Lode Resources Resumes Montezuma Drilling, Uncovers High-Grade Silver-Zinc Zone Near Existing 8.2Moz AgEq Resource

Efficient Drilling Strategy Targets Two Mineralised Zones from One Location

Lode Resources has structured its current drilling program to efficiently test both the existing Silver-Antimony Resource and the newly discovered Silver-Zinc mineralisation from a single drilling site on the deposit’s hanging wall (eastern) side. Since the two mineralised zones lie only about 100 metres apart, each drill hole can effectively sample both targets, maximizing the value of drilling meters. The company’s maiden JORC (2012) Mineral Resource Estimate totals 480 kilotonnes at 533g/t AgEq1, equating to 8.2 million ounces AgEq1, which serves as a benchmark for measuring exploration success.

The Montezuma deposit occurs within fissure veins along a north-south trending fault with steeply east-dipping splay structures. Mineralisation defined by drilling extends over 250 metres strike length and 200 metres down dip, remaining open in all directions, including southward and at depth. This open geometry is significant for investors, indicating the current 8.2Moz AgEq resource boundaries are not closed, allowing new drilling to potentially expand the resource materially. Completion of earthworks has enabled drilling from the hanging wall position, granting access to previously unreachable extensions.

High-Grade Silver-Zinc Intercept Matches Leading Tasmanian Mines

The discovery of replacement-style silver-zinc mineralisation in drill hole MZS4224 has established a second prospect adjacent to the Montezuma fault Silver-Antimony system, adding a valuable new asset to the project. The hole intersected 6.40 metres grading 6.2% zinc, 1.5% lead, 0.1% antimony, 43 g/t silver, and 0.1 g/t gold between 267.0 and 273.4 metres. These grades are comparable to those of operating mines in Tasmania’s West Coast Mining Province, such as Rosebery and Hercules, underscoring the district’s tier-1 potential and validating the exploration approach.

The mineralisation shares grade characteristics with Rosebery and Hercules but resembles the mineral genesis of the Renison and Mount Bishoff tin deposits, classified mainly as stratabound carbonate replacement. This style can be economically attractive due to potential for wide mineralised zones and large tonnage. The dolomitic unit within the Maestries Conglomerate is interpreted to be up to 40 metres thick, with mineralisation observed both within the unit and near the hanging wall contact. While the intercept in hole MZS4224 measures 6.2 metres with an estimated true width of 2.8 metres, weak disseminated mineralisation is present at surface within the carbonate conglomerate, suggesting potential for increased mineralisation at depth where replacement styles typically intensify.

Metallurgical Testing Advances Montezuma Scoping Study

Metallurgical testwork is underway to mitigate production risks at Montezuma, with the newly discovered silver-zinc mineralisation now incorporated into the Montezuma Scoping Study. Leaching tests began last week at Core Resources in Brisbane, while flotation testing is in progress at ALS in Burnie to determine the optimal processing flowsheet. These parallel efforts aim to assess the technical and economic feasibility of mining and processing the combined silver-antimony and silver-zinc mineralisation.

Integrating the silver-zinc discovery into the scoping study marks a significant evolution in project development, potentially enabling value capture from both mineralisation styles within a single processing operation. Leaching tests evaluate silver-antimony extraction, and flotation tests focus on silver-zinc separation and concentration. Completion of these programs will provide the technical foundation for advancing the scoping study toward preliminary economic assessment. The company has not disclosed a timeline for metallurgical test completion.

Regional Exploration Targets: Fahlore, Silver Cliffs, and Persic Prospects

Beyond Montezuma, Lode Resources is progressing regional exploration across multiple targets that could complement and scale the company’s operations. Diamond drilling has started at the Fahlore Silver & Antimony Prospect, with the first of three holes nearing completion. Road access to the high-grade Silver Cliffs and Persic prospects is now finished, enabling mapping, sampling, and approved diamond drilling programs. These regional targets form part of a portfolio approach within the West Coast Mining Province, where the company controls prospective ground in a well-established mining district.

Advancing multiple regional prospects provides diversified growth opportunities beyond Montezuma, potentially enabling a hub-and-spoke development model where additional deposits feed a centralized processing facility once Montezuma reaches production. Completing road access to Silver Cliffs and Persic removes major logistical constraints for fieldwork. Drilling at Fahlore follows high-grade rock samples, indicating economic mineralisation potential. The company did not specify planned drilling metres for these regional targets.

Granville East Sub-Audio-Magnetic Survey Complete, Drill Planning Underway

The Sub-Audio-Magnetic (SAM) Survey at Granville East is complete, with final data pending. The company is planning drilling to target both the existing pit and new targets identified by the survey. SAM surveying is a geophysical method effective in detecting conductive sulphide mineralisation like that targeted in the Montezuma district. This survey advances risk reduction at Granville East by generating drill targets from geophysical data beyond surface sampling.

New targets from SAM data indicate successful subsurface mapping, providing a framework for targeted drilling. Granville East adds to Lode Resources’ portfolio in the West Coast Mining Province. The existing pit suggests prior mining activity, offering valuable geological and ore handling data for future development. Specific survey coordinates, dimensions, or mineral targets were not disclosed.

Managing Director Keith Mayes Highlights Drilling Strategy and Resource Expansion Potential

Managing Director Keith Mayes explained the strategic rationale behind the current drilling program and emphasized that the silver-zinc discovery adjacent to the existing Montezuma Silver & Antimony Resource could significantly expand the project’s scale. Mr. Mayes expressed excitement about drilling from the east side, enabling testing of resource extensions to the south and advancing the new silver-zinc mineralisation linked to the Maestries Conglomerate. He described the proximity of the new deposit—only 100 metres from the existing resource—as a highly promising prospect that could materially enhance project development.

Mr. Mayes also highlighted parallel exploration efforts across the portfolio, noting that drilling at Fahlore follows high-grade rock samples and that future drilling at Granville East will focus on the existing pit and SAM survey targets. This reflects the company’s commitment to sustained exploration momentum across multiple prospects, indicating confidence in the broader tenure’s potential. The multiple programs align with a resource growth strategy beyond a single deposit, supporting development of a multi-deposit mining operation in a proven district.

Open-Ended Montezuma Fault Geometry Supports Resource Growth

The structural setting of the Montezuma deposit offers substantial upside for resource expansion, as mineralisation remains open in all directions. Hosted within fissure veins along a north-south trending fault with steeply east-dipping splays, drill-defined mineralisation extends over 250 metres strike and 200 metres down dip but has not been closed off by drilling. This means further drilling could discover additional ore-grade material beyond current resource limits, a positive factor for investors assessing resource growth potential.

Unlike many deposits where drilling eventually defines closed boundaries with subeconomic grades, Montezuma’s open geometry means the current 8.2Moz AgEq resource is a starting point rather than a maximum. The recent discovery of a new replacement-style silver-zinc mineralisation adjacent to the fault-hosted silver-antimony lode further demonstrates the district remains underexplored and may contain additional resources. This supports the company’s objective to grow the resource on multiple fronts through ongoing drilling.

Maiden JORC Resource Estimate Provides Base for Economic Evaluation

Before drilling hole MZS4224, Lode Resources completed its maiden JORC (2012) Mineral Resource Estimate based on 41 holes into the Montezuma silver-antimony lode. The estimate reports Indicated and Inferred resources totaling 480 kilotonnes at 533 grams per tonne AgEq1, equating to 8.2 million ounces AgEq1, using a cut-off grade above 200 grams per tonne AgEq1. This dataset underpins the scoping study and confirms a proven mineral endowment that reduces early-stage development risk. Indicated resources reflect higher confidence from closer drill spacing and geological modelling.

The silver-equivalent (AgEq1) calculation converts multiple metal grades—silver, zinc, lead, antimony, and gold—into a single silver-equivalent figure for economic comparison, a standard approach in polymetallic projects. The company did not disclose specific conversion ratios or metal prices used. The average grade of 533g/t AgEq1 significantly exceeds the 200g/t cut-off, indicating a solid margin for economic mineralisation assuming typical metallurgical recoveries and processing costs.

West Coast Mining Province Location Enhances Project Viability

Montezuma’s location in Tasmania’s West Coast Mining Province situates it within one of Australia’s premier mining regions, known for significant precious and base metal production. Nearby producing or recently operated mines such as Rosebery and Hercules provide geological validation and benchmarks for mining and processing costs, metallurgical recoveries, and logistics. Proximity to these operations suggests that technical and operational challenges are well-understood and manageable.

The district offers access to existing mining infrastructure, skilled workforce, power supply, and service providers, potentially lowering capital and operating expenditures compared to remote greenfield projects. The region’s mining heritage also implies regulatory familiarity and community acceptance, possibly facilitating development approvals. Geological analogues like Renison, Mount Bishoff, Rosebery, and Hercules support informed development planning and metallurgical flowsheet design. These factors collectively improve Montezuma’s development economics.

Exploration Risks and Development Timeline Remain Uncertain

Despite progress to a maiden resource estimate and scoping study phase, Lode Resources remains in exploration and early development stages. While drilling recommencement and new mineralisation discoveries are positive, they do not guarantee project advancement to mine development or commercial production. Exploration risks persist due to limited drill data and geological uncertainties inherent in 3D resource modelling. The company has not provided timelines for scoping study completion or subsequent development phases.

Metallurgical testwork aims to reduce technical risks but may reveal processing complexities requiring further investigation or flowsheet adjustments. Incorporating the new silver-zinc mineralisation into the scoping study materially alters project scope and may extend evaluation timelines. Commodity price fluctuations also impact economic viability, as precious and base metal values respond to global supply-demand and macroeconomic factors. Investors should monitor exploration outcomes, metallurgical results, commodity prices, and management updates as key indicators of project progress.