Local geologists working for Estrella Resources have picked up a rich deposit of transported alluvial manganese at the company’s Soru prospect, with early observations suggesting grades running as high as 95 per cent.
The prospect is part of the company’s northern leases that make up its Lautém manganese project in Timor-Leste.
Further investigation determined the manganese may have leached from the surrounding hills due to erosion to form a supergene deposit before breaking up and creating a tertiary deposit of rock fragments and boulders across the hillside and in the local creek systems.
Estrella’s local geological team have now collected samples and mapped out the alluvial manganese over a wide area of nearly 1.5 kilometres by 700 metres.
To push resource definition efforts forward, Estrella has sent the preliminary samples back to Australia for laboratory analysis. Early observations suggest extremely high-grade manganese oxide concentrations. Assay results are expected by late March.
Estrella Resources managing director Chris Daws said: “This is a promising development and our team is currently working to ascertain the grade, width, and source of the manganese. We have already transported several indicative samples back to Australia for laboratory analysis.”
In parallel with its fieldwork, the company has also applied to the Timor-Leste government for an upgraded environmental licence to kickstart trenching and drilling at the project. This will pave the way for a deeper exploration program.
The latest findings are similar to a discovery Estrella made two weeks ago at the company’s nearby Sica and Ira Miri prospects, where detrital material grading up to 40.1pc manganese accumulated on the valley floors. It appears to be transported material from supergene manganese outcrops in the hills above.
Assays from Sica and Ira Miri, lying 10km to the north of Soru, showed low levels of the contaminants boron, arsenic, phosphorus and silica, making the manganese marketable to the steel industry.
Manganese is used in the manufacture of steel to improve the quality of the end product and gives the producer more control over the process when manufacturing specific steel products.
Estrella made a bold move last year to secure one of the first exploration licences in Timor-Leste as the nation turned the page on its turbulent past.
In July and with the country’s newly instituted 2021 mining code in play, the company finally struck a joint venture deal with Murak Rai Timor (MRT), the State-run mining arm of the Timor-Leste government, to explore for manganese, copper and gold.
Under the terms of the agreement, Estrella retains a 70pc interest in the venture, while MRT remains free carried for the balance until a final investment decision is made. At that point, MRT can elect to fund its 30pc share or hand it back to Estrella in exchange for a 2pc royalty on net smelter.
The company now has its foot on a total landholding of 698 square kilometres in Timor-Leste. Its portfolio includes seven exploration concessions in partnership with MRT, covering 315 square kilometres and eight adjoining reconnaissance permits totalling 382 square kilometres.
With minimal farming and a sparse population, the exploration leases are prime for exploration. The region is well-endowed with strong infrastructure for mining, being close to major roads, reliable power access and direct links to ports, making for streamlined logistics and operational efficiency.
Estrella’s Soru discovery has come at a time when the global demand for manganese is on the up against a backdrop of increased geopolitical tensions and the need to lock up stable supplies of the steel additive.
The company was also the first overseas company to strike an exploration deal in Timor-Leste, giving it the luxury of first mover advantage of cherry picking the best-looking leases in the country.
It seems Estrella’s early decisions on which grounds to peg are starting to pay off handsomely, with a repeating story of hitting high-grade manganese almost every time the company sets foot in the field.
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By James Pearson
