With gold now trading significantly higher – north of $5000 per ounce – Star stands to capture some considerable upside, which could add millions to the project’s bottom line.
The study estimated pre-mining costs of just $700,000 to $1.5 million, making Tumblegum South a low-capital, high-return opportunity. With the drill bit now spinning, Star is also eyeing a toll-treating deal with a nearby mill to leverage the project’s impressive head grade of 2.28g/t to 2.52 g/t to ensure cost-effective processing.
Star recently partnered with mining services group MEGA Resources, a subsidiary of India’s mining giant BGR Mining, to accelerate its near-term production ambitions.
A signed agreement and accompanying strategic investment by BGR in a recent $1.6 million capital raise have set the stage for a collaborative mine development of Tumblegum, through a future potential profit-sharing arrangement aimed at minimising dilution for shareholders.
Industry peers, such as Auric Mining and Horizon Minerals, have set a strong precedent in WA’s gold landscape, unlocking stranded deposits through toll treating to generate quick cash flows.
Star appears next in line to follow suit, with its current drilling program set to deliver final certainty for the company and an updated JORC resource estimate following results in August.
With MEGA Resources’ backing and a clear path to production, Star is making plenty of noise in a booming WA gold market. As the drills get spinning, what follows next should not just be a question about when it will start producing gold, but how much will Tumblegum be churning out?
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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