LSR defines new copper-gold targets in Chile

Our Investment Lodestar Minerals (ASX: LSR) just confirmed five new copper-gold porphyry targets at its Los Loros Project in Chile.

Los Loros is LSR’s second porphyry asset in Chile.

It is separate to the project LSR has just finished drilling right now.

(source)

Today’s announcement also confirmed that the second hole on LSR’s Three Saints project had been completed.

With two holes from that target both hitting visible mineralisation.

LSR confirmed that the hole stopped at 611.1m, which was the limit of the drill rig and that similar mineralisation had continued further down the hole.

Interestingly, Skarn mineralisation was reported in this final ~100m - similar in geological style to the nearby Candelaria mine, where skarn alteration is "directly related with the copper mineralisation."

Candelaria is a giant copper-gold mine owned by $32BN Lunding Mining, it has a resource here of over 5BN pounds of copper.

Here is a look at some of the visible sulphides (copper bearing mineral) form today’s announcement:

(source)

As always, visual estimates are no substitute for the final assays which need to be completed to confirm the actual grades of the drilling.

And a look at a diagram of the drilling:

(source)

The prior announcement had assays form the first hole due in “late may”, this wasn’t updated today so we assume this is still the case.

Follow up work here includes reprocessing the magnetronomy data and possible additional geophysical surveys looking to hone in further on this and possibly more target areas.

LSR stated today that a 2nd drill program here “will be initiated” after these have been completed, this will be looking to test deeper into the system.

Los Loros geophysical survey results and forward works

The other news from today’s announcement is that geophysics completed hers has now defined 5 new IP targets at the Águila prospect, ranging from 150m to 800m depth.

Drilling here is planned to commence in June, subject to receiving the required drilling permits to get this underway.

A reminder on Los Loros - back in February LSR picked up the option on this project for just US$30k upfront (we covered that here).

We like this deal structure because LSR can walk away with minimal cost spent to access the project plus the project has some interesting historical results and is drill ready.

So there is no spending months or even years obtaining and waiting on permits plus running multiple rounds of geophysics looking to define targets.

Here LSR is looking to be drilling within 6 months of acquisition which is good for newsflow and the typical cash burn required to get to the point of drilling.

The historical drilling on the project includes a 136m @ 0.20% CuEq intercept (in hole LLO-01) that terminated before reaching the core of the target.

So basically this hole appears to have ran out of length just when the geophysics completed today would suggest that it was about to get interesting.

Today’s news is that LSR has now run a proper modern geophysics package over the project (IP + MT and a drone magnetics survey) for the first time since the United Nations drilled here back in 1969-71.

The results from the surveys have defined 5 new porphyry targets - IP1 through IP5:

• IP1 - the largest and highest chargeability anomaly in the entire prospect. Interpreted as a sulphide-rich pyritic core (these typically sit on the margin of a main copper porphyry ore body).
  
  Importantly this sits adjacent to historical hole LLO-01 (the one that hit 136m @ 0.20% CuEq before running out of hole), the target depth here is~150m to 800m.
• IP2 - shallow high-resistivity response that aligns with historical hole LLO-02 (which hit 12m @ 0.21% CuEq, 20m @ 3.67 g/t Au, and 16m @ 0.24% CuEq between 118-166m).
  
  This also lines up with very high molybdenum (300 to 3,750ppm Mo) in historical hole DDH-06.
• IP3 - moderate chargeability, tabular shape at shallow depth (~200m).
  
  This sits between historical holes LLO-02 and LLO-03.
• IP4 - the western extension of IP3 at depth (~400-600m).
  
  This area has never tested by any historical drilling.
  
• IP5 - outer target in a separate fault block at ~300-600m depth.

Here is a look at these:

(source)

And a look at one of the cross sections:

(source)

The big takeaway from this:

(source)

So it appears that the old drilling either stopped too early or were drilling next to the targets, not into them.

So even though there are some pretty respectable historical hits, they were all close, but adjacent to the actual target zones.

LSR is now planning a maiden drill campaign at Los Loros to commence in June (subject to permit approval).

What's next for LSR?

🔄 Chile drilling - Three Saints Project

Now we have two holes with visible copper in them.

What we are hoping to see next is the assays confirm that there is economic quantities (and hopefully enough for LSR to officially declare a discovery).

Here are the milestones we are tracking:

• ✅ Maiden drill hole completed (600m)
• ✅ Visible copper mineralisation identified (visible copper from 190m to 600m)
• ✅ Second diamond drill hole underway (TODAY, complete at 611m, assays pending)
• ✅ Second hole visual results
• 🔲 Assay results from hole 1 (First results expected from “Late May”)
• 🔲 Assay results from hole 2 (Assays expected “Early July)

🔄 Target generation on the US rare earths project

We want to see LSR continue to advance its US asset with mineralogical studies and then plan the next round of exploration.

Here are the milestones we are tracking for the US asset:

• ✅ Mapping and sampling (soil and rock chips)
• ✅ Mineralogical studies
• 🔲 Geophysics/ follow up field work (starting in April)
• 🔲 Drill targets confirmed

🔄 10,000m drilling program on WA gold project

Drilling on this asset started a few weeks ago.

We are hoping to see the 250,000 to 300,000 ounce exploration target converted into a maiden resource estimate post drilling.

Here are the milestones we are tracking on that project:

• ✅ Drilling starts
• 🔲 Assay results
• 🔲 Resource estimate

🔲 LSR also has a second copper project in Chile (Los Loros)

Beyond Three Saints, LSR also has an option to acquire a second copper project that was previously drilled by the United Nations and supermajor $78BN Anglo American.

(source)

Since 1969 no one has done any modern geophysics on that project - so there could be more to come on this front too.

Back in early February when LSR acquired the option, it was aiming to be drilling here in April this year, so LSR is expecting there to be newsflow from here in the near term also. (source)