en.Wedoany.com Reported - Star Minerals (ASX:SMS) has acquired a new gold exploration project near Merredin in Western Australia, covering an area of 219 square kilometers. Obtained through a low-cost tenement application, the project provides the company with exposure to new gold exploration assets with minimal upfront expenditure. Preliminary geological interpretation has identified a large-scale folded magnetic anomaly with a strike length exceeding 14 kilometers, along with multiple structural features considered prospective for gold.
The company has also applied for an exploration license adjacent to the new tenement, extending the Merredin project along its northern boundary. The Merredin project also has the potential to host iron ore and base metal mineralization. The project benefits from well-established regional infrastructure, including road and rail networks. The project site is located approximately 30 kilometers from Ramelius Resources' (ASX:RMS) Edna May gold project and processing plant, which is currently on care and maintenance. During Ramelius' ownership, Edna May produced 376,000 ounces of gold and still holds a total resource of 940,000 ounces of contained gold.
The acquisition of Merredin supports Star Minerals' strategy of building a gold exploration portfolio as mining progresses at Tumblegum South. Management stated that the company continues to evaluate a range of other advanced gold opportunities to complement its existing mining and exploration activities. Star Minerals Managing Director Ashley Jones noted that with the commencement of mining at the Tumblegum South gold project and due diligence on a range of advanced project opportunities, the company is pleased to acquire this new project near Merredin. Preliminary geological and geophysical reviews have identified several encouraging features that support the project's potential and provide a solid foundation for future exploration. The project was acquired through a low-cost tenement application, complementing the company's broader strategy of building a pipeline of exploration, development, and acquisition opportunities capable of creating long-term shareholder value.
From a geological perspective, Merredin is characterized by strong magnetic anomalies, indicating the presence of mafic-ultramafic and banded iron formation lithologies within the metamorphic margins of the Yilgarn Craton granitoids. The tenement contains a large-scale fold closure spanning 14.5 kilometers, cut by late-stage cross faults and a prominent northwest-trending crustal-scale shear zone. Management believes this structural setting is favorable for gold mineralization. The project is also surrounded by Sanukitoid-type granites, which are considered more likely to be associated with gold-mineralizing fluids than other granite types in the Yilgarn. Management noted that high-grade metamorphic sequences in the Yilgarn were historically considered to have low gold potential, but this perception has changed in recent years. Major gold deposits such as Boddington, Tropicana, and Katanning have demonstrated that gold mineralization can occur in high-grade metamorphic environments like Merredin.
Star Minerals plans to advance land access and stakeholder agreements, and will focus on reviewing and integrating historical data to generate priority exploration targets within the tenement. Reconnaissance and remote sensing programs for subsequent priority areas may also be on the agenda.
At Tumblegum South, Star Minerals and its partner MEGA Resources are rapidly approaching cash flow, having recently completed the first blast of mineralized material. Mining is being conducted by MEGA Resources, which provides up to A$20 million in working capital in exchange for a 50% profit share from the operation. The project is located 40 kilometers from Meekatharra, WA, and hosts a total resource of 45,000 ounces of contained gold, of which approximately 27,000 ounces fall into the more reliable indicated category. Mining activities are proceeding as planned, with material being stockpiled pending transport to the Plutonic processing plant under a toll treatment agreement with Catalyst Metals (ASX:CYL). Mining and haulage activities are expected to increase in the near term, while grade control and inventory management, along with ongoing operational optimization, continue in parallel.
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