RCM: Discovers new silver lode right next to its 14.2M oz silver lode…

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 13,213,572 RCM Shares at the time of publishing this article. The Company has been engaged by RCM to share our commentary on the progress of our Investment in RCM over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs. Any forward-looking statements are uncertain and not a guaranteed outcome.

Eric Sprott backed Rapid Critical Metals (ASX:RCM) is Australia’s highest grade silver equivalent, pre-development, company.

RCM has an estimated 67M ounces of silver equivalent resources averaging ~400 g/t across three projects in NSW.

One of those projects, Webbs, has an estimated 14.2M ounces silver equivalent, and is where RCM has spent the last few months drilling.

Today we learnt that with the first hole, RCM drilled through and clipped what looks like it could be the edge of a whole new silver system ~120m to the west of Webbs...

(Source: RCM announcement)

A great time for it, given silver is up at the highest price it’s ever been in its history...

The hole ended in mineralisation AND has proven RCM’s “parallel lode” theory - the theory that there could be more Webb’s style mineralised lodes to the west of the existing resource.

(A “lode” is a deposit of valuable minerals, in this case, silver)

This new discovery could add significant high grade silver resources to the company and is a good sign there could be even more new parallel silver lodes to be found.

(Source: RCM announcement)

In other words:

Today’s discovery validates the ‘parallel lode’ theory.

With the next round of drilling, RCM can drill west to east to test whether or not there is a system big enough to really add significant ounces to RCM’s JORC resource estimate at Webbs.

The best way to visualise what “success” would look like to us, is for the next round of drilling to hit something like this:

(this is a cross section view ie, a view from underground)

(source: RCM announcement)

As soon as we read today’s announcement we remembered another one of our explorers that had a similar thing happen to them a few years back.

One of our Investments Galileo Mining (ASX: GAL) clipped the edge of a sulphide system. The hole ended in mineralisation...

Then GAL came back and drilled deeper and from different angles to test the structure that was first clipped.

That follow up drilling led to a major new discovery, and Galileo’s share price went from ~13c to $2 per share.

(The past performance of GAL is not and should not be taken as an indication of future performance of RCM - the two companies operate in different commodities on entirely different projects and the GAL move happened in a completely different market environment)

So has RCM clipped the edges of a new major discovery of its own?

Looking at today’s announcement, we should find out when the next set of holes get drilled:

(source: RCM announcement)

More on that in a second, first some context...

As mentioned earlier, RCM has an estimated 67M ounces of high grade silver equivalent resources averaging ~400 g/t silver equivalent in NSW, across three projects.

RCM’s target is to get that resource base to ~100M ounces of silver equivalent organically, which means by drilling out new discoveries and extensions to the existing resources... (not by buying the ounces via M&A with other companies) (Source)

(Source)

Today’s discovery may be one of the ways RCM gets to its 100M ounce resource target.

In our last RCM note back in September, we said:

(source)

A big part of why we think the parallel lode theory is big for RCM is because it marries up with all of the target generation work RCM has done in the area.

RCM has big geophysical anomalies that sit to the west - and there are historical workings also showing that there could be another silver system to the west of Webbs.

RCM shot LiDAR surveys (basically a way of mapping what's happening underground) and other geophysical surveys and put together a bunch of big geophysical anomalies (gravity targets) to the west of Webbs:

(Source)

The LiDAR survey results also showed that there were historical workings in that same western section:

(source)

So today’s result is a good way of proving there is definitely “smoke” in this area...

Now we wait to see if the next round of drilling (on the geophysical targets and old workings) proves or disproves RCM’s exploration model.

And whether or not those geophysical anomalies are actually the sources structures for parallel silver lodes:

As mentioned earlier, the ultimate win from the next round of drilling will be if RCM can hit similar structures at Webbs, to the west (and potentially at depth):

(Source)

RCM is funded for drilling in 2026

RCM raised ~$14M placement (at 3.5c) a few months ago.

We also note RCM should have something like ~18M shares in ASX listed Iris Metals - which is currently trading at ~23c per share. (Source)

That Iris shareholding is worth ~$4.2M at today’s market prices.

So RCM should have over $14M in cash and ~$4.2M in Iris stock available to spend on drilling in 2026.

We will get an updated cash balance in the next quarterly report at the end of January.

RCM is now backed by three big institutional investors

We especially like that RCM’s last raise managed to attract the following to the register:

• Eric Sprott - Canadian billionaire mining investor who made his fortune off Kirkland Lake Gold. Now he runs Sprott Asset Management and is known for backing junior mining companies in gold and silver. (Sprott just lodged a substantial holder notice for RCM, and now owns 9.72% of the company.)
• Tribeca Investment Partners - Australia’s largest natural resources fund with $3B+ assets under management. Tribeca holds ~7.2% of RCM.
• Jupiter Asset Management - Active resources fund based in the UK, backed a number of other investments in our Portfolio including Mithril Resources. Jupiter holds ~7.29% of RCM.

Between them, they took $10.5M of the $14M capital raise.

So ~25.5% of RCM will be owned by those three institutions.

Here is Eric Sprott going substantial in RCM:

(source)

Here is Jupiter’s substantial notice:

(Source)

And here is Tribeca with its substantial shareholding notice:

(source)

What we want to see next from RCM:

As mentioned earlier, the main catalyst we want to see is drilling from Webbs.

RCM still has 6 assays pending from the first round of drilling so we could also see some results from those holes while we wait for the next round of drilling to start.

(source)

Ultimately, after seeing today’s results, we are most interested in seeing RCM test that “parallel lode theory” with drilling from the west...

(source)

10 reasons why we are Invested in RCM

Below are the key reasons why we Invested in RCM from our initiation note on 17th September 2025.

Note: Some of the calculations in the reasons may be out of date, given the recent run in RCM’s share price.

1. RCM has an estimated 67M ounces of high grade silver equivalent JORC resource estimates. We think it can grow bigger.

Across all its nearby projects, RCM will have an estimated ~67M ounces of high grade silver equivalent JORC resources. With capital to put into drilling now, we think RCM can multiply this resource with new discoveries and by extending its existing discoveries.

UPDATED:

In RCM’s most recent investor presentation, it stated a strategy of targeting 100M ounces of silver equivalent resources.

Check out the full presentation here.

2. We like silver

Silver is now at 14 year highs, and we think its about to go on a once in a generation run to new all time highs (no guarantee of course).

Update:

When we first Invested in RCM the silver price was ~US$42 per ounce.

Now silver is trading at US$63.5 per ounce.

3. There are very few silver exposures on ASX

There are very few silver names on the ASX. If silver runs, there could be a lot of capital chasing silver exposure in only a handful of names. This scarcity could mean valuations run from where they are now.

4. Silver stocks on the ASX (like RCM) are cheap relative to other exchanges

We think silver is misunderstood on the ASX and as a result, silver companies are not being valued in line with peers on North American exchanges.

We think that a big silver bull run could change that very quickly.

5. RCM is relatively cheap compared to other ASX listed silver stocks

RCM trades at an EV/silver equivalent JORC resource estimate of ~$0.38 per silver ounce equivalent (following the settlement of RCM’s latest acquisition).

NSW peer Silver Mines trades at a ~$1 per silver equivalent ounce.

This is before any of the exploration upside is factored into RCM.

6. We are Investing alongside Tribeca, Jupiter Asset Management and Eric Sprott

We have had success Investing alongside Tribeca (with Locksley Resources) and Jupiter Asset Management (with Mithril Silver and Gold).

Eric Sprott is also one of the most well known silver investors in the world.

We are following them all into RCM.

7. We know two of RCM’s projects really well

We were previously Invested in RCM’s Webbs and Conrad projects through a previous Investment (TMZ) which we held when silver was <US$25 per ounce.

TMZ back then hit a market cap >$50M.

Unfortunately, TMZ made a few errors and the company ended up suspended for years, and despite an attempted re-listing, it eventually sold its assets to RCM for a $6.5M cash and shares deal. We still hold a position in that unlisted vehicle now called SMG (ex TMZ) but unfortunately not sure what will happen to that.

Now with silver at US$42+ per ounce we think the same assets could be valued much higher in the current corporate vehicle (RCM).

8. We like the recent acquisition RCM completed

RCM just acquired a neighbouring deposit, adding a 32M ounce silver equivalent JORC resource estimate to its overall resource base.

9. Exploration upside (project area now 26x bigger)

We like the recent addition of ground around the newly acquired asset and RCM’s existing Webbs deposit.

The project area is now ~26x bigger and RCM will fully own the geological trend in between its two deposits.

None of this area has been drilled systematically - RCM plans to change this over the coming months.

10. Critical Metals “Side asset” in Canada could also come good

RCM also owns 100% of a germanium/gallium project in Canada. The project is at a very early stage, but previous drill holes have shown some of “the highest germanium grades globally”.

We didn’t Invest in RCM for this asset, however it could become a dark horse in RCM’s Portfolio of projects.

Ultimately, we want to see RCM drill out its silver assets in NSW and put together a resource base larger than where it is today which warrants taking the projects into development.

This also forms the basis for our RCM Big Bet which is as follows:

Our RCM Big Bet:

“RCM expands its existing silver resource through new discoveries into a silver bull market and re-rates by over 1,000% from our Initial Entry Price”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our RCM Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

What are the risks?

The main risk we see for our RCM Investment in the short term is “exploration risk”.

Exploration risk because RCM is drilling right now, and there is no guarantee that the company will find anything that is economically significant.

Poor exploration results could negatively impact RCM’s share price.

Exploration risk

There is no guarantee that RCM’s upcoming drill programs are successful. RCM may fail to find economic silver resources in which case we would expect the share price to re-rate lower.

Source: “What could go wrong” - RCM Investment Memo 17 Sep 2025

To see a list of other risks check out our RCM Investment Memo.

Other Risks

Investing in RCM carries other risks which may affect the value of the company.

There is also market liquidity risk. As a small cap company, RCM’s shares may be thinly traded, and this could result in significant share price volatility or difficulty for investors seeking to enter or exit positions.

Broader geopolitical and macroeconomic factors may also impact the company’s prospects.

A global economic slowdown, reduced demand for silver, or geopolitical instability could materially affect silver prices and investor sentiment toward the resources sector.

Environmental, social, and governance risks must also be considered. Any future changes in environmental regulations, permitting requirements, or opposition from local communities could delay or prevent project development.

Finally, there is execution risk. Even with funding secured and exploration programs underway, there is no guarantee RCM will deliver successful exploration results, expand its resource base as anticipated, or progress toward development within the expected timelines or budgets.

Investors should carefully consider these risks and seek professional advice tailored to their personal circumstances before investing.

Our RCM Investment Memo

Our Investment Memo provides a short, high-level summary of our reasons for Investing. We use this memo to track the progress of all our Investments over time.

Click here to read our RCM Investment Memo where you will find:

• What does RCM do?
• The macro theme for RCM
• Our RCM Big Bet
• What we want to see RCM achieve
• Why we are Invested in RCM
• The key risks to our Investment Thesis
• Our Investment Plan