Microsoft Word - 001 - LSR Sep 15 Quarterly Activities Report - for merge
ASX ANNOUNCEMENT
30 October 2015 Electronic lodgement
COMPANY SNAPSHOT
LODESTAR MINERALS LIMITED ABN: 32 127 026 528
SEPTEMBER 2015 QUARTERLY ACTIVITIES REPORT
HIGHLIGHTS
CONTACT DETAILS
Bill Clayton, Managing Director
+61 8 9423 3200
Registered and Principal Office Level 2, 55 Carrington Street Nedlands, WA 6009
PO Box 985
Nedlands, WA, 6909 [email protected] www.lodestarminerals.com.au
CAPITAL STRUCTURE
Shares on Issue:
336,263,158 (LSR)
Options on Issue:
20,750,000 (unlisted) 34,360,819 (listed ‐ 31 Mar 2016)
ASX: LSR
PROJECTS
Peak Hill - Doolgunna: Camel Hills - gold Neds Creek - gold Marymia - gold
Imbin - gold and base metals
CAMEL HILLS PROJECT (GOLD)
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Sustained activity at Big Sky resulting in the discovery of high‐grade gold yielding up to 47,050g/t Au in rock chip sampling1.
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First pass RAB drilling at Big Sky confirms the presence of bedrock gold mineralisation1:
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Maiden RC drilling intersects near surface high‐grade gold mineralisation2;
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6 metres at 6.6g/t gold from 13 metres in LCC011, including
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6 metres at 20.3g/t gold from 21 metres in LCC012, including
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1 metre at 105g/t gold from 21 metres and
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1 metre at 12.8g/t gold from 26 metres
(Intersections using a 1g/t gold cut‐off and up to 3 metres of internal dilution)
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1 metre at 23.8g/t gold from surface in LCC011.
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The poorly tested Petter Calc‐silicate contact extends for over 12 kilometres in Lodestar's tenements with potential for additional significant discoveries.
NED'S CREEK PROJECT - MARYMIA (GOLD)
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New gold target identified on southern margin of the Plutonic Well greenstone belt which hosts 10Moz gold of previous production and resources.
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Priority target area has not been tested by previous drilling.
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Location of recovered alluvial gold nuggets suggests the source of mineralisation lies within Lodestar's tenements.
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Deeply weathered and poorly outcropping terrane, initial rock chip sampling reported gold up to 1.5g/t3.
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First‐pass RAB drilling targeting gold and multi‐element geochemical anomalies planned for December quarter 2015 on receipt of approvals.
CORPORATE
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Placement of 10 million shares at 1c per share to raise $100,000 to fund maiden RC drilling at Big Sky and working capital.
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Conversion of 33,334 options expiring 31 March 2016 during the quarter.
1 See Lodestar's ASX announcement dated 28th August 2015. 2 See Lodestar's ASX announcement dated 20th October 2015.
3 See Lodestar's ASX announcement dated 21st September 2015.
CAMEL HILLS
(E09/2099, E09/2100, E09/2138, E09/2139 & E09/3064 - LSR 100%)
Lodestar Minerals Limited's Camel Hills tenements are located 170 kilometres northwest of Meekatharra and 60 kilometres south and east of Gascoyne Resources Limited's Glenburgh gold deposits (1M oz. gold in resources ‐ see Figure 1). The tenements cover 924 square kilometres and 90 kilometres of strike over the Errabiddy Shear Zone (ESZ), a 5 to 20 kilometre wide suture that marks the boundary between the Archaean Narryer Terrane to the south and the accreted Palaeoproterozoic Glenburgh Terrane to the north. The ESZ is linked at depth to the Cardilya Fault, a deep crustal fault that marks the major tectonic boundary between the Archaean Yilgarn craton and accreted Palaeoproterozoic terrane.
Lodestar is targeting orogenic gold along the northern Yilgarn margin where mineral systems prospectivity mapping by the Geological Survey of Western Australia (GSWA) identified the ESZ as a favourable site for large‐scale gold mineralisation. Historic surface sampling identified strong gold anomalies associated with outcropping gneiss in the Big Sky area and this has been the focus of Lodestar's exploration which has comprised rock chip sampling, shallow trenching, ground magnetic surveying, RAB and RC drilling.
Figure 1 Location Plan ‐ Lodestar's Camel Hills tenements
WORK COMPLETED
Lodestar carried out intensive exploration over the area identified by strongly anomalous historic gold soil and drainage geochemistry. Exploration was guided by the knowledge that gold is associated with a regional contact between magnetic schists and gneisses of the Petter Calc‐silicate and non‐magnetic schists of the Quartpot Pelite. The contact is located on the northern side of the Camel Hills ridge at the base of the slope and the area north of the ridge is covered by shallow scree and colluvium that may have reduced the effectiveness of surface geochemical sampling. Nearly all historic drilling was located south of this contact. In high‐grade metamorphic terranes shear‐hosted lode gold mineralisation can have a relatively short strike length and therefore a small surface footprint.
Surface prospecting of this zone resulted in the discovery of high‐grade rock chip samples reporting up to 47,050g/t gold (see appended photographs & Figure 2). A program of shallow trenching and RAB drilling was designed to test the contact over a strike of 600 metres. A magnetometer was used prior to drilling to locate the contact on the ground.
Nine trenches (2,300 metres) and 84 RAB holes (1,814 metres) were completed as part of the first‐pass program. Drill and trench traverses were spaced on average 25 metres to 50 metres along strike over the 600 metre target zone (see Figure 2).
The RAB drilling unexpectedly encountered water at shallow depth with resulting significant reduction in sample recoveries and reliability of assay results. A follow‐up RC drill program was designed to test gold targets identified by the surface sampling, anomalous RAB and trench sampling results.
A program of 13 RC drill holes (428 metres) was completed in September and the assay results were received in October. Close‐spaced drilling of the gold anomaly identified in Trench 1 (see Figure 3) did not confirm the anomaly (reporting a best intersection of 0.9g/t gold in LCC001) and Lodestar is continuing to investigate the source of this mineralisation.
Figure 2 Trench and RAB drill locations showing assay results of the trench sampling (MGA94 Zone 50)
Two RC holes (LLC0011 & LLC0012) were drilled below the site of the anomalous rock chip sampling where earlier anomalous results were reported in LCR001, LCR002 and LCR0034. These holes were completed with good recovery of dry samples that reported extremely high‐grade gold intersections at shallow depths with best results of 6 metres grading 20.3g/t gold from 21 metres, 6 metres grading 6.6g/t gold from 13 metres and 1 metre at
23.8 g/t from surface5 (see Figure 4 and Table 1) and the mineralisation remains open.
4 See Lodestar's ASX announcement dated 28th August 2015. 5 See Lodestar's ASX announcement dated 20th October 2015.
Figure 3 RC Drill hole location plan (MGA94 Zone 50)
Figure 4 Cross‐section showing drill intersections of lode (section A‐A', see Figure 3)