Estrella Resources Discovers High-Grade Manganese in Newly Awarded Exploration Licenses
ESTRELLA RESOURCES LIMITED (ESR) Share Update September 2024 Sunday 29th
Estrella Resources Unveils High-Grade Manganese Discovery in Timor-Leste
Estrella Resources Limited (ASX: ESR) has announced a major high-grade manganese discovery within its newly awarded Exploration and Evaluation Licenses in the Baucau Municipality of Timor-Leste.
Instant Summary:
- High-grade manganese discovery at the Samalari Manganese Prospect.
- Manganese oxides traced over 1.7km strike and up to 5m in width.
- Grab samples returned manganese grades between 32.7% and 53.9%.
- Four new Exploration and Evaluation Licenses granted, totaling 194.425 km².
- Estrella's total landholding in Timor-Leste now stands at 698.1 km².
Discovery Details
Estrella Resources Limited (ASX: ESR) has made a significant high-grade manganese discovery at the Samalari Manganese Prospect, located within its newly granted Exploration and Evaluation Licenses in the Baucau Municipality of Timor-Leste. The discovery, named the Samalari Manganese Prospect, has been traced over a 1.7km strike and up to 5m in width.
Grab sampling along the strike returned manganese grades ranging from 32.7% to 53.9%, based on analysis from ALS Laboratory in Australia. Estrella's Managing Director, Chris Daws, expressed excitement over the discovery, highlighting the potential of the area due to the high-grade manganese oxides observed on the surface.
New Licenses and Expansion
On 27 September 2024, Estrella was officially granted four new Exploration and Evaluation Licenses in the Baucau Municipality, which hosts the Samalari discovery. These licenses cover a total area of 194.425 km², bringing Estrella's total landholding in Timor-Leste to 698.1 km². The licenses have been granted for a period of four years, with the possibility of extensions for up to six years if required.
The Samalari Prospect is strategically located just 7.5km by road from Timor-Leste's major northern highway, facilitating easy access to regional city centers and coastal towns. The area also benefits from existing infrastructure, including grid power and low population density, which minimizes potential disruptions to exploration activities.
Field and Laboratory Results
Initial field pXRF (Portable X-Ray Fluorescence) rock-chip determinations showed manganese content exceeding 30% and up to 56.2%. These results were further validated by Australian laboratory assays, which confirmed the high quality of the discovery. The consistency between field pXRF determinations and laboratory assays enhances the efficiency of Estrella's exploration efforts.
Five samples taken at the time of discovery were submitted to ALS in Perth for analysis, with manganese grades ranging from 7.33% to 53.86%. The excellent repeatability between the ALS lab assays and Estrella's in-country pXRF results provides high confidence in the accuracy and precision of the in-country sample preparation and analysis.
Future Exploration Plans
Estrella is expanding its in-country technical team with additional experienced geological personnel to expedite the planned exploration program. Future work will include detailed mapping, sampling, and ground geophysics (Induced Potential) to detect buried manganese oxides. Additionally, a LIDAR survey and environmental clearances will be undertaken to pave the way for a scout drilling program aimed at investigating deeper manganese potential.
The company will continue to update shareholders as more information becomes available, with the next steps focusing on advancing the exploration efforts in this promising region.
The high-grade manganese discovery at the Samalari Prospect is a significant milestone for Estrella Resources. This discovery could potentially boost the company's stock price as it underscores the substantial mineral potential within its newly awarded licenses. The proximity to existing infrastructure and the high manganese grades reported are likely to attract investor interest and confidence in Estrella's exploration capabilities.
Investor Reaction:
Analysts are likely to react positively to the news, given the high manganese grades and the strategic location of the discovery. The consistency between field and laboratory results further validates the quality of the discovery, enhancing investor confidence. However, the market will be closely watching the company's next steps and the results of further exploration activities.
Conclusion:
Investors should keep an eye on Estrella Resources as the company advances its exploration efforts in Timor-Leste. The high-grade manganese discovery at the Samalari Prospect presents a significant opportunity for growth and value creation. Investors are encouraged to stay informed about the company's progress and potential future developments.