Lachlan Star (LSA)

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ASX A$-.---

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TSX C$0.000

GOLD $0.00 USD/oz

CMD Gold Mine

Lachlan Star Limited (Lachlan) has 100% beneficial ownership of the CMD Gold Mine, located in Andacollo approximately 350km north of Santiago (Fig 1).

Figure 1 – CMD Gold Mine Location

 
   
 

The CMD Gold Mine is an operating open pit heap leach gold mine that commenced production in 1995 and has produced approximately 1,000,000 ounces of gold since operations commenced. The CMD Gold Mine is located immediately adjacent (100m) to the large Carmen Andacollo copper gold mine owned by Teck.

The assets of the CMD Gold Mine include:

  • Gold production of circa 75,000 ounces per annum;
  • NI 43101 Indicated mineral resources of 1.98 million ounces of gold at an average grade of 0.42 g/t gold and a further Inferred mineral resource containing 1.34 million ounces of gold at an average grade of 0.37 g/t gold;
  • Excellent exploration potential to define significant resources as the known mineralisation is open either along strike, or at depth, or both;
  • Underutilised 8Mtpa production facility currently running at 5.0Mtpa run rate;
  • 100 tpd ball mill and CIL circuit;
  • Water rights in excess of that required for production and
  • Carry forward tax losses of approximately US$80 million. 

Figure 2 below shows the location of the CMD Gold Mine (inside the red outline) and the adjacent Teck Andacollo operation. The Las Loas pits are located approximately 5km north of the heap leach facility, whilst the remaining CMD Gold Mine deposits are all located within 3km of the heap leach facility.

Figure 2 – CMD Gold Mine

 
   
 

Figure 3 below shows the crushing circuit and view over the Tres Perlas and Churrumata pits towards the Teck Andacollo mine from the heap leach pads.

Figure 3 – Crushing Plant and Pits

 
   
 

 

Mineral Resources and Exploration

Table 1 contains the mineral resource estimates as at 1 March 2013.

 

CMD Gold Mine

Mineral Resources (March 2013) 

                        

De posit
Resource
Category
Lower Cutoff
(Au g/t)
Tonnes
(Mt)
Grade
(Au g/t)
Metal
(koz Au)
Tres Perlas
Indicated
0.15
128.6
0.38
1,584
Inferred
0.15
99.1
0.36
1,135
Chisperos
Indicated
0.3
0.9
1.12
34
Inferred
0.3
1.3
0.97
40
Toro
Indicated
0.15
16.2
0.61
316
Inferred
0.15
10.9
0.36
128
Las Loas
Indicated
0.3
2
0.77
50
Inferred
0.3
1.5
0.76
37

The new mineral resources represent a 4% reduction in ounces contained in the Indicated category, and a 1% reduction in ounces contained in the Inferred category. This reflects mining depletion since the last mineral resource update in September 2012.

For further information on the CMD operation please refer to the Company’s quarterly Management Discussion and Analysis under the “Investor Centre” section of this website.

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