Locksley Ceases Desert Antimony and El Campo Drilling Amid 57% Price Drop

Exploration Halted Amid Antimony Price Crash

Locksley Resources (ASX:LKY) has pulled the plug on active exploration at its US critical minerals assets, including the Desert Antimony Mine and El Campo rare earth prospects in California. The decision follows a comprehensive technical, regulatory, and commercial review that concluded the projects lack sufficient scale and geological continuity to justify further expenditure under current market conditions.

Central to this strategic pivot is a dramatic collapse in antimony prices, which have plunged more than 57% from a mid-2025 peak of US$63,000 per tonne to around US$27,000 per tonne. This sharp correction, driven by increased global supply and subdued downstream demand, has erased substantial contained value and pressured the economics of ongoing exploration.

Technical Review Highlights Geological Challenges

The company’s technical assessment of historical and recent drilling data revealed complex structural geology and limited mineralisation continuity at the Desert Antimony Mine. While high-grade antimony was confirmed beneath historic workings, further close-spaced drilling would be necessary to build the geological confidence needed for resource definition. Similarly, exploration at El Campo confirmed rare earth element mineralisation but lacked sufficient scale to warrant further investment at this stage.

Ian Stockton, Locksley’s Non-Executive Technical Director, emphasised that despite confirming mineralisation, the geological complexity and current market environment do not support additional material exploration spend. This assessment effectively shelves plans for further drilling and regional mapping activities across the Mojave Project claim blocks.

Maintaining Claims and Technology Review

Rather than relinquishing its US claims, Locksley intends to keep them in good standing on a low-cost basis, covering necessary regulatory fees and compliance with the Bureau of Land Management. This approach preserves future strategic optionality without committing significant capital.

Meanwhile, the company is reassessing its collaboration with Rice University on the DeepSolv™ hydrometallurgical technology, which aims to improve antimony recovery processes. This review will determine whether further technical work is justified, potentially offering a pathway to add value outside of direct exploration.

Locksley has also engaged specialist contractors to safely close out drill core storage and undertake environmental rehabilitation of existing drill sites, ensuring compliance with regulatory permits.

Capital Discipline and Strategic Focus

Chairman Bevan Tarratt framed the moves as a clear commitment to capital discipline, focusing resources on projects with credible commercial scale potential. Maintaining claims at minimal cost allows the company to keep options open while prioritising higher-value opportunities elsewhere.

This recalibration comes as Locksley continues to advance its copper-gold footprint with recent acquisitions in New South Wales, signalling a broader strategic shift beyond the US critical minerals portfolio.