Lodestar Minerals' Nicanor Project: Strategic Chilean IOCG Acquisition

Lodestar Minerals has secured a potentially transformative asset in Chile's premier metallogenic province, with the Nicanor project delivering exceptional grades of 7.5% copper and 7.2 g/t gold - substantially higher than established regional IOCG deposits. The July 7, 2025 announcement represents a strategic expansion of Lodestar's Chilean portfolio within the world-class Coastal Iron-Oxide Copper-Gold Belt, positioned along the structurally critical Atacama Fault System. This acquisition adds significant exploration upside to complement the company's existing Darwin and Three Saints projects, creating operational synergies within a concentrated land package in one of the world's most productive copper-gold regions.

Project fundamentals showcase exceptional mineralization potential

The Nicanor project sits strategically along the Atacama Fault System within Chile's Coastal Iron-Oxide Copper-Gold Belt, described as a "tier one jurisdiction" for mining investment. Surface rock chip sampling has returned remarkable grades including 7.5% copper, 7.2 g/t gold, 68% iron, and 791 ppm cobalt - results that significantly exceed typical Chilean IOCG deposits. The project demonstrates multiple mineralization types with anomalous concentrations across copper, gold, iron, and cobalt, suggesting potential for polymetallic resource development.

Comprehensive exploration work has been completed including geophysical surveys, geological mapping, and systematic rock chip sampling programs. This foundation work has identified three high-priority targets requiring drill testing, with multiple additional targets awaiting further evaluation. The scale of mineralization trends and multiple target areas indicate substantial exploration potential across the project area.

The geological setting mirrors that of major regional deposits, with IOCG-style mineralization consistent with the Atacama Fault System's structural controls. The project's position within the same geological belt that hosts the massive Candelaria deposit (1.2 billion tonnes @ 0.60% Cu, 0.13 g/t Au) provides strong precedent for significant resource potential.

Structured earn-in agreement provides measured exposure to high-grade discovery

Lodestar has negotiated a three-stage earn-in agreement with Consultoría y Servicios Mineros Limitada that provides operational control while managing investment risk through progressive commitments. The company can earn up to 75% interest for a total investment of US$1.35 million over approximately four years.

Stage 1 requires spending US$200,000 over 12 months to earn 25% interest, focusing on general exploration activities. Stage 2 demands an additional US$400,000 over 18 months for 51% interest, specifically targeting drilling and resource estimation work. Stage 3 offers two pathways to 75% ownership: either deliver a Scoping Study or spend an additional US$750,000 within two years of Stage 2 completion.

This structure provides Lodestar with full operatorship throughout the earn-in period, enabling complete control over exploration program design and execution. The staged approach allows systematic advancement from initial exploration through resource definition to preliminary economic evaluation, with the option to retain a meaningful minority interest if full acquisition is not pursued.

Strategic portfolio integration creates operational synergies

The Nicanor acquisition complements Lodestar's existing Chilean holdings, creating a concentrated portfolio within the world-class Coastal IOCG Belt. The Darwin project, covering 5,800 hectares when combined with Three Saints, has delivered exceptional surface sampling results including 247 g/t gold, 8.09% copper, and 66% iron. Recent drilling at Darwin has confirmed IOCG-style mineralization with alteration assemblages typical of these deposit types.

Geographic proximity enables significant operational advantages including shared regional infrastructure, consolidated logistics for drilling campaigns, and integrated exploration programs. Head of Exploration Coraline Blaud specifically noted that "the closeness between our existing projects and Nicanor will allow us to include this new project in our ongoing exploration programs in the region."

The three projects share similar geological settings along the Atacama Fault System, with common structural controls and IOCG mineralization potential. This clustering provides diversified exploration risk within a proven metallogenic province while maximizing cost efficiencies through shared technical teams, equipment mobilization, and analytical services.

Geological context demonstrates world-class mineralization environment

The Coastal IOCG Belt represents a 600-1000 km metallogenic province spanning northern Chile's Coastal Cordillera, hosted within Late Jurassic to Cretaceous volcanic and intrusive rocks. This world-class system contains major deposits including Candelaria (>400 Mt @ 0.7-1% Cu), Mantoverde (>400 Mt @ 0.52% Cu), and Santo Domingo (514 Mt @ 0.31% Cu).

The Atacama Fault System serves as the primary structural control, extending over 1000 km as a transcrustal fault zone that facilitated mineral-bearing fluid migration from depth. This regional-scale structure experienced extensional tectonics during the Jurassic-Early Cretaceous period, creating enhanced permeability zones that focused magmatic-hydrothermal activity.

IOCG deposit formation involved complex magmatic-hydrothermal processes with two-stage mineralization: early high-temperature iron-rich stages (675-800°C) followed by lower-temperature copper-gold mineralization (550-700°C). The regional geological setting combines back-arc extension, arc magmatism, and transcrustal fault systems - providing exceptional conditions for large-scale ore formation.

The belt's deposits typically exhibit distinctive alteration assemblages including sodic-calcic alteration (albite-epidote-actinolite), potassic alteration (K-feldspar), and extensive iron metasomatism. These systems show enrichment in chalcophile-siderophile elements including cobalt, nickel, bismuth, and selenium - consistent with Nicanor's elevated cobalt values.

Comparative analysis reveals exceptional grade potential

Analysis of established Chilean IOCG deposits reveals Nicanor's surface grades significantly exceed regional benchmarks. Candelaria operates with reserves of 478 Mt @ 0.42% Cu, while Mantoverde processes 236 Mt @ 0.6% Cu and 0.11 g/t Au. Mantos Blancos, representing higher-grade operations, averages 1.0% Cu.

Nicanor's reported grades of 7.5% copper and 7.2 g/t gold are exceptional - representing 7-18 times higher copper grades and 24-72 times higher gold grades than established Chilean IOCG operations. The 68% iron content also exceeds typical IOCG ranges of 15-60% iron, potentially indicating an iron oxide-apatite (IOA) hybrid system.

These grade comparisons suggest either exceptional ore shoot concentration or a unique high-grade IOCG variant. While early-stage results may not represent overall resource grades, the differential indicates significant discovery potential if confirmed through systematic drilling. The 791 ppm cobalt content provides additional value, particularly given growing demand for this critical battery metal.

Regional deposits demonstrate the economic viability of large-tonnage, moderate-grade IOCG systems in this jurisdiction. Candelaria has produced over 13 million tonnes of contained copper, while Mantoverde's recent $870 million expansion demonstrates continued investment confidence in Chilean IOCG potential.

Exploration targets await systematic drill testing

The comprehensive exploration program has identified three high-priority drill targets based on integration of geophysical surveys and rock chip sampling results. These targets represent the culmination of systematic geological mapping, geophysical surveys, and surface sampling programs that have delineated anomalous mineralization trends across the project area.

Geophysical surveys have defined magnetic and electromagnetic anomalies consistent with IOCG-style mineralization, while surface sampling has confirmed high-grade copper, gold, iron, and cobalt values. The combination of geophysical signatures with surface geochemistry provides strong drill targeting rationale.

Multiple additional targets require evaluation beyond the three priority areas, suggesting significant exploration upside across the project. The systematic approach to target generation, combining multiple exploration techniques, provides confidence in the drill-ready nature of priority targets.

The exploration methodology mirrors successful approaches used at regional deposits, with geophysical surveys identifying covered mineralization potential beneath surface expressions. This systematic exploration approach, combined with the exceptional surface grades, positions Nicanor for potential significant discoveries through upcoming drilling programs.

Conclusion

The Nicanor project acquisition represents a strategically significant addition to Lodestar's Chilean portfolio, providing exposure to potentially exceptional IOCG mineralization within a world-class metallogenic province. The combination of remarkable surface grades, systematic exploration targeting, and favorable earn-in terms creates a compelling exploration opportunity with defined near-term catalysts. The project's integration with existing Chilean operations provides operational synergies while the staged acquisition approach manages investment risk through progressive commitments. Success at Nicanor could substantially enhance Lodestar's position as a significant explorer in Chile's premier copper-gold belt.