Lode makes ‘game changing’ discovery at Webbs Consol lead-silver-zinc project
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Lode Resources has intersected significant shallow sulphide mineralisation at the Tangoa West prospect, part of its highly prospective Webbs Consol lead-zinc-silver project.
Lode Resources (ASX:LDR) has described this latest intersection as “game changing” because it has not only unlocked the secret to the geology of the Webbs Consol project, but it also points to potential economies of scale.
The latest hole drilled at the Tangoa West prospect intersected 26.5m of sulphide mineralisation containing an estimated 12% galena (lead sulphide), 3% sphalerite (zinc iron sulphide), 0.5% chalcopyrite (copper iron sulphide) from just 30.1m.
Silver is known to be strongly associated with both sphalerite and galena at the Webbs Consol Silver project.
Shares rallied as much as 15% to an intra-day peak of 19c following the latest announcement.
“This is a game changer,” managing director Ted Leschke told Stockhead.
“This is a nice thick intercept. You’ve got size potential and it’s high-grade. With any deposit you look for two things – volume potential and grade, and if you have both that’s even better.
“When you progress a project towards mining you not only want to have economies of scale, but you also want more value per tonne, which comes with high-grade mineralisation.”
Leschke said while it was early days still, drilling demonstrated that there was potentially multiple deposits.
“These are high-grade lodes, and they should extend to depth,” he explained.
“We found this just by mapping the surface, and in essence we have a much better understanding of the geology now and what to look for in finding this style of lodes. We intend to keep drilling for the foreseeable future.”
The Webbs Consol mineral system now extends over a 3km north-south strike.
The project is located in the mineral-rich but underexplored New England Fold Belt in New South Wales.
The current in situ resource value of the New England Fold Belt is estimated to be just 2 per cent of the entire state due to a lack of exploration. Despite historical production of gold, silver and base metals, it has seen very modest drilling compared to the well picked-over Lachlan Fold Belt to the south.
Drilling at Lode’s Webbs Consol project continues to demonstrate the prospectivity of the region, with this latest news coming just a couple of days after Lode reported significant shallow silver, lead, zinc and copper from below Mt Galena.
This article was developed in collaboration with Lode Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.