Verkhuba JV & Operations Update

In brief · summary, not quotable

East Star Resources Plc has achieved significant milestones at its Verkhuba Copper Deposit through its joint venture with Hong Kong Xinhai Mining Services Ltd. Seven diamond drill holes totaling over 1,350 metres have been completed, and a second drill rig has been mobilized to accelerate the program, which is fully funded by the JV and designed to support resource conversion, geological modelling, mine planning, and feasibility studies. Xinhai has fulfilled its Stage 1 investment obligations of A$1.5 million, securing an initial 15% stake in the JV company, Verkhuba Limited, which now holds the Verkhuba licence. East Star remains fully carried through to production, retaining a 30% interest in the producing mine, with the process of issuing 15% of the Company to a Xinhai subsidiary now underway.

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 provide an operational update on the ongoing diamond drilling programme at the Verkhuba Copper Deposit ("Verkhuba"), being advanced through its joint venture ("JV") with Hong Kong Xinhai Mining Services Ltd ("Xinhai").

Key Points

Seven diamond drill holes and >1,350 metres have now been completed
A second diamond drill rig has been mobilised to site, increasing capacity and supporting timely completion
The current drilling programme is designed to support resource conversion, geological modelling, mine planning and feasibility studies, with a particular emphasis on defining the initial years of mining operations
Xinhai has completed its full Stage 1 investment obligations totalling A$1.5 million, entitling it to an initial 15% of the JV company ("Verkhuba Limited")
Ownership of the Verkhuba licence has now been transferred to Verkhuba Limited and the process of issuing 15% of the Company to a Xinhai subsidiary has commenced
The drilling programme is fully funded by the JV, at no cost to East Star
East Star remains fully carried through to production under the terms of the JV, at which point the Company will retain a 30% interest in the producing mine

Alex Walker, CEO of East Star, commented:

"The Verkhuba JV work programme is progressing rapidly, with both operational and corporate workstreams advancing as planned. These milestones complete the establishment phase of the JV and allow the partners to focus entirely on advancing Verkhuba towards resource conversion, feasibility studies and ultimately production."

To watch a video of Alex Walker discussing this announcement, visit: https://eaststarplc.com/link/Pb6qbP

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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.