Lode Resources gets skates on at antimony deposit

Lode Resources has started development activities at its recently acquired Montezuma antimony project in Tasmania’s premier West Coast mining province

A range of resource development and exploration initiatives are underway at the project that has initial development, advanced metallurgical test work and significant beneficiation infrastructure already in place

Lode’s moves at the high-grade deposit have begun as antimony prices skyrocket after China banned exports of the critical mineral into the US on December 3

Special Report: Lode Resources is wasting no time in kickstarting its newly acquired Montezuma antimony project – just as the price for the critical mineral soars to an all-time high after major producer China’s ban on exports to the US this month.

The company already has a head-start in the race for new antimony supply given Montezuma includes a high-grade antimony-silver-lead deposit close to surface with initial development and advanced metallurgical test work already done.

Significant beneficiation infrastructure is also in place in Tasmanian’s premier West Coast mining province.

Following the completion of the acquisition late last month, Lode (ASX:LDR) is planning a new drill program with the Montezuma deposit open to the north, south and at depth.

Montezuma complements another recent acquisition – Lode’s 100% owned Magwood antimony project in the north-east of New South Wales, as well as its other projects including the Webbs Consol silver base metals project and Uralla gold project in the New England Fold Belt.

Magwood was Australia’s largest primary antimony production source throughout the 1960s and 1970s and had such strong grades that the then-owners never undertook exploration drilling at the deposit.

High-grade prospects

Lode has now relogged and resampled all core from previous drilling at Montezuma and more than 230 drill core samples from 13 drill holes have been shipped for assaying.

Previous surface sampling and assaying has been fully reviewed, with surface grab samples grading up to a very high 24.5% antimony and 3,050 grams per tonne (g/t) silver.

Also fully reviewed and verified in accordance with JORC 2012 standards is the previous exploration adit face sampling and assaying. Development face samples have graded up to 21.4% antimony and 2,478 g/t silver.

Reconciling well with corresponding face sampling was representative sampling of mineralisation mined during adit box cut and portal development, averaging 9.02% antimony and 769 g/t silver.

A new drill program is also being designed with the aim of extending the antimony-silver-lead deposit mineralisation along strike and down dip, and Lode has restarted exploration drive development, with antimony mineralisation selectively mined and stockpiled.

Antimony boom

China’s complete ban on antimony exports to the US sent the price of the critical mineral soaring from US$12,000 per tonne at the start of this year to US$38,000 per tonne.

The move of the world’s major producer followed September’s export restrictions of the mineral used in defence applications, batteries, fire retardants and photovoltaic equipment.

Recognising the importance of the sector, the Tasmanian government recently outlined its Critical Minerals Strategy, which includes the aim of expanding exploration for critical minerals and support for those projects.

Lode’s chair Andrew Van Heyst commented: “Our activities at Montezuma will accelerate the company towards producer status and complement our existing high-grade silver and antimony projects in NSW.

“Importantly we have appointed the vendor Steven McDermott to be our Tasmanian operations manager. His extensive knowledge of the project and his skills in mine management can also help development of our New England projects, specifically Webbs Consol Silver and the Magwood antimony mine.”

Ted Leschke, Lode’s managing director said: “The Montezuma antimony project is shaping up as a particularly exciting asset for Lode shareholders, given the high-grade nature of the deposit, very high antimony prices and many other components already in place that will accelerate development.

“Our enhanced cash position as a result of our recent funding initiative means we can now proceed to systematic mapping of the deposit including development of an underground exploration drive, ahead of a co-ordinated drilling program with a view to progressing Montezuma to a maiden high-grade antimony resource.

“Existing mining equipment and beneficiation infrastructure as part of the Montezuma transaction sets Lode apart from many companies as it will assist offtake and other financing discussions.”

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.