Estrella Resources (ASX: ESR) has jagged what the company says is its biggest-ever manganese outcrop in Timor-Leste – a massive supergene zone discovered 500m south of its Samalari prospect during ongoing mapping efforts.
Management says the recent find is particularly important due to the sheer scale of the manganese-iron oxides-rich outcrop that has been traced across a 1.7km strike and ranges between 2m and 6m in width.
The Samalari prospect – which the company picked up only recently in partnership with the government-controlled Murak Rai Timor (MRT) – is just 5km from Baucau and strategically positioned close to major road and power infrastructure. The area is sparsely populated and minimally farmed, which the company says enhances its suitability for exploration.
The more time our exploration teams spend in the field, the more manganese they keep finding. This most recent discovery of outcropping supergene manganese south of the Samalari manganese prospect is one of the most spectacular that we have located to date in Timor-Leste.
Estrella Resources Managing Director Chris Daws
Keen to inform and receive feedback from the local community, Estrella’s exploration work has constantly moved forward in lockstep with a series of strategic engagement and education programs – which Daws recognises as valuable and important, having spent many years travelling to the region.
The company has also expanded its in-country technical team as it prepares to deploy advanced geophysical tools to help dig up deeper manganese deposits.
To that end, Estrella is currently developing its own specific induced-polarisation (IP) tool to be used where mapping shows the greatest potential for supergene manganese enrichment. IP technology is seen as a perfect fit for manganese exploration due to its ability to detect electrical differences between manganese oxides and surrounding materials.
The company is now continuing with surface mapping and sampling work, while preparing for more ground-disturbing activities.
Estrella’s decision to pivot to Timor-Leste appears to have been a smart move at a time when the government is looking to diversify the tax revenue stream away from its richly-endowed petroleum minerals base, coupled with a newly-enacted mining code for metals exploration.
And it also seems that the company’s strategy is starting to bear financial fruit for its efforts. Not only has its share price more than tripled to 14c a share on booming volume in less than a month, it is also attracting the attention of the big boys, with global metals trading giant, Glencore, recently making a site visit with its heads of manganese and nickel trading both present.
Now with a relatively unexplored landholding of 698 square kilometres, its portfolio includes seven exploration concessions in partnership with MRT that cover 315sq km and eight separate, but adjoining, reconnaissance permits totalling 382sq km.
It would be fair to say that Estrella has still barely scratched the surface with its manganese exploration in Timor-Leste. Although it is still at the mapping stage, the IP surveys will be next to try and prove their worth as the company’s exploration plans move into 2025.
However, it is when the drill bit gets stuck in that laser-focused punters are likely to be kept on the edge of their seats – especially as the resource definition starts to take shape.
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