Wedoany.com Report-Apr. 3, Star Minerals and MEGA Resources, a subsidiary of BGR Mining & Infra, have recently signed an MOU to advance the Tumblegum South gold project in Western Australia. The collaboration focuses on the mining approvals process and feasibility study inputs, with Star Minerals leading the way as it progresses its studies toward approvals. Discussions have also included working capital inputs and profit-sharing agreements.
Star Minerals is evaluating its next steps based on the findings from its recent updated scoping study.
MEGA has been actively pursuing mining partnerships in WA, with a strong interest in the Tumblegum South project. This interest is driven by the project's promising fundamentals and its potential to generate short-term cash flow, especially considering the recent surge in Australian gold prices since 2023. Tumblegum South is located 40km south of Meekatharra and features a granted mining lease with a significant gold mineral resource of 616,000 tonnes at 2.28 grams per tonne, equating to 45,000 ounces of contained gold. Additionally, there is an indicated resource of 337,000 tonnes at 2.52g/t for 27,000 ounces.
Star Minerals Managing Director Ashley Jones expressed enthusiasm about the partnership, highlighting BGR's rapid development of interests in Australian projects and their involvement in the latest capital raise for Star Minerals. BGR was particularly attracted to the project's economic appeal, as outlined in the updated scoping study, and sees exploration and project opportunities aligned with the sustained gold price surge.
Star Minerals is currently finalizing environmental approvals to kickstart mining at Tumblegum South. Based on findings from their updated scoping study, the company is evaluating whether to proceed with mining or explore other options, such as forming a joint venture. The firm is also leveraging advanced exploration methods and insights from other resources to assess the potential of related projects like Tumblegum South and West Bryah.
Looking ahead, Star Minerals is focused on expanding its business by seeking new opportunities, either through new projects, joint ventures, or acquisitions in nearby areas. In September 2024, the company announced the acquisition of a stake in the Cobra Uranium Project in Namibia from Madison Metals, further diversifying its portfolio.
