Tumblegum South Targets 15.9koz Gold Production Amid $1.5M Capital Raise

Tumblegum South Project Nears Production

Star Minerals Limited is making significant strides towards bringing its Tumblegum South Gold Project in Western Australia into production, targeting the first quarter of 2026. The company recently lodged its Mining Proposal and Native Vegetation Clearing Permit applications, key regulatory steps that pave the way for mining activities to commence on the granted Mining Lease M51/888.

These submissions come on the back of a highly successful drilling campaign, which delivered exceptional shallow gold results. Highlights include a standout intercept of 5 metres grading 30.91 grams per tonne (g/t) gold from just 21 metres depth, including 2 metres at an extraordinary 75.45 g/t. Other notable results feature multiple intercepts exceeding 10 g/t Au over several metres, underscoring the project's strong mineralisation close to surface.

Robust Economics Amid Rising Gold Prices

Star Minerals’ updated production target now ranges from 167,000 tonnes at 2.43 g/t for 11,800 ounces of gold to 255,000 tonnes at 2.16 g/t for 15,900 ounces. The project’s economics are compelling, with an undiscounted accumulated cash surplus estimated between A$9.4 million and A$19.6 million at gold prices from A$3,000 to A$3,800 per ounce. Given the current gold price hovering around A$6,000 per ounce, the potential upside is significant.

The company is also exploring a possible repeat mineralised duplex structure to the west of the current resource, with recent drill hole TGRC068 intersecting multiple gold-bearing zones. This discovery hints at further resource expansion potential, which could enhance the project’s scale and value.

Strategic Partnerships and Capital Raising

Star Minerals has formalised a Memorandum of Understanding with MEGA Resources, an experienced Australian mining contractor, to collaborate on mine development and operations. MEGA Resources is expected to cover pre-mining capital and start-up costs estimated between A$1.7 million and A$3.9 million, easing the financial burden on Star Minerals.

On the corporate front, Bain Global Resources, the finance arm of MEGA Resources, has become a substantial shareholder, reinforcing the strategic alliance. The company also successfully raised $1.5 million through a placement after the quarter ended, bolstering its cash position to $428,000 as of 30 September 2025. This capital injection is timely as Star Minerals advances through permitting and prepares for mining.

Looking Ahead

While the mining approval process is progressing, the Department of Mines, Petroleum and Exploration has requested further information, which Star Minerals has promptly provided. The company remains confident in a swift approval given the project’s straightforward nature and prior mining history on site.

Exploration continues beyond Tumblegum South, with plans underway to test additional targets in the West Bryah Basin, an area gaining attention following recent high-grade gold discoveries by peers. The appointment of Clint Moxham to the board adds mining and engineering expertise, supporting the company’s growth ambitions.