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Star Minerals Limited (ASX: SMS, “the Company” or “Star Minerals”) is pleased to provide its Quarterly Activities Report for the period ended 31 December 2023.
HIGHLIGHTS
Tumblegum South Gold Project Scoping Study Completed
- The Scoping Study presented a range of outcomes for open-pit mining and third-party toll treatment of the Tumblegum South gold deposit (“Tumblegum South” or “the Project”) which is located approximately 40km south of Meekatharra in the Murchison district of Western Australia.
- The positive results of this Scoping Study provide a basis to refine material inputs and enhance project economics for the Tumblegum South gold resource.
West Bryah Copper Gold Project
- Comprehensive data review underway incorporating additional tenements.
Corporate
- Placement; $600,000 private placement completed.
- $583k cash at bank as at 31 December 2023.
Corporate
A placement of ordinary shares to new and existing sophisticated investors was completed, raising $600,000 at 4 cents per share.1 Shares were issued following shareholder approval obtained at the general meeting of shareholders, held on 18 October 2023.
Participants in the placement received one free attaching option for every one ordinary share subscribed for. The unlisted options are exercisable at 6 cents and expire on 31 October 2026.
Funds raised from the placement allow the Company to advance scoping and environmental studies at the Company’s Tumblegum South gold Project, exploration activities at the West Bryah copper gold Project and provide additional working capital.
At the end of the quarter, the Company had $583k cash at bank. Included in the Appendix 5B – Section 6 are amounts paid to the Directors of the Company during the December quarter totalling $19,050 comprising director remuneration, including superannuation.
The Company has two projects, a gold Mineral Resource at Tumblegum South, 40km south of Meekatharra and the West Bryah copper-gold exploration project, 120km northwest of Meekatharra.
Figure 1: Star Minerals Limited Project Locations
Tumblegum South Gold Project – Scoping Study2
Various options utilising third-party processing plants operating under a toll treatment agreement were considered. There are currently two active processing plants within a radius of 50km to 150km from Tumblegum South. A range of outcomes were defined based on gold price, and processing cost including trucking costs.
- At gold prices from AUD$2,250 to AUD$3,000/oz, the Production Target for the Project ranges from approximately:
- 116kt at 2.25g/t producing 7.6koz gold, to
- 286kt at 2.00g/t producing 16.6koz gold.
- The Production Target generates an undiscounted accumulated cash surplus after payment of all working capital costs, but excluding pre-mining capital requirements, of approximately $7.2M to $16.3M.
- Mining is contemplated as a single campaign over approximately 18-months.
- Pre-mining capital and start-up costs are estimated to be approximately $0.7M to $1.5M.
- Sensitivity of the Base Case scenario to gold price was assessed. Results suggest that project economics are robust for a broad range of gold prices.
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This article includes content from Star Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
SMS:AU
Drilling Commenced at Viani in Fiji
HIGHLIGHTS
- The Phase 1, three-hole diamond drilling program has commenced at the Viani Project, Fiji and will test for extensions to the quartz vein gold mineralisation at depth.
- Phase 1 is expected to be completed in early 2025, with plans for additional drilling under the same program dependent on the initial results
- The Viani Project (SPL1513) covers an area of approximately 200km2 and is largely underexplored.
- At the Dakuniba prospect within Viani, low sulphidation epithermal high-grade gold mineralisation has been mapped over >3km strike length.
- Diamond drilling completed by Japan International Cooperation Agency (JICA) in 1995 to 1997 intersected high-grade gold in low sulphidation epithermal quartz veins, including 0.6m @ 27.6 g/t Au.
Alice Queen’s Managing Director, Andrew Buxton said,
With drilling underway, Alice Queen is positioned to test the epithermal gold-style mineralisation identified in historic drilling at the Viani Project. Weather permitting, we anticipate completing the Phase 1, three-hole diamond drilling program in early 2025. Following this, our exploration team will mobilise the drill rig to the Sabeto Project in Fiji to maintain the momentum of this campaign. To deliver timely results to shareholders, we intend to accelerate the analysis of the drill core at ALS Brisbane.”
Image 1 – Diamond drilling at Viani
Details
Geology
The geology of the Viani Project (SPL 1513) comprises olivine basalts and volcaniclastics of the Natewa Volcanic Group which are intruded by andesite sills and dykes. In the 1940s, gold mineralisation was found by local prospectors near the village of Dakuniba. At Dakuniba, low sulphidation style epithermal gold occurs in quartz veins, and silicified rocks along a 3km long NE trending zone.
In 1995-1997, Japan International Cooperation Agency (JICA) drilled six diamond holes at Dakuniba and intersected high-grade gold in chalcedonic, crustiform, colloform banded quartz veins at depths of 50m to 100m below surface (i.e. MJVFV-5 intersected 2.2m @ 11.3 g/t Au, incl 0.6m @ 27.6 g/t Au at 121m downhole). This high-grade gold mineralisation is open in all directions.
Proposed Drill program
The initial Phase 1 drill program at Viani (see Table 1) will comprise three diamond drillholes designed to test continuity to the epithermal gold mineralisation previously intersected in JICA drillhole MJVFV- 5 (2.2m @ 11.3 g/t Au) (see Figure 2). The drilling will test for extensions to the gold mineralisation at depth and along strike.
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This article includes content from Alice Queen Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
