Lachlan Star Releases Quarterly Activities Report

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, Nov. 3, 2011 /CNW/ - Gold miner, Lachlan Star Limited ("Lachlan" or the "Company") (ASX: LSA; TSX: LSA) provides the following summary of its activities for the quarter ended 30 September 2011.

CMD GOLD MINE (100%, Chile)

  • 10,330 ounces of gold produced plus 886 ounces of gold in inventory
  • Gross operating profit* of US$4.08 million for the quarter
  • C1 cash cost of US$953 per ounce, inclusive of US$198 per ounce non cash process inventory adjustment (US$755 per ounce pre inventory adjustment)
  • Cost per tonne of ore reduced to US$19.82 (down 23% quarter on quarter)
  • Average price received for gold sales of US$1,713 per ounce
  • 13,032 ounces of gold stacked onto the leach pad (up 23% quarter on quarter)
  • Mine production of 671,411 tonnes of ore at 0.62g/t
  • 88% of ore sourced from outside the mineral Reserve
  • 64% of ore sourced from outside the mineral Resource
  • Waste:ore ratio halved from previous quarter to 3.22:1

*revenues less cost of sales (including waste expensed and amortised), interest and other site expenses and excluding foreign exchange movements, depreciation, exploration and process inventory adjustments.

BUSHRANGER COPPER PROJECT (100% NSW)

  • Farm-in agreement completed with Newmont to earn a 51% interest in the Bushranger Copper Project

CORPORATE

  • Private placement of Special Warrants completed to raise gross proceeds of A$15.09 million
  • TSX listing completed on 19 October 2011
  • Cash balance of A$16.12 million at 30 September 2011, new US$1 million unsecured and undrawn facility secured in Chile in October

The Company's full Quarterly Report and the related Appendix 5B (including quarterly statement of cash flows) are available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.lachlanstar.com.au.

SOURCE Lachlan Star Limited

For further information:

Please visit www.lachlanstar.com.au or contact

Mick McMullen       Scott Young     
Chairman   Investor RelationsConsultant     
Lachlan Star Tel: +1 705 888 2756
Tel: +61(0)8 9481 0051   Email: scott.young@lachlanstar.com.au 
Email: mick.mcmullen@lachlanstar.com.au  

 

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