Star Minerals and MEGA Resources Join Forces for Tumblegum South Gold Project

In the ever-evolving landscape of the mining industry, strategic partnerships often pave the way for groundbreaking projects. Star Minerals, a company with a strong focus on gold extraction and development, has recently signed a Memorandum of Understanding (MOU) with MEGA Resources, a subsidiary of Indian mining contractor BGR Mining & Infra. This collaboration aims to advance the Tumblegum South gold project in Western Australia (WA), a move that could significantly enhance the project's feasibility and profitability.

The Tumblegum South gold project, located 40km south of Meekatharra, comprises tenement M51/888, a granted mining lease with a gold mineral resource of 616,000 tonnes at 2.28 grams per tonne 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. The project's promising fundamentals, coupled with the recent surge in gold prices in Australian dollar terms since 2023, make it an attractive investment opportunity.



MEGA Resources' interest in the Tumblegum South project is driven by several key factors. Firstly, the project's potential for generating cash in the short term is a significant driver. This is particularly appealing given the current high gold prices. Secondly, MEGA has been strategically pursuing mining partnerships in WA, with a particular interest in Tumblegum South. This aligns with their broader strategic goals of expanding their presence and influence in the WA mining sector.

The MOU between Star Minerals and MEGA Resources focuses on collaboration around the mining approvals process and feasibility study inputs. This collaboration is crucial as Star Minerals progresses the studies towards the approvals process. The agreement also includes discussions on working capital inputs and profit sharing, which are essential for the project's financial viability. MEGA's participation in the latest capital raise completed by Star Minerals to progress toward mining approvals further underscores their commitment to the project.

Star Minerals, on the other hand, brings its expertise in gold extraction and development projects. The company is actively engaged in the Tumblegum South Gold Project, located in Western Australia, which hosts significant gold resources. 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.



In summary, the partnership between Star Minerals and MEGA Resources enhances the feasibility and potential profitability of the Tumblegum South gold project by leveraging MEGA's expertise and resources in mining approvals and feasibility studies, while Star Minerals contributes its knowledge in gold extraction and development, along with its commitment to securing environmental approvals and exploring advanced exploration methods. This collaboration is a testament to the power of strategic partnerships in the mining industry, and it will be interesting to see how this project unfolds in the coming years.