Lachlan Star (ASX: LSA) is focused on the wholly owned gold producing CMD Mine in Chile. The company also has operations in Australia, including the Bushranger copper and gold project in New South Wales and Princhester magnetite deposit in Queensland.
Unhedged gold producer Lachlan Star (ASX: LSA) continues to deliver new gold intersections month after month from the CMD Mine in Chile.
The importance of these new gold intersections is that they are some of the thickest and highest grades drilled to date by the company at the mine.
At the Tres Perlas Deposit, highlights include:
- 175 metres at 0.89 grams per tonne (g/t) gold from 37 metres, including 24 metres at 0.78g/t gold; and 94 metres at 0.96g/t gold, and 22 metres at 1.98g/t gold.
- 130 metres at 0.85g/t gold from 29 metres, including 20 metres at 0.84g/t gold; and 97 metres at 0.95g/t gold.
- 118 metres at 0.52g/t gold from 82 metres, including 18 metres at 0.84g/t gold; and 37 metres at 0.67g/t gold.
The drilling was conducted into the El Sauce and Natalia areas of the deposit, with the company targeting an increase in the resource to the higher confidence Indicated category, from Inferred.
Declan Franzmann, managing director, commented on the positive drilling news:
“It is pleasing that the recent drilling results not only confirm the presence of the Inferred mineral resource, but are also likely to result in additional resources being added to the CMD mineral resources, particularly in the gaps within the current Tres Perlas mineral resource.
"The grades being encountered around the El Sauce area are higher than recently encountered further to the south."
Another major plus for Lachlan Star is its strong cash position, with a special warrant placement earlier in the month raising A$16.8 million.
Unhedged gold production on the rise
Lachlan Star currently has unhedged gold production of around 57,500 ounces per annum, which is forecast to increase to 75,000 ounces per annum in the next 12 months.
Interestingly, the company is producing through an underutilised 8 million tonne per annum plant, which is currently operating at 3.9 million tonnes per annum.
The current resource is Indicated 1.722 million gold ounces, and Inferred 1.255 million ounces - for just under 3 million gold ounces in total.