Milestone for Star Minerals at Tumblegum South
Star Minerals has reached a significant milestone with the completion of the first blast at Tumblegum South, marking the transition of the project from development to active mining. This event is a crucial step in the company’s journey toward near-term gold production.
The initial phase of mining involves the extraction of waste material, which is part of the early operations that are gaining momentum. The project is now moving into its operational phase after passing through the necessary approvals and site preparation stages.
Ashley Jones, managing director of Star Minerals (ASX:SMS), highlighted the importance of this achievement, stating that it represents a major step in unlocking the project’s potential. “With strong progress across site activities, we are excited about the pathway ahead as mining commences and we move towards gold production,” he said.
Market Ready and Operational Framework
Over the past few months, Star Minerals has been working on establishing the development structure at Tumblegum South. A Right to Mine agreement with MEGA Resources and Bain Global Resources is now in place, covering mine funding, development, and operations. This partnership provides a solid foundation for the project.
In addition, Star has signed a toll treatment deal with Catalyst Metals, ensuring a processing pathway for the ore. The company has also received mining approval from the Western Australian government, further supporting its operational readiness.
These arrangements allow Star to pursue a contract-mining and toll-treatment path to production without the need to build its own plant. Profits will be shared with MEGA on a 50:50 basis, reflecting the collaborative nature of the project.
Strong Resource Base and Production Potential
Star Minerals’ mineral resource estimate for Tumblegum South stands at 616,000 tonnes at 2.28g/t gold, equating to approximately 45,000 ounces of gold. This includes 337,000 tonnes at 2.52g/t for 27,000 ounces in the indicated category and 279,000 tonnes at 1.99g/t for 18,000 ounces in the inferred category.
The updated production target ranges from about 167,000 tonnes at 2.43g/t for 11,800 ounces to 255,000 tonnes at 2.16g/t for 15,900 ounces. At gold prices between A$3,000/oz and A$3,800/oz, the project could generate a cash surplus of approximately A$9.4m to A$19.6m after working capital costs but before pre-mining capital.
Gold prices have risen significantly above the assumptions used in Star’s updated scoping study, providing a stronger market backdrop as mining begins.
Focus on Delivery and Future Steps
Tumblegum South has successfully progressed through site mobilisation, grade-control drilling, approvals, and agreements. The first blast marks the shift from preparation to delivery, with Star now focused on early mining and moving toward gold production.
This transition highlights the company’s commitment to delivering on its promises and leveraging the potential of the Tumblegum South project. As operations continue, Star Minerals aims to establish itself as a key player in the gold mining sector in Western Australia.
