LSR acquires option on Copper project in Chile

Our Investment Lodestar Minerals (ASX: LSR) has just acquired an option on a Chilean copper-molybdenum-gold project.

Today LSR has acquired an option to acquire the Los Loros project in Chile for an initial payment of just US$30k (~A$43k), so the outlay with this is minimal.

Through this, LSR gets access to a copper porphyry system ~30km from a commercial port and 20km from La Serena, Chile.

(source)

There has been plenty of talk of copper doing well with the current macro themes (eg electrification) and we have been starting to see the copper price showing a general rise over the past 3 years:

(source)

We especially like that LSR’s potential new project is drill ready, with a maiden drill programme targeted for just 3 months time in April.

So LSR can get a drill rig on the ground in the near future and if results aren’t positive, can walk away at no additional cost.

We note the historical intercepts on the project include a 20m @ 3.67 g/t gold and a separate hole with 136m @ 0.20% copper equivalent from 134m that ended in mineralisation.

So LSR will be keen to test if the gold hit is from a vein that extends:

(source)

And if the copper hit continues at depth plus if there is a higher grade portion of this adjacent:

(source)

Why we are Invested in LSR

We are mainly Invested in LSR for the heavy rare earths US based project it acquired late last year.

See our full Investment Thesis on LSR from our initiation note here: Our New Investment: Lodestar Minerals ASX: LSR

In that note you will also find:

1. How the USA got itself into a position of needing domestic rare earths supply.
2. Why LSR is in the right macro theme and could attract capital.
3. Why we like US critical minerals as a macro thematic.
4. The 8 reasons why we Invested in LSR and our full LSR Investment Memo.

The 8 Reasons We Invested in Lodestar Minerals

1. LSR has a US critical minerals project prospective for heavy rare earths
2. Heavy rare earths are more scarce and critical for “global dominance”
3. We think the US will need domestic heavy rare earths supply in 2-3 years
4. Capital is flowing into US critical metals macro thematic
5. IF LSR attracts capital and re-rates to a valuation high enough it could acquire more advanced assets
6. We are Investing alongside Tribeca Investment Partners
7. We think it's the right time in the bull market cycle to get some exposure to exploration stocks
8. Free kick on a WA gold and Chilean gold-copper project

What’s next for LSR?

🔄 Target Generation on US rare earths project

We want to see LSR sample, map and run geophysics on its US asset to identify priority drill targets.

We also want to see LSR run metallurgical testwork on the geology to start thinking about how to separate the heavy rare earths.

First though, LSR will need to complete the acquisition of its project in Arizona.

Here are the milestones we are tracking:

✅ Acquisition completed (today)

🔄 Mapping and sampling (soil and rock chips) - expected late January (source)

🔲 Geophysics

🔲 Metalurgical testwork

🔲 Drill targets confirmed