Lode Resources Uncovers Silver-Zinc System at Montezuma, Tasmania

Lode Resources Uncovers a Second Mineralisation System at Montezuma — A Discovery That Could Redefine the Scale of the Project

Lode Resources Ltd (ASX: LDR) has announced the discovery of a previously unrecognised silver-zinc mineralisation system sitting directly adjacent to its existing Montezuma Silver & Antimony resource in Tasmania's West Coast Mining Province. The find, returned from deep drill hole MZS42, introduces an entirely new exploration front at a project that had already established a maiden JORC (2012) Mineral Resource Estimate of 480kt at 533g/t AgEq for 8.2 million ounces of silver equivalent.

With the original lode open in all directions and a second, distinctly different system now confirmed immediately alongside it, the conditions are in place for a meaningful step-change in resource scale. The Lode Resources Montezuma silver zinc discovery in Tasmania represents a genuine shift in the project's potential scope.

The Drill Hole That Changed the Picture

Drill hole MZS42 was designed to test the Montezuma fault lode at depth, with the collar stepped back to the west and drilled beneath the existing mineralised envelope. At a downhole depth of 267.0m to 273.4m, the hole cut through replacement-style silver-zinc sulphides along the Maestries carbonate contact — a style of mineralisation that had never previously been recognised at the project.

The intercept returned the following key assay results:

These grades are comparable to producing operations within Tasmania's West Coast Mining Province, including the nearby Rosebery and Hercules mines operated by MMG Ltd — both world-class base metal producers and benchmarks for this region.

MZS42 also intersected the Montezuma Fault deeper in the hole at 590.5m, returning 3.2m @ 32g/t Ag, 0.5% Cu and 0.2g/t Au, confirming continuation of the original silver-antimony system at depth.

A New Style of Mineralisation — Why This Discovery Stands Apart

The replacement-style mineralisation intercepted in MZS42 is geologically distinct from the fissure vein silver-antimony system that forms Lode's existing resource. Understanding this distinction is important for appreciating the scale of opportunity it opens up for the Lode Resources Montezuma silver zinc discovery in Tasmania.

What Is Carbonate Replacement Mineralisation?

Carbonate replacement deposits (CRDs) form when metal-bearing fluids move through and chemically replace carbonate-rich rock units — in this case the Maestries carbonate conglomerate — with sulphide minerals containing zinc, lead, silver, and related metals.

Because the mineralising fluids can permeate and replace large volumes of the host carbonate unit, this style of deposit can yield substantial widths and tonnages, often considerably larger than structurally controlled vein systems.

The geological characteristics of the silver-zinc intercept from MZS42 are considered analogous to the nearby Renison tin deposit and the Mt Bischoff tin deposit further afield, where the bulk of resource mineralisation is classified as stratabound carbonate replacement. Both are significant Tasmanian operations that demonstrate the economic viability of this mineralisation style in the region.

At Montezuma, the Maestries carbonate conglomerate unit is interpreted to be 40 metres wide. Critically, the current intercept in MZS42 was found at the conglomerate-shale contact — not at the surface expression of the unit. Furthermore, replacement mineralisation is known to intensify toward the source of mineralising fluids at depth, meaning the entire 40m-wide dolomitic unit is now considered a drill target at depth.

Glossary of Key Terms

• CRD (Carbonate Replacement Deposit): A deposit style where metal-bearing fluids replace carbonate host rock, often producing wide, high-tonnage mineralised envelopes.
• AgEq (Silver Equivalent): A single grade figure that converts all metals in an intercept to a silver equivalent using current metal prices and metallurgical recoveries, enabling simpler comparisons between different intercepts.
• JORC (2012) MRE: A Mineral Resource Estimate prepared under the Joint Ore Reserves Committee 2012 code — the Australian standard for public reporting of mineral resources.
• True Width (TW): The actual width of a mineralised zone, corrected for the angle at which the drill hole crossed it. A 6.4m downhole intercept with a TW of 2.8m means the mineralised zone itself is approximately 2.8m across.
• Stratabound: Mineralisation that is confined to a particular sedimentary layer or horizon, often producing consistent thickness and grade across its lateral extent.

Two Systems, One Drill Hole — A Significant Efficiency Advantage

One of the most operationally compelling aspects of this discovery is how it changes the economics of future drilling. Because the newly identified silver-zinc replacement system sits adjacent to the original Montezuma silver-antimony fault lode, future drill holes oriented from the east will be positioned to test both mineralisation systems within a single hole.

Managing Director Keith Mayes highlighted this directly:

"The discovery of a replacement style silver-zinc mineralisation system sitting right alongside our existing 8.2Moz resource is the kind of result that can change the scale of a project. When we drill from the east, we'll be able to test both the Montezuma silver & antimony lode and the newly discovered silver-zinc lode in a single hole — that's a significant improvement in drilling efficiency."

This dual-target geometry means each metre of future drilling carries greater resource growth potential per dollar spent — a material consideration for a junior explorer managing capital across multiple active programmes.

The Existing Resource: Open in All Directions

The newly announced discovery sits alongside a resource base that was already configured for growth. The maiden JORC (2012) MRE, announced in April 2026, established the following:

The Montezuma deposit is hosted within fissure veins along the north-south trending Montezuma fault, which dips steeply east. Drill-defined mineralisation currently extends over 250m strike length and 200m down-dip, and critically, remains open in all directions — north, south, down-dip, and now also adjacent to the newly identified zinc-silver replacement system.

No boundary of the resource has been closed off. High-resolution electromagnetic (EM) surveys indicate a conductive zone coincident with known mineralisation with potential strike of up to 1,000 metres — a compelling indication of the scale available to test.

A District-Scale Pipeline of Near-Term Catalysts

The Lode Resources Montezuma silver zinc discovery in Tasmania does not stand alone. Lode is entering a period of concurrent drilling activity across multiple prospects within its district-scale position in Tasmania's West Coast Mining Province.

Active and Planned Drilling Programmes

Fahlore, Silver Cliffs, and Persic are considered potential satellite deposits to the Montezuma operation. These areas have already returned high-grade silver and antimony results and are situated within Lode's Greater Montezuma (88 sq km) and Silver Hills (71 sq km) tenement packages.

Lode's first drill programme at the Granville tin project has received regulatory approval and is scheduled to commence in June 2026, adding another commodity and another set of exploration results to the near-term news flow.

"We also look forward to the imminent drilling commencing at Fahlore, Silver Cliffs, Persic, Granville and now a new target at Montezuma itself. The scale of what we're building in Tasmania is becoming clearer with every programme, demonstrating immense prospectivity." — Keith Mayes, Managing Director

Antimony: A Critical Metal Context Worth Understanding

Lode's project carries an exposure to antimony that adds a strategic dimension beyond standard silver or base metal exploration. Antimony is formally classified as a critical mineral by both the Australian Federal Government and the Tasmanian State Government, as well as by virtually every major western nation. Montezuma is described as Tasmania's only antimony project and one of very few advanced antimony development assets in the western world outside of China's supply chain.

What Does the Antimony Market Look Like?

The antimony price used in Lode's metal equivalent calculations — US$34,747 per tonne — was referenced from an average across multiple markets and products as at 30 December 2024. The global antimony supply landscape has been subject to significant disruption, reflecting the broader geopolitical sensitivity around this metal.

China announced a ban on antimony exports specifically to the United States on 3 December 2024, strengthening enforcement of existing limits on critical minerals. In November 2025, China agreed to suspend its export controls on rare earths and other critical minerals, including antimony, following a new trade and economic deal with the United States. However, this does not change China's strong dominance of the global antimony market, nor the unpredictable nature of both countries' trading policies. Europe, notably, remains outside the agreement.

The polymetallic nature of Montezuma's mineralisation — encompassing silver, antimony, zinc, lead, copper, tin, tungsten, and gold across different parts of the system — provides exposure to multiple metals with distinct demand profiles.

Investment Thesis: Why This Announcement Matters

Several factors combine to make this discovery announcement materially significant for investors assessing Lode Resources.

Resource Growth Potential

1. A resource base that was already open-ended has now acquired a second dimension. The existing 8.2Moz AgEq resource had room to grow through strike and depth extensions. The discovery of an adjacent, genetically different system introduces an entirely new volume of rock to explore — one that was not part of the original resource geometry.

2. The mineralisation style supports large-scale outcomes. Carbonate replacement systems — analogous to Renison and Mt Bischoff — can host substantial widths and tonnages. The 40m-wide Maestries conglomerate unit is now a drill target across its full width, not just at the current contact intercept.

Operational Efficiency

3. Drilling efficiency improves materially. Future east-directed holes capable of testing both the silver-antimony lode and the new silver-zinc system in one pass means more resource information per dollar of drilling expenditure.

4. Multiple funded programmes run concurrently. With drilling active or imminent at Montezuma, Fahlore, Silver Cliffs, Persic, and Granville, Lode shareholders are positioned for a sustained sequence of exploration newsflow rather than a single binary event.

Jurisdictional and Development Advantages

5. The project sits in one of Australia's most proven mining jurisdictions. Located within kilometres of the Rosebery, Hercules, Renison Bell, Henty, Zeehan, and Mt Lyell operations, Montezuma benefits from established infrastructure, skilled workforce access, and a well-understood geological setting.

6. A scoping study and Preliminary Feasibility Study are already underway on the basis of the maiden 8.2Moz resource — meaning the project is advancing along a development pathway even as exploration continues to expand the resource base.

Why Investors Should Keep Lode Resources on Their Radar

The Lode Resources Montezuma silver zinc discovery in Tasmania has moved from a single high-grade silver-antimony discovery to a multi-system, district-scale exploration story in the space of its first full drilling campaign. The maiden resource of 8.2Moz AgEq was established across just 250m of strike and 200m of depth — a fraction of the geological system that electromagnetic surveys and now this latest drilling suggest is available to test.

The addition of a carbonate replacement silver-zinc system directly adjacent to that resource, in the same drill programme designed to test depth extensions of the original lode, signals that the geological complexity and scale of Montezuma is greater than originally mapped. That is precisely the kind of development that can drive meaningful re-rating of an exploration company.

With a scoping study and PFS underway, multiple concurrent drill programmes funded, and a pipeline of satellite prospects being advanced, Lode enters the second half of 2026 with both a credible development pathway and a growing list of exploration targets capable of materially adding to its resource base.

In addition, the strategic exposure to antimony — a formally designated critical mineral — adds a dimension that few Australian exploration companies can offer at this stage of development.

Lode Resources (ASX: LDR) has established itself as one of the more compelling exploration stories in Tasmania's West Coast Mining Province, combining a high-grade maiden resource with an expanding suite of targets — and now a second, distinct mineralisation system discovered adjacent to its core deposit. With multiple drill programmes running concurrently and a resource that remains open in all directions, investors have a clear pipeline of near-term catalysts to follow as the true scale of this district-scale position comes into focus.

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