Lode Resources (ASX:LDR) delivered a maiden JORC Mineral Resource Estimate at Montezuma, revealing 8.2Moz AgEq of high-grade silver-antimony, alongside a new silver-zinc mineralisation system that broadens exploration potential.
- Maiden JORC resource at Montezuma: 8.2Moz AgEq at 533g/t AgEq
- New silver-zinc mineralisation discovered adjacent to Montezuma lode
- High-grade tin discovered at Silver Hills Project in Tasmania
- Strong antimony intercepts and soil anomalies at New England Project
- $4.5 million capital raise to fund Montezuma PFS and exploration
Montezuma’s Maiden JORC Resource Establishes High-Grade Base
Lode Resources (ASX:LDR) marked a major milestone with the release of its maiden JORC (2012) Mineral Resource Estimate (MRE) for the Montezuma Silver & Antimony Project in Tasmania’s West Coast Mining Province. The estimate outlines a high-grade silver-antimony system, boasting 480,000 tonnes at 533g/t silver equivalent (AgEq), translating to 8.2 million ounces of AgEq. Notably, 65% of this resource is classified as Indicated, underpinning its development potential.
Reported at a 200g/t AgEq cut-off, the resource underscores Montezuma’s robust underground mining prospects. This is further supported by flotation test-work showing strong recoveries for silver, antimony, copper, and lead, a promising sign for processing economics and forthcoming development studies.
Discovery of Silver-Zinc System Opens New Exploration Front
Adding a fresh dimension to Montezuma’s promise, drilling intercepted a previously unrecognised silver-zinc mineralisation system adjacent to the existing resource. Drill hole MZS42 returned 6.4 metres at 6.2% zinc, 1.5% lead, 43g/t silver, and 0.1g/t gold. This replacement-style mineralisation is comparable to world-class Tasmanian mines like Rosebery and Hercules and introduces a new target zone alongside the Montezuma fault lode.
Crucially, ongoing drilling from the eastern hanging wall side is designed to test both the established silver-antimony lode and this new silver-zinc system within single drill holes, enhancing the efficiency and potential scale of resource expansion.
Silver Hills Project Yields High-Grade Tin Assays
In Tasmania’s Silver Hills Project, Lode’s newly acquired ground delivered encouraging initial results. Reconnaissance sampling at the North Valley prospect identified high-grade tin assays up to 3.64% Sn, suggesting a significant tin system. The project surrounds the historic Mt Bischoff tin mine, situating it in a proven mining district.
With drilling permits now secured, Lode is poised to commence maiden drilling at Silver Hills, supported by recent infrastructure upgrades such as access roads to key prospects.
New England Antimony Project Shows Expanding Targets
Lode’s New England Antimony Project in New South Wales continues to build momentum. Initial scout RC drilling at the Rock Abbey mine prospect returned multiple high-grade antimony intercepts, including 2 metres at 6.18% Sb. Extensive soil sampling has delineated large, coherent antimony anomalies near both Rock Abbey and the Magwood mine, substantially expanding the project’s drill-ready target inventory.
The geological parallels between Rock Abbey and the deeper Magwood system suggest potential for significant mineralisation at depth, warranting further drilling.
Broad Gold Mineralisation Confirmed at Uralla Project
At the Uralla Gold Project in NSW, follow-up scout RC drilling confirmed broad near-surface gold mineralisation across multiple prospects, supporting the emerging Intrusive Related Gold System (IRGS) model. Notable intercepts include 9 metres at 1.00g/t Au and 6 metres at 1.22g/t Au, with higher-grade intervals within.
The project covers over 300 square kilometres of historic goldfield, and geochemical data points to a potential mineralised intrusive stock at depth, which could be a source of the gold mineralisation observed.
Capital Raise Strengthens Balance Sheet for Development
To fund advancing Montezuma toward a Pre-Feasibility Study (PFS) and broader exploration, Lode raised $4.5 million via a placement at $0.13 per share, a discount to recent trading prices. Directors participated in a further $95,000 tranche, aligning management with shareholders.
This capital injection supports ongoing drilling programs, metallurgical test work, and exploration across key projects in Tasmania and New South Wales, ensuring funding into 2027.
Financials and Outlook
During the quarter, Lode spent $1.414 million on exploration and $587,000 on administration. The company ended the period with $3.8 million in cash, providing nearly two quarters of runway at current expenditure levels. Management anticipates reduced drilling costs ahead and potential additional funding from asset sales and government incentives.
Lode’s portfolio now spans multiple commodities, silver, antimony, zinc, tin, and gold, across strategically located projects with infrastructure and historical mining activity, positioning it well for resource growth and development milestones.
Bottom Line?
Lode Resources’ maiden JORC resource and new zinc discovery at Montezuma mark a pivotal step, but the scale of resource expansion and successful progression to feasibility remain key near-term tests.
Questions in the middle?
- How will upcoming drilling results at Montezuma’s new silver-zinc lode influence resource growth?
- Can the high-grade tin system at Silver Hills be delineated into a significant resource with maiden drilling?
- What is the potential scale of the antimony mineralisation at Rock Abbey relative to the deeper Magwood system?