Lachlan Star Limited
TSX : LSA
ASX : LSA

Lachlan Star Limited

May 01, 2012 07:30 ET

Lachlan Star Announces Record Gold Ounces Stacked in April Since Taking Ownership, Decision to Move to Owner Mining and Drill Results from its CMD Gold Mine Including 99m Grading 1.47 g/t Au

PERTH, WESTERN AUSTRALIA--(Marketwire - May 1, 2012) -

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Gold Miner, Lachlan Star Limited ("Lachlan or the Company") (TSX:LSA)(ASX:LSA) announces record gold ounces stacked in April since taking ownership, decision to move to owner mining and drill results from its CMD Gold Mine including 99m grading at 1.47g/t Au.

Gold Stacked During April

  • Gold stacked of 6,000 ounces in April, a record under Lachlan Star ownership
  • Ore mining resumed at both the Chisperos and Las Loas pits in the last week of April
  • Average ore grade for April increased to 0.61g/t Au

Mining Strategy

  • Evaluation of mining options results in Lachlan Star selecting owner mining as preferred mining method going forward
  • Conditional purchase order placed for new 100t truck fleet and associated equipment
  • Expected mining costs in the range of US$1.70-$1.80/t moved, a substantial saving over current costs
  • Reduction in mining contractors from three to one completed to reduce unit rates from May onwards
  • New mining strategy expected to deliver cash cost savings of US$100-US$150 per ounce

Tres Perlas Deposit Drill Results

  • 16m grading 0.65 g/t Au from 30m downhole and 99m grading 1.47 g/t from 190m downhole in RCH 2012-52
  • 62m grading 0.94 g/t Au from 228m downhole in RCH 2012-60
  • Sampling of El Sauce waste dump return encouraging results including:
    • 30m grading 0.26 g/t Au from 10m downhole in RCH 2012-60
    • 20m grading 0.19 g/t Au from 0m downhole in RCH 2012-56

The full announcement can be viewed on the Company's website at www.lachlanstar.com.au and at the link below:

http://www.lachlanstar.com.au/images/LSA_April_Operations_Update_Final_010512.pdf.

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