By Ronald Wortel, MBA, P. Eng.
TSXV: LSTR | OTCQB: SVTNF
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SPONSORED BY LODESTAR METALS CORP.
Lodestar Metals Corp. (TSXV: LSTR; OTCQB: SVTNF) is a Nevada-focused junior explorer whose maiden drill program at the Gold Run Project has, in our view, materially de-risked the geological thesis behind the asset. We initiate coverage with a target of US$0.15 per share.
Gold Run comprises 75 unpatented claims covering approximately 516 hectares on the Getchell Gold Trend, near its intersection with the Battle Mountain Trend in Humboldt County. The property is modest in size, but its address is not: it borders ground held by Nevada Gold Mines and sits among SSR Mining’s Marigold heap-leach operation and I-80 Gold’s Lone Tree and Granite Creek assets. A legacy dataset of 131 historical drill holes (17,823 m) allowed the Company to move from acquisition in 2025 to a fully permitted 18-hole reverse-circulation program in 2026.
Results from 16 of the 18 holes are now reported. At Robbers Knob, the first six holes identified three distinct mineralization styles: broad near-surface oxide gold-silver, highlighted by 70.1 m at 0.54 g/t gold and 6.7 g/t silver in LSRC-03; a high-grade structural zone of 16.8 m at 6.07 g/t gold and 41.1 g/t silver, including 3.0 m at 31.90 g/t gold, in LSRC-04; and a deeper polymetallic horizon not recognized in historical drilling. Two holes at Gomes delivered the prospect’s first high-grade intercept, 4.6 m at 4.0 g/t gold and 15.6 g/t silver, including 1.5 m at 11.3 g/t gold. At Black Diamond, on their local Independence Trend, eight holes traced silver-gold mineralization over roughly 850 m of strike, with LSRC-13 returning 15.2 m at 102.2 g/t silver-equivalent, including 1.5 m at 431.1 g/t AgEq. Each discovery came from drilling IP chargeability anomalies, supporting the Company’s targeting approach and leaving a pipeline of untested anomalies.
Our valuation approach is deliberately conservative. Applying an in-ground value of roughly 1% of the gold price to Lodestar’s enterprise value of approximately C$3.6 million implies the market is ascribing about 55,000 gold-equivalent ounces to Gold Run, within the range of FMC Gold’s non-compliant 1991 historical estimate of 50,000-100,000 oz. In our view, the current price reflects Robbers Knob alone and gives little credit for Gomes, Black Diamond, or expansion potential. Our target assumes a second program of roughly 2,500 m extends the tested strike at Robbers Knob to approximately 750 m and begins to outline a resource target model mineral inventory.
Recently, SSR agreed to acquire Roxmore Resources, whose Converse project lies 6km from Marigold, at an enterprise value of roughly US$392 million, or about US$75 per resource ounce. We view this as an upper reference point rather than a benchmark for Lodestar. We do believe the transaction illustrates that established gold producers are willing to pay meaningful premiums for Tier 1 gold resources that fit within their development and growth plans.
Near-term catalysts include the final two Crown North holes, financing of a second-phase program, and drilling expected to begin in Q4 2026 and run into Q1 2027.
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