Lodestar Minerals advises that assay results have been received for the five hole (1010m) RC drilling programme completed at the Contessa prospect.

The commencement of the Contessa RC programme represented the first RC drill test beneath significant supergene gold mineralisation at Contessa.


• A five hole, first – pass RC drilling programme has returned significant supergene and primary gold intercepts over a strike length of 400 metres .

• Significant d rill results include

• LNRC010

  • 2m at 1.86g/t Au from 40m and
  • 1m at 1.92g/t Au from 46m

• LNR C011

  • 5m at 3.43 g/t Au from 15 m
  • 3 m at 3 . 88 g/t Au from 54 m and
  • 3m at 1.56g/t Au from 71m

• LNRC012

  • 5m at 9.33g/t Au from 64m (including 1m at 37.5g/t Au from 67m ) and
  • 1m at 3.58g/t Au from 76m

• LNR C013

  • 1m at 1.13g/t Au from 69m
  • 1m at 1.09g/t Au from 84m
  • 1m at 1.76g/t Au from 153m
  • 1m at 2.4g/t from 169m and
  • 1m at 6.13g/t Au from 195m

• LNR C014

  • 1 m at 2.18g /t Au from 180m and
  • 1m at 1.35g/t Au from 186m

Lodestar believes that the gold mineralisation identified at Contessa in the maiden RC drilling programme is associated with an extensive alteration system characteristic of Archaean gold mineralised terranes. The drilling results endorse the concept of the Contessa prospect and strike extensions as a highly prospective gold mineralised s ystem .

• Follow up drilling is planned at Contessa towards the end of the first quarter 2015 .

• Lodestar has completed an assessment of recently completed geochemi cal RAB drilling at Brumby (5km south west of Contessa) and has identified a number of drill targets w h ich the Company intends to pursue in 2015.

A ssay results and initial geological observations indicate extensive alteration and pyrite mineralisation within a mafic to intermediate host u nit intersected in all drill holes over a strike length of 400 metres. In the primary zone , below depths of 80 metres, gold mineralisation (>1g/t Au) is associated with locally increased abundance of sulphide mineralisation (predominantly pyrite) and eleva ted values of indicator trace elements Ag, As, Cu, Mo and Te . Drill hole locations are shown in Figure 2 and significant intersections are listed in Table 1.

The host sequence is variably deformed a nd altered. Silicification , chlorite, sericite and carbonate alteration occurs with disseminated pyrite mineralisation over 1 to 10 metre intervals. Quartz veining is not abundant within the pyrite mineralized intervals which reflect a widespread gold mine ralizing event.

Lodestar believes that the widespread alteration and gold mineralisation intersected in this drilling programme endorses the concept of the Contessa Prospect and strike extensions as a highly prospective gold project worthy of further drill testing. A programme of work is currently being compiled with view to commenc i ng follow up drilling towards the end of the first quarter 2015.

The Company will carry out a comprehensive review of all aircore and RC drilling with the aim compiling a geological framework on which to base future drilling.

CONTESSA TREND – Aircore and RAB Drilling

Results have been received for the remaining holes from the aircore and shallow RAB drilling programme comp leted in November.

Wide spaced traverses of shallow RAB drilling were completed to provide geochemical sampling in areas of shallow colluvial cover not amenable to surface sampling . The drillin g was intended to penetrate the transported cover and provide a sample of the underlying weathered rocks . Significant results were reported from the Brumby area (Table 2) , where drilling targeted the Archaean felsic and mafic rocks a djacent to the granite contact, a position analogous to the Contessa Prospect (Figure 3). RAB sampling was completed on a 160 metre by 40m g rid and defined a 160m by 300m gold anomaly (maximum drill sample values greater than 10ppb Au) that remains open to the south west. Several values greater than 100ppb Au (0.1g/t) in composite samples were reported from the anomaly and a follow up programme of drilling is planned.

Widely spaced traverses of aircore drilling completed north east of the Contessa Prospect tested gold geochemical anomalies defined by earlier shallow RAB drilling. All aircore h oles were drilled to blade refusal. The drilling was completed on 320 metre spaced traverses with holes spaced at 40 metre to 80 metre intervals (Figure 3) , no significant gold results were reported from the aircore drilling which intersected intermediate to mafic rocks overprinted by alteration of variable intensity. Due to the widely spaced positioning of the collars t he aircore drilling has not conclusively tested the gold anomaly overlying the north eastern Contessa Trend and the geological characteris tics of the drilled sequence will be assessed as part of the geological review.