Lachlan Star Ltd. : Lachlan Star Announces 314% Increase in Indicated Mineral Resource Ounces for the Toro Deposit
01/11/2012| 09:20pm US/Eastern
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LachLan star announces 314% increase in indicated
mineraL resource ounces for the toro deposit at cmd goLd mine
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FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION
DIRECTLY, OR INDIRECTLY,
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Perth, Western Australia: Gold miner, Lachlan Star Limited
("Lachlan" or the "Company") (ASX and TSX: LSA) is
pleased to announce an updated mineral resource for the Toro
deposit at its 100% owned CMD Gold Mine in Chile.
The new Toro deposit mineral resource contains 348,000 ounces
of gold in the Indicated category, which is a 314% increase
over the previous Indicated mineral resource (84,000 ounces).
In addition, a further 135,000 ounces of gold are contained
in the Inferred category, which is a decrease of 28% compared
to the previous Inferred mineral resource (188,000 ounces) as
shown in Table 1.
Table 1 - Comparison of New and Previous Toro Mineral
Resource Estimates
|
Classification
|
Old Mineral Resource (koz)
|
New Mineral Resource (koz)
|
% Change
|
|
Indicated
|
84
|
348
|
314%
|
|
Inferred
|
188
|
135
|
-28%
|
Table 2 contains a summary of the updated Toro deposit
mineral resource.
The new Toro mineral resource has been estimated at a 0.15
g/t Au cut off grade (previously 0.3 g/t Au) to enable mine
planning utilising the lower grade material to be processed
via a Run of Mine (ROM) dump leach method. The lower grade
mineralisation is currently mined as waste and the initial
ROM leaching trials indicate that it will be economic to
recover gold from this material, which will have a positive
impact on both cash flows and gold output.
Total mineral resources for the CMD Gold Mine now contain
725,000 ounces of gold in the Indicated category and 923,000
ounces of gold in the Inferred category as shown in Table 3.
The new mineral resource for the Toro deposit is the first of
the 2012 mineral resource updates for the CMD Gold Mine. The
Toro deposit is open along strike to both the north and
south, and across strike to the east and west in several
areas. Work is continuing to update the resources at the
other CMD Gold Mine Projects. In addition, there remains
substantial potential to expand the mineral resources through
infill drilling between the Toro Central and Socorro pits,
where there is currently insufficient drilling data to
extrapolate the resource between the pits.
The aim of the 2011 drill program was to expand the resource
base, and to upgrade the Inferred mineral resources to
Indicated category to enable their use in mine planning and
mineral reserve estimation. This has been achieved, with a
314% increase in the Indicated category contained ounces.
Drilling in the 2012 program is planned to infill the area
between the Toro Central and Socorro pits to prove the
concept of a single large pit at Toro, as well as extensional
exploration on the near surface open mineralisation.
Exploration has been focussed on the Tres Perlas and
Churrumata deposits for the past two months, where the gold
is contained within a 100m to 200m thick mineralised zone
from near surface. Once sufficient assay data has been
received for these deposits, these will be the next mineral
resource estimates completed for the CMD Gold Mine.
Declan Franzmann, Managing Director, commented " the first of
the 2012 mineral resource estimates show an encouraging
increase in both overall ounces of gold and confidence level,
and will provide a better platform for our mine planning work
this year. The approximate 78% increase in total gold ounces
is in line with what we have seen in the pits, where we have
mined approximately two thirds of our ore in 2011 from
outside the old mineral resource."
For and on behalf of the Board
Mick McMullen
Chairman
For further information please visit www.lachlanstar.com.au
or contact
|
Table 2 - Toro Deposit Coffey Mineral Resources
|
|
Mineral Resource - January 2012
Toro - Coffey 2012 - Reported above 0.15g/t Au
|
|
Classification
|
Tonnes (Mt)
|
Grade (Au)
|
Ounces (Kozs)
|
|
Indicated
|
17.5
|
0.6
|
348
|
|
Inferred
|
11.6
|
0.4
|
135
|
Table 3 - CMD Gold Mine Coffey Mineral
Resources1
Indicated Inferred
Ounces (K
ozs)
37
156
135
333
219
43
923
1. Reported above 0.3 g/t Au all except Toro deposit
which is reported above 0.15 g/t
Au)
About Lachlan Star Limited
Lachlan Star Limited is an emerging minerals exploration and
development company headquartered in Perth, Western
Australia. The Company is focused on acquiring and developing
assets within the gold and copper sectors within Australia
and Chile. The company has a board of directors and
management team with an impressive track record of advancing
resource projects through to production.
Lachlan Star's current projects include a 100% interest in
the CMD Gold Mine in Chile, a 100% interest in the Bushranger
Copper Project in New South Wales (subject to Newmont earning
51%) and a 100% interest in the Princhester magnesite deposit
in Queensland.
Competent Persons Statement
The information in the news release that relates to the
Mineral Resources of Tres Perlas, Chisperos, Las Loas, El
Sauce, Churrumata and Toro is based on information compiled
by David Slater, who is a Chartered Professional Member of
The Australasian Institute of Mining and Metallurgy. Mr.
Slater is employed full time by Coffey Mining Pty Ltd. The
information in the news release that relates to exploration
results is based on information approved by Declan Franzmann,
who is a Chartered Professional Member of The Australasian
Institute of Mining and Metallurgy. Mr. Franzmann is employed
by Citraen Pty Ltd and is an officer of the Company. Each of
Mr. Slater and Mr. Franzmann has sufficient experience, which
is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking, to qualify as a Competent Person as defined in
the 2004
Edition of the "Australasian Code for Reporting of Mineral
Resources and Ore Reserves" and to qualify as a "Qualified
Person" under NI 43-101. Each of Mr. Slater and Mr. Franzmann
consents to the inclusion in the news release of the matters
based on his information in the form and context in which it
appears.
Caution Regarding Forward Looking Information: This
report contains forward-looking information, which is based
on assumptions and judgments of management regarding future
events and results. Such forward-looking information includes
but is not limited to information with respect to future
exploration and drilling, procurement of financing and
procurement of necessary regulatory approvals.
Forward-looking information involves known and unknown risks,
uncertainties, and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any anticipated future results,
performance or achievements expressed or implied by such
forward-looking information. Such factors include, among
others, the actual market price of gold, the actual results
of current exploration, the actual results of future
exploration, changes in project parameters as plans continue
to be evaluated, as well as those factors disclosed in the
Company's publicly filed documents. The Company believes
that the assumptions and expectations reflected in the
forward-looking information are reasonable. Assumptions have
been made regarding, among other things, the Company's
ability to carry on its exploration and development
activities, the timely receipt of required approvals, the
price of gold, the ability of the Company to operate in a
safe, efficient and effective manner and the ability of the
Company to obtain financing as and when required and on
reasonable terms. Readers should not place undue reliance on
forward-looking information. Lachlan Star does not undertake
to update any forward-looking information, except in
accordance with applicable securities laws.
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