Lodestar Minerals Ltd (ASX:LSR) has committed to a major drilling program at its Ned’s Creek Gold Project in Western Australia aimed at rapidly advancing at least one prospect to a maiden mineral resource.
The first stage of the program is due to begin in August and remains subject to statutory approvals and engagement of drilling contractors.
Potential for significant mineralisation
High-grade gold intersections from reverse circulation (RC) drilling at the Contessa and Gidgee Flat tenements have demonstrated the potential for significant, structurally controlled gold mineralisation adjacent to the extensive granite contact at Ned’s Creek.
Both prospects have been targeted by RC drilling over a limited strike distance and will now undergo follow-up diamond drilling to further understand the structural controls and define the extent of mineralisation.
Drilling will continue through the second half of 2018 with priority given to initial diamond drilling and RC drilling of the main targets.
In preparation for the program, Lodestar completed target generation and drill target refinement initiatives in July.
These initiatives included a review of Contessa’s induced polarisation survey; detailed geochemistry work on Contessa RC drill samples; and preliminary metallurgical test work on Gidgee Flat samples.
Option conversion by chairman
Lodestar chairman has Ross Taylor converted 23.4 million listed options with an exercise price of 3 cents per share, raising a total of $702,000 to support future activities.
Taylor’s interest in the company has increased to 28.76% following the conversion.
Lodestar is now in a stronger funding position, with around $1.7 million available to support the upcoming drilling and future work programs.