LSR starts second diamond drill hole at copper project in Chile

Our exploration Investment Lodestar Minerals (ASX: LSR) just started drilling its second diamond drill hole at its copper project in Chile…

Following up the first hole that hit visible copper sulphides across ~410M and ending in mineralisation.

With this second hole, we should know exactly what LSR has found - especially considering its a 500m long, vertical hole (~700m to the north of that first hole) directly into the “Main Target Zone”:

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Assays from the first hole will tell us the types of grades sitting around the Main Target Zone and the second hole (being drilled right now) should confirm (or not) that the system extends into the Main Target Zone for the project.

Assay results from both holes are expected in Q2 2026, so this is when we'll actually find out what copper grades LSR is sitting on.

On this project LSR is going for an IOCG-style target (Iron Oxide Copper Gold) sitting in the same regional belt as $28BN Lundin Mining's Candelaria copper-gold mine.

We originally Invested in LSR for its US heavy rare earths asset, but we saw the Chilean copperas a "free kick", soto speak, something else in the background that could come good.

So after ~410m of visible copper sulphides in the first hole, this side salad is starting to look like it could turn out to be more of a main course.

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We noticed from the maiden hole that visual observations indicated increasing sulphide intensity with depth, with mineralisation remaining open at 600m.

Which is encouraging as it suggests the system could extend further and that higher grades might still be deeper.

(source)

We stress that there are no guarantees on the grades here, these are visual estimates only and there is no guarantee assays come back with economic grades.

Here is a picture of the drill rig in action from today’s announcement:

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LSR is also advancing its second copper project in Chile

While drilling is happening at Three Saints, LSR also has a geophysical crew on site at its second Chilean project, Los Loros.

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This project is drill ready and the option on this was acquired back in February in a structure that sees it paying minimal dollars upfront, so it can walk away at minimal cost if the early results aren’t good.

Being drill ready (permits in place), there is no wasted time,no wasted dollars and no wasted resources just getting it ready to be able to drill, so we like this strategy.

This is a copper-molybdenum target that was previously drilled by the United Nations and $62BN Anglo American back in the 1960s, but hasn't had any modern geophysics done since.

The geophysical surveys are expected to wrap up in about two weeks, with drilling at Los Loros planned for May.

(source)

LSR’s US heavy rare earths project and the rare earths story

Looking beyond Chile, the main reason we Invested in LSR is for the heavy rare earths project in Arizona, USA.

Last week, LSR confirmed that the rare earths at Virgin Mountain are hosted in xenotime which importantly is a mineral with a proven commercial processing pathway.

The results also showed that the project contains dysprosium, terbium and lutetium, three high-value heavy rare earths the US needs most.

We are interested in the US heavy rare earths macro thematic, particularly due to China's export controls on rare earths and the Pentagon's push to secure domestic supply.

LSR is one of the few ASX companies with a heavy rare earths asset inside the US (although we will point out that this project is still at very early stages).

With the mineralogical study now done, we are waiting for the follow-up field campaign expected in April to test for continuity across the broader ~5km structural trend at Virgin Mountain.

Check out our latest note on the US asset here: LSR: Dysprosium, terbium and lutetium in xenotime... huh? The market liked it.

What's next for LSR?

🔄 Copper drilling in Chile (Three Saints and Los Loros)

LSR confirmed that drilling at Ned's Creek will be running simultaneously with copper focused drilling in Chile.

We are also looking forward to seeing assay results from this program following the visuals in the first drill hole, which we covered here.

Here is a recent video from here of an LSR technical advisor on site with the drill rig in the background.

🔄 US rare earths project - follow up exploration

The main reason we Invested in LSR is for the heavy rare earths project in Arizona.

LSR recently sampled grades up to 3.73% TREO with 64% being heavy rare earths - well above previous results.

With the mineralogical study results received, we await for the follow up exploration program to test the broader ~5km interpreted trend which LSR confirmed is expected in April. (source)

✅ Acquisition completed

✅ Mapping and sampling

✅ Mineralogical study results (Received last week)

🔲 Geophysics/follow up exploration (Field activities expected to begin April)

🔲 Follow up drill program

🔄 RC drilling at Ned's Creek Gold Project (10,000m)

LSR has executed the drilling contract with Westdrill for ~10,000m of RC at Ned's Creek.

Drilling is expected to commence late March and will target the three main prospects - Gidgee Flat, Contessa and Central Park.

The results from this will feed into a maiden Mineral Resource Estimate targeted for completion in CY2026.

🔲 Drilling commenced

🔲 First assay results received

🔲 All results received and MRE underway