Larvotto Resources (ASX:LRV) has exercised its option with Kilo Copper to acquire the exclusive right to explore, develop, and mine the Blockade Copper Mine in Queensland.
The company says the decision follows due diligence reverse circulation drilling beneath the historic open pit, which confirmed broad, continuous copper mineralisation.
Significant intersections returned 31m @ 1.16% copper (Cu) from 63m, including 8m @ 1.86% Cu from 78m; 5m @ 1.3% Cu from 53m; and 4m @ 1.65% Cu from 85m.
Mineralisation remains open down dip and down plunge, with the deepest drill hole reaching 244m.
Managing Director Ron Heeks says Blockade represents a ‘cornerstone’ asset for the company’s regional copper strategy, as it sits on a granted mining lease with a history of production, right within Larvotto’s existing tenure.
“We have prioritised acquiring the Blockade Mine, previously mined for high-grade copper by Mount Isa Mines, to strengthen our Mt Isa portfolio,” Heeks says.
“Blockade has the potential to become a key part of a regional hub-and-spoke copper production system in the near term.
“With our due diligence drilling having confirmed broad, continuous mineralisation to depth which delivered strong copper grades, our focus now is to proceed to resource definition and to understand the full scale of what we have at Blockade.”
Under the terms of the agreement, Larvotto will issue Kilo Copper $400,000 worth of ordinary shares calculated on a 12-day volume-weighted average price.
Additionally, Larvotto holds a separate option to purchase 100% of mining lease ML90027 for $1 million in cash, shares, or a combination.
The agreement also includes a deferred consideration capped at $10 million if the company produces ore from the mining lease.
The Blockade Mine sits within a 152.7-hectare mining lease located 41km east-northeast of Mount Isa and is completely surrounded by Larvotto’s existing tenure.
In Q3 2026, the company plans to commence resource definition and step-out drilling, deliver a maiden mineral resource estimate, initiate scoping study work, and engage with Queensland Government stakeholders.
Larvotto Resources is actively advancing its portfolio of mineral projects in New South Wales, Queensland, and Western Australia.
Write to Paula Fabe at Mining.com.au
Images: Larvotto Resources
