Star Minerals Targets 9M lb Uranium with $634K Capital Raise and Drilling Plans

Cobra Uranium Project: A Strategic Entry into Namibia's Uranium Belt

Star Minerals Limited has marked a significant milestone with shareholder approval of the Earn-in and Exploration Rights Agreement for the Cobra Uranium Project, located in Namibia’s prolific Erongo region. The project sits within 25 kilometres of two of Namibia’s largest uranium mines, Rossing and Husab, both major contributors to global uranium supply. This proximity, combined with Namibia’s mining-friendly environment and robust infrastructure, positions the Cobra Project as a strategically valuable asset for Star Minerals.

The project area covers 297 square kilometres of tenement with prospective geology, and a foreign estimate from 2015 suggests a mineralisation of approximately 15.6 million tonnes at 260ppm U3O8, equating to around 9 million pounds of uranium oxide. While these estimates are not yet JORC-compliant and require confirmation through drilling, they provide a compelling foundation for Star’s upcoming exploration activities.

Preparing for Maiden Drilling Campaign

Star Minerals is advancing drill planning in collaboration with Madison Metals’ in-country team, aiming to confirm and upgrade the existing mineralisation estimates and explore extensions along strike. The company’s uranium exploration expertise is bolstered by Ashley Jones, who brings extensive African experience, including prior work in Namibia and Botswana. The initial program includes six approved drill holes targeting mineralised alaskites, reflecting a methodical approach to resource validation and expansion.

Western Australia Projects: Gold Potential at Tumblegum South

Beyond Namibia, Star Minerals continues to develop its Western Australian portfolio, notably the Tumblegum South gold project. A recent geological structural review has identified potential high-grade lodes, prompting the company to plan a Reverse Circulation drill program to test these targets. An updated scoping study, assuming a gold price of A$3,400 per ounce, indicates robust project economics with potential for commercial viability. The Board has approved further work to advance environmental permitting and regulatory approvals, signaling intent to progress toward mining decisions.

Capital Raising and Financial Position

To support its exploration agenda, Star Minerals conducted a 2-for-3 renounceable rights issue at $0.04 per share, raising approximately $444,000 before costs. A partial placement of shortfall shares in December added a further $190,000. The company’s directors and management participated in the rights issue, reflecting internal confidence. At quarter’s end, Star held $518,000 in cash, providing a runway of just over two quarters based on current expenditure levels.

Star Minerals and Madison Metals have also agreed to amend payment terms under the Earn-in Agreement, extending the deadline for the full cash component of the first payment to March 8, 2025. This flexibility may ease near-term financial pressures as the company focuses on advancing exploration.

Outlook and Strategic Considerations

Star Minerals is positioning itself at the intersection of uranium and gold exploration in two jurisdictions with strong mining credentials. The Cobra Uranium Project offers exposure to a globally significant uranium province, while Tumblegum South’s gold potential could provide diversification and near-term development opportunities. The company’s cautious but proactive approach to drilling and capital management will be critical in converting foreign estimates into JORC-compliant resources and advancing projects toward production.