Funding Hinge: Lachlan Star Awaits Shareholder Nod Amid Key Assay Results
Lachlan Star Limited reports robust gold mineralisation at its Killaloe Project in Western Australia and progresses maiden drilling at North Cobar in New South Wales, supported by a $2.16 million capital raise.
- Strong near-surface gold intercepts confirm multi-kilometre mineralised corridor at Killaloe
- Follow-up drilling underway with assay results expected next quarter
- Maiden RC and diamond drilling initiated at North Cobar targeting Cobar-type copper-gold system
- Raised $2.16 million via share placement to fund exploration and corporate activities
- Cash reserves stand at $1.93 million at quarter-end, with further funding pending shareholder approval
Killaloe Gold Project – Building a Multi-Kilometre Gold Corridor
Lachlan Star Limited has delivered encouraging results from its Killaloe Gold Project, situated in the prolific Norseman region of Western Australia's Eastern Goldfields. Two successive drilling campaigns, comprising aircore and reverse circulation methods, have delineated broad zones of near-surface gold mineralisation across multiple prospects including Duke, Duke East, and Duchess. Noteworthy intercepts such as 9 metres at 2.11 grams per tonne gold, including a high-grade 2 metres at 8.60 grams per tonne, underscore the potential of this emerging multi-kilometre gold corridor.
The recent follow-up drilling program, completed in September, targeted extensions beneath and along strike of these mineralised zones, aiming to enhance confidence in the continuity of the system. While assay results from this campaign are pending, the company is advancing heritage clearances to facilitate a broader aircore program that will test additional targets within the corridor.
North Cobar Copper-Gold Project – Maiden Drilling Targets Cobar-Type Mineralisation
In New South Wales, Lachlan Star has embarked on its maiden reverse circulation and diamond drilling program at the North Cobar Project, located adjacent to MAC Copper Ltd's CSA Copper-Gold Mine within the highly mineralised Rookery Fault Zone. Initial drilling intersected favourable host rocks with geochemical signatures and alteration patterns consistent with a concealed Cobar-type hydrothermal system.
Despite weather-related delays, the program resumed with diamond tails designed to test the core of coincident geophysical anomalies at the Percival Prospect. The integration of geophysical, geochemical, and geological data provides a compelling case for further exploration, with results expected to inform the next phase of targeting in the December quarter.
Financial Position and Corporate Developments
To underpin its exploration activities, Lachlan Star successfully raised $2.16 million through a two-tranche share placement at $0.05 per share. The first tranche, raising $1.83 million, was completed during the quarter, while the second tranche of $0.33 million awaits shareholder approval at the upcoming Annual General Meeting. The company ended the quarter with $1.93 million in cash reserves, providing a solid financial foundation for ongoing and planned exploration programs.
Exploration and evaluation expenditure for the quarter amounted to $1.30 million, reflecting the company's active drilling campaigns and preparatory work. Administrative and corporate costs remained modest at $0.17 million. Payments to related parties, including directors' remuneration, totaled approximately $30,000.
Outlook
Lachlan Star is positioned to advance its exploration momentum with assay results from recent drilling at Killaloe and North Cobar expected to be key catalysts in the coming months. The company's strategic focus on high-potential gold and copper-gold projects in established mineral provinces, combined with a prudent capital management approach, sets the stage for potential value creation as exploration progresses.
Bottom Line?
Upcoming assay results and shareholder decisions will be pivotal in shaping Lachlan Star’s exploration trajectory and market confidence.
Questions in the middle?
- What will the assay results from the recent Killaloe follow-up drilling reveal about the continuity and grade of the gold mineralisation?
- How will the diamond drilling at North Cobar refine the understanding of the Cobar-type mineral system and influence future exploration targets?
- Will shareholder approval of the second tranche of the capital raising proceed smoothly, ensuring uninterrupted funding for exploration?
