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Lachlan Star's gold intersections continue from two separate deposits at the CMD Mine in Chile

Lachlan Star (ASX: LSA) near surface gold intersections continue at speed from the CMD Mine in Chile, with several deposits being actively drilled.

At the Tres Perlas Deposit only limited results have been received to date, with the highlight 6 metres at 6.92 grams per tonne (g/t) gold from 24 metres.

Drilling only recently recommenced at this deposit, with the program designed to test extensions - with the deposit historically one of the highest grade areas mined at the project.

Gold mineralisation at Tres Perlas is up to 100 metres thick at a cut-off grade of 0.3g.t gold, with the deposit already hosting Indicated Resources of 252,000 ounces (0.5g/t cut-off) and Inferred Resources of 333,000 ounces (0.5g/t cut-off).

At the nearby Toro Deposit which has three pits, drilling over the past four months has been targeting a confidence category increase, with intersections including 8 metres at 4.14g/t gold from 164 metres, 6 metres at 3.51g/t gold from 19 metres, and 1 metre at 12.88g/t gold from 107 metres.

Supporting these intersections were the much broader strikes such as 34 metres at 0.9 g/t gold from 44 metres, 32 metres at 0.76g/t gold from 144 metres, and 38 metres at 0.41g/t gold from the surface.

Toro currently hosts Indicated Resources of 84,000 ounces (0.8g/t cut-off) and Inferred Resources of 188,000 ounces (0.7g/t cut-off).

Lachlan Star said that as mining progresses into each of the Toro pits, more drill targets are becoming available - with the exploration strategy is to continue to define low strip ratio gold mineralisation for mining in the near future.

Drilling is also targeting an increase to the resource base which will then extend the production life of the deposit.

Mick McMullen, executive chairman, told Proactive Investors today there is about 3,000 metres left to drill at the project in the 2011 program.

"There is also an assay back log of about 5,000 metres, so results to come for the 2011 program will still be around 8,000 metres.

McMullen expects around 6,000 metres of these samples to be received before the end of the year, ensuring a strong news flow of results for the company in the short term.

September quarter produces 10,330 ounces

In the September quarter Lachlan Star produced 10,330 gold ounces, with over 886 ounces in inventory, with the C1 cash cost of US$953 per ounce, (inclusive of US$198 per ounce non cash process inventory adjustment, US$755 per ounce pre inventory adjustment).

The CMD Gold Mine Gross operating profit was US$4.08 million for the period, with the cost per tonne of ore being reduced 23% (period on period) to US$19.82. Importantly - the average gold sale price was US$1,713 per ounce.

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, and is targeting 75,000 ounces for 2012.