How Is Lodestar Minerals Leveraging New Gold Hits and a US Rare Earth Deal?
Lodestar Minerals reports promising gold drilling results at Ned’s Creek, advances exploration in Chile, and announces a strategic acquisition of a US rare earth project.
- Significant gold intercepts at Ned’s Creek Project in Western Australia
- Soil sampling completed in Chile with drilling planned at Three Saints Project
- Agreement to acquire Virgin Mountain Rare Earth Element Project in Arizona, USA
- Appointment of Coraline Blaud as Executive Director
- Placement raising $3.25 million to fund exploration and acquisitions
Strong Gold Results at Ned’s Creek
Lodestar Minerals has delivered encouraging exploration results from its Ned’s Creek Project in Western Australia, completing 966 metres of reverse circulation drilling across four holes. The standout intercepts include 16 metres at 1.94 grams per tonne gold, including a higher-grade 4-metre section at 6.75 grams per tonne, extending mineralisation 330 metres along strike from previous drilling. These results reinforce the potential for a substantial gold system at the Gidgee Flat prospect and provide a solid foundation for advancing the project.
Progress in Chile and Environmental Delay
In Chile, Lodestar completed extensive soil sampling across the Darwin, Three Saints, and Nicanor projects, identifying anomalous zones that are shaping priority targets. Geological and geomorphological mapping at the Earaheedy Project in Western Australia was also finalized, supporting future exploration planning. However, drilling at the Three Saints Project has been delayed due to the rare "Desierto Florido" wildflower bloom, a natural event that temporarily restricts access. The company remains poised to commence drilling as soon as conditions permit.
Strategic US Rare Earth Element Acquisition
Post quarter-end, Lodestar announced an agreement to acquire the Virgin Mountain Rare Earth Element Project in Arizona, USA. This acquisition marks a significant strategic expansion into critical minerals, aligning with US government initiatives to secure domestic rare earth supplies. The project is located near the Mountain Pass Mine, the only producing rare earth mine in the US, which recently received substantial Department of Defense funding and a partnership with Apple to boost rare earth magnet production. Lodestar’s entry into this jurisdiction positions it well to capitalize on growing demand for heavy rare earth elements.
Corporate and Financial Developments
Coraline Blaud was appointed Executive Director, bringing over a decade of resources sector experience and a strong track record in exploration and corporate governance. Her leadership is expected to be pivotal as Lodestar advances its diverse portfolio. Additionally, the company secured firm commitments for a $3.25 million placement to sophisticated investors, including Tribeca Investment Partners and S3 Consortium, to support ongoing exploration and the Virgin Mountain acquisition. Exploration expenditure for the quarter totaled $480,000, reflecting active investment across multiple projects.
Looking Ahead
Lodestar’s recent drilling success, combined with strategic acquisitions and a strengthened leadership team, underscores its ambition to grow as a significant player in gold and critical minerals exploration. The company’s ability to navigate environmental delays in Chile and secure shareholder approvals for its US acquisition and capital raising will be key to sustaining momentum in the coming quarters.
Bottom Line?
Lodestar’s expanding footprint in gold and rare earths sets the stage for a pivotal growth phase amid evolving global mineral demand.
Questions in the middle?
- How will pending re-assay results from Ned’s Creek influence resource estimates and exploration plans?
- What is the timeline and expected impact of shareholder approvals for the Virgin Mountain acquisition and placement?
- How will Lodestar manage operational risks and opportunities presented by environmental factors like Chile’s Desierto Florido?
