Star Minerals (ASX:SMS) has successfully completed a $1.6 million placement, earmarked to accelerate development at its Tumblegum South Gold Project in Western Australia. The placement, executed in two tranches, saw the final $850,000 secured after shareholder approval on May 23, 2025. CPS Capital Group managed the placement, which also brought Bain Global Resources, associated with BGR Mining and Infra, on board as a strategic shareholder.
The funding enables Star Minerals to aggressively pursue key milestones, including infill and extension drilling, resource upgrades, and crucial environmental studies. These initiatives feed into a Bankable Feasibility Study for Tumblegum South. The company is currently evaluating mining works approvals, supported by ResourcesWA, a mine approval process consultancy. Drilling is slated to begin in June, with site preparation commencing immediately.
Star Minerals aims to commence mining at Tumblegum South in early 2026. The project currently hosts a resource of 616,000 tonnes at 2.28 grams per tonne gold, totaling 45,000 ounces of contained gold. Managing Director Ashley Jones highlighted the timely nature of the funding, given rising gold prices. The company anticipates significant free cash flow, leveraging current gold prices, which are substantially higher than those factored into the updated Scoping Study.
