Lodestar Raises $1.2m as Drilling Advances at High-Grade Darwin Project
Lodestar Minerals has initiated its maiden RC drilling program at the high-grade Darwin IOCG project in Chile, supported by a $1.2 million capital raise, while preparing for a leadership transition with the Managing Director's upcoming resignation.
- Maiden RC drilling commenced at Darwin IOCG project in Chile
- 16 drill holes completed totaling over 2,000 metres with assays pending
- Raised $1.2 million to fund exploration and drilling activities
- Managing Director Ed Turner to resign effective 16 May 2025
- Exploration expenditure of $297k reported for the quarter
Maiden Drilling at Darwin Project Marks Key Milestone
Lodestar Minerals Limited (ASX: LSR) has taken a significant step forward in its exploration ambitions by commencing its maiden reverse circulation (RC) drilling program at the Darwin project in Chile. This high-grade Iron Oxide Copper-Gold (IOCG) prospect, secured through an option agreement with Aeramentum Resources Ltd, represents a potentially transformative asset for the company.
During the March 2025 quarter, Lodestar completed three drill holes totaling 447 metres, with a further 13 holes (1,579 metres) finished shortly after quarter-end in April. While assay results remain pending, the historical data indicating extremely high gold grades alongside copper and iron mineralisation within this prolific IOCG belt underpin management’s optimism about the project's economic potential.
Capital Raising Supports Exploration Momentum
To fund this maiden drilling campaign and ongoing exploration activities, Lodestar successfully raised $1.2 million before costs through two capital raises. The company also converted $169,000 of director-related debt into equity, reflecting strong insider confidence. Shareholders approved these transactions, including share applications by directors and the issuance of free-attaching options exercisable at $0.017 per share, valid until March 2027.
The capital injection is timely, providing Lodestar with a stable cash position of approximately $904,000 at quarter-end, and enabling the company to maintain momentum across its portfolio, which includes the Earaheedy and Ned’s Creek projects in Western Australia.
Leadership Transition and Strategic Outlook
In a notable corporate development, Managing Director Ed Turner has tendered his resignation, effective 16 May 2025. Turner has been instrumental in advancing the Darwin project to its current stage and his departure signals a forthcoming leadership transition. The board has initiated a search for a suitably qualified Technical Director to join the board, aiming to bolster the company’s strategic and operational capabilities as it moves into the next phase of exploration and development.
Despite no new fieldwork reported at other projects during the quarter, Lodestar continues to assess its exploration programs and expects to adjust expenditure accordingly. The company’s exploration spend for the quarter was $297,000, focused primarily on the Chilean project.
Looking Ahead
With assays pending from the maiden drilling program, the market awaits critical data that could validate Darwin as a company-defining IOCG deposit. The combination of a promising geological setting, fresh capital, and a refreshed leadership team sets the stage for potentially significant developments in the coming months.
Bottom Line?
Lodestar’s maiden drilling and capital raise position it for a pivotal growth phase, but assay results and leadership changes will be key to watch.
Questions in the middle?
- What will the assay results reveal about the scale and grade of the Darwin IOCG deposit?
- Who will be appointed as the new Technical Director, and how will this influence Lodestar’s strategic direction?
- What are the company’s plans for further capital raising or exploration beyond the current drilling program?
