Gold producing Lachlan Star (ASX: LSA) continues to deliver a string of positive drilling results from the wholly owned CMD Mine in Chile.
The latest diamond drilling highlights from the Toro deposit includes 23 metres at 6.05 grams per tonne (g/t) gold from 75 metres. There were also some high grade hits including 1 metre at 25.91g/t gold.
Reverse circulation drilling also uncovered some broader intersections, including 40 metres at 0.71 g/t gold from 109 metres, 27 metres at 0.69 g/t gold from 173 metres, and 40 metres at 0.57g/t gold from 33 metres.
The Toro Deposit is located just 2.5 kilometres to the south-west of the primary crusher, and is being mined in three active pits.
The aim of the drill program in the Toro area is to define sufficient multiple stacked Manto zones to justify the mining of a large pit at a relatively low waste to ore ratio.
Another positive from the latest results is the high grade 23m at 6.05g/t gold confirms the location of the Coffey Inferred resource, but with much higher grades than estimated in the mineral resource.
Lachlan Star said that this mineralisation is up-dip of the 55 metres at 1.01g/t gold previously reported, which is located outside of the Coffey mineral resource. Importantly - the broad intersections announced today are also outside of the resource.
Toro upgrade expected
The current drilling around the Toro deposit is aimed at extending the 272,000 gold ounce resource, which comprises 84,000 ounces Indicated and 188,000 ounces Inferred.
An increase in the confidence levels is also targeted. The current mine plan includes mining 35,000 ounces of gold from the Toro Deposit.
Lachlan Star said that with mine reconciliation of the ounces mined to date from the area, is that the area continues to show a substantial increase in ounces compared to both the Probable Reserve and the Inferred mineral resources, with total ounces mined being up 60% on budget.
This continues to have a positive impact on waste:ore ratios, which have been maintained around 3.5:1 compared to a budget of 5:1 for the September quarter.
The company added that the results of the current drill program clearly indicate the potential for the resource base to grow significantly, with drilling ongoing.
Lachlan Star remains very well funded after recently closing a placement to raise $15.1 million.
The news flow of results is set to ramp up over coming months, with an accelerated exploration program currently being prepared.
The CMD Gold Mine
Lachlan Star has a JORC Probable Reserve of; 5.8 million tonnes at 0.8g/t gold for 157,000 ounces. The total JORC Resource is 1.4 million gold ounces.
CMD is an open pit heap leach gold mine that commenced production in 1995 and has historically produced around 830,000 gold ounces.
The company has an unhedged production of around 45,000 gold ounces annually.