Lodestar’s first Ned’s Creek resource opens a bigger gold development question

Ned’s Creek Clears Its First Resource Milestone

Lodestar Minerals Limited (ASX:LSR) has put a maiden resource around its Ned’s Creek gold project, reporting 5.9 million tonnes at 1.16 grams per tonne gold for 221,000 ounces. The estimate spans the Gidgee Flat, Contessa and Central Park prospects in Western Australia, but remains entirely Inferred under the JORC Code, the classification used where geological confidence and drill spacing are still limited.

The resource gives Lodestar a defined base after a 12,417-metre, 106-hole reverse-circulation campaign, with final assays received during the quarter. The drilling returned intervals including 7 metres at 4.69g/t gold at Gidgee Flat and 26 metres at 1.57g/t at Central Park, although the company cautions that reported intersections are down-hole lengths or apparent thicknesses rather than confirmed true widths. The final dataset also revised some earlier composite results after one-metre resampling. The result follows the Ned’s Creek assay results that had cleared the way for the estimate.

Oxide Gold Supports Further Technical Work

Approximately 2.76Mt of the resource is classified as oxide or transitional material, containing about 103,000 ounces, or 47% of the reported gold. That mix may be relevant to future processing studies, but Lodestar has not calculated an Ore Reserve and says the resource does not yet demonstrate economic viability. Assumed bulk densities also need verification through further drilling and representative measurements.

Lodestar has defined a separate conceptual Exploration Target of 5.8Mt to 7.1Mt at 0.86g/t to 1.15g/t gold for 159,000oz to 264,000oz outside the current resource. The company stresses that the target is not a Mineral Resource and may not lead to one. Around 10,000 metres of drilling is being planned from the fourth quarter of calendar 2026 through 2027, subject to funding, technical review, assay turnaround and heritage and environmental approvals.

Mining Lease Work Moves Into the Next Phase

The immediate development task is less glamorous than the headline ounce count: metallurgical testing, geotechnical studies, density verification, environmental work and Native Title engagement. A flora survey is scheduled in two stages, while Lodestar is targeting a Mining Lease application in early calendar 2027. Potential routes for Ned’s Creek include toll treatment, ore sales, partnerships and joint ventures, all subject to further studies and acceptable commercial terms.

Rare Earth Expansion Adds a Second High-Grade Thread

In Arizona, Lodestar expanded its 100%-owned Virgin Mountain heavy rare earth project by about 40% to 661 acres across 32 claims. Selective rock-chip sampling returned up to 14.68% total rare earth oxides, including 0.76% dysprosium oxide, with heavy rare earth oxides making up 59% of that sample. The company says surface mineralisation was traced over a further 175 metres, but also warns that selective rock chips may not represent the broader mineralised zone. The update builds on the Virgin Mountain expansion, which previously established the larger land position and high-grade surface results.

Chile Portfolio Broadens While Los Loros Waits

Three Saints drilling in Chile supported Lodestar’s interpretation of a concealed iron oxide copper-gold system, with a skarn-style interval returning up to 1,314 parts per million copper and 404ppm cobalt. At Pacífico, the company consolidated an approximately 22-square-kilometre project area around a six-kilometre porphyry corridor through a five-year option and new licence applications. The staged deal starts with a US$30,000 payment, annual payments rising to US$600,000, a US$3 million exercise payment and a 1.5% net smelter royalty if exercised. A maiden drilling program is targeted for the second quarter of calendar 2027, following the Pacífico option agreement. Los Loros drilling, meanwhile, was postponed because weather damaged road access and remains dependent on its restoration.

Cash Position Creates a Near-Term Funding Question

Lodestar spent A$1.339 million on exploration during the quarter and reported net operating cash outflows of A$1.758 million. Cash fell from A$3.544 million to A$2.027 million after financing inflows of A$306,000, leaving an estimated 1.15 quarters of funding based on the reported outgoings and no unused finance facilities.

The company said spending should reduce after completion of the initial Ned’s Creek resource work. It also said it retains the capacity to raise capital, assess asset transactions and potentially access funding from several classes of in-the-money options. That gives Lodestar stated avenues to continue, but the next resource drilling, technical studies and Chilean work will compete for a finite pool of cash.