Star fast-tracks plans to mine 45,000-ounce WA | Australian Markets

Using the wave of hovering gold costs, Star Minerals has revealed plans to fast-track the development of its Tumblegum South gold project, 40 kilometres south of Meekatharra in Western Australia.

Backed by a granted mining license, the company is pushing ahead with environmental approvals at web site whereas exploring third-party mining and toll remedy choices.

The project doubtlessly stands to benefit from the large surge within the price of the valuable metallic, which is trading at nearly $4,600 per ounce, up $800 an ounce above the extent Star utilized in a scoping research replace 10 months in the past.

The research recommended the project may generate $19.6 million in free money stream at an higher gold price estimate of $3800 per ounce. With present costs now 20 per cent greater than these assumptions, Star says there’s clearly a compelling case for getting the shovels on the transfer as quickly as attainable to seize some of the numerous further upside potential.

Star says the project’s environmental approvals, usually the lengthiest step within the allowing course of, have been prioritised. Whereas navigating that labyrinth, the company says additionally it is deep in discussions with mining contractors to doubtlessly lock in an ore processing contract at one of the three close by third-party remedy plants within a 50km to 250km radius of the location.

The company can also be gearing up plans for exploration drilling later within the yr, specializing in high-grade gold lodes beforehand noticed during a detailed desktop review of the deposit.

Tumblegum South sits on a granted mining licence and hosts a complete gold useful resource of 616,000 tonnes grading 2.28 grams per tonne (g/t) for a complete of 45,000 ounces of gold. Inside the complete useful resource the deposit additionally consists of 337,000t within the indicated class operating at 2.52g/t for 27,000 ounces of gold.

When the up to date research was performed in Could final yr it targeted on varied situations utilizing an assumed gold price of between $3000 and $3800 per ounce.

Based on Perth-based Orelogy Consulting, which ran the numbers, a mining marketing campaign over 18 months would initially spit out between 11,800 and 15,900 ounces of gold.

At a pre-mining value from $700,000 to $1.5m, the development would generate an estimated $9.4m to $19.6m in surplus money relying on processing situations.

The just lately reported up to date scoping research demonstrated the worth and viability of the Tumblegum South gold project over a broad vary of gold price. Star is now taking the subsequent steps to monetising this asset and more precisely assess varied methods to attain this, together with management contracts, sale, partial sale, or three way partnership of the project.

Star has additionally just lately gained shareholder approval to maneuver full steam forward on a three way partnership settlement to earn 85pc of a flagship Cobra uranium project within the world-class Erongo district of Namibia.

The project sits simply 5km from the boundary of the world’s longest-running uranium operation, the Rossing mine, and is within spitting distance of the world-class Husab mine and Paladin Power’s Langer Heinrich project.

Because it stands, the project has a non-JORC useful resource of about 15.6 million tonnes at a grade of 260 components per million (ppm) for 9m kilos of uranium oxide.

An initial six-hole program – attributable to kick off shortly – will examine the strike potential of the deposit and twin some present holes to deliver the deposit up to JORC customary.

Star’s transfer to construct its presence within the uranium sector has come at a time when uranium costs have skilled a revival. The yellow metallic is trading at more than US$72 (A$115) per pound, up more than 200pc from its US$22 (A$35) per pound lows a few years in the past.

Looking forward to 2025 and 2026, Star seems to have an formidable roadmap in place with twin drilling campaigns, in-depth feasibility research, key contractor partnerships and a daring transfer in direction of full-scale mining operations all on the playing cards.

With every milestone, the company appears to be edging nearer to vital growth and worth creation.

Is your ASX-listed company doing one thing attention-grabbing? Contact: [email protected]