Lodestar Minerals enters sale agreement to acquire new tenement at Earaheedy Project in WA

Western Australian explorer Lodestar Minerals (ASX:LSR) has agreed to purchase exploration licence E69/3824, which covers 76km-square and is contiguous to its Earaheedy Project.

The company reports Earaheedy now covers 1,420km-square, and features zinc-lead-silver targets across a strike length of about 100km in a similar geological setting to Rumble Resources’ (ASX:RTR) Chinook discovery.

Under the agreement with BPM Minerals (ASX:BPM) subsidiary Recharge Resources, Lodestar will acquire E69/3824 by making a cash payment of $25,000, and issuing $75,000 worth of shares at an issue price of $0.005 per share to Recharge.

Lodestar will grant Recharge a 1% net smelter royalty (NSR) on all minerals. The consideration for E69/3824 is payable within 5 business days of executing the sale agreement.

The company will also acknowledge the existing 1% NSR and buy back clause from a binding heads of agreement (HoA) from the BPM transaction from May 2021.

Lodestar reports E96/3824 was granted on 1 September 2021, and has seen ‘very limited’ historical exploration for base metals and gold. As a result, the company is planning to conduct first pass soil geochemical and geological mapping programs in the September quarter.

Several other soil sampling programs consisting of 2,200 samples have also begun over multiple areas that have not been tested. The company says this sampling will be completed in July, with results expected in September.

The acquisition of the new exploration licence follows the completion of Lodestar’s maiden drilling program at Earaheedy, which saw 99 holes completed for 5,386m across 7 targets.

These targets were defined by both electromagnetic (EM) anomalies and soil geochemistry anomalies using ultrafine (UFF+) multi-element assaying methods developed by the CSIRO, who analysed and interpreted the assay data for Lodestar. The company reports all assays are pending.

Commenting on completing the maiden drilling program, Lodestar Minerals Managing Director Ed Turner says: “We are very happy to have completed our maiden drilling program at Earaheedy and eagerly await the assays which we expect to be received in 6-7 weeks.

Logging has confirmed the presence of dolerite sills within the sedimentary units. These help confirm our geological model and the potential for VMS-style copper-gold mineralisation.

“The acquisition of a highly prospective additional tenement is a further testament to our belief that the Earaheedy Basin is an emerging tier-one base metal province”

The acquisition of a highly prospective additional tenement is a further testament to our belief that the Earaheedy Basin is an emerging tier-one base metal province.

Rumble Resources have recently provided the potential of the Earaheedy Basin with their announcement of their maiden resource which comprised 94 million tonnes @ 3.1% Zn-Pb and 4.1g/t Ag.

The Earaheedy will continue to be the primary focus of our exploration efforts alongside our commitment to the Kangaroo Hills JV Project with Future Battery Minerals (ASX:FBM) who have recently made a significant lithium discovery and recently commenced the third phase of exploration drilling.”

Lodestar Minerals is an ASX-listed base metal, lithium, and gold explorer focused on its wholly owned Earaheedy-Imbin and Jubilee Well projects in Western Australia.

Along with its wholly owned projects, the company also holds a 20% interest in the Kangaroo Hills Lithium Project and Nepean Nickel Project with Future Battery Minerals, and is earning a 51% interest in the Ned’s Creek Joint Venture (JV) with Vango Mining and Catalyst Metals (ASX:CYL).

Lodestar had $363,000 of cash at hand on 31 March 2023, according to its latest quarterly report published on 21 April 2023.

Write to Harry Mulholland at Mining.com.au

Images: Lodestar Minerals Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.