Estrella Resources Launches Timor-Leste’s First Hard Rock Mining with Export Plans

Pioneering Manganese Extraction in Timor-Leste

Estrella Resources Limited (ASX:ESR) has marked a historic milestone by commencing Timor-Leste’s first-ever hard rock mineral extraction under the country’s modern Mining Code. At the Ira Miri manganese project, the company has secured approval to extract a 30,000-tonne market sample, which is now stockpiled and being prepared for export to prospective offtake partners. This bulk extraction, a first for the nation, validates Estrella’s rapid progression from discovery in early 2025 to operational mining in just over a year.

The mining operation has been executed with a strong local workforce, zero lost time injuries, and community support, reflecting Estrella’s commitment to sustainable development. The pit, designed to a maximum depth of approximately 15 metres, has yielded manganese grades as high as 53% Mn over significant thicknesses, confirming the quality of the deposit. Estrella is employing barging logistics to ship the manganese ore offshore, avoiding lengthy road transport and optimising export efficiency.

Exploration Upside and Licence Advancement

Induced Polarisation geophysical surveys reveal highly chargeable anomalies beneath the current pit, suggesting potential supergene manganese accumulations that remain untested. These targets offer promising avenues for resource expansion beyond the initial market sample. Estrella plans to apply for a Category A Mining Licence, which, if granted, will enable full-scale development at Ira Miri, transitioning the project from appraisal to production.

Meanwhile, the company is advancing its Werumata limestone project, targeting a substantial 500 million tonne JORC Inferred Mineral Resource. The maiden drilling program, comprising 33 reverse circulation and 9 diamond holes totaling 3,717 metres, has returned broad limestone intersections averaging 30 metres with high calcium carbonate grades (83% CaCO3 in Baucau Limestone and 77.5% CaCO3 in Batu Putih Chalk). These results reinforce Estrella’s earlier drilling successes and its goal to deliver a maiden mineral resource estimate imminently. Bulk density tests are underway in collaboration with the Universidade Nacional Timor Lorosa'e, aiming to underpin the resource calculation and support industrial applications such as acid neutralisation.

Capital Position Bolstered by Underwriting Agreements

Financially, Estrella has strengthened its position through two underwriting agreements for its listed options (ASX:ESROB). The company secured $2 million from Lightview Asset Pty Ltd and a major $8.01 million agreement with Million Link (China) Investment Ltd, with the latter already delivering the first tranche of $4 million post quarter. These funds are critical to sustaining Estrella’s aggressive development and exploration programs across manganese and limestone projects. The structured underwriting also includes unlisted options as incentives, aligning capital raising with shareholder value preservation.

Despite a modest cash balance of $336,000 at quarter-end, the company’s capital strategy aims to ensure sufficient funding to advance project milestones and operational activities. Estrella’s option underwriting deal has been previously detailed, providing a financial runway that supports its transition from explorer to producer.

Legal Proceedings and Corporate Leadership Transition

On the corporate front, Estrella is actively defending its interests in the Mt Edwards Lithium Royalty through Supreme Court proceedings against ASX-listed peers WIN Metals, Auric Mining, and Neometals. The case, scheduled for mediation in late April 2026, is a key factor in safeguarding the company’s strategic assets but is not expected to impact current operations.

Leadership changes are also underway, with Robert Mencel appointed as Chief Executive Officer and set to transition to Managing Director by June 30, 2026. Current Managing Director Chris Daws will remain within the group focusing on business development, ensuring continuity amid rapid growth.

Estrella’s recent drilling results and resource ambitions align with its broader strategy to unlock Timor-Leste’s mineral potential. The company’s fast-tracked manganese extraction and limestone resource development place it at the forefront of mineral production in a previously underexplored jurisdiction.

These operational advances build on the company’s earlier announcements, including the 621Mt inferred limestone resource that underscores Werumata’s scale, and the 27,371 tonne manganese stockpile confirming high-grade material ready for export. The capital boost from the $8 million underwriting deal further supports Estrella’s developmental trajectory.