BREAKING NEWS: Star Minerals has just unveiled a major discovery of high-grade, shallow gold at its Tumblegum South project, located near Meekatharra in Western Australia. The latest drilling results indicate a promising resource extension approximately 120 meters from the current high-grade area, significantly boosting the mine’s potential longevity.
In a 2000-meter reverse circulation drilling program, multiple high-grade gold lodes were identified, hinting at a possible duplex structure that could extend the project’s shallow resource life. The findings come as the company gears up for mining approvals, expected to be submitted in September, targeting production to commence in Q1 of next year.
Star Minerals has reported impressive drill results, including a standout hole that intercepted 2 meters of 4.20 grams per tonne (g/t) of gold from a depth of just 4 meters. Additional notable hits include 2 meters at 5.28 g/t from 48 meters and 5 meters at 1.85 g/t from 15 meters. These shallow intercepts suggest a structural repeat of the high-grade lodes that currently define the resource, paving the way for a potential pit extension in the near term.
Managing Director Ashley Jones expressed enthusiasm over the results: “Drill planning to test this mineralisation down plunge is underway, and we remain on track for mining approvals submission in September for Q1 production next year.”
The company anticipates that these findings will enhance its existing geological model, which currently estimates a resource of 616,000 tonnes grading 2.28 g/t, equating to 45,000 ounces of gold. Star’s updated scoping study outlines an 18-month mining scenario that could yield 11,800 to 15,900 ounces of gold, with projected profits ranging from $9.4 million to $19.6 million at gold prices of A$3,000 to A$3,800 per ounce.
With gold currently trading above A$5,100 per ounce, the project’s profitability could see a significant surge. Pre-mining costs are estimated between $700,000 and $1.5 million, positioning Tumblegum South as a low-capital, high-return opportunity. Furthermore, recent drilling in the proposed waste rock dump area has confirmed no significant mineralisation remains untapped, clearing the path for environmental approvals.
Star’s partnership with MEGA Resources, a subsidiary of India’s BGR Mining, underlines its production ambitions. A memorandum of understanding, supported by a recent $1.6 million capital raise, aims to facilitate joint mine development through a profit-sharing arrangement that minimizes shareholder dilution while maximizing cash flow at historic gold prices.
If developments proceed as planned, Star Minerals could be pouring its first gold by early next year, a timeline that looks increasingly achievable with confirmed infill drilling results and approvals on the horizon. The company also plans to provide an updated JORC resource estimate later this year, with expectations to upgrade inferred ounces to the indicated category, potentially increasing the total resource with the western extension.
With high-grade, shallow gold intercepts emerging from this newly identified zone, the already promising economic outlook for Tumblegum South continues to improve dramatically. Star Minerals is set to return to the site swiftly to further explore its new western zone as it advances toward becoming Western Australia’s next major gold producer.
Stay tuned for more updates as this story develops!
