Lodestar Minerals has secured a binding option to acquire the Virgin Mountain Heavy Rare Earth Elements project in Arizona and defined a significant gold exploration target at Ned’s Creek, while gearing up for its first Chilean drill program.
- Binding option agreement secured for 100% of Virgin Mountain HREE project in Arizona
- Initial fieldwork completed with assay results expected in Q3 FY26
- Ned’s Creek gold exploration target set at 250,000–300,000 ounces with mineralisation open
- Three Saints porphyry copper-gold drilling planned to commence in early February 2026
- Successful $3.25 million capital raising to accelerate exploration activities
Strategic Acquisition in the USA
Lodestar Minerals has taken a significant step in expanding its rare earth elements portfolio by securing a binding option agreement to acquire 100% of the Virgin Mountain Heavy Rare Earth Elements (HREE) project in Arizona, USA. This acquisition, approved by shareholders in December, positions Lodestar in a promising jurisdiction for critical minerals, with initial field activities already completed. The company expects assay results from this maiden program in the third quarter of fiscal 2026, which will be pivotal in defining the project's potential.
Advancing Gold Exploration at Ned’s Creek
Back home in Western Australia, Lodestar’s Ned’s Creek Gold Project continues to impress. Drilling has materially extended gold mineralisation both along strike and at depth, leading to the definition of an initial exploration target of approximately 250,000 to 300,000 ounces of gold. This target, based on geological modelling and assay data, highlights the project’s scale potential, though it remains conceptual pending further drilling to establish a formal resource. Planning is underway for the next drilling phase, aimed at expanding the known mineralised zones.
Chile – Preparing for First Drill Program
In Chile, Lodestar is preparing to commence its first-ever drill program at the Three Saints porphyry copper-gold target. This project represents the company’s initial modern drill test of a Chilean porphyry system, a critical step in building a copper growth pipeline. Although drilling was delayed due to environmental considerations, it is now scheduled to start in early February 2026. Concurrently, Lodestar has rationalised its Chilean portfolio by withdrawing from the Darwin and Nicanor options to focus resources on higher-impact opportunities.
Capital Raising and Technical Expertise
To support its ambitious exploration agenda, Lodestar successfully raised $3.25 million during the quarter. These funds will accelerate work across its portfolio, particularly at Virgin Mountain, Ned’s Creek, and Chilean projects. The company has also bolstered its technical capabilities by appointing two seasoned consultants with rare earths and downstream processing expertise, ensuring that exploration strategies are aligned with market and processing realities from the outset.
Focused Portfolio and Forward Momentum
Lodestar’s recent decisions to withdraw from less prospective projects and concentrate on assets with clearer scale and discovery potential reflect a disciplined approach to capital allocation. With exploration expenditure of $1.068 million during the quarter and a strong cash position, the company is well-positioned to deliver multiple near-term catalysts. Upcoming assay results from Virgin Mountain and drilling outcomes from Ned’s Creek and Three Saints will be closely watched by investors seeking signs of significant resource growth.
Bottom Line?
Lodestar’s focused exploration strategy and strengthened portfolio set the stage for potentially transformative results in 2026.
Questions in the middle?
- Will the upcoming Virgin Mountain assay results confirm the presence of economically viable heavy rare earth elements?
- How will the next phase of drilling at Ned’s Creek impact the potential for a maiden JORC resource?
- What early indications might the Three Saints drilling program provide about the porphyry copper-gold system?