Lode Resources Advances Strategic Antimony Portfolio with Second High-Grade Project
Lode Resources Ltd (ASX: LDR) has announced significant progress in its antimony exploration activities, with drilling set to commence at the Magwood Antimony Project in New South Wales. This strategic asset, complemented by the company's ongoing Montezuma Antimony Project in Tasmania, positions Lode as a leader in antimony exploration in Australia.
Historic Antimony Producer Ready for First-Ever Drilling Programme
The Magwood antimony mine has never been drilled despite its significant historical importance as Australia's largest primary antimony producer up to the 1970s. Historical production grades were exceptional, ranging from 4% to 62% Sb, indicating the high-grade nature of the deposit.
An initial programme of 15 diamond drill holes will test:
- Semi-parallel antimony-bearing lode structures
- The historically mined lode from surface to 450m depth
- Potential unmined mineralisation within existing workings
- Down-dip extensions of the antimony lode at depth
- A potential dilation zone 700m northeast of the main deposit
Recent grab samples from mine dumps have confirmed the high-grade potential of the project, with results including:
- 41.7% Sb (sample R495)
- 29.9% Sb (sample R504)
- 29.8% Sb (sample R497)
- 24.3% Sb (sample R498)
- 17.8% Sb (sample R514)
Notably, one sample returned 6.14 g/t Au (sample R508), suggesting potential for gold-bearing lodes at depth.
Montezuma Project Advancing with Ongoing Drilling
Simultaneously, Lode is progressing its Montezuma Antimony Project in Tasmania's premier West Coast Mining Province. Drilling is ongoing with samples from multiple completed holes currently being assayed at the ALS laboratory in Burnie.
The latest news about Lode Resources Ltd antimony projects demonstrates the company's commitment to developing a strategic portfolio of antimony assets across Australia.
Strategic Portfolio of Critical Mineral Assets
Lode's New England exploration licences (EL9662 and EL9319) cover 19 recorded antimony prospects, including the Magwood mine. Together with the Montezuma Project, this creates a formidable antimony portfolio at a time when antimony is recognised as a critical mineral.
The company controls 1,914 km² of exploration ground in the New England Fold Belt, making it the largest holder of exploration ground in this highly prospective but under-explored region.
"The Magwood antimony mine is a highly attractive drill target given it has not been drilled to date despite a history of significant antimony production. Lode's second antimony asset is just screaming out to be drilled," said Ted Leschke, Managing Director of Lode Resources.
Understanding Antimony: A Critical Mineral
Antimony is classified as a critical mineral by many countries including the United States, European Union, and Australia due to its importance in defence, energy, and industrial applications combined with supply chain risks.
Key Applications of Antimony
| Application | Description | Market Share |
|---|---|---|
| Flame Retardants | Used in plastics, textiles, and building materials | Largest use |
| Lead-Acid Batteries | Improves charging and performance | Significant |
| Defence | Component in ammunition and military equipment | Strategic importance |
| Semiconductors | Used in microelectronic devices | Growing sector |
| Solar Panels | High-purity antimony for next-generation solar cells | Emerging market |
China currently dominates global antimony production, controlling approximately 60% of supply, creating strategic supply vulnerabilities for Western nations.
Recent news about Lode Resources Ltd antimony projects highlights the growing importance of domestic antimony sources in Australia as nations seek to reduce dependency on Chinese supply.
Technical Details of the Magwood Deposit
The Magwood antimony deposit consists of stibnite (Sbâ‚‚S₃) – quartz vein style lodes emplaced in NE-SW structures cutting through interbedded mudstones and sandstones. The lodes are structurally controlled, typically striking at 035-050° and dipping steeply to the southeast.
Historical mining reached a depth of 300m, with only the highest-grade mineralisation extracted through highly selective "hand-picking" methods. This suggests significant lower-grade (but still economically viable by today's standards) mineralisation may remain unmined.
The mineralising system appears to be orogenic in origin with characteristics typical of mesothermal deposits in the area, similar to the nearby high-grade antimony at Casablanca.
Management Commentary
Lode's Executive Chair Andrew van Heyst provided additional context on the company's strategy: "This is a very exciting time for Lode shareholders. Your company is well positioned and fully funded for all planned operations. The drilling at Montezuma is going very well and we have a great team in place to manage operations there. Drilling is about to begin at Magwood where incredibly this historic antimony mine has never been drilled, nor has there been any prior reporting for gold. Shareholders can look forward to a steady stream of news flow from both projects over the rest of the year."
The latest news about Lode Resources Ltd antimony projects demonstrates alignment with the NSW Government Critical Minerals and High-Tech Metals Strategy 2024–2035, potentially positioning the company to benefit from government support for critical minerals development.
Investment Thesis
Lode Resources presents a compelling investment case for several reasons:
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Exposure to critical minerals: Antimony is designated as a critical mineral by major economies, with supply chain concerns driving strategic importance.
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High-grade assets: Both the Magwood and Montezuma projects have demonstrated high-grade antimony at Ricciardo comparable to other significant discoveries.
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First-mover advantage: Despite its significant historical production, the Magwood mine has never been drilled, offering exceptional exploration upside.
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Diversified portfolio: Beyond antimony, Lode controls substantial exploration ground in the New England Fold Belt with several precious and base metal projects.
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Strong funding position: The company is fully funded for all planned operations.
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Aligned with government strategy: Lode's antimony exploration aligns with the NSW Government Critical Minerals and High-Tech Metals Strategy 2024–2035.
Why Investors Should Follow Lode Resources
Lode Resources represents a unique opportunity in the critical minerals space, particularly for investors seeking exposure to antimony. The company has assembled a strategic portfolio of high-grade antimony assets in two premier Australian mining jurisdictions.
With drilling programmes either underway or imminent at both the Montezuma and Magwood projects, investors can expect regular news flow throughout 2024. The potential for resource definition at these historically significant but underexplored assets provides substantial upside potential.
The company's focus on antimony – a metal with critical applications in defence, energy storage, and flame retardants – positions it well to benefit from increasing government focus on securing supply chains for strategic materials. Furthermore, similar to other companies that have acquired high-grade antimony gold projects, Lode's growing portfolio demonstrates the rising interest in this critical mineral.
Additionally, recent LiDAR survey results at East Antimony by other explorers in the region have highlighted the potential for new discoveries, further validating Lode's strategic focus on this critical mineral.
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