A focal point is the recent acquisition of the highly prospective
This new direction comes after the company secured strong joint venture partners to take its South American projects -
ASX reflects 'optimistic outlook'
In a letter to shareholders, the chairman said: 'While the global economic outlook remains in a state of flux, the ASX seems to be reflecting a relatively optimistic outlook and many global commodities are enjoying a buoyant investment market.
I would like to welcome all new shareholders and investors to
In past chairman's letters, a common theme has been to emphasise the importance that the board of the company places on rewarding shareholders and enhancing shareholder value.
These objectives have not always been fulfilled for a variety of factors many of which have been beyond the control of the company. More to the point, what the company desires is success which inevitably results in an improved share price and market capitalisation.
I am pleased to report that I believe the company is at the most exciting point in its history and the purpose of this letter is to help explain why I believe this to be the position.'
Shares have closed up more than 18% to
'Transformational' projects
Vilenski explained that the strategic focus of LRS over many years had been to identify and explore potential value accretive minerals projects in the richly endowed South American continent and identify and secure JV partners for these projects.
'This journey has brought much experience and knowledge to the company and also some disappointment,' he said.
'That said, I am pleased to inform you of several transformational projects that have come about as a result of adherence to our long-term strategy.
'The MT03 Copper project in
'Major turning point' He added: 'We believe the new Yarara Gold project that has recently been announced reflects a major turning point in the company's growth and trajectory for long-term value to shareholders.'
Yarara, which offers a near-term, proven mineralised project, is 70 kilometres east of Albury and LRS has entered into a binding farm-in agreement to earn up to 75% of the project which hosts three target areas:
Yarara Reefs, (North): hosts structural gold mineralisation in sediments, a major shear provides focus for exploration;
Carboona (Centre): known mineralisation includes multiple metals including tungsten, lead, tin, gold and silver and Ournie (South): Ournie Goldfield contains historic workings for gold and silver in granite host.
Historical mining includes average grades of 16-37 g/t gold for 26,036 ounces between 1870 and 1935 at the Rangaritia, Perseverance, Four Mile/Mountaineer and Just In Time gold mines in the area.
Vilensky said: 'We cannot wait to get a deeper look down from the historic surface mines.
'To this end, our geologists will commence work on the site once permits have been approved and will plan for the next stage of geochemical sampling and a well-defined drill program.
'The exploration tenements are granted which means the company can expect drill permits to be approved very quickly once initial exploration work is completed.'
Noombenberry plans
Another project closer to home that the WA-based company is encouraged about is the
LRS has carried out fieldwork including having soil sampling assayed by an independent expert being First Test Minerals, a
Results presented by the independent expert have confirmed the prospectivity of the project.
The chairman said: 'These results were very encouraging and give confidence to further explore the project via a deeper and expanded drill program.
'The Exploration Lease has now been granted and the drill permit has been lodged so the company can expect to start drilling the project within this quarter.'
He said the company would pursue an aggressive drilling program to test the deeper zones of the surface profile (0-30m) to test for commercial qualities of kaolinitic/halloysite material.
South American partners
Vilensky explained that in
This would see LRS carried through the initial exploration stage to financing of development stage.
'We see the combination of the company and Integra on this project as a winning and mutually supportive partnership with tremendous potential for success.'
In
As part of this agreement for
Capital raising
In conclusion, Vilensky said: 'To support these endeavours and to continue to progress our exploration activities, the company has recently completed a capital raising and an SPP to all shareholders which was heavily oversubscribed.
'The company is now well funded to focus its attention on the
'There is renewed interest in the company as we embark on this next major and transformational period.
'I am pleased to report that the strategy of the company to identify and exploit high-value resource opportunities for growth is coming together and I am most excited for what lies ahead as we progress these exciting opportunities.
'Over the coming weeks and months, there will be encouraging news to report on all of these projects and activities which we hope will change the fortunes of the company relatively quickly and bring some joy to our loyal and patient shareholders.'
Contact:
Tel: +61 8 6117 4798
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