Gold Discoveries Boost Montezuma Antimony & Silver Project's Potential
Lode Resources Ltd (ASX: LDR) has announced significant gold discoveries at Lode Resources Ltd that enhance the already impressive high-grade antimony and silver intercepts at its Montezuma Project in Tasmania's premier West Coast Mining Province.
Striking Gold: Enhanced High-Grade Results
The first batch of gold assays from the company's extensive drilling programme has delivered exceptional results, with multiple high-grade intercepts that substantially boost the overall value of previously reported antimony and silver mineralisation. Similar to recent high-grade antimony discovery trends seen elsewhere in Australia, these findings are generating significant interest in the sector.
Standout intercepts include:
- 5.14% SbEq or 1825 g/t AgEq plus 1.31 g/t Au over 1.6m in drill hole MZS05
- 9.16% SbEq or 3254 g/t AgEq plus 1.54 g/t Au over 1.5m in drill hole MZS11
- 1.69% SbEq or 599 g/t AgEq plus 3.26 g/t Au over 1.5m in drill hole MZS12
- 2.27% SbEq or 806 g/t AgEq plus 1.13 g/t Au over 9.2m in drill hole MZS13
These results represent just the first 9 holes of a comprehensive 50-to-60-hole drilling campaign (8,000m to 10,000m) currently underway at the Montezuma Project.
Project Expands Along Strike and at Depth
The current drilling programme aims to quantify and extend the Montezuma deposit both down dip and along strike. Notably, all drilling to date has intercepted significantly mineralised zones, with the structures remaining open in all directions—suggesting substantial exploration upside. This approach mirrors recent copper gold drilling results from other successful operators in the precious metals space.
"These gold assays substantially enhance the already high metal values in Montezuma's mineralisation. Lode's exploration and project generation is in alignment with the Tasmanian Government's Critical Minerals Strategy," said Managing Director Ted Leschke.
Understanding Antimony's Critical Importance
Antimony represents a critical mineral that has experienced significant price increases in recent years. Classified as a critical metal by both the Australian Federal Government and the Tasmanian State Government, antimony has strategic applications in flame retardants, batteries, and defence equipment. Recently, Warriedar Resources uncovered high-grade antimony at their Ricciardo gold deposit, highlighting the growing importance of this element.
The strategic nature of antimony has been further emphasised by recent geopolitical developments, with China announcing a ban on antimony exports to the United States in December 2024. This has contributed to antimony prices reaching record levels amid tight supply conditions.
Importantly, the Montezuma Project represents Tasmania's only antimony project, giving Lode Resources a unique position in Australia's critical minerals landscape.
Metallurgical Testing Underway
LDR is currently conducting comprehensive flotation tests on Montezuma mineralisation at ALS Metallurgy in Burnie, Tasmania. These tests will include evaluating gold recovery potential, which could further enhance the project's economic viability.
Gold assay figures were not included in the previously reported equivalent calculations, as gold was not assessed in early flotation tests. The inclusion of gold in future resource estimates could significantly boost the project's value proposition.
The Montezuma Deposit Structure
The Montezuma antimony-silver deposit is a structurally controlled lode, situated primarily within the well-known Montezuma fault. The mineralisation is hosted by a sequence of turbidites, siltstones, sandstones and black shale units.
Antimony occurs predominantly within Jamesonite, a lead-iron-antimony sulphide mineral (Pb4FeSb6S14), which forms during late-stage hydrothermal processes at moderate to low temperatures. Stibnite (Sb2S3) is also relatively abundant throughout the deposit.
This structural setting has created favourable conditions for the concentration of multiple valuable metals, including the recently confirmed gold discoveries at Lode Resources Ltd.
Infrastructure Advantages
The Montezuma Antimony and Silver Project includes substantial existing infrastructure that could accelerate development timelines. Located just 1km from the Zeehan township, the project benefits from:
- Connection to grid power
- Cone crusher and ball mill equipment
- Gravity tables and spirals
- Tankage facilities
- Recently constructed tailings dam
This existing infrastructure provides a strong foundation for potential future production.
Regional Mining Context
The Montezuma Project is strategically positioned in Tasmania's premier West Coast Mining Province, between several well-known mining centres including:
- Rosebery (Zn, Cu, Pb) owned by MMG Ltd
- Renison Bell (Sn) owned by Metals X Ltd and Yunnan Tin Group Company Limited
- Henty (Au) owned by Catalyst Metals Ltd
- Zeehan (Sn, Pb, Ag) owned by Stellar Resources Limited
This established mining region offers significant advantages in terms of access to skilled labour, services and infrastructure. The company's approach resembles Augment Gold's discoveries at their Yundamindra project, where strategic positioning has played a key role in development.
Why Investors Should Take Note
Lode Resources' Montezuma Project offers several compelling investment considerations:
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Critical Mineral Exposure: With antimony prices having tripled in Western markets in just one year, Montezuma represents a rare opportunity to gain exposure to this critical mineral outside of China.
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Multi-Metal Potential: The project demonstrates significant values not just in antimony, but also silver, gold, lead, and copper—providing natural diversification. This multi-metal approach has proven successful in projects like Inca Minerals' gold discovery at their Hurricane project.
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Infrastructure Advantage: The existing processing equipment and infrastructure could significantly reduce capital requirements and accelerate potential development.
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Strategic Location: Situated in Tasmania's premier mining province alongside major operations from MMG, Metals X, Catalyst Metals, and Stellar Resources.
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Supply Constraints: China's antimony production has fallen by 67% in the last decade, creating opportunity for new suppliers to enter the market.
As drilling continues and further assay results are reported, Lode Resources' Montezuma Project warrants close attention from investors interested in the critical minerals sector.
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