Lodestar Minerals (ASX:LSR) has entered into a binding heads of agreement with Consultoría y Servicios Mineros to earn a 75% interest in the latter’s Nicanor Project in Chile.
The Nicanor Project lies along the Atacama Fault System and has returned rock chip samples grading up to 7.5% copper, 7.2 grams per tonne gold, 68% iron, and 791 parts per million cobalt.
Under the staged agreement, the company can earn an initial 25% interest by spending a minimum of US$200,000 ($305,254) on exploration over 12 months.
Within 18 months, Lodestar will spend a minimum of US$400,000 on drilling and to define a resource estimate to earn a 51% interest.
Meanwhile, within two years of completing stage two, Lodestar must deliver a Scoping Study or spend a further US$750,000 to earn a 75% interest.
Upon earning a 75% interest, the project owner will have the right to sell their remaining stake in the project to Lodestar at either an agreed price or at a valuation performed by a consultant appointed by both companies.
Should Lodestar not wholly own Nicanor, a joint venture will be formed on a 75:25 basis.
Head of Exploration Coraline Blaud says this project shows strong potential for multiple mineralisation with anomalous concentrations of copper, gold, iron, and cobalt defined by extensive on-the-ground-work.
“This project adds to our presence in Chile in the Coastal Iron-Oxide Copper-Gold Belt, a tier one jurisdiction,” Blaud says.
“The closeness between our existing projects and Nicanor will allow us to include this new project in our ongoing exploration programs in the region.”
Lodestar notes while the agreement is active, the company will have full operatorship on the design and execution of the exploration plan.
Geophysics, geological mapping, and rock sampling completed with three high-priority targets identified. As such, the company says there are multiple additional targets still requiring evaluation.
Lodestar Minerals is an active base metals and gold explorer with assets in Western Australia and Chile. The company’s Chilean portfolio includes the Darwin and Three Saints projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Lodestar Minerals
