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Highlights:
Star Minerals (ASX:SMS) completes two-tranche placement with support from a new strategic shareholder
Progress underway on mining approvals at Tumblegum South Gold Project in Western Australia
Drilling scheduled to commence in June as part of a broader development program
Star Minerals (ASX:SMS), listed on the ASX 200, operates within the gold exploration and development sector and has moved forward with its flagship Tumblegum South Gold Project in Western Australia. The company, which is part of the materials index, recently completed a capital raising to support project development activities.
The two-tranche placement was finalised following shareholder approval at the company’s general meeting. CPS Capital Group led the capital raising, with Bain Global Resources—an entity linked to Indian mining services group BGR Mining and Infra—becoming a strategic shareholder through the placement.
Focus shifts to mining approvals and feasibility work
Star Minerals has appointed ResourcesWA to manage the mine approval process at Tumblegum South. The consultant is tasked with leading the preparation and submission of all relevant studies and documentation required to obtain necessary approvals for project development.
The process involves mining feasibility work, along with evaluations related to environmental planning, waste material classification, and mine closure strategies. These steps are aligned with the broader objective of initiating production at the project site.
Site preparation and drilling activities to commence
The company has indicated that site preparation has begun, with drilling activities scheduled to start in June. The planned infill drill program will support geological modelling and provide data for environmental and mine planning. This phase is also expected to deliver samples critical to characterising waste materials and determining appropriate placement and closure mechanisms.
Infill drilling aims to enhance confidence in the existing mineral resource, which comprises both indicated and inferred components. In addition, extensional drilling is set to take place northwest of the proposed pit area, targeting zones that have exhibited structurally similar mineralisation.
Strategic direction aligned with project development timeline
Star Minerals’ Managing Director commented on the importance of recent funding to support the advancement of the Tumblegum South project. The company has stated that the placement will help complete key tasks including infill and extensional drilling, resource model updates, environmental studies, and the completion of a Bankable Feasibility Study.
The Tumblegum South Gold Project, which hosts a defined mineral resource, remains the company’s primary development focus. The project is targeted for production commencement within a defined timeline, with a strategy to leverage prevailing gold market conditions that currently exceed price assumptions used in the project’s prior studies.
With new capital secured and a strategic partner on board, Star Minerals continues to advance activities aligned with progressing its gold development operations in Western Australia.
