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Doug Bright
Larvotto Resources has significantly expanded the mineralised envelope at its producing Hillgrove antimony-gold project in New South Wales, with drilling intersecting thick high-grade zones outside its existing resource envelope at the Clarks Gully prospect.
The latest diamond drill holes have returned impressive intercepts, including 32 metres at 5.68 grams per tonne gold equivalent from 260m downhole depth, featuring a richer 8-metre core grading 13.77g/t gold equivalent. A second hole bored through 29.1m at 6.06g/t gold equivalent from 339.4m, including a stunning 8.7-metre section at 14.83g/t gold equivalent.
Significantly, the drilling also returned a stellar tungsten hit of 0.4m at 11.13 per cent tungsten trioxide, adding a serious kicker to the results. The timing could hardly be better, with market analysts pointing to a major supply squeeze that saw tungsten prices surge in 2026, driven by Chinese export controls and rising defence-related demand.
Geopolitics has set the tone, with seaborne tungsten concentrate rising from around US$300 (A$430) per metric tonne unit (mtu) – where one mtu equates to 10 kilograms of contained tungsten trioxide – in early 2025 to over US$3,000/mtu (A$4307) by mid-2026.
โThe Company has initiated the process of permitting Clarks for a very low footprint underground operation.โ
Larvotto Resources managing director Ron Heeks
The latest drilling at Clarks Gully has done more than just extend the main lode; it has also uncovered multiple new high-grade hanging wall lodes, suggesting a much broader, stacked mineralised system than previously understood.
One of these new lodes delivered a hefty 4.4-metre intercept at 12.81g/t gold equivalent from 157.8m, featuring a bonanza-grade 0.4-metre zone going a whopping 90.99g/t gold equivalent.
Other notable hits from the newly identified hanging wall structures include 6m at 11.97g/t gold equivalent from 219m and 2m at 14.26g/t gold equivalent from 259m. The results confirm a thickening, multi-lode system that extends below and to the south of the existing mineral resource envelope, remaining open at depth.
Larvotto Resources managing director Ron Heeks said: โThe excellent results from our ongoing drilling at Clarks continue to highlight the potential to expand the current resource. Interestingly, what we are seeing is the gold and tungsten grades appear to be increasing with depth. The potential for significant tungsten along with the already excellent gold and antimony grades certainly reinforces the potential of the orebody.โ
The company says the new results have extended the mineralised footprint an estimated 100m down-plunge from the existing Clarks Gully envelope, which hosts an estimated resource of 647,000 tonnes at 1.6 per cent antimony and 2.1g/t gold.
With assays for the final two holes of the 16-hole program still pending, Larvotto is already working on geological modelling to update the Clarks Gully resource estimate. It has also initiated permitting for a low-footprint underground operation at site to provide a secondary feed source for the Hillgrove processing facility.
The success at Clarks Gully comes hot on the heels of Larvottoโs production start-up just a month ago and first concentrate output only 10 days ago. With the restart fully funded and its newly commissioned plant now humming along, the company is using multiple drill rigs to focus on resource expansion and fresh discoveries to feed the plant.
Now that the main Hillgrove mine is in production, Larvotto is not just proving up a resource; it is actively looking to expand the inventory of an operating asset. With its drill bits continuing to define a stacked system of high-grade lodes that appear to get richer at depth, a powerful tailwind from surging tungsten prices and a firm floor remaining under antimony prices, the company seems to be in the right place at the right time.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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