Star Minerals chairman Ian Steward said: “Ashley has been a director of Star Minerals for the past four years and has brought a wide breadth of commercial and technical knowledge to the company. I am looking forward to seeing him develop our Tumblegum South gold project towards production and building value for our shareholders.”
Tumblegum South has a current 616,000-tonne mineral resource grading 2.28g/t gold for a total of 45,000 ounces of the contained metal.
This includes an indicated resource of 337,000t at 2.52g/t gold for 27,000 ounces.
Star will also use the latest exploration techniques combined with data from previous work by Bryah and other explorers to investigate further potential at Tumblegum South and its West Bryah projects.
Earlier this month, Star said it has received strong interest from exploration and mining contractors in the region that are keen to partner with the company to monetise Tumblegum South in what is becoming something of a trend with junior explorers who are forging early cashflows from toll treating in the region.
The company recently raised $1.6M in cash and attracted BGR Mining and Infra Limited – one of India’s largest mining contractors – to its register, lured by the project’s economics and it is now midway through its environmental approvals process.
With gold touching all-time highs, companies such as Auric Mining proved up the gold toll treating model spectacularly in the last year or so. Others, such as Horizon Minerals, are also on the verge of serious cashflows from toll treating. On a smaller scale, companies such as Resources and Energy Group are eking out a quid from smallish scale VAT leaching.
Star will no doubt be looking to join those ranks this year with its strategy to bank some quick cash at Tumblegum South for use in a grander plan.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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