Lodestar Minerals (ASX: LSR) has engaged drilling contractor Westdrill to commence a reverse circulation campaign this month at its wholly-owned Ned’s Creek gold project in Western Australia’s North Yilgarn region.
The campaign covering a minimum of 10,000 metres is supporting the completion of a maiden mineral resource estimate (MRE) for the project this year.
Ned’s Creek comprises tenement E52/2456 across 108 square kilometres within the Ned’s Creek and Marymia pastoral leases.
It is located 35 kilometres east of Catalyst Metal’s (ASX: CYL) prolific Plutonic mine, which has been producing approximately 100,000 ounces gold a year since 1990, and has current open pit and underground reserves of 18.1 million tonnes gold at 2.6 grams per tonne for 1.54Moz.
Expanded Global Footprint
The new drilling campaign will test the main Gidgee Flat, Contessa and Central Park prospects to improve confidence and continuity of known gold mineralisation and expand the global footprint.
The work will generate data to support geological modelling and mineral resource estimation as well as metallurgical test work.
Lodestar defined an exploration target in December that it plans to delineate and confirm with the March campaign.
The company estimates that target contains up to 300,000oz for between 5Mt and 7Mt gold at grades of up to 1.7g/t across the three prospects.
Best high-grade intercepts at depth from Gidgee Flat have been 13m at 4.38g/t gold from 229m including 1m at 49.6g/t from 230m, while drilling at Contessa reported a highlight assay of 11m at 29g/t gold from 140m including 1m at 151g/t from 140m.
Infill and Extensional Focus
Executive director and head of exploration Coraline Blaud said the new campaign would focus on resource definition and infill and extensional work at the three prospects.
“The execution of this drilling contract is a significant step forward in advancing Ned’s Creek towards a maiden MRE later this year,” she said.
“This drilling, designed to expand and increase our confidence in known gold mineralisation at Gidgee Flat, Contessa and Central Park represents a key milestone for the advancement of the project.”
Lodestar will conduct the Ned’s Creek program as it continues its copper-focused drilling campaigns in Chile at the company’s Three Saints and Los Loros projects.
