High-Grade Manganese Assays Propel Estrella’s $3.75M Drilling Campaign in Timor-Leste

A Landmark Step for Timor-Leste Mining

Estrella Resources Limited (ASX: ESR) is preparing to embark on a milestone maiden drilling campaign in Timor-Leste, marking the first-ever minerals drilling under the country's newly adopted modern mining code. This initiative not only represents a significant operational milestone for Estrella but also signals Timor-Leste’s emergence as a prospective mining jurisdiction.

The company has shipped a reverse circulation (RC) and diamond drill rig to the country and formalised a working partnership with Dili-based CoreSearch Minerals and Mining Services LDA, a local operator with extensive drilling experience. This collaboration is expected to enhance operational efficiency and foster local employment opportunities.

Robust Manganese Prospects and Assay Highlights

Estrella has finalized drill targets following comprehensive induced polarization (IP) data modelling and geological surveys across its Ira Miri, Sica, and Lalena prospects. Recent rock chip assays have returned impressive manganese grades, with secondary supergene mineralization at Ira Miri reaching up to 58.6% Mn and in-situ manganese at Sica between 46% and 49.3% Mn. Additionally, detrital manganese samples from Sica averaged 40.1% Mn, underscoring the significant mineral potential in the region.

Further, the newly discovered Soru Manganese Prospect features widespread surficial alluvial manganese mineralization, adding to the company's growing portfolio of targets. These assay results provide a strong foundation for the upcoming drilling campaign, which aims to delineate mineral resources and advance Estrella’s exploration footprint.

Environmental and Community Engagement Progress

Environmental approvals are in the final stages of assessment by Timor-Leste’s Minerals Authority (ANM), with Estrella actively engaging local communities. The company reports positive reception and cooperation from stakeholders, including cultural site registrations and environmental safeguards. This proactive approach reduces execution risk and aligns with best practice standards for sustainable exploration.

Financial Position and Capital Raising

To fund the drilling program and ongoing exploration activities, Estrella completed a $3.75 million share placement at $0.03 per share, managed by Barclay Wells Ltd. At quarter-end, the company held $3.15 million in cash, providing a solid financial runway for the next phase of exploration. Operational expenditure for the quarter included $807,000 on exploration and evaluation, reflecting the company’s commitment to advancing its projects.

Broader Exploration and Legal Updates

Beyond Timor-Leste, Estrella continues exploration at its Carr Boyd Nickel Project in Western Australia, supported by government grants and research partnerships. The company also maintains its legal rights over the Mt Edwards Lithium Royalty, with ongoing efforts to protect these interests.

Managing Director Chris Daws expressed enthusiasm about the upcoming drilling campaign, highlighting the unique opportunity to pioneer mineral exploration in Timor-Leste and the strong support from local communities and government. The success of this program could position Estrella as a key player in the region’s nascent mining sector.