Verkhuba Copper Deposit Drilling Underway

In brief · summary, not quotable

East Star Resources Plc has commenced a 5,000-metre diamond core drilling program at the Verkhuba Copper Deposit, a key operational milestone for its joint venture with Xinhai. This program, fully funded by Xinhai, aims to support resource conversion, geological modeling, mine planning, and feasibility studies, focusing on the initial 3 to 5 years of mining operations. The drilling is expected to conclude within three months, with assays and an updated resource estimate to follow. East Star will retain a 30% interest in the producing mine, which currently holds a JORC Inferred Resource of 20.3 million tonnes grading 1.16% copper, 1.54% zinc, and 0.27% lead.

Full announcement

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East Star Resources Plc (LSE: EST), the Kazakhstan-focused gold and copper exploration and development company, is pleased to announce the commencement of drilling at the Verkhuba Copper Deposit ("Verkhuba"), as part of its Joint Venture ("JV") with Hong Kong Xinhai Mining Services Ltd ("Xinhai").

Highlights

A programme of approximately 5,000 metres of diamond core drilling has commenced.
The drilling programme is intended to support resource conversion, geological modelling, mine planning and feasibility study activities, with particular focus on the first 3 to 5 years of mining operations.
East Star is allocating two geologists and providing some additional administrative support, paid for by Xinhai through the JV, to ensure continuity of care in exploration and relationships with local stakeholders.
Drilling is expected to take up to 3 months with assays and an updated resource to follow shortly after.
The drilling programme is at no cost to East Star which is fully carried to production. At that point East Star will hold 30% of the producing mine with a current JORC Inferred Resource of 20.3Mt @ 1.16% copper, 1.54% zinc and 0.27% lead.

Alex Walker, CEO of East Star, commented:

"Having established the JV company and received initial funding from our partner, Xinhai, we are now moving directly into the operational phase required to advance the project towards feasibility. This circa 5,000-metre programme will provide the data required to support resource conversion and inform mine planning, bringing us closer to production of a sizeable deposit at no further cost to East Star."

Figure 1 - Drill Equipment onsite at Verkhuba

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About Hong Kong Xinhai Mining Services Limited

The person who arranged for the release of this announcement was Alex Walker, CEO of the Company.

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.