Lodestar Metals Secures Option on Highly Prospective Gold Run Property in Nevada's Getchell Trend
Lodestar Metals Secures Option on Highly
Prospective Gold Run Property in Nevada's
Getchell Trend
Vancouver, British Columbia--(Newsfile Corp. - May 7, 2025) -
Lodestar Metals Corp.
(TSXV: LSTR)
(OTCQB: SVTNF)
("
Lodestar
" or the "
Company
"), is pleased to announce it has entered into a
property option agreement dated May 6, 2025 (the "
Option Agreement
") with William Matlack and Don
McDowell (collectively, the "
Option
") to acquire a 100% interest in the Gold Run Property, located in
Humboldt County, Nevada, subject to an existing royalty.
The transaction constitutes a "Fundamental Acquisition" pursuant to the policies of the TSX Venture
Exchange.
Accordingly, the Company's shares will be halted by the TSX Venture Exchange and remain
halted until receipt of the required documents under TSX Venture Exchange Policy 5.3.
Lowell Kamin
, President and CEO of Lodestar commented, "This marks an important milestone for
Lodestar as we kick off our Nevada strategy. Gold Run provides immediate exploration upside and a
platform for long-term value creation."
Technical Director
Leo Horn
added, "The Gold Run acquisition is an exciting step for Lodestar. This
region has proven geological potential, and we believe the project could quickly become a cornerstone
asset in our portfolio."
About the Gold Run Property
The Gold Run Property comprises 75 unpatented mining claims, which total approximately 516 hectares,
located in Humboldt County, Nevada, United States. The property consists of two non-contiguous claim
blocks.
Situated within the renowned Getchell Gold Trend and near its intersection with the Battle Mountain-
Eureka Trend, Gold Run is in a district with a long history of mining and exploration activity dating back to
the 1860s. Since the 1960s, 15 different operators have completed 131 drill holes (totaling 17,823
metres / 58,476 feet), alongside the collection of 454 soil samples and 827 rock samples.
Figure 1.
Gold Run Property Location
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3029/251220_d3206fd6b4cfe86b_001full.jpg
Notably, a 2008 diamond drilling program by Golden Predator Mining Corp. returned strong gold assay
results, which have been reviewed and validated by the current operator using original assay certificates
from ALS Chemex. Highlights include:
Hole GPA004
1
- 120 ft. - 125 ft. @ 11.2 g/t Au, 20 g/t Ag
Hole GPA011
1
- 180 ft. - 190 ft. @ 6.1 g/t Au, 12 g/t Ag
Hole GPA027
2
- 80 ft.-110 ft @ 27.41 g/t, 83 g/t Ag
including 80 ft. - 95 ft. @53.31 g/t Au, 143 g/t Ag
Exploration efforts will focus on identifying epithermal-style gold mineralization, with additional potential
for Carlin-type mineralization given the property's strategic location. There is also potential for skarn or
porphyry-style systems associated with nearby intrusive bodies.
Terms of the Transaction
Under the terms of the Option Agreement, the Company has an option to acquire a 100% interest in the
Gold Run Property by making cash payments totalling US $450,000 to the Optionor as follows: (i) US
$50,000 on the date of TSX Venture Exchange Acceptance; (ii) US $50,000 on the first anniversary of
the Option Agreement; (iii) US $50,000 on the second anniversary of the Option Agreement, (iv) US
$75,000 on the third anniversary of the Option Agreement; (v) US $75,000 on the fourth anniversary of
the Option Agreement; (vi) US $75,000 on the fifth anniversary of the Option Agreement; and (vii) US
$75,000 on the sixth anniversary of the Option Agreement. The Company has agreed to reimburse the
Optionor for certain annual filing fees paid by them in the amount of US $17,500.
The Company has also agreed to make certain milestone payments to the Optionor as follows: (i) US
$500,000 within sixty days of completion of a preliminary economic assessment on the Gold Run
Property, (ii) US $1,000,000 within sixty days of completion of a pre-feasibility study on the Gold Run
Property; and (iii) US $1,000,000 with the earlier of sixty days of completion of a feasibility study and the
Company obtaining sufficient financing to construct a mine on the Gold Run Property.
The Company has also agreed to grant a 2% net smelter return royalty on all minerals mined, produced
or otherwise recovered from the Gold Run Property (the "NSR"), subject to a buyback of one-quarter of
the NSR for US $750,000, in favour of the Optionor.
The Gold Run Property is subject to the terms of a mineral lease agreement with the Gomes Family Trust
(the "Gomes Agreement").
Under the terms of the Gomes Agreement, an annual advance royalty
payment of US $25,000 is payable to the Gomes Family Trust.
The Gomes Family Trust also retain a 2%
net smelter return royalty on certain claims of the Gold Run Property and a 1.5% net smelter return royalty
on other claims of the Gold Run Property.
The total royalties payable, including any advance royalty
payments, under the Gomes Agreement is limited to US $4,000,000.
The Optionor is arm's length to the Company.
There is no finder's fee payable under the transaction.
The transaction is subject to acceptance by the TSX Venture Exchange.
Figure 2: Historical drill hole with drill trace intercepts from the previous operators.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3029/251220_d3206fd6b4cfe86b_002full.jpg
Qualified Person
Ty Magee, P. Geo., a Qualified Person, as defined by NI 43-101, and a consultant to the Company, has
reviewed and approved the scientific and technical information contained in this news release.
About Lodestar Metals Corp.
Lodestar Metals Corp. is a Canadian mineral exploration company advancing high-potential projects in
North America. The Company's flagship assets include the Peny Property in the Snow Lake District of
Manitoba and the newly optioned Gold Run Property in Nevada, situated along the prolific Getchell and
Battle Mountain-Eureka Gold Trends. Lodestar's strategy focuses on high-impact exploration, strategic
acquisitions, and responsible development.
Contacts
Lodestar Metals Corp.
Lowell Kamin, President, CEO & Chairman of the Board
(416) 272-1241
Forward-Looking Statements
The information set forth in this news release contains forward-looking statements based on
assumptions as of the date of this news release. These statements reflect management's current
estimates, beliefs, intentions, and expectations. They are not guarantees of future performance.
Lodestar cautions that all forward-looking statements are inherently uncertain and that actual
performance may be affected by several material factors, many of which are beyond Lodestar's control.
Such factors include, among other things, risks and uncertainties relating to Lodestar's limited operating
history and the need to comply with environmental and governmental regulations. Accordingly, actual and
future events, conditions and results may differ materially from the estimates.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
News Release References
1
.
Golden Predator Mining Corp. (2008, June 24). Golden Predator Intersects 11.2 grams per tonne
Gold in Initial Drilling at Adelaide. Retrieved from
https://scandiummining.com/news/golden-
predator-intersects-11.2-grams-per-tonne-gold-in-initial-drilling-at-adelaide-1/
2
.
Golden Predator Mining Corp. (2008, September 15). Golden Predator Reports High-Grade
Intercept of 9.1 m Grading 27.4 Grams per Tonne (30 ft of 0.8 oz/t) Gold at Adelaide Project.
Retrieved from
https://scandiummining.com/news/golden-predator-reports-high-grade-intercept-of-
9.1-m-grading-27.4-grams-per-tonne-30-ft-of-0.8-oz-t-gold-at-adelaide-project/
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/251220