• Star Minerals’ $1.6m raising to advance Tumblegum South towards a decision to mine
• Bain Global Resources joins in as a welcome strategic investor
• Company believes gold resource on a granted mining lease can be quickly monetised

Special Report: Star Minerals is welcoming $1.6m and a new strategic investor to the register to advance its Tumblegum South gold project, in close proximity to the Mid West mining capital of Meekatharra.

Star Minerals (ASX:SMS) received firm commitments for the placement to work on Tumblegum South and look at other opportunities, with Indian private equity giant Bain Global Resources taking part as a new strategic shareholder.

It’s the latest move the cashed-up investor has made in the WA junior gold space, and could lead to further support down the line like Bain has given to Rumble Resources and Legacy Iron Ore.

There’s already a 45,000oz contained gold resource in place on a granted mining lease at Star’s Tumblegum South, which the company believes can be swiftly brought into production.

Star Minerals’ chair Ian Stuart said the company was delighted to secure funding for the project’s next stage of development.

“Star Minerals is delighted to secure funding for the next phase of development at Tumblegum South and welcome the strategic investment and commencement of a relationship with one of the largest mining contractors in India,” SMS chair Ian Stuart said.

“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.”

The funding will now allow the company to complete infill and extensional drilling, a resource upgrade, approvals and environmental studies, and a feasibility study towards the decision to mine.

Targeting production

Before any potential resource upgrade, last year’s updated scoping study over the project has already outlined an operation producing as much as 15,900oz gold in a single campaign over 18 months.

Companies like Auric Mining (ASX:AWJ) have shown the ability to take relatively small resources through to production and generate millions to fund themselves, all at gold prices that pale in comparison to today’s bullion cost of US$2900/oz.

And having a company like Bain on the register won’t hurt given its association with BGR Mining & Infra Limited, a major player in the Indian mining industry which has executed more than 50 projects and currently has an order book approaching US$11bn.

The company also has 694km2 of copper and gold prospective territory further north, adjacent to Sandfire Resources (ASX:SFR) territory at West Bryah, while work at the Cobra uranium project will cease after terms couldn’t be reached on its acquisition.

This article was developed in collaboration with Star Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.