TIMOR-LESTE PROJECT
Timor-Leste – A first-mover opportunity to unlock manganese resources in virtually unexplored territory.
The nation of Timor-Leste has an exceptionally limited mining history and recent efforts to kickstart the industry, combined with highly prospective geology presents a major opportunity for Estrella Resources.
As one of only a small handful of exploration companies permitted to operate in the Republic, Estrella Resources believes the Company is able to leverage these substantial tailwinds to generate shareholder value.
Estrella’s foothold in Timor-Leste is the result of many years of dialogue between management and Timor-Leste officials.
In 2023, Timor-Leste signalled its intent to substantially advance its resources industry with the inaugural awarding of mining concessions, managed under an updated mining code by the National Petroleum and Minerals Authority (ANPM).
Estrella Resources has committed to the region via the creation of Estrella Resources Limited Representação Permanente (ESR-RP) a managing branch which will operate permanently in the Timor-Leste capital of Dili.
Estrella was one of only four entities (and one of just two ASX-listed companies) from a pool of global applicants to be successful, being awarded three Exploration and Evaluation Concessions (initially totalling 121.5 km2) in the Lautém Municipality, north-east Timor-Leste.
Since the award of the Exploration and Evaluation Concessions, ESR-RP has overseen the expansion of the Company’s footprint through a further 382 km2 of Reconnaissance Permits which continue to demonstrate potential to host high-grade manganese occurrences.
Exploration by the Company has encountered a prospective horizon within a geological basin formed adjacent to the Timor Platform, known as the Noni Formation. The Noni Formation has been associated with manganese mineralisation and a handful of high-grade manganese-bearing prospects have been identified at or near surface.
Estrella continues to unearth further prospects associated with the Noni Formation structure, which has defined over a strike length of >47km and continues to present excellent manganese targets.
TIMOR-LESTE GEOLOGY
Estrella Resources believes the Timor-Leste region has strong potential to host economic quantities of mineralisation. The country’s limited exploration and mining history ensures there are many highly-prospective targets which, despite their potential, have remained completely unexplored.
Occurrences of gold, silver, copper, manganese and chromite have been noted across the Republic. However modern, systematic exploration is required to uncover, map and quantify these and to locate new occurrences.
The distribution of metallic minerals is closely associated with these structural domains which are now exposed on the surface.
These uplifted islands are covered by recent marine and terrestrial sediments overlying the much older Australian continental greenstone crust. Weathering on Timor Leste has left structural windows of the highly prospective Australian crustal greenstones exposed alongside and beneath the younger marine sediments.
Banda Arc islands such as Timor have been uplifted through a series of complex folds and thrusts driven by continental drift.
In addition to a lack of exploration history, Timor-Leste is positioned on the boundary of the Indo-Australian and Eurasian tectonic plates, an area known as the Banda Arc, which is rich with geological opportunities.
MOU WITH TIMOR-LESTE STATE MINING COMPANY
Estrella has committed to working closely with the Timor-Leste government, its people and the emerging mining industry to deliver positive economic, social and community outcomes.
As part of this commitment, ESR-RP has entered into a binding Memorandum of Understanding (MoU) with state-run Murak Rai Timor (MRT) to create a joint-venture partnership controlling the Company’s activities within Timor-Leste.
MRT will be free-carried at 30% ownership of the joint-venture up until the publication and approval of a Definitive Feasibility Study (or similar level Economic Report) on any mineral discovery within the Exploration and Evaluation Concessions.
MRT will then be able to contribute to all direct and indirect costs related to the Concessions or transfer its 30% interest in the JV and Concessions to ESR in exchange for a production royalty.
This arrangement offers a direct and meaningful stake in any mineral development to the Timorese people and also signifies Estrella’s intent to work cooperatively and in good faith with the local population.
Estrella very much looks forward to continuing its working relationship with the Timor-Leste government, MRT, ANPM, as well as local communities to build a strong and successful minerals exploration and development sector.