LSA - Lachlan Star

[mickqld]

Some background info on LSA formerly TDR Toodyay resources.
Has gone into trading halt pending a coal aquisition in South Africa.
Has good copper prospects in NSW.
Share price had quite a significant breakout on high volume last week from 1.6 cents to 3.8 cents.


Lachlan Star Limited recently completed an induced polarisation (IP) survey at the Bushranger
Exploration Project (EL5574) in the Lachlan Fold Belt of New South Wales. The survey
focussed on an area at the southern end of the tenement, known as the Footrot Prospect,
approximately 6km to the south-east of the Racecourse resource.
Most of the work completed to date at Bushranger has been at the Racecourse Prospect. North
Limited completed an IP survey early in the target phase of the Racecourse Prospect. This
survey provided an accurate location of sulphide mineralisation at Racecourse. Subsequent
drilling proved that the IP response was associated with copper mineralisation. Between 2003
and 2006, Straits Resources Limited completed over 6,000 metres of RC and diamond drilling.
Resource modelling completed in 2006 provided an Indicated and Inferred Resource of 27.6Mt
at 0.45% Cu at the Racecourse Prospect.
In contrast, since 2003 only 384 metres of RC drilling (4 holes) and 122 metres of shallow
aircore were completed at the Footrot Prospect. Other exploration over Footrot included soil
geochemistry and aircore drilling (187 holes) completed by North Limited between 1993 and
1998. Lachlan Star reviewed all the available information and considered Footrot to be underexplored
and an IP survey was conducted to assist in target identification at Footrot.

 

[tigerboi]

going alright today...,just a lazy..33%...
see what it does tomorrow,the anns. does indicate some dilution..tb

 

[nyo]

A question for those that are T/A traders. Is there any reason to be concerned about the gaps in the chart over the 30 days or so and the gap on the open today? Any feedback would be great.

 

[cordelia]

A question for those that are T/A traders. Is there any reason to be concerned about the gaps in the chart over the 30 days or so and the gap on the open today? Any feedback would be great.

View attachment 20750

Hello. You can read about gaps here: http://www.incrediblecharts.com/technical/gaps.php

Its a pretty basis explanation and its good for you to understand these things yourself without taking someone else's word for it. Looking at that chart.... if you already held a position I don't think you have too much to worry about. Good Luck

 

[mickqld]

7 May 2008
LACHLAN STAR LIMITED ENTERS INTO AGREEMENT TO ACQUIRE
HOLFONTEIN COAL PROJECT, SOUTH AFRICA
Summary
As indicated in the March quarterly report, Lachlan Star has identified the South African coal
industry as presenting significant opportunities to enhance shareholder value. The Company is
therefore pleased to announce that it has reached agreement with Coal of Africa Limited to
acquire 100% of the Holfontein Coal Project in South Africa. The initial consideration for the
acquisition is A$15 million, payable in a mix of cash and shares. Additional payments may be
required if certain key milestones are satisfied.
The Holfontein Coal Project contains an Indicated Resource of 60 Mt of coal on the Holfontein
Farm. This Indicated Resource was categorised using the South African Code for Reporting of
Mineral Resources and Mineral Reserves (SAMREC). The upper seam is of a high quality with,
low sulphur and phosphorous and high energy values. The lower seam is a lower quality subbituminous
coal suitable for local power generation, or as a feedstock to the Coal to Liquids
(CTL) (SASOL) industry.
Additionally, the purchase also includes an option agreement covering the adjoining
Wildebeestfontein Farm which includes significant coal mineralisation that has not been
incorporated into a resource estimate.
There are four power stations with 50km of the Project and there is excellent road and rail
access to the site. Application for a New Order Mining Right (“NOMR”) for the Holfontein Farm
and further prospecting rights have been lodged with South Africa’s Department of Minerals and
Energy. The recent appointment of a Regional Manager - Southern Africa based in
Johannesburg will enable the Company to rapidly advice the Holfontein Coal Project and to
examine other investment opportunities.
The Company intends to continue its stated strategy of developing the Holfontein Coal Project,
continuing exploration at the Bushranger Copper Project and growing the Company through
further acquisitions within the resource sector, with a strategic focus in the bulk commodities
(coal), copper and gold sectors.
Transaction Summary
The initial consideration for the acquisition is a payment of A$15 million, with a minimum cash
consideration of A$9 million. This payment will be made upon transfer of the Project tenements
to Lachlan Star’s nominated subsidiary (expected to occur within 4 to 6 months). Any share
component of the initial payment will be satisfied through the issue of shares at an equivalent
price to any equity raising undertaken by the company to fund the acquisition (refer below).
The cash component of the initial consideration will be satisfied from existing cash reserves
($1.6 million), with the balance from a proposed placement of 300 million shares at an issue
price of $0.03 each. The placement will be carried out in two tranches as follows:
• Tranche 1 -100 million shares immediately to raise $3 million
• Tranche 2 -200 million shares to raise $6 million upon receipt of shareholder approval,
such approval to be sought at the same meeting to be convened for the approval of the
Holfontein Coal Project acquisition.
This capital raising is being managed by Euroz Securities Limited. The shares are to be placed
to institutional and sophisticated clients of Euroz Securities.
These funds, in conjunction with the Company’s existing cash balance, will provide sufficient
funding to settle the first phase of the Holfontein transaction and to provide working capital to
advance that project and the Bushranger Project.
In addition to the initial consideration, there are a series of milestone payments related to the
granting of the NOMR and production targets which may become payable. The milestones for
these payments and the payment terms are as follows:
• A cash payment of A$1 million and a share payment of A$2 million (to be priced at the
30 day VWAP prior to payment) upon grant of the NOMR.
• A cash payment of A$2 million and a share payment of A$3 million (to be priced at the
30 day VWAP prior to payment) upon the production of an aggregate of 500,000 tonnes
of saleable coal.
• A cash payment of A$1 million and a share payment of A$1 million (to be priced at the
30 day VWAP prior to payment) upon the production of an aggregate of 1,500,000
tonnes of saleable coal.
In the event the Lachlan Star is required to make any of the milestone payments the method of
financing will be determined at the time depending on the prevailing market conditions and may
take the form of a rights issue, further placement or debt funding (either straight debt or by way
of convertible note).
The transaction is conditional upon:
• Approval from all relevant regulatory bodies in South Africa for the transfer of title to
Lachlan’s nominated subsidiary;
• Assignment of Coal of Africa’s rights under the Wildebeestfontein Agreement dated 3
December 2007 to Lachlan Star;
• Shareholder approval by Lachlan’s shareholders of the transaction; and
• Legal due diligence.
Holfontein Coal Project
The Holfontein Coal Project is located 118 km east of Johannesburg near the town of Secunda
as shown in Figure 1. The Project includes the Holfontein farm and an option agreement
covering the adjoining Wildebeestfontein Farm to the west as shown in Figure 2.
The Holfontein Coal Project is situated in the traditional coal mining area south and west of
Witbank where coal mining has taken place for over a hundred years. It is on the main road
between Kinross and Trichard in Mpumalanga and a main line railway siding is situated on the
property at Leven which can be upgraded for export purposes.
The Project hosts the two main coal seams mined in the area, namely the 4 and 5 Seam. The 4
Seam is typically thicker and suitable for direct feed to nearby power stations after washing. The
5 Seam is a thin high quality, low phosphorus semi soft coking coal suitable for either domestic
use or export.
GeoCoal Services of South Africa has completed resource estimates for the Project as shown in
the tables below:
Holfontein – 5 Seam Indicated Resource
(SAMREC)
Block # Gross insitu tonnes
Block 01 1,934,584
Block 02 4,799,250
Block 03 17,370,559
Block 04 6,009,691
5 Seam Total 30,114,084
Holfontein – 4 Seam Inferred Resource (SAMREC)
Block # Gross insitu tonnes
Block 01 26,997,016
Block 02 3,203,772
4 Seam Total 30,200,789
Several economic studies have been carried out on the potential to develop the Project which
indicate that, subject to additional studies, the Project has the potential to be developed to mine
both coking and thermal coal.
The Company plans to advance the Project as quickly as possible to enable a development
decision to be taken. There have been well publicised shortages of thermal coal in South Africa
and the Company views this as a ready market for the 4 Seam product. The 5 Seam coking
coal is also in high demand both domestically and in the export market.
Recent coal price increases have significantly enhanced the potential economic returns from the
Holfontein Coal Project, with coking coal settlements in excess of US$300/t. Thermal coal
prices for domestic supply are lower than international benchmarks (recent settlements of
US$130/t), however these prices are increasing rapidly to ensure adequate coal supply for
power generation. The Company considers the underlying supply-demand fundamentals to be
excellent for the foreseeable future and intends to continue expanding in the South African coal
industry.
For further information please contact:
Declan Franzmann, Managing Director, 0438 758 960
declan.franzmann@lachlanstar.com.au

 

[nyo]

Hello. You can read about gaps here: http://www.incrediblecharts.com/technical/gaps.php

Its a pretty basis explanation and its good for you to understand these things yourself without taking someone else's word for it. Looking at that chart.... if you already held a position I don't think you have too much to worry about. Good Luck

Thank you Cordelia.

That was really great of you to provide that site for me. I will study it closely and try and get my head around all the different gaps. Didn't realize there were so many.

 

[mickqld]

Well going by the estimates from the Holfontein announcement 30million tonnes of coking coal at US$300/t and 30million tonnes of thermal coal at US$130/t there is about $13 billion worth of coal in the ground. With 860 million shares on issue. If it were to yield 10% of the inground value due to production costs etc $1.3 billion. That values LSA at $1.50. Currently it is 4.5c.
4 power stations nearby ready to conveyer the coal straight into their furnaces.
From the Bushranger project ann.....Resource modelling completed in 2006 provided an Indicated and Inferred Resource of 27.6Mt
at 0.45% Cu at the Racecourse Prospect.
Lets say $8000/t copper. Again if they yield 10% recoverable inground. 27.6million x .0045 x 8000 x 0.1 =$99million/860million shares = 11.5cents.

I think they may end up concentrating on Holfontein .

 

[mickqld]

18 July 2008
LACHLAN STAR LIMITED ENTERS INTO AGREEMENT TO ACQUIRE
ALEXANDER COAL PROJECT, SOUTH AFRICA
Summary
Lachlan Star has identified the South African coal industry as presenting significant
opportunities to enhance shareholder value. The Company is therefore pleased to announce
that it has reached agreement with Universal Pulse Trading 132 (Pty) Ltd to purchase up to
74% of the Alexander Coal Project.
The Alexander Coal Project is situated in the traditional coal mining area of Mpumalanga,
approximately 120 km east of Johannesburg and 56km south of Witbank. The project is near
the Kriel and Matla power stations as shown in Figure 1.
Figure 1 - Location of Alexander Coal Project
The Alexander Coal Project is 15.5km north-east of the Holfontein Coal Project (which the
Company has an agreement to purchase) and comprises the same 4 and 5 Seam coal present
at Holfontein. The Alexander Coal Project covers an area of 760 hectares and the coal
mineralisation is expected to be of a similar tonnage to the Holfontein Coal Project. The Project
is particularly suited to the production of steaming coal for power generation, although some of
5 Seam may be suitable for coking coal production, subject to the completion of economic
studies. The potential exists to exploit a portion of the mineralisation utilising open cast mining
methods and it is envisaged that access to an underground mine will be gained from the open
cast workings.
There are four power stations within 35km of the Alexander Coal Project and there is excellent
road access to the site. The proximity of the Alexander and Holfontein Coal Projects will enable
both projects to be progressed using the same management team with one geographic focus.
Lachlan Star is currently updating the resource statement for the Alexander Coal Project, and
will announce a JORC Code compliant resource estimate as it becomes available.
Transaction Summary
The initial consideration for the purchase of 51% of the Alexander Coal Project is:
• A$5 million paid on transfer of the asset into a Joint Venture company.
Subsequent to the initial consideration, two other payments are required:
• A$5 million, paid as either cash or LSA shares issued at the 30 day volume weighted
average price (or a combination of both), on granting of the New Order Mining Right.
The split of cash and shares will be at LSA’s discretion, but subject to the requirements
of the foreign exchange controls of the Reserve Bank of South Africa.
• A$5 million paid eighteen (18) months from the granting of the New Order Mining Right,
subject to deductions via a loan agreement to fund the development of the project.
As part of the agreement, Lachlan Star has agreed to fund the development of the project via a
loan agreement with the vendor. The final consideration payment will be subjected to
repayment of the development loan, which will consist of the vendor’s 49% of the Project’s
development cost.
Integral to the sale agreement, Lachlan Star also has the exclusive option to purchase a further
23% of the Alexander Project, guaranteeing the Company the right to increase its share to 74%
of the Project.
The following conditions precedent apply to the transaction:
• Lachlan Star completing due diligence investigations to determine that Universal Pulse
Trading 132 (Pty) Ltd holds unfettered title to the Alexander Project;
• Transfer of the Prospecting Right into a Joint Venture Company;
• The Joint Venture company having Black Economic Empowerment (BEE) accreditation;
• Approvals as required from regulatory bodies in South Africa, including the DME and the
Reserve Bank; and
• Shareholder approval for the raising of capital and the issue of LSA shares if required.
There have been well publicised shortages of thermal coal in South Africa and the Company
views this as a ready market for the 4 Seam products. The Company plans to advance the
Alexander Coal Project as quickly as possible to enable a development decision to be taken.
Recent coal price increases have significantly enhanced the potential economic returns from the
Alexander Coal Project. Thermal coal prices for domestic supply are lower than international
benchmarks (recent settlements of US$130/t); however these prices are increasing rapidly to
ensure adequate coal supply for power generation. The Company considers the underlying
supply-demand fundamentals to be excellent for the foreseeable future and intends to continue
expanding in the South African coal industry.
The Company plans to continue the stated strategy of developing the Holfontein and Alexander
Coal Projects whilst continuing exploration at the Bushranger Copper Project. Company growth
through further acquisitions within the resource sector, with a strategic focus in the bulk
commodities (coal), copper and gold sectors is central to this strategy.
For further information please contact:
Declan Franzmann, Managing Director, 0438 758 960
declan.franzmann@lachlanstar.com.au
About Lachlan Star Limited
Lachlan Star Limited is an emerging minerals exploration and development company headquartered in Perth, Western Australia.
The company is focused on acquiring and developing assets within the gold, copper and bulk commodities sectors within Australia
and overseas. 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 the Bushranger copper and gold project in NSW and the Princhester magnesite deposit in
QLD. The Company has an agreement to acquire the Holfontein Coal Project (100%) and the Alexander Coal Project (up to 74%)
in South Africa.
For more information visit: www.lachlanstar.com.au

 

[Who Dares Wins]

Does anyone know if LSA own a subsidiary company called Manganex? As far as I've been able to research on google Manganex was owned by Southland Mining which was taken over by Devex Ltd. which became Gympie Gold Ltd and eventually became Lachlan Star.

The reason I ask is that Manganex have just applied for a 5 year exploration license over an iron ore deposit I live right beside but they do not appear to be listed.

Does anyone have more information on this?

 

[sandybeachs]

Lachlan Star on the move

it's been sometime since the last post.

as you can see from the weekly chart below, has had a breakout recently.

why..????

that's a good question, waiting on news regarding acquisition.

see below weekly chart.

 

[Fancypants]

Looks like a winner....I'm buying a heap of these

 

[mr. jeff]

LSA are starting to show some results, 1.4 Moz resource producing just shy of 50kOZ / year (based on ramping up production, aiming for 100kOz) and $800/Oz costs and 16M in cash.

Their market cap - 52M. This stock has not traded above 90c essentially, is at its highs, but has a bright future as production increases. Further upside will come from ongoing drilling and mill throughput.

Don't know if many are watching this, so check it out if interested.

Holding.

 

[mr. jeff]

Has moved well this week and so far is looking like moving up further with increasing volume and good strength during the sell off Thursday.



Daily chart. Broken and held well over the 90c mark with good buying support. Some large chunks appear on the sell side now and then which get removed.
Might not be around at a market cap of $50M for long. The volatile market is the main issue right now.

 

[mr. jeff]

Drill results released last week;

"TresPerlasDeposit
Ø 6 m grading 6.92 g/t Au from 24 m downholein RCH 2011-195
Ø 9 m grading 0.95 g/t Au from 176 m downholein RCH 2011-195

Toro Deposit
Ø 8 m grading 4.14 g/t Au from 164 m downholein DDH 2011-83
Ø 34 m grading 0.9 g/t Au from 44 m downholein DDH 2011-83
Ø 9 m grading 2.92 g/t Au from 112 m downholein RCH 2011-172
Ø 6 m grading 3.51 g/t Au from 19 m downholein RCH 2011-183
Ø 14 m grading 1.59 g/t Au from 20 m downholein RCH 2011-187
Ø 7 m grading 1.10 g/t Au from 20 m downholein RCH 2011-188
Ø 11m grading 1.12 g/t Au from 101 m downholein DDH 2011-76
Ø 10 m grading 1.14 g/t Au from 18 m downholein RCH 2011-168
Ø 32 m grading 0.76 g/t Au from 144 m downholein RCH 2011-168
Ø 38 m grading 0.41 g/t Au from 0 m down hole in RCH 2011-176
Ø 24 m grading 0.75 g/t Au from 69 m downholein RCH 2011-176
Ø 14 m grading 0.76 g/t Au from 110 m downholein RCH 2011-176
Ø 1m grading 12.88 g/t Au from 107 m downholein RCH 2011-164..."

Not bad, certainly gold out there worth following up, but not giving the stock much of a boost.

 

[mr. jeff]

Much interest in LSA since last posting with some strong gains.
Might be worth keeping an eye on, in the paper recently talking about its potential and reserves. If anyone has that text on hand please add!



Strong day today on average volume, no supply?

 

[reeftip]

Sorry I did not read the paper account, but 'Under the Radar Report' has been covering them - its where I first got interested after reading their report. I think they have a 30 day free subscription going.
Proactiveinvestors also has coverage of them.

One thing is for sure - they have been putting out some outstanding announcements recently and the share price has been responding.

Disclosure: Stock held and wishing I bought a few more at the time

 

[mr. jeff]

Very good performance today by LSA ending up 2.6% or so.
I took profit yesterday based on the large amount of selling around various stocks.

LSA saw none of that and is looking like it is being solidly bought by someone. Quite positive and worth watching unfold.

 

[jancha]

Very good performance today by LSA ending up 2.6% or so.
I took profit yesterday based on the large amount of selling around various stocks.

LSA saw none of that and is looking like it is being solidly bought by someone. Quite positive and worth watching unfold.

You mean like watching paint dry? Only had 10 trades (43,000 shares). Wow Someone must be really buying up big!! lol

 

[mr. jeff]

You mean like watching paint dry? Only had 10 trades (43,000 shares). Wow Someone must be really buying up big!! lol

Jancha, thanks for highlighting that, glad to know you are keeping watch. ha.

Yeah 43,000 is massive buying, in fact I think there was an outage with the ASX when those trades went through.

That is a joke for anyone that doesn't realize.

 

[springhill]

LACHLAN STAR ANNOUNCES OUTSTANDING DRILL RESULTS FROM ITS CMD GOLD MINE INCLUDING 21.2M GRADING 3.33 G/T AU, 20.9M GRADING 2.19 G/T AU AND 23M GRADING 1.12% CU

Chisperos Deposit
• 21.2m grading 3.33 g/t Au from 82m downhole DDH 2012-125
• 17m grading 1.10 g/t Au from 21m downhole RCH 2012-126
• 13m grading 1.94 g/t Au from 21m downhole RCH 2012-127
Tres Perlas Deposit –Copper/ Copper Gold
• 23m grading 1.12% Cu from 33m downhole in RCH 2012-154, overprinted by 13m grading 0.23 g/t Au from 36m downhole
• 24m grading 0.80% Cu from 86m in downhole RCH 2012-160, overprinted by 20m grading 0.58 g/t Au from 88m downhole
• 19m grading 0.36% Cu from 39m downhole in RCH 2012-132
• 20m grading 0.50% Cu from 41m downhole in RCH 2012-157
• 22m grading 0.45% Cu from 47m downhole in RCH 2012-160
Tres Perlas Deposit -Gold
• 20.9m grading 2.19 g/t Au from 17.7m downhole in DDH 2012-128
• 45m grading 1.01 g/t Au from 146m downhole in RCH 2012-123
• 3m grading 8.09 g/t Au from 120m downhole in DDH 2012-128
• 40m grading 0.86 g/t Au from 45m downhole in DDH 2012-141
Toro Deposit
• 7m grading 2.92 g/t Au from 57m downhole RCH 2012-142
• 14m grading 1.00 g/t Au from 106m downhole RCH 2012-143
• 11m grading 1.77 g/t Au from 143m downhole RCH 2012-148