Shares in Lodestar Minerals (ASX:LSR) are trading 13% higher as the company extends high-grade gold targets on its Camel Hills project in Western Australia with an encouraging shallow augur sampling program.
The stock was last trading at A$0.035, which represents about a 250% gain over the past six months.
The augur campaign identified a 150-metre trend at the project west and south of a previously intersected high-grade lode and resulted in grades up to 11g/t gold.
This work followed up potential extensions in the project’s Big Sky area, where reverse circulation drilling last year delivered 6 metres at 6.6g/t gold from 13 metres, including 1 metre at 33.3g/t gold from 13 metres as well as 6 metres at 20.3g/t gold from 21 metres, including 1 metre at 105g/t gold from 21 metres.
Lodestar submitted over 1,000 auger samples from this area, and of these, 197 reported anomalous values of greater than 20ppb gold.
Also, 47 samples were regarded as highly anomalous, with values greater than 60ppb gold.
Encouragingly, auger sampling of the kind recently completed at Camel Hills tends to identify gold mineralisation which is typically only a small fraction of grades encountered in drilling, should mineralised structures exist.
A high-priority 1,000-metre follow-up reverse circulation program is now planned for the end of the March quarter.
Camel Hills is located 170 kilometres northwest of Meekatharra and 60 kilometres southeast of Gascoyne Resource’s (ASX:GCY) Glenburgh gold deposits.
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