Larvotto Resources has exercised its option with Kilo Copper to proceed with the exclusive right to explore, develop, and mine the Blockade copper site, about 40km east-north-east of Mount Isa.

Larvotto said its due diligence reverse circulation drilling confirmed strong copper mineralisation beneath the historical Blockade open pit, returning mineralised intersections of up to 31m at 1.16 per cent copper from 63m.

It comes as the company vies with Austral Resources Australia to acquire Hammer Metals and bring its North-West Queensland copper-gold tenements into its portfolio.

Related: Austral makes a move on Hammer Metals

“Blockade is a cornerstone development for our wider Mount Isa copper strategy; a granted mining lease with a history of production, high-grade mineralisation confirmed to be open along strike and down dip, sitting squarely within our existing tenure,” Larvotto Resources (ASX:LRV) managing director Ron Heeks said.

“Larvotto now has a proven record to advance projects quickly towards development as we have done with Hillgrove, and we hope to replicate this at Blockade.

“We have prioritised acquiring the Blockade mine, previously mined for high-grade copper by Mount Isa Mines, to strengthen our Mount Isa portfolio.

“Located around our existing operations, 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.”