Shares in newly listed Lodestar Minerals (LSR) lost 9% on Friday despite the announcement that it has begun exploration at its Penfold Nickel project located near Kalgoorlie, Western Australia.
At midday, shares climbed to 17.5 cents, falling in the afternoon to close at 15 cents.
This is well below its initial public offer price of 20 cents per share.
In the first update on its projects since it listed on the Australian Stock Exchange on 21st December, Lodestar today confirmed exploration has started at its Penfold Nickel Project.
"Work has begun on a detailed EM survey over the eastern ultramafic belt that hosts the Abattoir prospect," Lodestar said in a statement.
"Since acquiring the nickel rights to the Penfold Project, Lodestar has reviewed all available previous exploration data, highlighting priority exploration targets."
The Penfolds Nickel project is 12 kilometres from Kambalda, in Western Australia, a world class nickel province in Western Australia, and the tenement area covers three nickel belts.
Nickel has already been discovered on the tenements, and the ground is largely unexplored using modern drilling and geophysical techniques.
With only the finances from the IPO, Lodestar is hoping its tenements prove resourceful.
Since its listing, the share price has traded in a range of 14.5 – 17.5 cents.
