Lachlan Star Files Quarterly Report for the Period Ending 30 September 2013

28.10.2013  |  Marketwired

PERTH, WESTERN AUSTRALIA--(Marketwired - Oct 28, 2013) -

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 Ltd. ("Lachlan Star" or the "Company") (ASX:LSA)(TSX:LSA) is pleased to provide the following quarterly report for the period ending 30 September 2013.

HIGHLIGHTS

CMD GOLD MINE (100%, CHILE)

• Lachlan Star Ltd.'s CMD Gold Mine has shown continuing improvement in most operating parameters, including safety, gross operating profit*, cash costs of production, gold production, mining costs, waste to ore ratio, processing costs, and G&A costs, providing our shareholders with ever-improving leverage to gold. Key improvements include:
  
  
  • A 70 % increase in Gross Operating Profit* for the CMD Gold Mine to US$3.65 million for the quarter;
    
    
  • C1 cash costs reduced by 28% to US$821 per ounce
    
    
  • Gold production increased 6% quarter on quarter to 17,056 ounces of gold in the September quarter, a record under the Company's ownership;
    
    
  • Gold stacked increased 8% quarter on quarter to 22,355 ounces in the September quarter, a record under the Company's ownership;
    
    
  • Waste to ore ratio reduced by 10% quarter on quarter to 2.24:1, a new record low under the Company's ownership
    
    
  • Total costs reduced by 11% to $15.94 per tonne of ore stacked for the quarter, a record low under the Company's ownership;
    
    
• Market capitalisation of the Company expressed in gold ounces has decreased to 13,500 ounces
  
  

CORPORATE

• Two tranche, non-brokered private placement announced to raise C$8 million at an issue price of C$0.20 a share
  
  
• Tranche 1 of private placement completed, raising C$3 million in gross proceeds
  
  
• Completion of Tranche 2 of private placement to raise C$5 million in gross proceeds subject to shareholder approval at shareholder meeting on 4 November 2013
  
  
• C$0.5 million repaid to Sprott Resource Lending Partnership, loan balance reduced to C$4.5 million
  
  
• Promotion of Mr Bira de Oliveira from Chief Operating Officer to Chief Executive Officer
  
  

To view the full announcement please click the link below: http://www.lachlanstar.com.au/images/LSA_Quarterly_Report__Sept_13_Final.pdf.

ABN: 88 000 759 535