LSR sets 250k to 300k ounce exploration target for WA gold project

Our Investment Lodestar Minerals (ASX: LSR) just put out an update on its gold project in WA.

We are Invested in LSR mainly for its US heavy rare earths asset.

We noticed earlier in the week the deal was voted up at the company's AGM - meaning LSR can move forward and complete the acquisition…

Hopefully that means newsflow from the US asset should start to increase over the coming weeks/months.

We note that LSR actually kicked off its first sampling program on the asset a few weeks ago

(Source)

Hopefully results from this first round of sampling/mapping confirms:

1. That the heavy rare earth grades extend across a larger part of the project area
2. And that grades are consistent with previous results (especially the heavy rare earth concentrations).

Ultimately, this round of work will be what guides LSR’s first drill program on the project and guide the company’s downstream strategy.

See our take on the US asset and why we are Invested in LSR here: Our New Investment: Lodestar Minerals ASX: LSR

In our LSR Investment Memo we mentioned that one of the key reasons we Invested in LSR was because we also got a “Free kick on a WA gold and Chilean gold-copper project”

(source)

Basically, we saw those assets as having the potential to put out strong enough news that one day they could become LSR’s primary asset and give us a “free option” on the US rare earths asset.

While we haven’t seen that happen just yet, today’s announcement on the gold project was relatively interesting.

LSR put out a 250k to 300k ounce exploration target for its WA gold project:

(source)

LSR confirmed that it was planning a 10,000m drill program on the project scheduled to start in “early 2026” to form part of the data that will go into a maiden JORC resource estimate for the project.

(source)

Given we are Invested in LSR mainly for the US asset - a 250-300k ounce gold asset in WA could become a nice asset that underpins LSR’s current valuation.

Especially if LSR can put together a resource with grades in that 1-1.7g/t range while the gold price is threatening new all time highs again in USD terms…

(source)

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

🔄 Mapping and sampling (soil and rock chips)

🔲 Geophysics

🔲 Metalurgical testwork

🔲 Drill targets confirmed