Lachlan Star’s 2026 annual report puts its 90%-owned New Waverley project at the centre of the company’s exploration strategy after drilling outlined shallow, high-grade gold mineralisation across roughly 400 metres. The company ended the year with $6.52 million in cash, but remains loss-making and without a mineral resource or ore reserve.
- High-grade New Waverley mineralisation remains open along strike, down-plunge and at depth
- Follow-up drilling delivered intersections including 13m at 4.0g/t gold
- Cash rose to $6.52 million after substantial equity raisings
- Annual loss narrowed to $1.46 million
- No mineral resource or ore reserve has yet been declared
New Waverley becomes Lachlan Star’s exploration centrepiece
Lachlan Star Limited (ASX:LSA) has used its 2026 annual report to draw a clear line under its strategic reset: the newly acquired New Waverley Gold Project is now the company’s main exploration bet in the Norseman district. The 90%-owned, approximately 40-square-kilometre project delivered multiple shallow, high-grade gold intersections within months of its acquisition, with mineralisation interpreted across roughly 400 metres between the Waverley Pit, Trial Pit and Baker Boys areas.
The initial 13-hole diamond program included 6.15 metres at 8.6 grams per tonne gold from 46.9 metres, including 2.9 metres at 17.7g/t, along with several other high-grade intervals. Lachlan Star said the drilling supports a north-northeast-trending, west-dipping shear corridor containing multiple stacked lodes, with the stronger shoots interpreted to plunge north-west. The system remains open along strike, down-plunge and at depth, although the results are exploration intersections rather than a declared resource or reserve.
Follow-up drilling adds scale but not yet certainty
Work completed after the 30 June year-end expanded the follow-up reverse-circulation program to 55 holes for approximately 4,570 metres, above the initially planned 4,000 metres. The report highlights 13 metres at 4.0g/t gold from 46 metres, including 3 metres at 15.2g/t, plus 7 metres at 6.61g/t from 46 metres, including 2 metres at 21.0g/t.
One-metre PhotonAssay results were used to confirm that the broader high-grade intervals represented consecutive metres of mineralisation rather than isolated high-grade samples. The company also completed around 1,500 line-kilometres of drone magnetics after year-end and identified additional structural corridors for testing. Those steps strengthen the geological case for more drilling, but they do not establish the tonnage, continuity, metallurgy or economics needed to assess whether New Waverley can become a mine.
Cash funds the next drilling campaign
Lachlan Star finished the year with $6.523 million in cash, up from $1.809 million, after equity financing and option exercises. The company raised $2.16 million through placements in the first half and announced a further $7.2 million placement in April, while 1 million options were exercised for $75,000. Exploration and evaluation assets rose to $16.45 million, including $2.70 million attributed to the New Waverley acquisition.
The financial position is stronger, but the business remains an explorer rather than a producer. The annual loss narrowed to $1.459 million from $3.411 million, while operating cash outflow was $784,194 and investing cash outflow was $3.650 million. The report records $1.98 million of exploration expenditure commitments over the next five years, including $895,527 due within 12 months, and warns that additional financing may eventually be required.
Killaloe remains the second Norseman pillar
New Waverley is not the company’s only active Western Australian gold asset. At the 80%-to-100%-owned Killaloe project, drilling identified broad, shallow mineralisation at the Duke and Duchess prospects, including 9 metres at 2.11g/t gold from 81 metres. Follow-up drilling confirmed down-dip continuation at Duke Main, and Lachlan Star was awarded up to $168,000 in Western Australian Exploration Incentive Scheme support for planned diamond drilling.
By contrast, the company’s North Cobar copper-gold drilling in New South Wales did not intersect significant economic mineralisation. It did confirm a broad sulphide-bearing hydrothermal alteration system, which Lachlan Star said may help refine future targets along the Rookery Fault Zone. The company has prioritised New Waverley and Killaloe while conducting limited work across several other projects.
The next meaningful test is whether continued drilling can convert New Waverley’s attractive intersections into a coherent geological model and, eventually, a mineral resource. Until then, the investment case rests on discovery momentum, available cash and the company’s ability to fund exploration without diluting shareholders faster than the project advances.
Bottom Line?
New Waverley has supplied the strongest exploration signal in Lachlan Star’s portfolio, but the next phase must demonstrate continuity and scale before the discovery can support a resource or development case.
Questions in the middle?
- Can follow-up drilling convert the 400-metre mineralised corridor into a maiden mineral resource?
- How long will the $6.52 million cash balance fund New Waverley and Killaloe exploration at the planned pace?
- Will future capital raisings be needed before the company reaches a resource, reserve or development decision?