Locksley Walks Away From U.S. Antimony Exploration After 57% Price Collapse
Locksley draws a line under U.S. exploration as antimony prices crater 57%
Locksley Resources (ASX: LKY, OTCQX: LKYRF, FSE: X5L) has completed a strategic portfolio review and ceased active field exploration at its Desert Antimony Mine (DAM) and El Campo prospects within the Mojave Project, California. The decision follows a >57% collapse in spot antimony prices from mid-2025 peaks of US$63,000/t down to US$27,000/t, erasing US$36,000/t in contained value. The technical, regulatory and commercial review identified structural complexity and limited demonstrated continuity across the U.S. critical minerals portfolio. The Board has determined that further material exploration expenditure is not warranted under prevailing market conditions, whilst maintaining existing claims in good standing to preserve future strategic optionality.
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Why the Board hit pause: market collapse meets geological reality
The decision to cease exploration was driven by two converging factors: a sharp downturn in global antimony market conditions and technical review findings on project scale and geological continuity. The Board’s technical, regulatory and commercial review concluded that whilst exploration across the Mojave Project, DAM, and El Campo rare earths prospects confirmed localised mineralisation, the results to date have not demonstrated sufficient scale or geological continuity to justify further exploration expenditure at this time.
The rationale centres on capital discipline. The Board has committed to deploying shareholder capital into projects demonstrating the highest probability of commercial scale and value generation. Under current market conditions, the U.S. critical minerals portfolio does not meet that threshold.
The antimony price story
Independent market reporting indicates that antimony prices corrected sharply from record highs reached in mid-2025, as additional supply entered the market and elevated prices constrained downstream demand. European CIF spot benchmarks dropped from US$63,000/t down to US$27,000/t, a fall exceeding 57%. Downstream processed product benchmarks, such as antimony trioxide, also fell by over 41%. This significant fall in realised product value reinforces the need for capital discipline and the Board’s conclusion that significant ongoing exploration expenditure on the projects is not viable under prevailing market conditions.
| Metric | Mid-2025 Peak | Current (2026) | Change | Implication |
|---|---|---|---|---|
| Antimony spot (European CIF) | US$63,000/t | US$27,000/t | >57% fall | Exploration economics no longer viable |
| Antimony trioxide | — | — | >41% fall | Downstream value erosion |
What the technical review found
A technical review of historical and modern exploration data across the Mojave Project identified key geological and scale factors supporting the Board’s decision to cease exploration activities. Previously reported diamond drilling at DAM confirmed antimony mineralisation hosted within subvertical quartz-stibnite veins and associated vein breccias. Whilst mineralisation was confirmed below the historical workings and remained open in certain directions, the subsequent technical review identified structural complexity and limited demonstrated continuity.
The key technical findings were:
- Based on the Company’s current geological interpretation, additional drilling, including relatively close-spaced drilling, would be required to further assess geological continuity and establish the geological confidence necessary to evaluate the potential for future resource definition.
- Previously reported drilling at El Campo confirmed rare earth element mineralisation below surface exposures.
- Having regard to the results to date, the additional exploration required, prevailing market conditions and the Company’s strategic priorities, the Board determined that further material exploration expenditure across the U.S. assets is not warranted at this time.
Ian Stockton, Non-Executive Technical Director
“The technical review considered the previously reported drilling, mapping and sampling results and geological interpretation and modelling of the Mojave projects. Whilst previously reported exploration confirmed mineralisation at DAM and El Campo, the review identified that additional work, including further drilling, would be required to establish geological continuity and scale. When considered together with the material downturn in global antimony prices and the Company’s capital allocation priorities, the projects do not currently justify further material exploration expenditure. Consequently, field exploration plans across the project have ceased.”
Understanding antimony and the critical minerals cycle
Antimony is a critical mineral used in flame retardants, batteries, and defence applications. Prices are volatile due to concentrated global supply, geopolitical factors, and fluctuating downstream demand. The concept of maintaining claims in good standing refers to holding a mining claim on a low-cost basis through applicable Bureau of Land Management fees, county filings and regulatory compliance. This preserves future strategic optionality without committing significant ongoing exploration capital.
For investors, capital discipline in a down-cycle can protect shareholder value whilst keeping upside alive if prices recover. Retaining claims cheaply allows the Board to reassess the portfolio if antimony market fundamentals improve or if new geological data becomes available.
Preserving optionality: claims, rehab and DeepSolv™
Whilst field exploration has ceased, several maintenance and forward activities continue. The Company intends to maintain its existing claims in good standing, subject to periodic Board review, and is undertaking a review of the collaborative technical work on the DeepSolv™ hydrometallurgical process with Rice University to determine if additional work is to be undertaken.
The ongoing activities are:
- All active field exploration, drilling and regional mapping activities across the Mojave Project claim blocks in California have ceased.
- The Company intends to maintain the existing claims in good standing through applicable Bureau of Land Management (BLM) fees, county filings and regulatory compliance, subject to periodic Board review.
- The Company is undertaking a review of the technical findings and collaborative work on the DeepSolv™ hydrometallurgical process with Rice University to determine if additional work is to be undertaken.
- Locksley has engaged specialist U.S. environmental and field contractors to complete core storage close-out, site safety inspections, and required environmental rehabilitation on existing drill tracks and pads in full compliance with BLM Notice of Intent (NOI) and Plan of Operations (POO) permits.
Bevan Tarratt, Chair
“Our priority is to allocate capital to opportunities with a credible pathway to commercial scale. The review has concluded that further material expenditure on the Mojave Project is not warranted based on the results and market conditions presently available. Maintaining the claims on a low cost basis preserves optionality whilst allowing the Company to focus its capital and management resources on higher priority opportunities.”
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The investment takeaway
Locksley is prioritising capital discipline over sunk-cost exploration in a collapsed market. Retaining claims cheaply keeps the door open should antimony prices recover, whilst freeing capital and management focus for higher-priority opportunities. The DeepSolv™ technology work with Rice University remains a live avenue under review, offering a potential value pathway independent of field exploration spending. The decision reflects strategic reallocation rather than distress, positioning the Company to redeploy resources where commercial scale prospects are stronger under current market conditions.
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