Lachlan Star Limited

TSX : LSA
ASX : LSA


Lachlan Star Limited

October 29, 2012 08:45 ET

Lachlan Star Provides Quarterly Activity Report for the Period Ending 30 September 2012

PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 29, 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 its Quarterly Activities Report for the Period Ending 30 September 2012.

HIGHLIGHTS

CMD GOLD MINE (100% CHILE)

September 30, 2012 - Quarter Ending

  • 17,696 ounces of gold mined, a 14% increase over the previous quarter;
  • 10,374 ounces of gold produced, a 3% increase over the previous quarter;
  • US$921 cash cost per ounce, a 6% decrease from the previous quarter;
  • US$2.18 mining cost per tonne of ore, a 11% decrease from the previous quarter;
  • US$20.92 stacking cost per tonne of ore, a 5% decrease from the previous quarter;
  • 16,220 ounces of gold stacked onto the leach pad, a 6% increase over the previous quarter;
    US$638 cash cost per ounce in the month of September, a 35% decrease from the previous month, a new record under
    Lachlan's ownership;
  • 472,082 tonnes of ore mined in month of September, a new record under Lachlan's ownership;
  • 404,434 tonnes stacked in the month of September, a new record under Lachlan's ownership;
  • US$6.78 per tonne processing costs in the month of September, a new record under Lachlan's ownership;
  • Tres Perlas crushed ore returns a 22% overcall on grade and 34% overcall on ore tonnes for 61 % more ounces than planned;
  • Run Of Mine (ROM) ore stockpiling has commenced in preparation for stacking on the leach pads;
  • Delivery of owner mining fleet commences, cost savings estimated to be up to $150 per ounce of gold produced;
  • Mineral Resources upgraded to 2.06 million ounces of gold in the Indicated category, plus 1.35 million ounces of gold in the Inferred category.

October 2012 Update

  • 1,100 to 1,240 ounces of gold produced on average per week, a 40 to 55% increase over the September quarter average and a new record under Lachlan's ownership;
  • 57,000 to 64,000 ounces of gold production based on the current run rate annualized;
  • 15,000 tonnes of ore being crushed and stacked on average per day.

BUSHRANGER COPPER PROJECT (100%, NSW)

  • Mapping and sampling program commenced by Newmont.

CORPORATE

  • General Manager, Engineering Manager and Drilling & Blasting Superintendent hired;
  • 5.24 million warrants and options exercised or submitted for exercise post quarter for proceeds of A$6.29 million.

A full copy of the announcement is available on the Company's website www.lachlanstar.com.au or at the link below: http://www.lachlanstar.com.au/images/LSA_quarterly_report__sept_12_final.pdf.

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