Almost an ounce of gold per tonne in Star’s latest | Australian Markets

Star Minerals has intercepted a number of spectacular drill hits, together with a standout 5 metres at 30.91 grams per tonne (g/t) gold from 21m, from the latest infill drilling program on the company’s Tumblegum South gold project in Western Australia’s Mid West area. The company is seeking to convey the project into manufacturing early subsequent 12 months.

Results from the primary spherical of assays from this system at Tumblegum South, 40 kilometres south of Meekatharra, returned stellar shallow gold outcomes of 5m at 30.91g/t from 21m, together with 2m going 75.45g/t, 5m grading 10.85g/t from 5m, together with 2m at 25.65g/t from 6m, and 8m operating at 6.96g/t from 17m. The interval additionally contained a strong 2m slice at 20.05g/t.

Other important assays embrace a 4m hit from floor at 3.56g/t gold, together with 1m at 8.26g/t from 1m, and 12m going 2.64g/t from 4m, together with a 2m part at 11.23g/t gold.

The outcomes bolster the accuracy of the company’s mineral useful resource and validate the geological model underpinning it, management mentioned.

Star anticipates it can replace the project’s 2023 mineral useful resource later this 12 months.

The useful resource ought to benefit from an uplift in components of the deposit. Star can even hope to bump up its larger confidence indicated class useful resource after tightening the drill spacing throughout shallow inferred useful resource areas of the optimised pit shell.

We are happy to see the standard of these first outcomes from the Tumblegum South gold project drilling program. With the standout intercept thus far being 5m at round an ounce of gold per tonne, Tumblegum South is proving to be an even stronger project, with a high quality gold deposit.

The latest program totalled 38 reverse circulation drill holes for 2032m. Twenty-three drill holes have been within the southern pit optimisation detailed in an up to date scoping examine launched in May final 12 months.

The excellent 15 holes examined for added lodes recognized from a structural review of the useful resource and non-mineralised areas for waste dump places. Star expects to obtain these outcomes within the following two weeks.

The drill holes in the proposed southern pit centered on the shallowest part of the pit. They have been drilled on a 12.5m by 12.5m grid, designed to substantiate geological continuity of mineralisation and increase the company’s confidence in its useful resource.

Mineralisation is more outstanding in the jap portion of the drill sample, the place most of the excellent outcomes have been acquired. Notably, there seems to be solely minor overburden above the deposit, previous to intersecting mineralisation in components of the conceptual pit ground.

Management says there’s a deepening plunge from the best mineralisation in direction of the southwest, with a number of holes on the western finish of the sample returning no intercepts of 1g/t gold or higher. This is in line with the company’s expectation based mostly on the prevailing geology model.

Star’s plans to subsequent push on with a mining approvals submission for Tumblegum South, replace its present mineral useful resource later this 12 months and proceed negotiations with MEGA Resources to transform its memorandum of understanding to a binding settlement.

Star’s non-binding contract with MEGA, a subsidiary of India’s giant BGR Mining & Infra, will see a strategic collaboration between the companies on mine development, environmental approvals and feasibility research, opening the door to a future profit-share or a three way partnership association.

The open-pittable Tumblegum South useful resource at present stands at 616,000 tonnes grading 2.28g/t for 45,000 ounces of gold, with a high-grade element of 337,000t at 2.52 g/t for 27,000 ounces in the indicated class.

Last 12 months’s up to date scoping examine highlighted an thrilling premise for an 18-month mining marketing campaign on the deposit to provide a more-than-handy 11,800 ounces to fifteen,900 ounces of gold by way of toll treating. The scoping examine projected the deposit would pump out $9.4 million to $19.6 million in revenue at gold costs starting from $3000 to $3800 per ounce.

With gold now trading considerably larger – north of $5100 per ounce – Star stands to inject appreciable upside to the project, doubtlessly including tens of millions to its backside line.

The examine estimated pre-mining prices of simply $700,000 to $1.5 million, marking Tumblegum South as a viable project offering a low-capital, high-return alternative. A signed settlement and accompanying strategic investment by BGR in a latest $1.6 million capital raise has set in movement a collaborative mine development of Tumblegum, by way of a future potential profit-sharing association.

Industry friends, corresponding to Auric Mining and Horizon Minerals, have led the best way in unlocking stranded deposits by way of toll treating, demonstrating the chances for producing strong money flows.

With the latest strong drill outcomes placing a spring in management’s step, Star will look to keep up its deal with guaranteeing Tumblegum South turns into one of the nation’s latest gold producers in 2026.

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