Estrella Resources has applied for four additional exploration and evaluation licenses, identified as being highly likely to contain rich outcropping manganese, in Timor-Leste’s Baucau municipality.
The new coastal licenses, which are 8km west of the company’s existing grounds, cover an area of 194.4 square kilometres. If granted, the additional prospects would bring Estrella’s total landholding in the country to nearly 700 square kilometres.
Management has made the applications in conjunction with its State-run joint venture (JV) partner, Murak Rai Timor (MRT).
An initial reconnaissance of the grounds has identified some of the best enriched manganese at surface that Estrella has seen within its licenses, indicating the potential for significant deposits in the area.
The outcropping manganese is embedded within thin chert horizons, which is typical of the style of mineralisation that occurs on volcanic islands in general. In the particular case of Timor-Leste, hot larva fluids have flowed onto the seabed before being pushed and lifted above sea level and then further enhanced through supergene enrichment.
Estrella Resources managing director Chris Daws said: “The four new license applications have indications of significant manganese mineralisation. When granted, we will boost our field team to expedite the exploration of the tenements. I look forward in progressing our work in Timor-Leste, it has absolutely been the right choice for Estrella. I look forward to working with our partners in Timor-Leste and continuing to build a strong working relationship with the Timor-Leste Government and its people.”
Under Timor-Leste’s new mining act, which was enacted in 2021, exploration companies can conduct mapping and sampling in the granted area for 48 months, with a two-year extension if needed, up to a total of six years. The license holder also has a pre-emptive right to apply for a mining license before the tenement expires.
Some 12 months ago, MRT was spun off from the National Petroleum and Minerals Authority (ANPM) and established as a separate department. The move was aimed at diversifying the country's economy away from its heavy reliance on the petroleum industry.
Recently, Estrella finalised a deal with MRT in relation to its existing tenements where it holds a 70 per cent stake. Under the JV terms, MRT retains a 30 per cent free-carried interest, with Estrella covering all costs until a positive definitive feasibility study (DFS) is completed and published.
At that point, MRT can choose to transfer its interest back to Estrella in exchange for a 2 per cent net smelter royalty.
Work will start immediately once the company receives the licenses, with plans that include environmental surveys, mapping, geophysics, trenching and possibly drilling.
With the latest move, Estrella has clearly positioned itself as a key player in the region by building strong relationships with local stakeholders and the Timor-Leste Government.
The next few months are likely to be busy as the company works up initial drilling targets before finally getting stuck in with the drill bit. No doubt, shareholders will be eagerly waiting for results from the new grounds.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
