Lodestar Minerals (ASX: LSR) has received positive final assay results from the second diamond drill hole at the Three Saints iron oxide copper-gold (IOCG) project, located in the Atacama region of Chile.

Hole L3SDD004, completed to a final depth of 611.10 metres, recorded a geochemical response that coincides with zones of sulphide mineralisation and hydrothermal alteration identified through geological logging.

CEO Coraline Blaud said these mineralisation and alteration relationships are consistent with the regional geological setting and with alteration styles recognised in IOCG systems elsewhere in the Chilean Coastal Cordillera IOCG belt, a corridor that hosts several operating IOCG mines, including Lundin Mining's Candelaria and Capstone Copper's Mantoverde operations.

Ms Blaud noted that, importantly, L3SDD004 provides additional geological and geochemical information beneath the project's extensive cover, increasing confidence in the interpretation of the concealed hydrothermal system and providing new vectors for the next phase of exploration. Widespread transported cover is a recognised exploration challenge across northern Chile, as it can mask the geophysical and geochemical signatures of underlying mineral systems and typically requires drill-derived constraints to refine geophysical targeting.

"The Three Saints drilling program has delivered an encouraging geological outcome, identifying a previously untested, concealed IOCG-style hydrothermal system. The first two drill holes confirmed copper-gold mineralisation and a strong alteration assemblage consistent with an IOCG system," she said.

"Importantly, the second hole intersected skarn alteration accompanied by cobalt mineralisation, providing an important geological vector towards potentially more favourable host rocks. This is an exciting development, and we now have a clearer understanding of the system and the geological controls that will help guide the next phase of exploration at Three Saints."

The assays received from hole L3SDD004 confirm the sulphide mineralisation identified during geological logging, with several copper-bearing intervals recognised throughout the hole.

Mineralised intersections in L3SDD004 comprise:

• 4.30m at 0.12% copper equivalent (CuEq) from 333m, including 1.42m at 0.25% CuEq from 333m
• 14.82m at 0.10% CuEq from 404.40m, including 1.0m at 0.43% CuEq from 407.0m

With the assay results now integrated with the geological logging, the next phase of work will focus on reprocessing, reinterpreting and calibrating the existing geophysical datasets, using the newly defined alteration and mineralisation signatures as geological constraints.

Elsewhere in Chile, the Los Loros drilling program has been delayed following the severe El Nino weather events that recently affected the country's northern regions. El Nino episodes periodically bring intense rainfall and flash flooding to the normally hyper-arid Atacama, and storms during such events have previously forced temporary suspensions at some of northern Chile's major copper operations.

Prior to markets opening, LSR was steady at 0.9¢ with a market capitalisation of $13.10M.