Lodestar’s Chile Deal Raises Questions on Resource Potential and Drilling Outcomes

Strategic Expansion into Chile’s Coastal IOCG Belt

Lodestar Minerals Limited (ASX – LSR) has taken a significant step forward in its copper-gold exploration strategy by entering into a binding earn-in agreement for the Nicanor Project in Chile. This 2,000-hectare project lies just south of Lodestar’s existing Darwin and Three Saints projects within the highly prospective Coastal Iron Oxide Copper Gold (IOCG) Belt, a region renowned for hosting world-class deposits.

The agreement allows Lodestar to earn up to a 75% interest in the project through staged exploration commitments totaling approximately USD 1.35 million over three years. This structured approach balances risk and reward, enabling Lodestar to progressively advance the project towards resource definition while managing capital expenditure.

Compelling Early Exploration Results

Initial exploration work conducted by local geologists prior to the agreement included geological mapping, rock chip sampling, and a helicopter-borne aeromagnetic survey. These efforts have identified three high-priority targets ready for drilling, with rock chip assays returning exceptional grades of up to 7.5% copper, 7.2 grams per tonne gold, 68% iron, and 791 parts per million cobalt.

The geophysical data revealed multiple large magnetic anomalies consistent with IOCG-style mineralisation, which is often associated with significant copper and gold deposits. The project’s location along the Atacama Fault System, a major mineralised structural corridor, further enhances its prospectivity.

Historical Context and Regional Significance

The Nicanor Project is situated within the historically significant Carrizal Alto Mine District, where mining activity dating back to the 1820s extracted over 3 million tonnes of ore with high copper grades. While these historical figures are non-JORC compliant and require modern verification, they underscore the district’s mineral potential.

Nearby major deposits such as Candelaria, Mantos Blancos, and Mantoverde share similar geological and structural characteristics, suggesting that Nicanor could host comparable mineralisation. Lodestar’s Head of Exploration, Coraline Blaud, highlighted the strategic advantage of integrating Nicanor into ongoing regional exploration programs.

Next Steps and Market Implications

Lodestar plans to commence drilling activities following further geological mapping and rock chip sampling over unexplored magnetic anomalies. The staged earn-in agreement includes mandatory drilling to define a maiden resource and aims to deliver a scoping study within two years of completing the second earn-in stage.

Should Lodestar successfully earn a 75% interest, the project owner has the option to sell their remaining stake or enter into a joint venture, with provisions for dilution and a net smelter return royalty. This flexible structure aligns incentives and supports long-term project development.

For investors, the Nicanor Project represents a high-impact exploration opportunity in a Tier-1 mining jurisdiction, with the potential to materially enhance Lodestar’s resource base and growth prospects.