Lodestar Strikes High-Grade Gold at Ned's Creek
Lodestar Minerals (ASX: LSR) has announced significant gold intercepts from its recent drilling program at the Ned's Creek Project in Western Australia, successfully extending known gold mineralisation by 330 metres along strike and reinforcing the project's development potential.
The Lodestar Minerals gold discovery at Ned's Creek represents an important advancement in the company's exploration efforts, showcasing substantial potential for future resource development. This discovery joins other notable successes in the region, including copper-gold targets near CSA mine that have attracted investor attention.
The four-hole reverse circulation (RC) drilling program at the Gidgee Flat Prospect has intercepted substantial gold mineralisation, with standout results including:
- 16m @ 1.94 g/t Au from 228m in LNRC0107, including 4m @ 6.75 g/t Au
- 28m @ 0.63 g/t Au from 205m in LNRC0106, including 8m @ 1.49 g/t Au
- 16m @ 1.05 g/t Au from 185m in LNRC0105, including 1m @ 3.14 g/t Au
Extending Mineralisation Footprint
These new intercepts extend the known gold mineralisation 330 metres along strike from previous drilling, opening up an additional 4km of potential strike continuation under Proterozoic cover that remains unexplored within the tenement.
"I'm pleased with the gold results received from the RC drilling at Ned's Creek. These results show the potential of this project for extensive gold mineralisation and this program has given us the confidence to take the Ned's Creek Project to the next level," commented Coraline Blaud, Lodestar Director and Head of Exploration.
The significance of these results is comparable to other regional discoveries, such as wide gold zones found in similar geological settings, highlighting the prospectivity of this mineralisation style.
Understanding the Geological Structure
The Lodestar Minerals gold discovery at Ned's Creek is associated with a northwest-dipping thrust structure near a granite contact. Recent drilling has confirmed this geological model, with the mineralisation hosted within a sequence of sheared syenite-intruded mafic volcanic schists.
Notably, the better gold grades are associated with red hematite alteration of magnetite-bearing mafic schists. This oxide alteration is not weathering-related but represents a primary feature of the gold mineralising system at depth.
The discovery demonstrates a hydrothermal redox transition from sulphide to iron oxide alteration that's often associated with higher gold grades in many Archean gold deposits. This geological signature increases confidence in the potential for economic mineralisation.
What is Hydrothermal Redox Transition?
Hydrothermal redox transition refers to the chemical changes in mineralising fluids as they interact with rock, creating conditions favourable for precious metal deposition. In gold systems like Ned's Creek, this process involves the transition from sulphide minerals (like pyrite) to iron oxide minerals (such as magnetite-hematite).
This transition is significant for investors because it represents a recognised metallogenic process associated with higher gold grades in Archean gold deposits. The presence of this signature at Ned's Creek indicates the company is targeting a geologically well-understood gold mineralisation style with potential for economic concentrations.
Geological Significance for Investors
The Lodestar Minerals gold discovery at Ned's Creek shows characteristics consistent with many productive Archean gold systems in Western Australia, where this redox transition often marks zones of enhanced gold precipitation.
The identification of this pattern helps guide future exploration efforts and increases confidence in the geological model being applied. This approach shares similarities with methods used in the gold discovery at Hurricane Project, where geological indicators have proven valuable in targeting mineralisation.
Chilean Projects Poised for Advancement
While advancing its Australian assets, Lodestar has also provided an update on its Chilean projects. Drilling at the Three Saints Project has been temporarily delayed due to a rare natural phenomenon known as "Desierto Florido" (Blooming Desert), where dormant wildflowers bloom following unusual rainfall.
Drilling is now scheduled to commence in early November, targeting porphyry-style copper-gold mineralisation. The company's Chilean portfolio includes the Nicanor, Darwin, and Three Saints Projects, all situated within one of the world's largest IOCG (Iron Oxide Copper Gold) belts.
This region hosts world-class deposits like the 1.2 billion tonne Candelaria Deposit (0.60% Cu, 0.13 g/t Au, 2.0 g/t Ag), highlighting the potential scale of discoveries. The methodical approach being employed shares similarities with exploration at Greater Oko gold project, focusing on systematic target development.
Investment Outlook: Multiple Growth Catalysts Ahead
Lodestar Minerals presents an attractive proposition for investors seeking exposure to both advanced Australian gold exploration and early-stage Chilean copper-gold projects with substantial scale potential. The company's portfolio offers several near-term catalysts:
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Expanded Gold Potential: The successful extension of the Ned's Creek gold mineralisation opens up kilometres of additional strike length for future exploration.
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Imminent Chilean Drilling: The high-potential Three Saints drilling program commencing in November targets copper-gold porphyry mineralisation in a world-class belt.
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Diversified Commodity Exposure: Beyond gold and copper, Lodestar maintains lithium exposure through 27.5 million performance rights in Future Battery Minerals (ASX:FBM), which owns the Kangaroo Hills and Miriam lithium Projects in Western Australia.
This diversified approach to resource development parallels strategies employed in Pantera Lithium's US production advancement, where exposure across multiple commodities helps mitigate investment risk.
Why Investors Should Follow Lodestar
The Lodestar Minerals gold discovery at Ned's Creek represents a compelling opportunity for investors interested in junior explorers with a balanced portfolio of assets at different development stages. The recent drilling success demonstrates the company's ability to expand known mineralisation, while its Chilean assets provide exposure to district-scale copper-gold potential.
With drilling activities continuing in both Australia and Chile, and exposure to battery metals through its stake in Future Battery Minerals, Lodestar offers multiple pathways to potential value creation in the months ahead.
The company's strategic focus on both proven Australian gold systems and large-scale Chilean copper-gold targets provides a balanced approach to mineral exploration with opportunities for significant discoveries.
The latest results from Ned's Creek confirm the project's growing potential, with the successful extension of gold mineralisation by 330 metres along strike representing a significant milestone in the company's exploration efforts. As Lodestar continues to advance its diverse project portfolio, investors have multiple potential catalysts to monitor across both precious and base metal commodities.
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