Larvotto Resources Ltd (ASX:LRV) has secured an exclusive option to acquire the Blockade Mine (ML 90027) in northwest Queensland, strengthening its position around the copper-focused Mt Isa Project and opening a potential near-term development pathway.
Blockade is about 41 kilometres east-north-east of Mount Isa within a granted mining lease covering 152.7 hectares and is completely surrounded by Larvotto’s existing tenure. The lease sits within Larvotto’s broader Mt Isa footprint and is seen as a key element in a potential hub-and-spoke development model.
Blockade location plan in relation to Larvotto’s existing tenure.
Managing director Ron Heeks said securing Blockade had been a long-term strategic priority to complement the Mt Isa portfolio.
“Acquiring the Blockade Mine that was previously mined for High Grade copper by Mount Isa Mines Ltd has been a strategic priority that we have pursued over several years to complement our Mt Isa portfolio. Blockade, which we surround, has the potential to form an integral part of a regional hub-and-spoke operation and serve as the basis of near-term copper production from the existing mine.
"The current known mineralisation is open in all directions and drilling to date has only tested to a depth of 100 metres, and the potential for a significant tonnage deposit with excellent grade is high. While the Hillgrove Antimony-Gold Project in New South Wales has been Larvotto’s focus over the past two years, our conviction in the copper potential at Mt Isa remains unchanged. We have a dedicated exploration team for Mt Isa, reflecting our commitment to advancing this highly prospective project area.
"The geology near Blockade is well understood, the mineralisation is fault-controlled and continuous, and historic drilling has identified deeper sulphide copper potential. Our upcoming RC program is designed to validate this historical work and assess the scale of the system. If results confirm our expectations, Blockade will potentially transform Mt Isa from a greenfield exploration story into a genuine near-term copper development opportunity.”
Historic production and geology
Mining at Blockade dates back to the early 1900s, when high-silica material (greater than 70%) was supplied as smelter flux to Mount Isa, followed later by small-scale production of high-grade copper ore. A shallow open pit was operated by Mount Isa Mines in the 1980s.
More recently, private company Kilo Copper Pty Ltd completed about 4,000 metres of predominantly reverse circulation (RC) drilling. This work outlined copper mineralisation associated with a steeply dipping, north-west trending fault zone hosted in a narrow band of actinolite schist between quartzite and greywacke units.
Historical work suggests an upper oxide and carbonate copper zone has been only partially mined, while drilling in 2010–2011 demonstrated that sulphide mineralisation, dominated by chalcopyrite and pyrite with minor native copper, continues at depth beneath the oxide cap. Cross-sections show broad mineralised envelopes with a higher-grade, continuous central lode and multiple lodes along strike, with drilling to date generally limited to about 100 metres' depth.
Blockade Mine with interpreted Cu mineralisation and selected drill hole intercepts and planned RC drill holes.
Planned drilling and evaluation
Larvotto plans to move quickly with a six-hole, roughly 1,500-metre RC program as part of its due diligence. The drilling is designed to validate Kilo’s historical results, test extensions along the north-west strike, investigate possible parallel structures and probe the deeper sulphide potential.
Results from this program, expected in the March quarter of 2026, will be integrated with the historical dataset to assess the potential for preliminary resource modelling and to inform a decision on exercising the acquisition option. If the results are positive, Larvotto anticipates further resource definition and step-out drilling.
Commercial terms and management outlook
Following the due diligence drilling, Larvotto can elect to continue exploring and developing the project by paying $400,000 in cash or shares.
It also holds an option to purchase the mining lease outright for $1 million, payable in cash, shares, or a combination, with a deferred consideration of up to $10 million payable if ore is produced from the lease.