Lode Resources : Outstanding Metal Recoveries in Trough Gully Testwork

14 April 2022

Outstanding Metal Recoveries in Initial Testwork on Trough Gully Mineralisation

Highlights

• • Very high recoveries of Zinc, Copper, Gold and Silver in concentrate from preliminary flotation test on Trough Gully Base Metals Project mineralisation

• • Recoveries up to 97.5% for Zinc, 98.8% for Copper, 97.2% for Gold and 98.8% for Silver

• • High metal recoveries indicate potential for low-cost industry standard flotation of mineralisation hosted by Trough Gully and the greater Fender Copper Project in a mining scenario

• • Phase I drilling program at Trough Gully returned:

  ➢ TGY0071: 7.30m @ 9.47% Zinc Equivalent from 92.1m

  (4.93% Zn, 1.37% Cu, 0.36 g/t Au & 10.1 g/t Ag)

  ➢ TGY0031: 6.90m @ 9.21% Zinc Equivalent from 50.9m

  (4.49% Zn, 1.30% Cu, 0.50g/t Au & 17.4g/t Ag)

• • Significant, previously under-recognized zinc mineralisation indicates the mineral potential of Trough Gully and the Webbs Consol Base Metal Projects may have been highly underestimated

• • DHEM and FLEM surveys to test for mineralisation extensions at Trough Gully Project to commence in May, ahead of Phase II drilling

• • Fender Copper Project, includes the Trough Gully Mine as well as two large copper drainage anomalies 'Kasey' (7km x 3km) and 'Fold' (4km x 2km)

Commenting on this preliminary metallurgical flotation test work Lode's Managing Director, Ted Leschke said:

"We are highly encouraged by the preliminary metallurgical test work on Trough Gully mineralisation as well as the high-grade drill results in initial drilling. Whilst there is much work to be done, high metal recoveries, high-grade mineralisation and strong metal prices is the trifecta aspiration of every exploration company"

Lode Resources Ltd ACN 637 512 415

Level 30, 264 George St Sydney NSW 2000 Iwww.loderesources.com

Trough Gully Initial Flotation Testwork Results

Lode Resources Ltd (ASX: LDR or 'Lode' or 'the Company') is pleased to report highly encouraging results from preliminary flotation testwork carried out on mineralisation intersected in drill hole TGY0031 at Trough Gully. The purpose of the preliminary metallurgical test program was to determine initial flotation recoveries of the main metals of economic interest.

A representative composite bulk sample consisting of 8.80 metres (from 49.0m) of quartered drill core TGY0031 was submitted to ALS Metallurgical Services in Perth for initial bench top flotation testwork.

The parameters of initial test work included grind size of 80% passing 75 µm 30-35% solids pulp density and 4-stage rougher stage flotation using standard reagents producing a bulk concentrate (see Photos 1-4). The rougher flotation recoveries are in Table 1. Cumulative recoveries at stage 4 were up to 97.5% for Zinc, 98.8% for Copper, 97.2% for Gold and 98.8% for Silver. These are outstanding numbers in Lode's view.

Table 1: Cumulative 4 -stage rougher flotation recoveries of metals of interest

Product	Mass %	Cumulative Recoveries (%)
Zn	Cu	Au	Ag
Rghr Con 1 Rghr Con 1-2 Rghr Con 1-3	25.2 19.2 13.4	57.7 83.6 96.1	46.6 77.1 95.8	41.6 73.6 93.3	37.9 70.5 94.2
Rghr Con 1-4	4.67	97.5	98.8	97.2	98.8

It should be noted that this preliminary flotation testwork produced a single product bulk concentrate containing both sphalerite, chalcopyrite, gold and silver minerals, in addition to pyrite which wasn't depressed in this initial test. It is highly likely that separate concentrate products would be produced using the same process but with the main minerals of interest separated sequentially using specific reagents for each mineral. This would normally result in a slight reduction in the overall metal recoveries but an increase in metal payability and reduction in charges.

Photos 1 to 4: Trough Gully rougher flotation concentration stages 1 to 4 (Drill hole TGY0031)

Trough Gully Drill Intercept Grade Equivalents

The completion of preliminary flotation testwork allows for the calculation of metal equivalent grade from multiple metal grades1 as per the 2012 JORC code. Reporting a metal equivalent figure provides easy-to-understand, over-all grades as a single figure for drill hole intercepts where there are multiple metals of interest.

Whilst the Trough Gully Mine was historically operated for copper production, the contained zinc by value in drill holes TGY0031 and TGY0071 is actual 35% higher than the contained copper value. Under the 2012 JORC code the metal chosen for reporting on an equivalent basis should be the one that contributes most to the metal equivalent calculation, in this case zinc.

Phase I drilling resulted in six drill holes for 574 metres. TGY0031, TGY0061 & TGY0071 returned significant zinc, copper, gold and silver assays as summarised in Table 2. Both TGY006 & TGY007 reported zinc equivalent grades >9% which is considered high-grade by industry standards.

Table 2: Intercept assays for drill hole TGY0031, TGY0061 & TGY0071

Hole	From	To	Interval	Zinc Eq22	Copper	Zinc	Gold	Silver
(m)	(m)	(m)	(%)	(%)	(%)	(g/t)	(g/t)
TGY003	50.90	57.80	6.90	9.21	1.30	4.49	0.50	17.4
TGY006	67.60	70.40	2.80	2.61	0.53	0.83	0.16	3.3
TGY007	92.10	99.40	7.30	9.47	1.37	4.93	0.36	10.1

2Trough Gully zinc equivalents are based on assumptions: ZnEq(%)= Zn(%)+2.73*Cu(%)+1.60*Au(g/t)+0.021*Ag(g/t) calculated from 4 March 2022 sport prices of US$4,000/t zinc, US$10,800/t copper, US$2,000/oz gold, US$26/oz silver and metallurgical recoveries of 97.5%, zinc, 98.8% copper, 97.5% gold and 98.8% silver, which is 4th stage rougher concentration stage recoveries in test work commissioned by Lode and reported in this announcement. It is Lode's opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.

The intercept of 7.30m @ 9.47% ZnEq in TGY007 is located 30m below the deepest historical mine workings and demonstrates potential at depth. Prior to this campaign by Lode the Trough Gully Mine had never been drilled despite a history of copper production that occurred periodically in the late 1800's and early 1900's. High-grade copper ore was despatched from the mine from 1899 to 1916 and a reverberatory furnace was erected on the site in 1908 (see Photo 5).

It is evident that, at both Trough Gully and Lode's Webbs Consol Base Metal Projects, zinc was not a metal sought after during the late 1800's and early 1900's and as such was not highlighted in historical records. This oversight has been exacerbated by an almost total absence of modern exploration, especially drilling. It implies that the overall mineral potential for a number of metal occurrences in the Fender Copper Project and others owned by Lode may be highly underestimated.

Photo 5: Trough Gully historical smelter slag

Figure 1: Cross section of Trough Gully prospect showing drill hole pierce points

South

NorthTGY003: 6.90m @ 9.21% ZnEq (4.49% Zn,

1.30% Cu, 0.50g/t Au & 17.4g/t Ag, TW 4.10m)

TGY005: Line of lode was not intercepted potentially due to fault offset

Open

Next Steps at Trough Gully

Lode is planning to carry out down hole electromagnetic (DHEM) and fixed loop electromagnetic (FLEM) surveys, utilizing drill hole TGY007, to test for extensions at depth and along strike. At this preliminary stage it is postulated that Trough Gully Mine mineralisation is present as vertical boudinage structures. Evidence of this includes the pinching and swelling of the mineralised body and the presence of foliations (see Photo 6).

This may be the result of VMS style mineralisation being remobilised post burial due to heat and pressure (also known as metamorphic flow) and redeposited into boudins of varyingthickness. DHEM may help locate possible thicker boudins prior to the commencement of Phase II drilling.

Photo 6: Trough Gully Mine foliated sulphide veining - evidence of boudinage structures

In addition to the Trough Gully Mine, the Fender Copper Project encompasses numerous copper occurrences and copper drainage anomalism over large areas including two large copper drainage anomalies called Kasey (7km x 3km) and Fold (4km x 2km) as outlined below. These are prime exploration targets for Lode.

Fender Copper Project - multiple targets

The Fender Copper project is located 30km southeast of Tamworth. The geology is dominated by Late Devonian-Early Carboniferous Myra and Sandon Beds as well as inter-fingered Permian basalt, jasper and chert. Surface exploration carried out by several companies since the 1960s comprising stream/soil, surface mapping, IP and magnetics, however no drilling has occurred except for one very small and poorly design programme at the Fisher's Mine prospect. Significant copper values were returned from stream sampling over two large areas (Kasey 7km x 3km, Fold 4km x 2km). This coincides with distinct large magnetic ridges and adjacent to Spring Creek fault. It can be postulated that magnetic anomalies may represent large fold structures which provides tension regime for fissure infilling of remobilised copper mineralisation.

Some 21 copper occurrences of Volcanic Massive Sulphide (VMS) origin have been recorded over 30km strike length and are usually associated within steeply dipping shear zones that have a close spatial relationship with jasper, chloritised metabasalt and less resistant argillaceous chert. The mineralisation is typically Fe rich, followed by Cu and lesser Zn as major metals. Copper grades in small historical workings typically ranges from 2% to 4.5%, although exceptionally rich ore from the Fishers mine averaged more than 13.4% Cu.

Identified drill targets include four historical copper mines (Trough Gully, Mulla Creek, Fishers and Mt Pleasant Copper Mines) and, with further surface work, two large drainage anomaly targets based on regional stream/soil geochemical and magnetic surveys. These large anomalies could suggest potential for a sizeable occurrence.