LODESTAR MINERALS LIMITED - ASX: LSR

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Description

Lodestar Minerals Limited is a West Australian exploration company focussed on the discovery of copper, nickel, other base metals and gold. Lodestar's activities extend over three projects in Western Australia, with the Peak Hill - Doolgunna project, adjacent to the recently discovered DeGrussa Cu - Au deposit, at the core of the company's portfolio.

Lodestar holds a strategic land position in the Peak Hill-Doolgunna area, with over 2000 square kilometres of tenements located over the margin of the Marymia Inlier, adjacent Yerrida Basin sediments and important regional structures such as the Jenkin Fault. The area has received limited historic exploration and the De Grussa discovery illustrates the hitherto largely unrecognised potential of the northern Murchison province to host major, high-grade Cu deposits.

PEAK HILL - DOOLGUNNA PROJECT, WESTERN AUSTRALIA

The Peak Hill - Doolgunna Project is located 150 kilometres north east of Meekatharra, Western Australia and adjacent to the Great Northern Highway and the Dampier to Perth gas pipeline.

Lodestar acquired the Peak Hill - Doolgunna project in March 2010. The project comprises a total of thirteen tenements, covering an area of 2057 square kilometres, in the northern Murchison gold field. The recent discovery of Sandfire Resource's DeGrussa Cu-Au deposit (9.62Mt at 5.5% Cu and 1.8g/t Au) has highlighted the potential of the region to host significant copper ore bodies and initiated a new era of exploration within the host Proterozoic volcano - sedimentary basins.

The northern Murchison region is one of Australia's exploration "hotspots" with a growing endowment of base and precious metals. in addition to the Degrussa deposit the region hosts the Horseshoe Lights Cu-Au deposit (73,000t Cu metal), Plutonic/Marymia Au deposits (8Moz), Peak Hill/Harmony Au deposits (1Moz) and numerous gold and copper workings along structural and lithological margins. The Lodestar tenements span a distance of 130 kilometres in a north easterly direction, over and adjacent to the Jenkin Fault zone, a major thrust fault and the structural boundary between the Marymia Inlier and the Yerrida Basin.

PENFOLD NICKEL PROJECT, WESTERN AUSTRALIA

The Penfold Nickel Project covers an area of 357 square kilometres located between Kalgoorlie and Kambalda and approximately 550 kilometres east of Perth, Western Australia. The project tenements cover a number of structurally attenuated ultramafic sequences of the Coolgardie and Kambalda geological domains. Historic nickel intercepts are reported for the Abattoir prospect and the project lies 2.7 kilometres north and along strike of the Wildcatters nickel deposit. Approximately 40% of the identified ultramafic stratigraphy has been surveyed by moving loop EM, resulting in the discovery of a number of conductors.

ABATTOIR

* Disseminated nickel sulphide mineralisation has been confirmed at the hangingwall ultramafic contact of the Abattoir prospect, including intersections of 6m at 0.46% Ni from 90m (LAPC001) and 10m at 0.47% Ni from 50m (LAD001).
* Geochemical anomalies reported at surface and in drill holes within the ultramafic have not been tested at depth e.g. 16m at 0.98% Ni from 44m (DDHAU2); 26m at 1.65% Ni (PDH8). Recent RAB drilling reported a best intersection of 27m at 1.29% Ni and 680ppm Cu from surface (LPR0181).

MOUNT MARION NORTH

* Historic surface auger sampling reported an area of anomalous Cu associated with the ultramafic sequence
* EM identified numerous conductors; the most significant being a series of overlapping conductors having a combined length of 500m, adjacent to the interpreted ultramafic contact
* Drill testing of the southernmost and shallowest conductor intersected dolerite and gabbro bearing disseminated Fe sulphides with trace amounts of pentlandite and chalcopyrite identified by petrography. This drill test is not regarded as a conclusive test of the EM anomaly as no massive or stringer style mineralisation or other conductive unit was identified in the hole.

WILDCATTERS NORTH

* EM completed over 4.5 kilometres of a potential +9 kilometres of strike
* RAB drilling identified sulphidic shale as the likely source of the conductor at Wildcatters North. However the eastern ultramafic sequences in general have received limited nickel-focused drilling

KIMBERLEY PROJECT, WESTERN AUSTRALIA

Lodestar's Kimberley project comprises four exploration licences, having a combined area of 215 square kilometres, located 50 kilometres north of Halls Creek. The area is prospective for Ni-Cu-PGE mineralisation hosted by mafic-ultramafic intrusions within the Halls Creek Orogen. In 2010 Lodestar announced a farm-out agreement with Pindan Exploration Company (PEC) a wholly-owned subsidiary of Australian nickel producer Panoramic Resources. PEC will earn an 80% interest in the tenements by expending $1M over three years. The tenements will be included in a regional VTEM survey being carried out by PEC to define additional nickel sulphide targets in proximity to the Savannah nickel mine.

Mine For

coper, gold, zinc, nickel

Location of operation(s)

Western Australia

Address

41 Stirling Hwy
NEDLANDS, WA, AUSTRALIA

Phone

(61 8) 9423 3200

Email

Website

http://www.lodestarminerals.com.au

Last Updated

24/03/2011