Lachlan Star (ASX:LSA) identifies shallow gold across multiple zones at Killaloe Project

Lachlan Star Limited (ASX:LSA) has made a strong start to its 2024 exploration campaign at the Killaloe Project in Western Australia, where early stage drilling has delivered promising results.

Initial assays from the company’s reconnaissance scale aircore program have confirmed shallow gold mineralisation across multiple zones, including extensions beyond the main Duke trend.

As momentum builds, CEO Andrew Tyrrell provides insight into what these results mean, how they fit into the broader geological picture, and where the company is headed next.

What makes these early results at Killaloe significant?

These are the first assays we have received from our reconnaissance scale aircore drilling program at Killaloe, and the results have already confirmed shallow gold mineralisation in several zones, both within the established Duke trend and in areas beyond it.

Seeing intercepts like 8 metres at 0.84 grams per tonne, including a higher grade zone of 4 metres at 1.25 grams per tonne, at such an early stage of drilling is a strong indication that we are tapping into a broader mineralised system.

“We’re not just hitting isolated results, we’re seeing consistency with other known surface indicators of gold mineralisation across the project.”

What adds to the confidence in our model is that many of these intercepts align with surface gold-in-soil anomalies and outcropping quartz veins, which supports the geological framework we are working from.

Are these new gold zones related to the Duke main trend?

Several of the intercepts we have reported are either within or very close to the main Duke gold trend, an area that has already delivered strong shallow gold grades in historical drilling.

However, what is particularly exciting is that we are now identifying new mineralised structures to the northeast of the Duke trend.

These are areas we began exploring due to the presence of a coherent gold-in-soil anomaly.

“This tells us there are additional structural trends across Killaloe that are carrying gold, and those areas warrant further follow-up.”

For example, hole KAC0006 returned 12 metres at 0.50 grams per tonne from a shallow depth of 8 metres, in an area where we previously had limited data.

While the Duke trend remains a priority, we are clearly seeing the mineralised footprint expand, which broadens the potential of the entire project.

What is the scale of the Killaloe Project compared to nearby operations?

Killaloe is located just 20 to 30 kilometres northeast of Pantoro’s Norseman Operations, which host a 4.7 million ounce gold resource.

This places us in a highly endowed and proven gold producing district.

The project is situated within the Kalgoorlie Terrane, part of the Eastern Goldfields, which is one of the most prolific gold provinces globally, with a historical endowment of more than 200 million ounces.

What makes Killaloe particularly compelling is that, despite its location in such a productive geological setting, it remains largely under explored by modern standards.

Minimal systematic work has been done, which leaves room for meaningful discoveries.

We currently hold an 80 percent interest in the key tenement E63/1018 and 100 percent ownership of the remaining licences, giving us control over a significant landholding in a strategic location that is now starting to deliver tangible exploration results.

What are the next steps for Lachlan Star at Killaloe?

Our aircore drilling program is still in progress and is expected to continue for another two to three weeks.

To date, we have completed 3,625 metres of aircore and 1,496 metres of reverse circulation drilling, with a number of assay results still pending, including further samples from the Duke Prospect.

We expect to receive those results over the next three to four weeks.

At the same time, we are already planning follow up drilling to build on these early successes.

This includes more aircore drilling to test new targets, as well as reverse circulation and diamond drilling designed to infill and extend areas where we have already confirmed mineralisation.

“Our strategy is to build on what we’ve learned so far and methodically step out along strike and at depth to understand the scale and continuity of the mineralised system.”

Our approach is to step out systematically so that we can better understand the size, geometry and potential economic viability of the gold zones emerging at Killaloe.

How does this fit into the Company’s broader strategy?

The results we are seeing at Killaloe are the outcome of a disciplined, low cost exploration strategy that we have applied consistently across our portfolio.

By focusing on early stage, on ground work, we have been able to generate meaningful results quickly and cost effectively.

These outcomes not only demonstrate the potential of Killaloe but also support the broader strategic direction we are taking, particularly in regions that are under explored but geologically promising.

In parallel with the work at Killaloe, we are about to commence drilling at our North Cobar Project in New South Wales, which is located in another highly prospective gold and copper province.

Our strategy is centred on unlocking value through focused exploration across assets with strong geological potential, and the progress we are making shows that this approach is working.

The path forward

With drilling activity continuing and assay results from multiple prospects still to come, Lachlan Star is entering an important phase in the development of the Killaloe Project.

The early indicators of a broader mineralised system, combined with the project’s strategic location and under explored nature, position it as a key driver of future growth.

As follow up programs are prepared and new drilling kicks off in New South Wales, the company is advancing a focused, portfolio wide strategy built on cost effective discovery and value creation.

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