Star Minerals has signed a memorandum of understanding (MOU) with MEGA Resources, a subsidiary of Indian mining contractor BGR Mining & Infra, to advance the Tumblegum South gold project in Western Australia (WA).
The MOU focuses on collaboration around the mining approvals process and feasibility study inputs, as Star Minerals progresses the studies towards the approvals process.
The agreement also includes discussions on working capital inputs and profit sharing.
MEGA has been strategically pursuing mining partnerships in WA, with a particular interest in Tumblegum South.
This interest is primarily driven by the project’s promising fundamentals and its potential for generating cash in the short term.
The appeal of Tumblegum South was further enhanced by the increase in gold prices in Australian dollar terms since 2023.
Located 40km south of Meekatharra, the project comprises tenement M51/888, a granted mining lease with a gold mineral resource of 616,000 tonnes (t) at 2.28 grams per tonne (g/t) of gold, totalling 45,000oz of contained gold.
This includes an indicated mineral resource of 337,000t at 2.52g/t of gold for 27,000oz of gold.
Star Minerals managing director Ashley Jones said: “Star Minerals is delighted to commence a relationship with one of the largest mining contractors in India. Through MEGA, BGR has rapidly developed an interest in a suite of projects in Australia and this provides a crucial step in the process to bring the Tumblegum South gold project to production.
“BGR also participated in the latest capital raise completed by Star Minerals to progress toward mining approvals. BGR was attracted to the economics of the project as outlined in the recent updated scoping study released in May 2024 and is interested in the exploration and project economic opportunity given the sustained surge in the Australian gold price.”
Star Minerals is currently working on securing all necessary environmental approvals to initiate mining activities at Tumblegum South.
The company is evaluating its next steps based on the findings from its recent updated scoping study. It is considering either proceeding with mining or exploring other options such as forming a joint venture (JV).
Star Minerals plans to use advanced exploration methods and previous findings from Bryah Resources and other sources to evaluate the potential of the Tumblegum South and West Bryah projects.
Additionally, the company is looking to grow its business by acquiring new opportunities, applying for new projects, or forming JVs in nearby areas or in other ventures that align with its objectives.
In September 2024, Star Minerals entered into a binding agreement to acquire a stake in the Cobra Uranium Project in Namibia from Madison Metals.
