Star inks deal with mining heavyweight to | Australian Markets

Star Minerals has inked a deal with MEGA Resources, a subsidiary of India’s mining giant BGR Mining & Infra, to propel into manufacturing its 45,000-ounce Tumblegum South gold project in WA’s Mid West area.

Star’s non-binding contract with MEGA will see a strategic collaboration between the teams on mine development, environmental approvals and feasibility research, opening the door to a future profit-share or a three way partnership association.

With gold trading at a staggering $5000 per ounce – more than $1000 above the higher assumptions of the company’s May 2024 scoping research – Star stands to seize substantial upside from a project that was projected to churn out up to $20 million in free money stream.

Star Minerals is delighted to start a relationship with one of the most important mining contractors in India. Through MEGA, BGR has quickly developed an curiosity in a suite of initiatives in Australia and this supplies a essential step within the course of to convey the Tumblegum South gold project to manufacturing. BGR additionally participated within the latest capital raise accomplished by Star Minerals to progress towards mining approvals.

Tumblegum is 40 kilometres south of Meekatharra in WA on a granted mining lease endowed with a useful resource of 616,000 tonnes grading 2.28 grams per tonne (g/t) for 45,000 ounces of gold. The useful resource has a higher-grade indicated core of 337,000t at 2.52g/t for 27,000 ounces.

Last yr’s up to date scoping research pegged an 18-month mining marketing campaign on the website to produce up to 15,900 ounces to generate $19.6 million in surplus money at a gold price of $3800 per ounce. With the dear metallic now fetching $5000 per ounce, Star is accelerating the project on a clear trajectory in the direction of a focused mining begin within the first quarter of 2026.

Star’s accomplice MEGA Resources is an Australian-based outfit, born from BGR’s world ambitions and brings a wealth of mining, engineering and geology experience to the desk.

The company has been making waves in WA with a string of collaborations and was drawn to Tumblegum South’s near-term money potential and exploration upside. Notably, MEGA’s model – replicated in different current offers – may minimise shareholder dilution for Star by leaning on profit-sharing or three way partnership buildings reasonably than closely dilutive equity raises.

BGR joined Star’s register in final month’s $1.6M capital raise, clearly understanding the project’s potential in opposition to a backdrop of a booming gold market.

Star says it’s losing no time. It has the environmental approvals course of underway – that is the longest lead merchandise within the allowing course of. The company goals to lock in these approvals within months.

The subsequent merchandise on the checklist will probably be to lock away a toll treating settlement with an present mill within the area. That mustn’t show too troublesome to obtain given Star’s spectacular head grade of 2.28g/t to 2.52g/t gold, which is a high quality feed for immediately’s producers.

The company additionally has continued exploration drill testing deliberate for later this yr, focusing on high-grade gold lodes recognized in a detailed desktop review. Should this system hold more gold assets collectively properly, an enlarged pit design may convey an further 16,000 ounces into play, additional sweetening the pot.

Industry friends, comparable to Auric Mining and Horizon Minerals, have unlocked stranded deposits on present mining leases by way of toll treating, which has no doubt performed a position in Star’s current change of strategy. With MEGA’s backing and gold costs touching all-time highs, Star might be properly in line to make a lot of hay whereas the solar shines, probably as quickly as subsequent yr.

Is your ASX-listed company doing one thing fascinating? Contact: matt.birney@wanews.com.au