Lode Resources Restarts Montezuma Drilling With New Silver-Zinc Discovery

Lode Resources Drills on Two Fronts at Montezuma as Tasmania Exploration Program Gathers Pace

Lode Resources (ASX: LDR) has restarted drilling at its Montezuma Silver & Antimony Project in Tasmania, with the current program designed to test both extensions to the existing 8.2 million ounce silver equivalent resource and a recently identified silver-zinc mineralisation zone located nearby. According to the ASX announcement, the revised drill approach allows each hole from the eastern side of the deposit to assess both targets, improving the value of each drilled metre.

The update also outlined active drilling at Fahlore, completed road access to Silver Cliffs and Persic, and a finished Sub-Audio-Magnetic (SAM) survey at Granville East. Alongside this field work, metallurgical testwork is underway to support the Montezuma Scoping Study, which now also covers the silver-zinc mineralisation.

Montezuma Drilling Restart Targets Resource Growth on Two Fronts

According to the announcement, completion of earthworks now enables drilling from the hanging wall, or eastern side, of the Montezuma deposit. In practical terms, this gives Lode a different drill angle to test the known lode and the adjacent target in the same hole.

The company's maiden JORC (2012) Mineral Resource Estimate stands at 480kt at 533 g/t AgEq for 8.2Moz AgEq. Lode stated that the resource remains open in all directions, including to the south and at depth, which means the current campaign is focused on potential expansion rather than infill alone.

At Montezuma, the current drill design is intended to test:

1. Southward extensions of the existing silver-antimony resource
2. Down-dip extensions at depth
3. The newly recognised replacement-style silver-zinc mineralisation in the Maestries Conglomerate

The two mineralised zones are reported to sit as little as 100 metres apart, which is why the east-side drill setup matters from an efficiency standpoint.

"We are excited to be drilling from the east at Montezuma, which allows us to both test for extensions of the Resource to the south and advance the recently discovered silver & zinc mineralisation associated with the Maestries Conglomerate," said Keith Mayes, Managing Director of Lode Resources.

"The potential for another significant deposit little more than 100m from The Montezuma Silver & Antimony Resource is a very exciting prospect that could fundamentally change the project's scale."

For investors, the core point is straightforward. Lode is no longer drilling only around a single known lode. It is now testing whether Montezuma may host two nearby mineralised systems, each with potential to contribute future scale.

The MZS42 Intercept Introduced a Second Mineralisation Style

The catalyst for this expanded Montezuma program was previously reported drill hole MZS42, which intersected mineralisation distinct from the main fault-hosted silver-antimony lode.

Key MZS42 Intercept

Lode described this interval as metasomatic replacement silver-zinc sulphide mineralisation on the contact between the Maestries conglomerate and shale. In simpler terms, this is a style where mineral-rich fluids have replaced parts of the host rock with sulphide minerals carrying metal.

The company stated that the grades are comparable to producing mines in Tasmania's West Coast Mining Province, including Rosebery and Hercules. It also noted that the geological style has similarities to the Renison and Mt Bischoff systems, where replacement mineralisation can occur over broader widths than narrow veins.

That distinction matters. The existing Montezuma resource is hosted in fissure veins along the Montezuma fault. The silver-zinc zone appears to represent a second and different system beside that fault. Furthermore, if later drilling confirms continuity and width, it could add a separate component of tonnage to the project.

Lode said the dolomitic unit within the Maestries Conglomerate is interpreted to be up to 40 metres wide, and the whole unit is now regarded as a drill target. Mineralisation has already been observed both within the unit and near the hanging wall contact.

Understanding Replacement Mineralisation and Why It Matters

For non-specialist investors, replacement mineralisation is worth understanding because it can influence the potential scale of a deposit.

What Is Replacement Mineralisation?

Replacement mineralisation forms when hot, metal-bearing fluids move through suitable rocks and chemically replace parts of them with sulphide minerals. Carbonate-rich rocks such as dolomite are often favourable hosts.

This differs from a narrow vein deposit, where metals are concentrated in a restricted fracture or fault. In a replacement system, the mineralisation can spread through a broader rock unit if the geological conditions are favourable.

Why Is It Important at Montezuma?

At Montezuma, the established resource is a silver-antimony lode linked to the Montezuma fault. The newly identified silver-zinc mineralisation sits nearby in the Maestries Conglomerate and may represent a separate target with different volume potential.

If this second system widens or strengthens at depth, as Lode suggested can occur in this deposit style, then Montezuma's growth path may not depend solely on extending the existing lode.

Key Terms Explained

Lode's reported silver equivalent formula for Montezuma is:

AgEq (g/t) = Ag (g/t) + 357 × Sb (%) + 20 × Pb (%) + 91 × Cu (%)

The company stated that these factors were based on metal prices and preliminary flotation recoveries, including 93.0% silver, 88.4% antimony, 88.4% lead, and 91.5% copper.

Regional Exploration Is Advancing Across Fahlore, Silver Hills and Granville East

The announcement was not limited to Montezuma. Lode also reported progress across multiple nearby targets that may complement the main project.

Fahlore Drilling Has Commenced

Diamond drilling has started at the historic Fahlore Silver & Antimony Prospect on EL2/2020, with the first of three planned holes nearing completion.

The target covers a line of historic workings over a reported 350-metre strike length, including shafts, adits and waste dumps. Lode said previous grab sampling from historical dumps returned high-grade silver, antimony and copper values, although these are selective samples and not necessarily representative of the broader mineralisation.

The company also noted that the mineral mix at Fahlore, including jamesonite, galena, tetrahedrite and chalcopyrite, is similar to Montezuma. For investors, Fahlore appears to be more than a standalone target. It may, in fact, help test whether Montezuma is part of a larger silver-antimony district system.

Silver Cliffs and Persic Are Moving Toward Drilling

Road access has now been re-established to Silver Cliffs and Persic within the Silver Hills Project (EL6/2025) near Waratah. Lode stated that this clears the way for mapping, sampling and approved diamond drilling.

Silver Cliffs includes historical workings extending over 320 metres of strike, while Persic contains numerous historical workings across an area of about 200m by 150m.

Selected dump sampling results reported by the company include:

These figures indicate strong historical grade potential, however the company cautioned that grab samples are qualitative only and selective by nature.

The Silver Hills licence surrounds the historic Mt Bischoff Tin Mine, which provides regional geological context, though the ASX update did not state that this creates any direct project support or development advantage.

Granville East Survey Results Are Pending

At Granville East, Lode has completed a SAM survey over the historic open pit and adjacent target areas. Final interpretation is still pending, but the company said preliminary images show a significant conductor centred on the survey area.

Lode stated that mapped skarn is flanking the conductor in the south, and a mapped gossan coincides with peak conductivity. In plain terms, skarn is a rock type altered by hot fluids and often associated with metal deposits, while a gossan is an oxidised surface expression that can signal sulphides below. Drill planning is underway once target interpretation is complete.

Metallurgical Work Is Progressing Alongside Drilling

Metallurgy often receives less attention than assays, but it is important for understanding whether mineralisation may be processed efficiently.

According to the update:

• Leaching testwork began last week at Core Resources in Brisbane
• Flotation testwork is underway at ALS in Burnie
• The work is intended to confirm the flowsheet for the Montezuma Scoping Study
• The scoping work now also includes the newly identified silver-zinc mineralisation

This last point is relevant. By extending the study scope to cover both the established silver-antimony lode and the newer silver-zinc zone, Lode is aiming to assess Montezuma on a broader technical basis.

The company also referred to a preliminary flotation test completed earlier in 2026, which produced the following recoveries:

These are not production results, but they do provide an early indication that conventional recovery routes may be suitable, subject to further confirmatory work.

Antimony Remains a Key Part of the Montezuma Investment Case

Montezuma is not only a silver project. Antimony remains central to how Lode is positioning the asset.

The company stated that antimony is classified as a critical metal by both the Australian Federal Government and the Tasmanian State Government, and that Montezuma is Tasmania's only antimony project. Moreover, Lode said the project is one of relatively few advanced antimony development assets in the western world outside China's supply chain.

The ASX announcement referenced changes in Chinese export controls over 2024 and their later suspension under a US-China trade arrangement in November 2025. Lode noted that Europe remains outside that arrangement, while China continues to hold a dominant position in global antimony supply.

For investors, this does not amount to project-specific support. It does, however, place Montezuma within a commodity market where supply concentration and price volatility remain relevant considerations.

What Investors May Watch Next

Lode's July 2026 exploration update sets out a steady stream of near-term catalysts across several Tasmanian targets.

Near-Term and Medium-Term Catalysts

The broader investment case rests on several linked factors:

• The existing 8.2Moz AgEq resource is still open in all directions
• MZS42 introduced a second mineralisation style adjacent to the resource
• Regional targets provide multiple opportunities for additional discoveries
• Metallurgical work is progressing in parallel with exploration

Taken together, the update shows Lode moving on several fronts at once. The immediate focus is on whether drilling from the eastern side of Montezuma can extend the known silver-antimony system while also testing the nearby silver-zinc target. If both programmes deliver encouraging results, the scale potential of the project may become clearer over the coming rounds of assays and technical studies.

Could Tasmanian Silver and Antimony Discoveries Signal the Next Major ASX Mineral Find?

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