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Lachlan Star Limited Announces Resumption of Maximum Production Rate at High Grade Chisperos Pit and Owner Mining Fleet Commences Operations

15.01.2013  |  Marketwired
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

PERTH, WESTERN AUSTRALIA -- (Marketwire - Jan. 15, 2013) - Gold miner, Lachlan Star Limited ("Lachlan" or the "Company") (TSX:LSA) (ASX:LSA) is pleased to announce that:

Mining restrictions imposed on the high grade Chisperos Pit have been resolved after the relocation and energising of the adjacent power line that had prevented full access to this pit since March 2012.

Delivery of the owner mining fleet has been completed and the fleet has commenced work in the bulk tonnage Tres Perlas Pit, which will materially reduce mining unit rates.


CHISPEROS

Limited blasting in the Chisperos pit was recommenced in December after a reduction in the extent of the exclusion zone around the old power line, and with the energising of the new power line on 10 January 2013, the Company now has full and unfettered mining access to the Chisperos pit.

The Chisperos deposit is the highest grade deposit at the CMD Gold Mine with an average resource grade of 1.1 g/t Au (refer to Table 1) and will provide a substantial proportion of the ounces to be mined during calendar 2013. Blasting has been curtailed in this pit since March 2012, as a result of damage to the adjacent power line. This occurred close to the completion of waste prestripping of the pit and means that high grade ore production will be quickly re-established from Chisperos. During this time the Company has had to mine other lower grade and higher waste:ore ratio pits until access was re-established at Chisperos.

Contractor mining will now focus on rapidly advancing the Chisperos pit while the owner mining fleet ramps up production in the Tres Perlas pit.


OWNER MINING FLEET

Delivery of the owner operated fleet has been completed and four of the seven Komatsu HD 785 trucks are operating in the Tres Perlas pit, with the remaining equipment expected to be operating by the end of January once all operators have been certified to operate the equipment (Figures 1 and 2).

All of the ancillary equipment (e.g., dozers, grader) has been delivered and is operational. The Company continues to employ two mining contractors to ensure a smooth transition and to maintain total movement rates.

Once the owner mining fleet is fully operational the Company will use this fleet in the bulk tonnage Tres Perlas pit, and continue mining the smaller Chisperos, Churrumata and Toro pits with a contractor using the smaller 30t truck fleet.

The owner operated drill fleet is also operating with 3 x DM30 IR and 2 x Tamrock/Terex drill rigs that have been bought and leased over the past year (Figure 3).

The Company expects that the owner operated fleet will deliver a reduction on the unit mining cost in the range of US$0.35 to US$0.45/t moved.

To view the full announcement please visit the Company website www.lachlanstar.com.au.



Contact

Lachlan Star Limited
Mick McMullen
+61(8) 9481 0051
mick.mcmullen@lachlanstar.com.au
www.lachlanstar.com.au
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