Lancaster steps away from Lake Cargelligo project

By Melissa Blewitt

Lancaster Resources has decided not to proceed with its option over the Lake Cargelligo Gold Project, after the Canadian-listed exploration company was unable to complete previously announced financing on acceptable terms.

The project was located approximately 37 kilometres north-east of Lake Cargelligo township, with Lancaster’s expanded exploration area covering about 62,300 hectares.

The company announced the decision on 18 September as part of a broader strategic review of its business and financial position.

Lancaster said it would allow the option agreement to terminate and return the property to its underlying owners.

The company said the decision would eliminate future expenditure associated with the property and allow it to focus its financial resources on its Lac Iris project in Quebec, Canada.

The decision comes only months after Lancaster expanded its Lake Cargelligo exploration footprint.

In May, the company announced that Exploration Licence EL9880, covering about 33,400 hectares, had been granted and added immediately adjacent land to the existing project area.

At the time, Lancaster described Lake Cargelligo as a gold and silver exploration project and was working towards making the project drill-ready by the fourth quarter of 2026.

Planned work included drone magnetic surveys, induced polarisation surveys, geological mapping and sampling, with the company also developing targets for an initial drilling campaign.

In July, Lancaster said its proposed drilling program would include follow-up work at the Josephine Moulder prospect, where historical exploration had identified mineralisation, as well as first-pass testing of new targets identified through geophysical work.

Lancaster first announced its involvement in the Lake Cargelligo project in 2025, when the exploration area covered approximately 28,768 hectares.

The latest decision means Lancaster will no longer proceed with its planned exploration program under the option. However, the company has not stated that exploration in the area has permanently ended.

Lancaster is now considering additional financing, strategic partnerships, asset transactions and other corporate opportunities as part of its strategic review.

The company also announced that Chief Financial Officer Rick Huang resigned effective as of 31 August, with finance responsibilities temporarily being handled at board level while the review continues.

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