Perth-based Star Minerals, a gold explorer, is set to launch on the Australian Securities Exchange (ASX) with AUS$5 million.
Star Minerals’ flagship asset is the mine-ready gold resource at Tumblegum South, 40 km south of Meekatharra in Western Australia. Tenements at Tumblegum South are adjacent to the old Gabanintha open pits. From 1987 to 1991, Dominion Mining produced 150 000 oz of gold from several nearby open pits.
Most recently the Tumblegum South package was owned by Bryah Resources. At Tumblegum South, there is an Inferred Resource of 600 000 t at 2.2gpt Au (42 500 oz of gold). A Mining Lease has been granted. There are historic mine workings and shafts throughout the area. It is expected Star Minerals’ initial mine will be a small open pit. Existing gold mineralisation extends along strike and down dip.
Greg Almond, Star Minerals Managing Director, comments:
“We are delighted to take this mine-ready deposit to the next stage and have organised the first round of Reverse Circulation (RC) drilling to start next week.”
“An extensive drilling campaign is planned. Our point of difference to other gold IPOs is that we have an actual gold resource and a pathway to gold production. The market has recognised that and it has been an important factor in the successful fund raising – investors are impressed we are bringing a mine-ready asset to market.
“The outlook for the gold price is expected to remain high, and this successful IPO has capitalised on that trend.
“Initial funds will be focused on completing drilling, environmental and engineering work in order to get Tumblegum South ready to mine. The intention is to mine the pit using a contract fleet, at an appropriate rate, and sell ore to a processing partner. Discussions are underway with local companies to process gold at nearby plants. The initial operation will be of low capital intensity, and that process will provide a cash influx to fund further exploration activities.”
The drilling will be completed by Impact Drilling, owned by Ronnie Hill, who is also a shareholder in the company. Geotech core testing has also been scheduled.
Read the article online at: https://www.globalminingreview.com/mining/27102021/star-minerals-ltd-gold-ipo-launches-on-asx/