en.Wedoany.com Reported - Larvotto Resources (ASX:LRV) has formally exercised its option agreement with Kilo Copper, securing exclusive rights to explore, develop, and mine the Blockade copper mine in Queensland.
This decision is based on the results of due diligence reverse circulation drilling completed beneath the historical open pit. The drilling confirmed extensive, continuous copper mineralization, with significant intercepts including: 31 meters at 1.16% copper from 63 meters, including 8 meters at 1.86% copper from 78 meters; 5 meters at 1.3% copper from 53 meters; and 4 meters at 1.65% copper from 85 meters. Mineralization remains open down-dip and down-plunge, with the deepest hole reaching 244 meters.
Managing Director Ron Heeks stated that Blockade constitutes a "cornerstone" asset for the company's regional copper strategy, as it is located within an approved mining lease, has a production history, and is entirely surrounded by Larvotto's existing tenements. "We prioritized the acquisition of the Blockade mine, which was previously mined for high-grade copper by Mount Isa Mines, to strengthen our Mt Isa asset portfolio," Heeks said. "Blockade has the potential to become a key component of a regional 'hub-and-spoke' copper production system in the near term. With our due diligence drilling confirming extensive, continuous mineralization at depth and yielding strong copper grades, our focus now is on resource definition and understanding the overall scale of the Blockade deposit."
Under the terms of the agreement, Larvotto will issue ordinary shares valued at A$400,000 to Kilo Copper, calculated based on the 12-day volume-weighted average price. Additionally, Larvotto holds a separate independent option to acquire a 100% interest in mining lease ML90027 for A$1 million in cash, shares, or a combination thereof. The agreement also includes a deferred consideration, capped at A$10 million, contingent on the company producing ore from this mining lease.
The Blockade mine is situated within a 152.7-hectare mining lease, located 41 kilometers east-northeast of Mount Isa, and is entirely surrounded by Larvotto's existing tenements. In the third quarter of 2026, the company plans to commence resource definition and extensional drilling, submit an initial mineral resource estimate, initiate a scoping study, and engage with Queensland government stakeholders. Larvotto Resources is actively advancing its portfolio of mineral projects in New South Wales, Queensland, and Western Australia.
