Lachlan Star Limited - Capital/Financing Update 2012

==> picture [191 x 69] intentionally omitted <==

LACHLAN
STAR
LIMITED

21 June 2012

LACHLAN
STAR
ANNOUNCES
OUTSTANDING
DRILL
RESULTS
FROM
ITS
CMD
GOLD
MINE INCLUDING
37M
GRADING
1.83%
CU,
19M
GRADING
0.60%
CU,
49M
GRADING
0.92
G/T AU
AND
2M
GRADING
47.8
G/T
AU

**NOT

FOR
DISTRIBUTION
TO
UNITED
STATES
NEWSWIRE
SERVICES
OR
FOR
RELEASE,
PUBLICATION,
DISTRIBUTION OR
DISSEMINATION
DIRECTLY,
OR
INDIRECTLY,
IN
WHOLE
OR
IN
PART,
IN
OR
INTO
THE
UNITED
STATES**

Perth,
Western
Australia:
Gold
miner,
Lachlan
Star
Limited
(“Lachlan”
or
the
“Company”)
(ASX
and
TSX:
LSA) is
pleased
to announce
further
drill
results
from
its
100%
owned
CMD
Gold
Mine
in
Chile.

Highlights
from
the
drill
program
include:

**Tres

Perlas
Deposit**

Ø 19m
grading
0.28%
Cu
from
0m
downhole
and 37m
grading
1.83%
Cu
from
26m
downhole
in
RCH
2012-‐112
Ø 19m
grading
0.60%
Cu
from
30m
in
RCH
2012-‐111
Ø 22m
grading
0.47%
Cu
from
37m
in
RCH
2012-‐110
Ø 41m
grading
0.37%
Cu
from
23m
in
RCH
2012-‐121
Ø 49m
grading
0.92
g/t
Au
from
58m
downhole
in
DDH
2012-‐88
Ø 40.9m
grading
0.74
g/t
Au
from
68.1m
downhole,
10m
grading
0.64
g/t
Au
from
123m
downhole,
31m
grading 0.65
g/t
Au
from
186m
downhole,
8.3m
grading
0.143
g/t
Au
from
244m
downhole
and 2m
grading
47.8
g/t
Au from
327m
downhole
in
DDH
2012-‐105

**Chisperos

Deposit**

Ø 10m
grading
1.10
g/t
from
61m
downhole
RCH
2012-‐101
Ø 6m
grading
1.13
g/t
from
103m
downhole
in
RCH
2012-‐104
Ø 8m
grading
1.07
g/t
Au
from
101m
downhole
and
2.7m
grading
2.53
g/t
Au
from
123m
downhole
in
DDH
2012-‐ 107
Ø 3m
grading
3.97
g/t
Au
from
0m
downhole
in
RCH
2012-‐114

Table
1
below
contains
a
list
of
the
most
recent
drill
results
for
the
CMD
Gold
Mine
for
holes
that
have
been
drilled
post
the recent
mineral
resource
update.
True
widths
are
estimated
to
be
approximately
85%
of
downhole
widths.

**Tres

Perlas
Deposit**

Recent
drilling
has
been
focussed
to
the
east
of
the
historical
Tres
Perlas
pit
and
adjacent
to
the
operating
Teck
copper mine
further
to
the
east
(Refer
Figure
1).

**FIGURE

1
–
Location
of
Tres
Perlas
and
Chisperos
Deposits**

==> picture [426 x 455] intentionally omitted <==

Drilling
has
been
targeted
at
the
copper
mineralisation
to
the
east
of
the
current
Tres
Perlas
pit
and
has
returned
an outstanding
result
of
37m
grading
1.83%
Cu
from
26m
downhole,
with
19m
grading
0.28%
Cu
above
this
from
surface.

Other
encouraging
new
results
in
this
area
include
19m
grading
0.60%
Cu
from
30m
downhole,
22m
grading
0.47%
Cu from
37m
downhole
and
41m
grading
0.37%
Cu
from
23m
downhole.
As
can
be
seen
in
Figure
2
below,
this
area
is
located immediately
to
the
east
of
the
Tres
Perlas
pit
and
along
strike
of
the
Teck
pit.
These
copper
results
are
the
most
significant copper
mineralisation
found
to
date
on
the
CMD
Gold
Mine
and
occur
at
shallow
depths.

Previous
drilling
by
the
Company
in
this
area
has
also
returned
30m
grading
0.41%
Cu
from
44m
in
RCH
2012-‐78
some
70m

north
and
70m
east
of
the
37m
grading
1.83%
Cu
and
52m
grading
0.34%
Cu
in
RCH
2012-‐45
which
is
located
between these
holes
and
70m
to
the
west.

The
shallow
copper
mineralisation
is
in
the
form
of
oxides
and
sits
on
top
of
the
gold
mineralisation
and
has
assumed
to
be waste
in
the
current
mine
planning
work.
Mining
of
this
area
is
scheduled
for
towards
the
end
of
calendar
2012.

**FIGURE

2
–
Location
of
Copper
Mineralisation
at
the
Tres
Perlas
Deposit**

==> picture [500 x 503] intentionally omitted <==

Figures
3
and
4
show
the
cross
sections
through
3500m
N
and
3400m
N
and
the
interpreted
oxide
copper
mineralised
horizon. These
sections
are
north
of
the
Teck
mineral
tenement
boundary
shown
in
green
outline
(refer
Figure
2)
and
the
northerly strike
of
the
higher
grade
copper
mineralisation
in
RCH
2012-‐112
appears
to
be
an
extension
of
the
higher
grade
zones
seen
in the
Teck
pit.

**FIGURE

3
–
Section
3500m
N**

==> picture [467 x 413] intentionally omitted <==

FIGURE
4
–
Section
3460m
N

==> picture [467 x 416] intentionally omitted <==

Drillhole
DDH
2012-‐105
was
drilled
further
to
the
south
near
the
old
Churrumata
pit
and
intersected
broad
zones
of
gold mineralisation
from
68.1m
downhole
to
329m
downhole.
The
2m
grading
47.8
g/t
Au
is
indicative
of
the
high
grade
feeder zone
vein
style
mineralisation
and
the
40.9m
grading
0.74
g/t
Au
and
31m
grading
0.64
g/t
Au
is
typical
of
the
broader
Manto style
mineralisation
seen
on
the
property.

DDH
2012-‐88
was
drilled
in
the
same
area
and
returned
a
broad
interval
if
mineralisation
showing
49m
grading
0.92
g/t
Au. Both
these
holes
are
located
approximately
1.2km
to
the
south
of
the
high
grade
El
Sauce
area
of
the
Tres
Perlas
deposit
and the
results
are
encouraging
as
this
is
an
area
that
is
modelled
to
be
relatively
low
grade
in
the
current
mineral
resource.

**Chisperos

Deposit**

The
Chisperos
Deposit
is
located
in
the
centre
of
the
CMD
Gold
Mine
tenements
as
shown
in
Figure
1.
The
Chisperos
Deposit contains
an
Indicated
mineral
resource
of
36,000
ounces
of
gold
(1.0
Mt
grading
1.1
g/t
Au)
plus
inferred
mineral
resources
of 43,000
ounces
of
gold
(1.4
Mt
grading
1.0
g/t
Au)
and
is
the
highest
grade
resource
at
the
CMD
Gold
Mine
(refer
to
Table
2).

A
small
drill
program
has
been
underway
upgrade
Inferred
mineral
resources
and
to
extend
the
extent
of
the
mineralisation. This
continues
to
deliver
higher
grade
results
including
the
3m
grading
3.97
g/t
Au
from
surface
and
10m
grading
1.01
g/t
Au

and
6m
grading
1.13
g/t
Au
reported
above.
These
higher
grade
results
confirm
the
estimated
mineral
resource
grades
and suggest
the
potential
exists
to
increase
the
size
of
the
mineralisation
and
the
potential
to
mine
a
larger
pit.

For
and
on
behalf
of
the
Board

==> picture [163 x 58] intentionally omitted <==

Mick
McMullen Chairman

For
further
information
please
visit
www.lachlanstar.com.au or
contact

Mick
McMullen Declan
Franzmann Chairman Managing
Director Lachlan
Star Lachlan
Star Tel:
+61(0)8
9481
0051 Tel:
+61(0)8
9481
0051 Email: [email protected] Email:
[email protected]

T
able
1
–
CMD
Gold
Mine
Drill
Results
–Post
April
2012
Mineral
Resource[1
]

Hole ID Grid_N Grid_E Grid_Elev Azimuth Dip	From To Interval g/t Au % Cu
DDH-2012-88 2,772 7,326 1,104 121.0 - 89.8	7.0 12.0 5.0 0.46
	8.0 10.0 2.0 0.81
	58.0 107.0 49.0 0.92
	71.0 74.0 3.0 0.33
	99.0 107.0 8.0 0.27
	174.0 195.0 21.0 0.35
RCH-2012-096 2,481 6,308 1,128 78.7 - 89.4	80.0 81.0 1.0 0.62
	134.0 136.0 2.0 0.23
RCH-2012-100 2,360 6,563 1,107 0 - 90.0	29.0 32.0 3.0 0.27
	45.0 47.2 2.2 0.30
RCH-2012-101 2,480 6,649 1,101 210.3 - 89.6	23.0 25.0 2.0 0.31
	61.0 71.0 10.0 1.10
	76.0 78.0 2.0 1.15
RCH-2012-103 2,400 6,699 1,099 0 - 90.0	35.0 38.0 3.0 0.36
	88.0 91.0 3.0 1.40
RCH-2012-104 2,420 6,709 1,098 102.3 - 89.0	0 4.0 4.0 0.73
	32.0 40.0 8.0 0.34
	90.0 95.0 5.0 0.67
	103.0 109.0 6.0 1.13
DDH-2012-105 2,603 6,825 1,162 226.8 - 89.4	3.0 9.6 6.6 0.21
	29.0 34.0 5.0 0.50
	38.5 43.5 5.0 0.39
	51.8 61.4 9.6 0.44
	68.1 109.0 40.9 0.74
	123.0 133.0 10.0 0.64
	149.0 151.2 2.2 1.61
	178.0 179.0 1.0 1.90
	186.0 217.0 31.0 0.65
	244.0 252.3 8.3 1.43
	337.0 339.0 2.0 47.80
RCH-2012-107 2,805 6,396 1,127 40.6 - 89.2	101.0 109.0 8.0 1.07
	123.0 125.7 2.7 2.53
RCH -2012-109 3,415 8,304 1,080 167.2 -88.8	40.0 56.0 16.0 0.32
RCH-2012-110 3,455 8,335 1,076 0 - 89.5	37.0 59.0 22.0 0.47
	67.0 70.0 3.0 0.26
	91.0 107.0 16.0 0.24
	170.0 174.0 4.0 0.20

Hole ID Grid_N Grid_E Grid_Elev Azimuth Dip	From To Interval g/tAu Cu%
RCH-2012-111 3,496 8,343 1,073 279.3 - 88.4	30.0 49.0 19.0 0.60
	102.0 116.0 14.0 0.29
	124.0 127.0 3.0 0.41
	152.0 189.0 37.0 0.21
	216.0 226.0 10.0 0.30
RCH-2012-112 3,497 8,297 1,064 2.8 - 89.2	0 19.0 19.0 0.28
	26.0 63.0 37.0 1.83
	78.0 83.0 5.0 1.84
	99.0 102.0 3.0 0.23
	124.0 127.0 3.0 0.44
	190.0 214.0 24.0 0.44
	230.0 246.0 16.0 0.69
RCH-2012-114 2,386 6,328 1,123 165.0 - 89.2	0 3.0 3.0 3.97
	94.0 97.0 3.0 2.08
	103.0 109.0 6.0 0.54
RCH-2012-115 2,341 6,374 1,120 196.3 - 89.5	0 3.0 3.0 0.47
	84.0 88.0 1.3 0.54
RCH-2012-116 2,727 6,100 1,168 318.1 -88.2	61.0 63.0 2.0 2.71
RCH-2012-121 3,467 8,241 1,063 238.4 - 89.0	23.0 64.0 41.0 0.37
	40.0 60.0 20.0 0.27

1.
Samples
assayed
at
ACTIVATION
LABORATORIES
LTD
in
La
Serena,
Chile,
an
Accredited
Testing
Laboratory
by
the
Standards
Council
of Canada

Table
2
–
CMD
Gold
Mine
Indicated
and
Inferred
Mineral
Resource[2,3]


		CMD Gold Mine
		Mineral Resources(April 2012)

	Deposit	Indicated Inferred
		Tonnes (Mt) Grade (Au) Ounces (kozs) Tonnes (Mt) Grade (Au) Ounces (kozs)
	Las Loas(April 2011)	2.9 0.8 73 1.5 0.8 38
	Toro(Feb 2012)	17.5 0.6 348 11.6 0.4 135
	Tres Perlas(April 2012)	112.6 0.4 1,332 104.3 0.3 1,126
	Chisperos(April 2011)	1.0 1.1 36 1.4 1.0 43
	Total	133.9 0.4 1,788 118.8 0.4 1,342

2.Rep orted
above
0.15
g/t
Au
for
all
except
Las
Loas
and
Chisperos
deposits
which
are
reported
above
0.30
g/t
Au

3.Table
contains
rounding
and
may
not sum
precisely

_**About

Lachlan
Star
Limited**_

Lachlan
Star
Limited
is
a
gold
mining
company
headquartered
in
Perth,
Western
Australia.
The
Company
is
focused
on
acquiring
and
developing
assets
within the
gold
and
copper
sectors
within
Australia
and
Chile.
The
company
has
a
board
of
directors
and
management
team
with
an
impressive
track
record
of advancing
resource
projects
through
to
production.

Lachlan
Star’s
current
projects
include
a
100%
interest
in
the
CMD
Gold
Mine
in
Chile,
a
100%
interest
in
the
Bushranger
Copper
Project
in
New
South
Wales (subject
to
Newmont
earning
51%)
and
a
100%
interest
in
the
Princhester
magnesite
deposit
in
Queensland.

_**Competent

Persons
Statement**_

The
information
in
the
news
release
that
relates
to
the
Mineral
Resources
of
Tres
Perlas,
Chisperos,
Las
Loas,
and
Toro
is
based
on
information
compiled
by David
Slater,
who
is
a
Chartered
Professional
Member
of
The
Australasian
Institute
of
Mining
and
Metallurgy.
Mr.
Slater
is
employed
full
time
by
Coffey Mining
Pty
Ltd.
The
information
in
the
news
release
that
relates
to
exploration
results
is
based
on
information
approved
by
Declan
Franzmann,
who
is
a Chartered
Professional
Member
of
The
Australasian
Institute
of
Mining
and
Metallurgy.
Mr.
Franzmann
is
employed
by
Citraen
Pty
Ltd
and
is
an
officer
of
the Company.
Each
of
Mr.
Slater
and
Mr.
Franzmann
has
sufficient
experience,
which
is
relevant
to
the
style
of
mineralisation
and
type
of
deposit
under consideration
and
to
the
activity
which
he
is
undertaking,
to
qualify
as
a
Competent
Person
as
defined
in
the
2004
Edition
of
the
“Australasian
Code
for Reporting
of
Mineral
Resources
and
Ore
Reserves”
and
to
qualify
as
a
“Qualified
Person”
under
NI
43-‐101.
Each
of
Mr.
Slater
and
Mr.
Franzmann
consents
to the
inclusion
in
the
news
release
of
the
matters
based
on
his
information
in
the
form
and
context
in
which
it
appears.

Caution
Regarding
Forward
Looking
Information: This
report
contains
forward-‐looking
information,
which
is
based
on
assumptions
and
judgments
of management
regarding
future
events
and
results.
Such
forward-‐looking
information
includes
but
is
not
limited
to
information
with
respect
to
future exploration
and
drilling,
procurement
of
financing
and
procurement
of
necessary
regulatory
approvals.

Forward-‐looking
information
involves
known
and
unknown
risks,
uncertainties,
and
other
factors
which
may
cause
the
actual
results,
performance
or achievements
of
the
Company
to
be
materially
different
from
any
anticipated
future
results,
performance
or
achievements
expressed
or
implied
by
such forward-‐looking
information.
Such
factors
include,
among
others,
the
actual
market
price
of
gold,
the
actual
results
of
current
exploration,
the
actual
results of
future
exploration,
changes
in
project
parameters
as
plans
continue
to
be
evaluated,
as
well
as
those
factors
disclosed
in
the
Company's
publicly
filed documents.
The
Company
believes
that
the
assumptions
and
expectations
reflected
in
the
forward-‐looking
information
are
reasonable.
Assumptions
have been
made
regarding,
among
other
things,
the
Company’s
ability
to
carry
on
its
exploration
and
development
activities,
the
timely
receipt
of
required approvals,
the
price
of
gold,
the
ability
of
the
Company
to
operate
in
a
safe,
efficient
and
effective
manner
and
the
ability
of
the
Company
to
obtain
financing as
and
when
required
and
on
reasonable
terms.
Readers
should
not
place
undue
reliance
on
forward-‐looking
information.
Lachlan
Star
does
not
undertake
to update
any
forward-‐looking
information,
except
in
accordance
with
applicable
securities
laws.

AI assistant

Lachlan Star Limited Capital/Financing Update 2012

46929_rns_2012-06-20_685167fc-e1dd-4962-ab9e-d70819882db2.pdf

**NOT

**Tres

**Chisperos

**Tres

**FIGURE

**FIGURE

**FIGURE

**Chisperos

_**About

_**Competent

AI assistant

Lachlan Star Limited — Capital/Financing Update 2012

46929_rns_2012-06-20_685167fc-e1dd-4962-ab9e-d70819882db2.pdf

**NOT

**Tres

**Chisperos

**Tres

**FIGURE

**FIGURE

**FIGURE

**Chisperos

_**About

_**Competent

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Lachlan Star Limited Capital/Financing Update 2012