Lachlan Star Limited — Capital/Financing Update 2012

Jun 4, 2012

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

LACHLAN
STAR
LIMITED

5 June 2012

**LACHLAN

STAR
ANNOUNCES
DRILL
RESULTS
FROM
ITS
CMD
GOLD
MINE INCLUDING
10M
GRADING
3.07
G/T
AU,
17M
GRADING
2.11
G/T
AU
AND
26M
GRADING 1.09
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:

**Chisperos

Deposit**

• Ø 17m
  grading
  2.11
  g/t
  from
  12m
  downhole
  and
  15m
  grading
  1.43
  g/t
  Au
  from
  77m
  downhole
  in
  RCH
  2012-­‐84

• Ø 16m
  grading
  1.04
  g/t
  from
  16m
  downhole
  in
  RCH
  2012-­‐87

• Ø 50m
  grading
  0.84
  g/t
  Au
  from
  32m
  downhole
  in
  RCH
  2012-­‐83
  including
  22m
  grading
  1.26g/t
  Au

• Ø 26m
  grading
  1.09
  g/t
  Au
  from
  51m
  downhole
  in
  RCH
  2012-­‐85

• Ø 17m
  grading
  1.04
  g/t
  from
  78m
  downhole
  in
  RCH
  2012-­‐93

**Natalia

Waste
Dump**

• Ø 10m
  grading
  1.35
  g/t
  Au
  from
  10m
  downhole
  in
  RCH
  2012-­‐73

• Ø 10m
  grading
  1.14
  g/t
  Au
  from
  0m
  downhole
  in
  RCH
  2012-­‐74

• Ø 10m
  grading
  0.49
  g/t
  Au
  from
  0m
  downhole
  in
  RCH
  2012-­‐77

• Ø 5m
  grading
  0.60
  g/t
  Au
  from
  0m
  downhole
  in
  RCH
  2012-­‐80

**Tres

Perlas
Deposit**

• Ø 10m
  grading
  3.07
  g/t
  Au
  from
  164m
  downhole
  in
  DDH
  2012-­‐94

• Ø 5m
  grading
  1.30
  g/t
  Au
  from
  0m
  downhole
  (El
  Sauce
  waste
  dump)
  in
  RCH
  2012-­‐64

• Ø 25m
  grading
  0.41
  g/t
  Au
  from
  0m
  downhole
  (El
  Sauce
  waste
  dump)
  and
  159m
  grading
  0.37
  g/t
  Au
  from
  50m
  in RCH
  2012-­‐59

• Ø 30m
  grading
  0.41%
  Cu
  from
  44m
  in
  RCH
  2012-­‐78

• Ø 6m
  grading
  1.76
  g/t
  Au
  from
  27m
  downhole
  in
  DDH
  2012-­‐43

• Ø 13m
  grading
  1.27
  g/t
  from
  0m
  downhole
  in
  RCH
  2012-­‐70

These
results
have
been
received
after
the
April
2012
mineral
resource
update
and
will
be
incorporated
into
new
NI
43101 compliant
mineral
resource
estimate
shortly.

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.

**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).

**FIGURE

1
–
Location
of
Chisperos
Deposit**

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

The
drilling
into
the
Chisperos
deposit
is
the
first
under
Lachlan
Star’s
ownership
and
is
aimed
at
confirming
the
high
grade mineralisation,
upgrading
Inferred
category
mineral
resources
and
testing
the
extension
of
the
historically
sparsely
drilled deposit.

2

The
results
indicate
the
presence
of
a
mineralized
body
between
12m
and
50m
thick
at
relatively
shallow
depths
with grades
averaging
between
1
g/t
Au
and
2
g/t
Au.
Notable
results
include
the
17m
grading
2.11
g/t
and
15m
grading
1.43 g/t
Au
in
RCH
2012-­‐84
and
the
broader
interval
of
50m
grading
0.84
g/t
Au
from
32m
downhole
in
RCH
2012-­‐83
including 22m
grading
1.26g/t
Au.

**Tres

Perlas
Deposit**

Drilling
has
moved
to
the
southern
end
of
Tres
Perlas,
adjacent
to
the
old
Churrumata
pit
where
the
mineralisation
is thinner
but
higher
grade.
The
results
of
10m
grading
3.07
g/t
Au
in
DDH
2012-­‐94,
13m
grading
1.27
g/t
in
RCH
2012-­‐70
and 6m
grading
1.76
g/t
Au
in
DDH
2012-­‐43
has
extended
the
previously
defined
mineralization
in
this
area.

The
Natalia
waste
dump
that
was
backfilled
into
the
Natalia
pit
(now
part
of
the
Tres
Perlas
deposit)
by
previous
operators and
a
small
program
of
holes
has
been
drilled
to
test
the
grade
of
this
material.
The
Natalia
waste
dump
contains approximately
4
million
tonnes
and
has
been
assumed
to
carry
zero
grade
in
the
mine
planning
work.
Refer
to
Figure
2
for the
location
of
the
Natalia
and
El
Sauce
waste
dumps.

FIGURE
2
–
Location
of
Tres
Perlas
Deposit,
El
Sauce
and
Natalia
Waste
Dumps

==> picture [451 x 461] intentionally omitted <==

3

The
initial
drilling
results
are
highly
encouraging
given
the
results
of
10m
grading
1.35g/t
Au
and
10m
grading
1.14
g/t
Au
in holes
RCH
2012-­‐
73
ad
2012-­‐74
respectively.
This
material
has
been
blasted
and
is
sitting
at
surface
less
than
400m
from
the crushing
plant.

Drillholes
RCH
2012-­‐59
and
RCH
2012-­‐64
were
drilled
through
the
El
sauce
waste
dump
to
target
the
mineralisation
below. The
result
of
25m
grading
0.41
g/t
Au
from
surface
was
in
the
El
Sauce
waste
dump,
followed
by
159m
grading
0.37
g/t
Au from
10m
below
the
waste
dump.

RCH
2012-­‐64
returned
5m
grading
1.30
g/t
Au
from
surface
which
is
also
encouraging considering
the
result
is
from
the
surface
of
the
waste
dump.

The
El
Sauce
waste
dump
is
above
surface,
does
not
require
blasting
and
is
approximately
700m
from
the
crushing
plant.
The El
Sauce
waste
dump
contains
approximately
13
million
tonnes
of
rock
and
sits
above
the
highest
grade
mineralisation remaining
on
the
CMD
Gold
Mine.
The
waste
dump
has
been
assumed
to
carry
zero
grade
in
the
mine
planning
work.

Trial
mining
of
the
low
grade
dumps
has
commenced
based
on
the
grade
of
the
material
drilled
to
date
and
this
will
enable an
accurate
grade
to
be
established
for
the
material
mined
from
the
dump.
This
material
has
a
zero
waste:ore
ratio
and
will be
fed
to
the
plant
to
supplement
ore
mined
from
the
open
pits.

Drilling
of
the
hanging
wall
at
the
Tres
Perlas
deposit
to
test
the
copper
mineralisation
on
the
boundary
with
the
adjoining Teck
mine
has
returned
a
result
of
30m
grading
0.41%
Cu
(oxide)
in
RCH
2012-­‐78
(refer
Figure
3).
In
addition,
the
hole returned
potentially
economic
Cu-­‐Au
intervals
further
down
the
hole
that
confirm
the
presence
of
the
Cu
mineralisation
seen in
the
adjacent
hole
RCH
2012-­‐45
(drilled
40m
to
the
south).
This
hole
was
collared
in
the
El
Sauce
waste
dump
and
the
top 20m
of
the
hole
returned
0.16
g/t
Au.

As
drilling
is
progressing
towards
the
east
(closer
to
the
structures
controlling
the
Cu
mineralisation
at
the
adjoining
Teck mine),
the
mineralisation
being
found
is
transitioning
from
predominately
Au
to
being
a
mix
of
oxide
Cu
near
surface
and
Cu-­‐ Au
at
depth
which
is
to
be
expected
given
this
is
what
is
being
mined
at
the
adjacent
operation.
Drill
hole
RCH
2012-­‐78
was collared
170
m
to
the
north
of
the
Teck
boundary.
This
result
is
the
Cu
intersection
most
distant
from
the
Teck
boundary
and demonstrates
the
continuity
of
the
Cu
mineralisation
over
a
substantial
distance.

4

FIGURE
3
–
Section
3520m
N

==> picture [498 x 473] intentionally omitted <==

For
and
on
behalf
of
the
Board

==> picture [163 x 57] intentionally omitted <==

Mick
McMullen Chairman

5

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: mick.mcmullen@lachlanstar.com.au Email:
declan.franzmann@lachlanstar.com.au

**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/tAu Cu%
	RCH-2012-059 3859.0 8191.1 1069.7 338.2 -88.6	0 25 25 0.41
		31 38 7 0.21
		50 209 159 0.37
		including
		50 82 32 0.33
		86 91 5 0.26
		94 112 18 0.27
		117 119 2 0.20
		118 122 4 0.62
		130 147 17 0.31
		139 141 2 0.35
		155 169 14 1.01
		162 164 2 0.28
		172 190 18 0.53
		197 205 8 1.22
		207 209 2 0.49
	RCH-2012-066 3114.1 6851.8 1136.1 90.8 -58	5 7 2 0.35
		19 48 29 0.71
		including
		19 28 9 0.75
		40 48 8 1.70
		50 54 4 0.21
	RCH-2012-068 3157.3 6862.8 1137.8 88.5 -58.5	26 29 3 0.25
		35 43 8 0.36
		55 48 -7 0.24
		50 54 4 0.43
	RCH-2012-069 2913.0 7224 975.7 0.0 -90	7 9 2 0.33
		65 67 2 0.33
	RCH-2012-070 3121.6 7073.9 1151.1 85.2 -72.9	0 13 13 1.27
		40 43 3 0.67
		55 64 9 0.18
		79 81 2 0.49

6

	Hole ID Grid_N Grid_E Grid_Elev Azimuth Dip	From To Interval g/tAu Cu%
	RCH-2012-072 2620.0 7108.4 1104.1 89.9 -58.8	59 61 2 0.66
		86 89 3 0.25
		102 105 3 0.64
	RCH-2012-073 3843.2 8247.0 1083.5 272.5 -89.5	0 5 5 0.19
		10 20 10 1.35
		35 40 5 0.23
	RCH-2012-074 3769.0 8116.9 1053.3 203.2 -89.8	0 10 10 1.14
	RCH-2012-075 3793.0 8109.3 1054.4 238.2 -89.7	0 15 15 0.19
		20 45 25 0.28
	RCH-2012-076 3809.4 8127.5 1054.1 114.3 -89.4	0 5 5 0.4
		10 25 15 0.32
		30 40 10 0.18
	RCH-2012-077 3819.8 8112.7 1054.6 296.6 -90	0 10 10 0.49
		25 30 5 0.17
		35 45 10 0.21
	RCH-2012-080 3811.2 8092.7 1055.1 42.6 -89.3	0 5 5 0.6
		20 25 5 0.34
	DDH-2012-43 2645.0 6640.2 1108.4 46.6 -60.4	27 33 6 1.76
		39 42 3 0.24
		47 55 8 0.34
		108 110 2 0.47
		140.9 142 1.1 7.27
		179 202 23 0.35
		207 214.2 7.2 0.26
		208 214.2 6.2 0.26
		220.25 223.9 3.65 0.35
	DDH-2012-061 2554.3 6796.7 1137.3 100.5 -89.4	8.5 21.2 12.7 0.21
		32.2 41 8.8 0.93
		43 48 5 0.45
		53 56 3 0.45
		68 70 2 0.30
		75 77 2 0.32
		86 90 4 0.42
		94.5 98 3.5 1.04
		106 108 2 1.43
		120 129 9 0.87
		131 133 2 0.20
		139 141 2 0.24
		197 201 4 1.35
	DDH-2012-062 3619.6 8239.8 1064.4 346 -89.4	19 28.5 9.5 0.22
		27.5 32.7 5.2 0.24
		35.7 38.7 3 0.29
		50.2 97.6 47.4 0.31
		102.6 114.7 12.1 0.23
		134.7 137.7 3 0.30
		147.7 156.7 9 0.26
		157.3 163.7 6.4 0.18
		196.7 222 25.3 0.32
		225 231 6 0.22
		236 242 6 0.47
	RCH-2012-064 4103.0 8103.4 1092.7 276.1 -89.6	0 5 5 1.30
		21 27 6 0.36
		35 45 10 0.54
		59 64 5 0.48

7

	Hole ID Grid_N Grid_E Grid_Elev Azimuth Dip	From To Interval g/tAu Cu%
	RCH-2012-071 2660.0 7149.2 1104.2 316.6 -89.5	40 48 8 0.57
		101 104 3 0.24
		154 195 41 0.51
		including
		154 160 6 0.48
		162 166 4 0.56
		177 180 3 0.20
		184 195 11 1.20
		198 201 3 0.32
	RCH-2012-078 3570.9 8372.2 1086.4 172.9 -88.4	0 20 20 0.16
		30 35 5 0.22
		44 74 30 0.41
		68 72 4 0.26
		85 99 14 0.20
		101 111 10 0.36
		121 130 9 0.25
		154 168 14 0.21
		182 208 26 0.24
		204 207 3 0.22
		210 225 15 0.22
		233 248 15 0.18
		243 246 3 0.19
		251 256 5 0.31
		275 281 6 0.34
		295 298 3 0.33
	RCH-2012-079 3605.9 8343.2 1081.8 137.2 -88.9	0 25 25 0.23
		35 38 3 0.20
		44 47 3 0.25
		97 111 14 0.27
		118 123 5 0.29
		169 192 23 0.25
		197 200 3 0.18
		202 239 37 0.67
		210 214 4 0.34
		218 222 4 0.22
		250 269 19 0.43
		273 285 12 0.32
	RCH-2012-081 3420.6 8328.9 1079 243.4 -89.4	10 14 4 0.24
		10 26 16 0.24
		37 52 15 0.46
		50 52 2 1.45
		61 78 17 0.77
		79 83 4 0.20
		101 111 10 0.36
		125 133 8 0.20
		163 167 4 0.44
		217 220 3 0.37
		229 232 3 0.32
		234 238 4 0.18
		239 246 7 0.21
	RCH-2012-083 2654.4 6264.5 1099.9 93.5 -63.9	21 23 2 0.99
		32 82 50 0.84
		including
		32 54 22 1.26
		58 64 6 0.76
		73 82 9 1.04

8

Hole ID Grid_N Grid_E Grid_Elev Azimuth Dip	From To Interval g/tAu Cu%
RCH-2012-084 2700.3 6276.7 1100.6 293.0 -89.3	12 29 17 2.11
	38 41 3 0.23
	77 92 15 1.43
	96 99 3 0.19
	105 110 5 0.27
RCH-2012-085 2676.4 6301.5 1100.6 0.0 -90.0	31 43 12 0.35
	51 77 26 1.09
	including
	51 61 10 1.28
	66 70 4 0.68
	73 76 3 3.12
RCH-2012-086 2698.1 7238.5 1118.9 63.4 -89.7	67 80 13 0.37
	83 95 12 0.52
	97 102 5 0.30
	116 122 6 0.65
	126 136 10 0.77
	142 155 13 0.59
	160 163 3 0.67
RCH-2012-087 2674.8 6138.7 1151.7 328.5 -89.0	5 12 7 0.40
	16 32 16 1.04
RCH-2012-088 2700.4 6105.0 1160.7 254.5 -89.3	18 19 1 8.00
	58 70 12 0.79
RCH-2012-090 2648.3 6117.6 1151.5 88.1 -67.0	49 54 5 1.05
RCH-2012-091 2588.5 6173.5 1143 95 -72.1	0 5 5 0.18
	19 25 6 0.27
	35 37 2 0.18
	48 50 2 0.23
RCH-2012-093 2438 6216 1132.8 212.5 -89.7	65 71 6 0.21
	78 95 17 1.04
	147 158 11 0.26
	168 172 4 1.21
RCH-2012-095 2459.6 6321.3 1127.2 347.9 -89.1	119 121 2 1.71
	141 144 3 0.28
RCH-2012-092 3179.6 6960.3 1127.9 317.5 -89.6	177 182 5 0.31
RCH-2012-094 2640.2 7170.1 1105.2 91.4 -73.8	48 60 12 0.21
	77 88 11 0.43
	103 112 9 0.89
	154 157 3 1.39
	164 174 10 3.07

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

9

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.

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