin assays at Silver Hills discovery.
At Blocks East, located 2.4 km north of Montezuma, grab samples from historical waste dumps returned up to 5,650 g/t silver, 8.04% antimony, and 8.42% copper. The prospect extends over 400 metres of strike with multiple historical workings, and drilling approvals have been submitted. Blocks East is Lode’s fourth high-grade silver-antimony prospect in Tasmania, reinforcing the district-scale potential of its landholding.
Active Drilling Programs in NSW Target Antimony and Gold
In New South Wales, Lode has commenced an 18-hole drill program at the Rock Abbey Prospect within the New England Antimony Project. Surface mapping and sampling have defined antimony mineralisation extending over 750 metres of strike, with grab samples returning up to 37.7% antimony and associated gold values up to 0.54 g/t. Rock Abbey has never been drilled before, and its mineralisation style bears similarities to the nearby Magwood Mine, Australia’s historic primary antimony producer.
Additionally, a 29-hole drill program targeting intrusive-related gold mineralisation at the Uralla Gold Project was completed after the quarter. This program aims to follow up and extend previously defined lodes across approximately 300 km² of tenure. Prior drilling at Uralla has reported significant intercepts, including 26 metres at 2.80 g/t gold and 18 metres at 3.51 g/t gold, indicating promising potential for an Intrusive Related Gold System.
Leadership Changes and Capital Raise to Accelerate Growth
To support its accelerated development and exploration agenda, Lode appointed Keith Mayes as Managing Director, focusing on advancing Montezuma toward development milestones. Co-founder Ted Leschke transitioned to Executive Director – Exploration to concentrate on expanding the company’s exploration pipeline. These leadership shifts aim to enhance operational execution across the portfolio.
Following the quarter, Lode successfully raised $4.5 million through a placement to institutional and sophisticated investors at $0.13 per share, representing a 16.1% discount to the last closing price. Director participation further aligns management with shareholders. The capital will fund the Montezuma PFS and exploration programs across Tasmania and New South Wales, bolstering the company's financial position beyond the quarter-end cash balance of $1.66 million.
This capital raising builds on the company’s recent $4.5 million placement for Montezuma PFS, providing the necessary runway to progress key value inflections.
Exploration Pipeline and Regional Context
Lode’s portfolio spans over 3,200 km² across Tasmania and New South Wales, including the Granville Tin Project with planned drilling and geophysical surveys to test extensions beneath the Granville East open pit. The company’s Tasmanian tenure is strategically surrounded by established mining centres such as Rosebery, Hercules, Renison Bell, and Mt Lyell, placing Lode in a highly prospective and historically prolific mining province.
Exploration efforts are aligned with the Tasmanian Government’s Critical Minerals Strategy, positioning Lode to capitalise on increasing demand for strategic metals like antimony and tin. The company’s polymetallic approach, combining silver, antimony, tin, gold, lead, and copper, offers multiple avenues for value creation as metallurgical testwork progresses.
Bottom Line?
Lode Resources’ maiden Montezuma resource and Tasmanian expansion mark a pivotal phase, but upcoming drilling results and PFS developments will be critical to validate growth potential and underpin project economics.
Questions in the middle?
- Will ongoing drilling at Montezuma extend the high-grade resource beyond current limits?
- How will metallurgical testwork incorporating gold and tin impact the overall project value?
- Can the new discoveries at Silver Hills and Blocks East translate into scalable resources?