Estrella Completes 10 Diamond Drill Holes, Targets 500 Million Tonnes Limestone Sales
Estrella Resources has made significant strides in its maiden manganese drilling campaign in Timor-Leste, confirming high-grade mineralisation and advancing a major limestone marketing agreement with an Indonesian partner.
- Completed 10 diamond drill holes totaling 485.5m with further 1,200m planned
- High-grade manganese mineralisation confirmed at Ira Miri and other prospects
- Master Agreement signed for limestone sales targeting up to 500 million tonnes over five years
- Four Reconnaissance Permits converted to Exploration and Evaluation Licenses
- Strategic investor committed $5 million subject to shareholder approval
Maiden Drilling Campaign Breakthrough
Estrella Resources has reported exceptional progress in its maiden drilling campaign in Timor-Leste, marking the first modern minerals drilling in the country following the adoption of a new mining code in 2024. The company has completed 10 diamond drill holes totaling 485.5 meters, with an additional 1,200 meters of diamond drilling anticipated over the coming months. Early results from the Ira Miri manganese prospect have revealed high-grade manganese oxides, with intersections averaging over 40% manganese content, confirming the predictive strength of Estrella’s exploration model.
These initial drill holes have not only validated the presence of significant manganese mineralisation but have also helped refine the geological understanding of the region. The company is employing innovative technologies such as drone-mounted Mobile Magnetotelluric (MobileMT) surveying to identify conductive manganese bodies, enhancing targeting efficiency and reducing future drilling costs.
Expanding Limestone Opportunity with Strategic Partnership
Alongside manganese exploration, Estrella is advancing its limestone project at Werumata, where it has identified a highly prospective 3.9 square kilometer target area. The company has entered into a binding Master Agreement with Indonesian mining services firm PT Raka Energi Mandiri, granting exclusive marketing and offtake rights for limestone exports to Indonesia. This agreement targets sales of up to 500 million dry metric tonnes over five years, contingent on regulatory approvals and resource confirmation.
The limestone identified is notable for its high lime content and purity, making it suitable for various industrial and environmental applications. Estrella is progressing environmental baseline surveys and permitting to facilitate future mining and export operations, with plans to utilize existing port infrastructure at Com to streamline logistics.
Regulatory Progress and Community Engagement
Estrella has successfully converted four Reconnaissance Permits into Exploration and Evaluation Licenses, expanding its exploration footprint in the Lautém and Baucau municipalities. This transition allows for more intensive exploration activities, including road development, trenching, and drilling. The company’s strong in-country presence is underscored by active community consultation and environmental work, ensuring local support and compliance with Timor-Leste’s mining regulations.
Notably, Estrella hosted a site visit for potential investors, significant shareholders, and government dignitaries, including Timor-Leste’s Prime Minister Xanana Gusmão. The Prime Minister expressed full support for Estrella’s projects, highlighting the government’s commitment to fostering sustainable mining development and local capability building.
Financial Position and Outlook
Financially, Estrella strengthened its balance sheet with a strategic investor exercising an option to contribute $5 million, subject to shareholder approval at the upcoming general meeting. The company ended the quarter with $6.56 million in cash, supporting ongoing exploration and development activities. Exploration expenditure for the quarter was $1.355 million, reflecting active investment in advancing the projects.
Looking ahead, Estrella plans to continue its large-scale drilling campaign, with a secondary phase of 10,000 meters of reverse circulation drilling and 3,000 meters of diamond drilling planned following a geological review. The company is also focused on completing a JORC-compliant resource estimate for limestone by September 2025 and a positive scoping study by November 2025 to meet conditions for the limestone offtake agreement.
Bottom Line?
Estrella’s maiden drilling success and strategic limestone partnership position it well for growth, but upcoming assay results and regulatory milestones will be critical to watch.
Questions in the middle?
- How will forthcoming assay results influence Estrella’s resource estimates and project valuation?
- What are the timelines and risks associated with obtaining the necessary mining and export permits in Timor-Leste?
- How will the limestone offtake agreement with PT Raka Energi Mandiri impact Estrella’s revenue and operational strategy?