Lodestar’s Chile Acquisition Hinges on Drilling Success Amid Funding Challenges

Strategic Acquisition in Chile’s IOCG Belt

Lodestar Minerals Limited (ASX: LSR) has made a significant leap forward in its exploration portfolio with the acquisition of an option over the Darwin project, a highly prospective Iron Oxide-Copper-Gold (IOCG) asset located in northern Chile’s prolific mining region. The project boasts exceptional surface rock chip assays, including gold grades as high as 247 grams per tonne (g/t) and copper concentrations reaching 8.09%, alongside iron ore mineralisation exceeding 66% Fe.

This acquisition positions Lodestar within one of the world’s largest IOCG belts, home to globally significant deposits such as Candelaria and Carola. The Darwin project’s underexplored status, with numerous historical workings never drilled or sampled, offers a compelling opportunity for Lodestar to define a potentially economic IOCG deposit.

Drilling and Exploration Plans for 2025

Following detailed rock chip sampling and drone aeromagnetic surveys, Lodestar is preparing to commence drilling early in calendar 2025. The company has confirmed that the mineralised corridor extends over more than 1 kilometre in strike length, with multiple large magnetic anomalies indicating potential mineralisation at depth.

Managing Director Ed Turner highlighted the favourable mining jurisdiction and the high-grade nature of the mineralisation as key factors underpinning Lodestar’s confidence in delivering near-term value. The planned drilling campaign aims to test these anomalies systematically, potentially unlocking a company-defining discovery.

Advancing Western Australian Projects

In parallel with its Chilean ambitions, Lodestar has identified three new copper targets at the Anticline Prospect within its 100%-owned Earaheedy project in Western Australia. These targets, delineated through extensive soil sampling and geophysical analysis, include a notable gold anomaly of 43 parts per billion (ppb) Au that warrants further investigation.

While no exploration was conducted during the quarter at the Ned’s Creek and Coolgardie West projects, Lodestar remains committed to advancing its Western Australian base metals and gold portfolio alongside its international ventures.

Funding and Corporate Developments

To support its exploration activities, Lodestar secured a $520,000 placement to professional and sophisticated investors post-quarter, with funds earmarked for the Darwin project’s inaugural drilling program and ongoing exploration. The placement includes the issuance of options exercisable at 1.7 cents, subject to shareholder approval.

The option agreement for Darwin includes contingent consideration payable in shares upon achieving key milestones such as drilling results demonstrating significant gold or copper mineralisation, commencement of small-scale mining, or declaration of a JORC-compliant mineral resource exceeding one million tonnes at 10 g/t gold equivalent.

These structured terms align incentives between Lodestar and Aeramentum Resources, the vendor company, and provide a clear pathway for value creation contingent on exploration success.

Financial Position and Outlook

Lodestar reported exploration expenditure of $380,000 during the quarter and ended with cash and cash equivalents of $324,000. The company acknowledges the need for ongoing capital raising to fund its ambitious exploration programs, with the recent placement providing immediate runway. Management anticipates maintaining exploration expenditure at similar levels in the near term while evaluating future programs to optimise capital deployment.

With a diversified portfolio spanning high-grade IOCG potential in Chile and emerging copper-gold targets in Western Australia, Lodestar is positioning itself for a pivotal year ahead. The upcoming drilling results from Darwin will be closely watched as a potential catalyst for re-rating the company’s valuation.