Lachlan Star Ltd
Lachlan Star Strikes High-Grade Gold at New Waverley, Triggering Expanded Drill Campaign
Lachlan Star Limited (ASX: LSA) has used its June 2026 quarterly activities report to outline a strong early result from the recently acquired New Waverley Gold Project in Western Australia's Norseman Goldfield. According to the quarterly update, maiden diamond drilling confirmed a shallow, high-grade Norseman-style gold system, with follow-up 4,000-metre RC drilling commencing on 1 July 2026.
For investors, the significance lies in the combination of high-grade gold intercepts, a developing structural model, and a quarter-end cash balance of $6.523 million. The report also shows Lachlan Star progressing multiple workstreams at once, including drilling, soil geochemistry, drone magnetics and metallurgical testwork.
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Maiden Drilling Confirms Shallow High-Grade Gold
In the report, Lachlan Star said its first diamond drilling programme at New Waverley comprised 13 holes for 1,031.4 metres, with seven holes at Trial Pit and six holes at Waverley Pit. The objective was to test below high-grade rock chip results at Trial Pit and follow up historical in-situ intercepts.
The company reported several shallow gold intercepts, including:
| Hole ID | From (m) | To (m) | Length (m) | Grade (g/t Au) | Gold gram x metre | Comment |
|---|---|---|---|---|---|---|
| NWDD006 | 46.9 | 53.05 | 6.15 | 8.60 | 52.89 | Visible gold at 50.2m and 51.1m |
| NWDD013 | 18.5 | 26.1 | 7.6 | 2.65 | 20.14 | Visible gold at 24.4m |
| NWDD010 | 44.5 | 46.1 | 1.6 | 9.83 | 15.73 | Includes 0.6m at 24.91 g/t Au |
| NWDD004 | 18.5 | 23.1 | 4.6 | 4.24 | 19.50 | Includes 0.9m at 21.5 g/t Au |
| NWDD002 | 16.3 | 22.5 | 6.2 | 1.32 | 8.18 | Includes 0.7m at 8.83 g/t Au |
| NWDD003 | 16.5 | 23.5 | 7.0 | 1.55 | 10.85 | Includes 1.7m at 5.48 g/t Au |
| NWDD008 | 51.2 | 52.9 | 1.7 | 4.27 | 7.26 | Includes 0.95m at 7.35 g/t Au |
| NWDD009 | 50.05 | 51.45 | 1.4 | 4.51 | 6.31 | Includes 0.7m at 7.73 g/t Au |
These results suggest that mineralisation occurs at relatively shallow depths, mostly between 16 metres and 53 metres below surface. That matters because shallow mineralisation can be cheaper to test and, if continuity is established, may support simpler mining scenarios than deeper systems.
The reported grades are furthermore supported by visible gold in selected holes and by broader mineralised intervals containing high-grade internal zones. According to the company, this points to a stacked lode system rather than isolated narrow veins.
What Did the CEO Say?
"The June Quarter marks a major step forward for Lachlan Star, with our maiden drilling programme at New Waverley confirming the discovery of a shallow, high-grade Norseman-style gold system and significantly advancing our understanding of its geological controls," said Andrew Tyrrell, Chief Executive Officer.
"We believe New Waverley has all the hallmarks of a much larger mineralised system and the coming months will provide a steady stream of news as we continue to test the scale potential of this exciting gold discovery."
Why the Norseman-Style Gold Model Matters
The quarterly report repeatedly refers to Norseman-style mineralisation. For non-specialist investors, that phrase is more than geological shorthand. It describes a recognised deposit style in one of Western Australia's better-known gold districts.
In simple terms, a Norseman-style gold system usually involves:
- Quartz veins carrying gold
- A shear corridor, which is a zone where rocks have been broken and displaced
- Associated sulphide minerals such as pyrite and pyrrhotite
- Higher-grade zones concentrated in predictable structural positions called shoots
At New Waverley, Lachlan Star reported that gold mineralisation sits within a north-northeast trending, west-dipping shear corridor hosted mainly in basalt, dolerite and gabbroic intrusive rocks. Those rock types are common hosts for gold in the district.
For investors, the practical value of a good geological model is straightforward. If a company can identify the direction in which higher-grade gold zones plunge, future holes can be aimed more efficiently. In this case, Lachlan Star said a north-westerly plunge is interpreted for the higher-grade shoots.
That interpretation appears to be shaping the next drill campaign. Rather than broad, unstructured testing, the follow-up work is being directed at specific targets around known intersections and along the interpreted plunge.
Key Gold Exploration Terms Explained
A few exploration terms in the report are worth clarifying:
| Term | Meaning |
|---|---|
| g/t Au | Grams of gold per tonne of rock |
| Diamond drilling | A drilling method that produces solid core, allowing detailed geological and structural analysis |
| RC drilling | Reverse Circulation drilling, a faster method that produces rock chips and is often used for follow-up or broader coverage |
| Shear corridor | A zone of rock movement that can focus mineral-bearing fluids |
| Visible gold | Gold that can be seen in the drill core; it can be important, but assays are still the key measure |
| Mineralised shoot | A part of the system where gold grade and thickness are higher than surrounding areas |
| Gold gram x metre | A simple comparison metric that multiplies grade by interval length |
However, it is worth noting that not every high-grade intercept leads to a larger system. What investors usually look for is a combination of grade, continuity, scale and a repeatable geological pattern. The quarterly report suggests Lachlan Star is still in the early stage of testing those four elements at New Waverley.
Strike Extent and Follow-Up Drilling Become the Next Test
According to the quarterly update, the mineralised system is interpreted to extend across about 400 metres along strike between Waverley Pit, Trial Pit and Baker Boys, with geological interpretation supporting possible continuation for at least another 400 metres to the south. That implies total interpreted strike potential of more than 800 metres.
Importantly, the company stated the system remains open in all directions. That does not confirm continuity across the entire trend, but it does indicate the current drilling has not closed off potential extensions.
The next major catalyst is already in progress. Lachlan Star reported that an expanded 4,000-metre RC drilling programme began in the first week of July, shortly after quarter end. In the report, the company said this programme was designed to:
- Increase drill density around known high-grade mineralisation
- Test continuity down-plunge of identified high-grade shoots
- Evaluate additional structural positions within the broader corridor
- Test strike continuity between Waverley Pit, Trial Pit and Baker Boys, plus extensions north and south
That is a material step-up from the maiden 1,031.4-metre diamond programme. For investors, the key question is whether the RC programme can convert isolated strong intercepts into a more coherent picture of scale and continuity.
Soil Sampling and Drone Magnetics Add Broader Targeting Data
The quarterly report also outlined two supporting exploration programmes aimed at improving target generation beyond the initial drill area.
First, Lachlan Star completed an extensive soil geochemistry survey along the interpreted south-western extension of the mineralised corridor. The programme covered more than 4 kilometres from Waverley Pit towards the Eyre Highway and included about 900 soil sample sites.
Sampling was completed on a grid of:
- 40m x 80m across the Mining Lease
- 40m x 160m across surrounding Exploration Licence areas
According to the report, results will be integrated with geological mapping, structural interpretation and drilling data to identify geochemical anomalies for future drill targeting. This is relevant because much of the south-west extension remains relatively underexplored using modern systematic geochemistry.
Second, the company reported that a high-resolution drone magnetic survey of about 1,500 line kilometres was completed after the quarter ended. The survey was flown at 25-metre line spacing and 35-metre height.
Magnetic surveys do not detect gold directly. Instead, they help define rock units, faults, shear zones and other structures that may control where gold is concentrated. In a structurally controlled district like Norseman, that can materially improve drill targeting.
The company also received results from an approximately 1,100-metre aircore programme over historical waste dumps. Those assays confirmed localised gold, but the report stated grades were too variable and overall insufficient to support an economically viable resource in the main dump areas. Smaller paddock dumps returned encouraging grades, though these were considered limited in tonnage.
Cash Position Supports the Current Exploration Push
Lachlan Star ended the June quarter with $6.523 million in cash and cash equivalents, according to the accompanying Appendix 5B. That position was strengthened by a two-tranche placement completed during the quarter.
Capital Raising Summary
| Tranche | Completion date | Amount raised | Shares issued | Issue price |
|---|---|---|---|---|
| Tranche 1 | 9 April 2026 | $7.2 million | 60,000,000 | $0.12 |
| Tranche 2 | 2 June 2026 | $0.268 million | 2,233,333 | $0.12 |
| Total | $7.468 million | 62,233,333 | $0.12 |
The report said proceeds are intended to fund exploration at New Waverley and Killaloe, as well as broader target generation across the company's portfolio.
Quarterly cash flow data showed:
- Net cash used in operating activities: $188,000
- Net cash used in investing activities: $977,000
- Net cash from financing activities: $7.157 million
- Exploration and evaluation spend: $976,000
- Administration and corporate costs: $172,000
Appendix 5B calculated 5.60 quarters of funding available based on relevant outgoings. For investors, that suggests Lachlan Star has enough near-term liquidity to continue drilling and complete planned technical work without immediate pressure to raise additional capital.
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Investor Takeaways from the Quarterly Report
The June 2026 quarterly report places New Waverley firmly at the centre of the Lachlan Star story. Several features stand out for those following the company's progress.
First, the maiden drilling reported shallow high-grade gold, including 6.15m at 8.6 g/t Au and 7.6m at 2.65 g/t Au, with higher-grade internal zones and visible gold in selected holes. Second, the geological interpretation suggests a stacked lode system with a defined plunge direction, which can improve drilling efficiency in subsequent programmes.
Third, the company is not relying on a single dataset. The report shows RC drilling, soil geochemistry, drone magnetics and metallurgical testwork progressing in parallel. That broader dataset should help determine whether the early drilling results represent a localised zone or a larger mineralised system.
Finally, the cash position of $6.523 million provides a reasonable funding base for the work now under way.
New Waverley is still an exploration project, and the investment case remains tied to future drilling outcomes. Even so, according to the quarterly report, Lachlan Star has moved from acquisition and target testing into a more defined discovery phase. The next round of RC results will likely serve as the main indicator of whether the system can demonstrate continuity and district-scale potential.
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