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Lachlan Star's Largest Shareholder Sentry Investments Increases Stake Again

Lachlan Star's (ASX: LSA) largest shareholder Sentry Investments Ltd has acquired an additional 980,000 shares in the company, further increasing its stake to 13.26% from 12.13%.

Sentry had earlier this month acquired 1,049,000 shares to increase its stake to 12.13% from 10.91%.

This comes as the company hit a milestone earlier this month with Indicated Resources at its CMD Mine in Chile passing 2 million gold ounces, marking a 500% increase in contained gold in just two years.

CMD now hosts 3.4 million gold ounces (2.058 million ounces Indicated and 1.354 million ounces Inferred).

Most of this increase has been the result of infill drilling between and along strike of historical pits. There is the potential to increase mineral resources at depth by further drilling which would be amenable to mineral processing through the current sulphide heap leach circuit.

The new Tres Perlas deposit, which is open down dip and towards the north east around the El Sauce area, also offers significant potential to expand the mineral resources at the mine.

Tres Perlas contains an Indicated 1.602 million gold ounces and a further Inferred 1.138 million gold ounces. The increase in contained ounces has come from a slight increase in average grade (4%) and additional near surface tonnages identified by drilling around the Mercedes Hill area on the edge of the Churrumata pit.

The CMD Gold Mine processes ore via a three stage crush and heap leach circuit that has been treating predominately sulphide ore since 1995. Recoveries have averaged around 73% until the introduction of the dynamic leach system in 2011, after which recoveries have increased to around 75%.

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