Estrella Resources Receives A Nod From DMIRS For Drilling Campaign At Target 5

Estrella Resources Receives A Nod From DMIRS For Drilling Campaign At Target 5

Estrella Resources Ltd (ASX: ESR) is a Perth based, metals exploration company. It has 100% stakes in the Munda nickel and gold project and Spargoville nickel project.

The company provided an update on its Carr Boyd Nickel Project (CBNP), which consist of the Carr Boyd layered Complex (CBLC) on 9 May 2019. ESR has submitted a request through the DMIRS (Department of Mines, Industry regulation and safety), during March 2019 Programme of Work’s. The request was to drill the high priority Target 5 EM anomaly, generated by Phase II moving loop HPEM in late 2018. The company has finally received the necessary approvals, from DMIRS. As a result, the field site work preparations are being processed.

ESR has carried on drilling and service contracts to begin the drilling and management works, of the testing of target 5 during the period of the present quarter. The target from geophysical and geological perspectives contains a relative mid-high conductivity and identification of nickel sulphides, identified through exploration drilling work, around 100m southwards of the aimed region.

There are various other high priority exploration targets and prospects in this area, which are based on surface geochemistry, downhole geochemistry, aero-magnetics, ground gravity, and interpreted geology datasets. The two major targets defined by the HPEM are Target 5 and Target A. These two targets indicate towards an ample presence of well-developed sulphides. The Target is a 450m long zone, rich in nickel and copper mineralisation. It is situated 100m south of the newly defined EM conductor.

Last month, the company released its quarterly cash flow statement for the quarter ending March 2019. Net cash used in operating activities amounted to A$250k. Net cash from financing activities stood at A$472k. Cash and cash equivalents at the end of the period were A$504k. Estimated cash outflows for the next quarter were A$185k.

ESR also published its activities report for the quarter ending on 31 March 2019. The focus of fieldwork during the period was CBLC, the Munda Gold Project and the Spargoville Nickel Project. The results of the metallurgical test work in Spargoville had been optimistic. In the Munda project, ESR sees the possibility of a small mining operation aiming a high-grade component of the deposit. For the development of the Munda Gold Project, the company executed a Letter of Intent to form an Alliance with Blue Cap Mining Pty Ltd.

On the corporate end, there was a new appointment of Mr Les Pereira as new Director and Chairman, who replaced Mr Ray Shorrocks. GTT Ventures were appointed as the company’s new Corporate Advisors.

The Company’s cash balance as of 31 March 2019 was A$504,000. The company raised $500,500 cash via the placement of 38,500,000 fully paid ordinary shares in the quarter, with assistance from the GTT.

Share Price Information:

On the technical front, the stock of the company last traded at A$0.012 on 8 May 2019. In the last six months, the stock has delivered a return of -47.83%, while its YTD return stands at -14.29%.


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