Lachlan Star Limited
TSX : LSA
ASX : LSA

Lachlan Star Limited

May 01, 2012 07:30 ET

Lachlan Star Limited Activity Statement and Cash Flow Statement for the Quarter Ending 31 March 2012

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

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

Gold Miner, Lachlan Star Limited ("Lachlan or the Company") (TSX:LSA)(ASX:LSA) provides financial and operating results for the quarter ended 31 March 2012.

MARCH 2012 QUARTER HIGHLIGHTS

CMD GOLD MINE (100% CHILE)

  • 11,906 ounces of gold produced plus 584 ounces of gold in inventory (up 5% quarter on quarter)
  • Gross operating profit (as defined below) of US$2.66 million for the quarter (up 137% quarter on quarter)
  • C1 cash cost of US$945 per ounce including US$110 per ounce inventory adjustment (up 18% quarter on quarter)
  • Cost per tonne of ore increased to US$22.61 (up 22% quarter on quarter)
  • Average price received for gold sales of US$1,682 per ounce (up 1% quarter on quarter)
  • 13,274 ounces of gold stacked onto the leach pad (down 21% quarter on quarter)
  • Mine production of 13,396 ounces (down 24% quarter on quarter)
  • 46% of ore sourced from outside the Indicated mineral resource
  • 27% of ore sourced from outside the mineral resource.
  • Overall waste:ore ratio increased to 5:1 (3:1 operating waste:ore ratio)
  • Agreement signed for solar power station and 2Mva diesel generator installed to secure power supply
  • Final results for Toro metallurgical trials indicate recoveries of 46.5% for ROM and 66.5% for two stage crushed ore
  • Updated NI 43101 Technical Report filed based on updated Indicated mineral resource of 1,788,000 ounces of gold and Inferred mineral resources containing a further 1,342,000 ounces of gold

BUSHRANGER COPPER PROJECT (100%, NSW)

  • No material work by Newmont

CORPORATE

  • Bought deal of 10,975,000 special warrants (the "Special Warrants") at CDN $1.60 per special warrant to raise gross proceeds of CDN $17,560,000 (the "offering")

The Company's full Quarterly Report and the related Appendix 5B are available on the Company's website at www.lachlanstar.com.au and at the links below:

http://www.lachlanstar.com.au/images/LSA_Quarterly_Report_March_2012.pdf

http://www.lachlanstar.com.au/images/LSA_App5b_March_12.pdf

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