Star Minerals raises $1.6m, readies for Tumblegum South drilling
Star Minerals wraps up $1.6m placement as it moves to start drilling to boost resource confidence at Tumblegum South gold project.
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Star Minerals has completed a $1.6m placement to progress Tumblegum South towards production
Company prepares to start infill drilling to upgrade resource confidence
Extensional drilling will test similar structural targets to the northwest of the proposed pit
Special Report: Star Minerals has completed the second tranche of a $1.6m placement as it prepares to carry out infill and extensional drilling at its Tumblegum South gold project near Meekatharra, Western Australia.
The company received $850,000 from the second tranche of the placement at 2.5c per share after securing approval from shareholders, completing the raising aimed at progressing Tumblegum South towards a decision to mine.
It also brings Indian private equity giant Bain Global Resources on the company’s register as a new strategic shareholder.
Tumblegum South is just 40km from Meekatharra and has a contained gold resource of 45,000oz on a mining lease which Star Minerals (ASX:SMS) believes can be quickly brought into production.
As part of this effort, the company is starting to clear the drill pad for drilling at the project, which is expected to start in June.
“We are making strong progress through the steps required to commence mining at the Tumblegum South Gold Project,” managing director Ashley Jones said.
Jones added that mine approval process consultant ResourcesWA was advancing the approvals, which included undertaking a mining feasibility study.
Drilling and development
SMS’ program includes infill drilling that will generate some of the sample required for waste material classification required to define the waste dumps and mine closure plans.
This work is intended to increase existing mineral resource confidence in the shallow areas defined in the scoping study pit schedule.
Watch: Star's plan for near term Meekatharra gold mining
The company will also carry out extensional drilling to the northwest of the proposed pit location to test similar structural targets.
Higher confidence and expansion of resources will no doubt advance the company’s plans to develop the project, which could feed underutilised mills operated by the likes of Westgold Resources (ASX:WGX) and Catalyst Metals (ASX:CYL) .
This is backed by high gold prices which have seen companies such as Auric Mining (ASX:AWJ) take relatively small resources through to production and generate robust returns.
This article was developed in collaboration with Star Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Originally published as Star Minerals raises $1.6m, readies for Tumblegum South drilling
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