Lachlan Star: Aggressive exploration delivers with more gold discoveries at CMD Mine

Lachlan Star (ASX: LSA, TSX: LSA) has been re-rated by the market with the company's shares rallying to $1.13 today, up from around $0.85 just two weeks ago - and there is good reason for the investor interest.

Not only does Lachlan Star continue to pour gold from the CMD Mine in Chile, the company's aggressive drilling campaign continues to discover gold at several deposits.

The latest highlights from the Tres Perlas Deposit include 9 metres at 6.4 grams per tonne (g/t) gold from 9 metres; and 10 metres at 2.15g/t gold from 20 metres.

Across at the Toro Deposit intersections include 18 metres at 1.14g/t gold from 60 metres; and 17 metres at 1.11g/t from 69 metres. At the Churrumata Deposit, 7 metres at 1.23g/t gold from 17 metres was discovered.

Declan Franzmann, managing director, commented that the aggressive exploration campaign started in 2011 continues unabated in 2012. "This investment will be realised in the 2012 mineral resource update, which will have a significant positive impact on life of mine planning for the CMD Gold Mine.”


Record 11,326 gold ounces poured in December quarter

During the 2011 December quarter 11,326 ounces of gold were poured by Lachlan Star at the CMD Mine, an increase of 10% over the previous quarter, and importantly 16,835 ounces of gold are stacked, an increase of 30% over the same period.

Another plus for Lachlan Star is a decrease of 8% for the total cost/tonne of ore at US$18.30/t.

The waste:ore ratio was maintained at 3.4:1 despite pre strip of the Chisperos pit. Excluding the Chisperos pre strip, strip ratio on other pits was reduced to 2.38:1 (compared to 3.2 previous quarter).

Lachlan Star is targeting to produce 75,000 ounces in 2012.


CMD Gold Mine - by the numbers

The CMD Mine currently hosts an Indicated Resource of 37.6 million tonnes at 0.6% for 725,000 gold ounces, along with 49.8 million tonnes at 0.6% for 923,000 gold ounces.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24626/lachlan-star-aggressive-exploration-delivers-with-more-gold-discoveries-at-cmd-mine-24626.html