Lodestar lays gold growth foundation with 221,000oz Ned’s Creek resource

• Ned’s Creek delivers maiden JORC-compliant 221,000 ounce inferred gold resource
• Conceptual exploration target outlines potential for another 159,000 to 264,000 ounces
• Follow-up drilling scheduled for Q4 2026, ahead of planned mining lease application in early 2027

Special Report:Lodestar Minerals has established a maiden gold resource at Ned’s Creek project in Western Australia, giving its next drilling campaign a solid foundation to build on.

The company unveiled a JORC-compliant inferred mineral resource estimate (MRE) of 5.9 million tonnes at 1.16g/t gold for 221,000oz, using a 0.5g/t cut-off.

The project lies about 40km east of Catalyst Metals’ Plutonic gold mine and processing plant.

Lodestar Minerals (ASX:LSR) plans to assess toll treatment, ore sales, partnerships and joint ventures as potential development pathways.

LSR CEO and executive director Coraline Blaud said the estimate achieved the main objective of the company’s 2026 resource definition drilling program.

“It provides a strong foundation for the next phase of exploration, with follow-up drilling planned to improve geological confidence, support future resource upgrades and test extensions along strike and at depth,” she said.

“From a geological perspective, we see encouraging potential to grow the resource, with mineralisation remaining open along strike and at depth, while parallel structures remain underexplored.”

Three deposits, room to grow

Gidgee Flat contributed about 125,000oz to the overall estimate, followed by Contessa with 69,000oz and Central Park with 26,000oz.

The resource holds a high portion of oxide and transitional material, accounting for about 103,000oz within 2.76Mt at 1.17g/t, representing roughly 47% of reported ounces.

Given the near-surface positioning of gold mineralisation, LSR will look to assess potential for open-pit mining.

Mineralisation remains open along strike and at depth across all three deposits, while parallel structures remain underexplored.

Outside the resource, Lodestar has defined a conceptual exploration target of 5.8-7.1Mt at 0.86-1.15g/t gold for 159,000-264,000oz, covering strike and depth extensions.

“Our next phase of drilling will focus on assessing this exploration target and improving geological confidence in the existing resource,” Blaud said.

“In parallel, technical studies and environmental assessments remain on schedule to support a mining lease application in early 2027.

“Ned’s Creek’s location within an established Western Australian gold region, close to existing processing infrastructure, provides an opportunity to assess potential development pathways as these studies progress.“

Gold demand and a regional processing pathway

Gold’s role in central bank reserves, investment portfolios, jewellery and electronics gives it several demand drivers.

The World Gold Council reported second-quarter 2026 demand, including over-the-counter activity, of 1269t. Central banks bought 289t, while high prices constrained jewellery consumption.

Supply also totalled 1269t. Mine production rose 2% year on year, but recycling fell 6%. The WGC expected only modest supply growth and investment to lead demand growth through the second half.

Prices have remained volatile. The second-quarter LBMA PM average of US$4506.29/oz was 37% above a year earlier, but 8% below the first-quarter record average.

A July 28 Reuters poll of 29 analysts and traders returned a median 2026 average forecast of US$4509/oz, down from US$4916 three months earlier.

Regional infrastructure offers a more immediate reference point for Ned’s Creek. Catalyst’s Plutonic operations include Plutonic Main and Plutonic East, with satellite deposits forming part of its strategy to supply the central processing plant.

Lodestar says nearby plants provide options to investigate, subject to processing capacity, metallurgical compatibility, haulage economics and commercial terms.

LSR intends to undertake about 10,000m of drilling across multiple programs from Q4 2026 through 2027, targeting extensions and improved resource confidence.

Density measurements, metallurgical work and environmental assessments will also support the company’s planned mining lease application in early 2027.

This article was developed in collaboration with Lodestar Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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