Lode Resources Unveils High-Grade Silver Resource at Webbs Consol
Lode Resources Ltd (ASX:LDR) has announced an impressive maiden Mineral Resource Estimate (MRE) for its 100%-owned Webbs Consol precious and base metals project in New South Wales, revealing a substantial high-grade silver resource with significant growth potential.
32 Million Ounces of Silver Equivalent Discovered
The company's maiden resource estimate has defined 1.57 million tonnes at 636 g/t silver equivalent, containing a remarkable 32.1 million ounces of silver equivalent. This includes 7.6 million ounces of silver, along with substantial zinc, lead, and copper.
This resource estimate includes:
- 590,000 tonnes in the higher-confidence Indicated category at 647 g/t AgEq
- 980,000 tonnes in the Inferred category at 630 g/t AgEq
The resource grade of 636 g/t silver equivalent represents an exceptionally high-grade deposit by global standards, positioning Webbs Consol as a potentially significant silver project in Australia.
| Category | Tonnage (kt) | Ag g/t | Cu % | Pb % | Zn % | AgEq g/t | AgEq Moz |
|---|---|---|---|---|---|---|---|
| Indicated | 590 | 162 | 0.2 | 3.4 | 5.8 | 647 | 12.2 |
| Inferred | 980 | 144 | 0.1 | 2.1 | 6.6 | 630 | 19.9 |
| Total | 1,570 | 151 | 0.1 | 2.6 | 6.3 | 636 | 32.1 |
Unique "Pipe-Style" Mineralisation with Exploration Upside
The Webbs Consol deposit consists of seven high-grade, silver-zinc-lead mineralised pipes located over a 2km strike length within the margins of the Permian Webbs Consol Leucogranite. These mineralised pipes are approximately 20-50 meters in diameter and have been drill-defined to depths of up to 350 meters, remaining open at depth.
"The maiden Inferred and Indicated Mineral Resource Estimate at Webbs Consol marks a major milestone for Lode Resources and confirms high grade silver-zinc-lead mineralisation associated with the Webbs Consols Leucogranite," commented Jason Beckton, Director of Lode Resources.
The mineralisation at Webbs Consol appears to follow distinctive geological structures, with the high-grade silver resource Lode Resources Ltd has identified being aligned along a north-trending lineament subparallel to the western granite-volcanic/sediment contact.
Strong Metallurgical Performance
Early metallurgical testing has delivered exceptional results, with recoveries of:
- 97.3% for silver
- 98.7% for zinc
- 94.7% for lead
- 76.3% for copper
- 90.8% for gold
These high recoveries suggest the potential for excellent economic extraction of metals from the deposit, enhancing the project's overall value. Similar to Aurora Tank's exceptional heap leach recoveries, the high-grade silver resource Lode Resources Ltd has defined could potentially be processed into saleable concentrates according to preliminary test work.
Understanding Silver Equivalents in Mining
Silver equivalent (AgEq) is used in mineral resource estimation to express the combined value of multiple metals in terms of a single metal – in this case, silver. For Webbs Consol, the silver equivalent formula includes silver, zinc, lead, copper, and gold values, calculated using recent metal prices and metallurgical recoveries from preliminary test work.
The formula used is:
AgEq(g/t) = Ag(g/t) + 32.3×Zn(%) + 27.5×Pb(%) + 107×Cu(%) + 87.1×Au(g/t)
This approach allows investors to understand the overall value of the deposit in terms of a single metal, making it easier to assess the project's potential economic value.
The calculation is based on:
- Recent metal prices (as of 12 February 2024): US$22.7/oz silver, US$2325/t zinc, US$2060/t lead, US$8100/t copper, US$2020/oz gold
- Metallurgical recoveries from test work: 97.3% silver, 98.7% zinc, 94.7% lead, 76.3% copper and 90.8% gold
Development Timeline and Next Steps
Lode Resources is considering additional drilling programmes at Webbs Consol to:
- Test the mineralised pipes at greater depths
- Conduct infill drilling to upgrade more of the resource to higher confidence categories
- Explore for additional mineralisation along strike
The company is also advancing other projects in its portfolio, including the Magwood Antimony project in New South Wales and ongoing drilling at the Montezuma Antimony-Silver Project in Tasmania, creating multiple potential value catalysts for investors. In fact, similar to Warriedar Resources' high-grade antimony discovery, Lode Resources is building a diversified portfolio of valuable minerals.
Why Investors Should Watch Lode Resources
The Webbs Consol maiden resource establishes Lode Resources as a significant player in the Australian silver space. Key investment highlights include:
- High-grade resource with 32.1 million ounces of silver equivalent at an impressive 636 g/t AgEq
- Excellent metallurgy with recoveries exceeding 97% for silver and 98% for zinc
- Substantial growth potential with mineralisation remaining open at depth
- Multiple exploration targets along a 3km strike length
- Diversified project portfolio with antimony and silver projects in development
The high-grade silver resource Lode Resources Ltd has established at Webbs Consol features a significant proportion (38%) in the higher-confidence Indicated category, which may accelerate development pathways compared to a purely Inferred resource. Furthermore, with new exploration targets expanding discovery potential across the industry, Lode Resources is well-positioned to capitalize on this trend.
Historical Context and Future Outlook
Webbs Consol has a rich mining history dating back to 1884, with intermittent operations until the 1970s. Several mine shafts were historically worked for high-grade galena and silver. Modern exploration began with CRA between 1978 and 1984, followed by Silver Mines Ltd between 2004 and 2014, before Lode Resources acquired the project.
The high-grade silver resource Lode Resources Ltd has now defined at Webbs Consol supports the company's strategy of focusing on high-grade precious and base metals projects in established mining districts. This approach provides exposure to metals with strong industrial demand and potential supply constraints, positioning Lode Resources for growth in a market increasingly focused on critical minerals.
The company appears well-positioned to build upon this maiden resource through further exploration work, with the mineralised structures remaining open at depth and potential for additional discoveries along strike. Recent industry successes such as high-grade mineralisation at Marda Gold and significant gold discoveries in Tasmania highlight the potential for companies like Lode Resources to deliver substantial shareholder value through continued exploration success.
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