Lancaster Resources Inc (CSE:LCR, OTCQB:LANRF) said on Thursday that the vendor of the Lake Cargelligo gold project in New South Wales, Australia, has received final approval from the state government for a four-year exploration license, paving the way for the company to complete its planned acquisition and begin exploration work in the third quarter.
The license covers over 28,768 hectares in the Cobar mining district, one of Australia’s most prolific gold-producing regions.
The project area includes over 25 kilometres of prospective strike and three main target zones, according to the company.
Lancaster first announced its intention to acquire the project in April and expects to complete the transaction in June.
Under the terms of the exploration license, the company must meet a minimum work commitment of AUD 82,500 (approximately C$74,000) over four years.
The Q3 2025 exploration program will focus on identifying gold mineralization, updating geological and geophysical maps, and conducting surface sampling with some drilling. Historical sampling has returned results of up to 204 g/t gold and 273 g/t silver from rock chips, and 16 metres at 5.83 g/t gold and 7.20 g/t silver from channel sampling, the company said.
“This is an important step for us as we build on the momentum to unlock shareholder value and complete our financing for exploration in Q3 2025,” said CEO Andrew Watson.
Lancaster also plans to close a non-brokered private placement, announced alongside the acquisition in April, over the coming weeks.
The Lake Cargelligo project is located about 60 kilometers from the operating Mineral Hill Mine.