East Star Resources
Financials:
Primary ticker: LSE:EST
Stage of development: Exploration
Primary minerals: Copper, Gold, Rare Earths
Project to promote: Chu-Ili Gold Belt, Rudny Altai VHMS Belt, East Kostanay Heavy Rare Earths
Project location: Kazakhstan
Website: www.eaststarplc.com
Corporate presentation: Click here
East Star is focused on the discovery and development of gold, copper, rare earths, and base metals in Kazakhstan. We are experienced explorers, with first mover advantage to secure prospective tenements in a country which is newly reopened for business. Our management are based in-country, supported by local expertise, and a JV with the state mining company on certain projects.
We are undertaking intensive exploration programmes across nine licences in three mineral rich districts, applying modern geophysics to discover metals in under-explored areas. Our projects include high grade gold discoveries, Ionic Adsorption Clay (IAC) hosted rare earth resources, and Volcanogenic Massive Sulphide copper-lead-zinc-gold-silver prospects.
We believe our projects have large mineral potential without large mine requirements, and Kazakhstan’s infrastructure and operating costs mean a low economic threshold for development.
Cash: GBP$4.4M
Debt: NIL
Major shareholders:
Ilwella Pty Ltd – 16.7%
Alex Walker (CEO) – 11.0%
TS Capital Limited – 10.1%
Reedbuck Nominees Pty Ltd – 5.4%
Rainer Heinz Ellmies – 5.4%
Management Ownership – 12.5%
Management Profile
Alex Walker – CEO
Alex is a mining investment banker and resources executive based full-time in Almaty, Kazakhstan. Originally from Australia, Alex has more than 15 years of mining finance and management experience and was co-founder and GM of ASX-listed ScandiVanadium.
Alex has an MSc in Mineral and Energy Economics, a GDip in Applied Finance and Investment, a Bcomm, a BSocSci, a GAICD, and is a former Captain in the Australian Army Reserves.
What is your rationale for taking part 121 Mining Investment?
Raising investor awareness of the significant opportunity which exists in the Kazakhstan mining sector which is comparable to Western Australia in the 1970s. We are the only pure play listed explorer through which to access this.
What recent news would you like to highlight to investors attending?
18 May 2022 – farm-in for up to 90% of Talairyk Heavy Rare Earth Project in the Kostanay region – low-cost entry to a geologically de-risked Ionic Adsorption Clay (IAC) hosted Heavy Rare Earth deposit.
6 July 2022 – completed helicopter EM survey over licences in the prolific Rudny Altai VMS belt – included target areas with particularly strong electromagnetic conductors.
25 July 2022 – commencement of diamond drilling on the Apmintas Licence in the Chu-Ili orogenic gold belt – ongoing.
8 August 2022 – award of new 134.7 sq km exploration licence adjacent to the Talairyk Heavy Rare Earth Project.
15 August 2022 – award of three new licences in the Rudny Altai VMS belt.
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Complete drill programmes and establish key areas for resource drill out in 2023 in the orogenic gold prospects.
Commence work programme on heavy rare earth project.
6 Months:
Drill targeted EM anomalies on the VMS prospects. Drill and conduct leach test work on the Heavy Rare Earth project.
12 Months:
Commence resource definition drilling on the orogenic gold targets and Heavy Rare Earth project, and have established mineralised targets on the VMS prospects with further drilling commencing.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
The credibility of the jurisdiction as a stable investment environment. Continued and demonstrable success in exploration, development, and corporate activity.
What do you think makes your company such a compelling investment?
East star is a combination of the right people, at the right time, in the right place.
The opportunity in Kazakhstan is like Western Australia in the 1970s with a convergence of ideal conditions for mining which represent a once in a lifetime opportunity for value creation in the sector.
We are experienced explorers – first movers into a Kazakhstan newly reopened for business. We have a JV with state mining company on certain projects and our management are based permanently on the ground, supported by local expertise. We are already seeing the benefit of this with the rapid pegging of new tenements and timely completion of work programmes.
We have 1,687 sq km of exploration tenements granted across nine licences in three mineral rich districts including high grade gold discoveries and a rare earth deposit.
We believe all our projects have large mineral potential without large mine requirements. Existing infrastructure and operating costs in Kazakhstan mean a low economic threshold for development.
What are the top 3 key investor takeaways?
Kazakhstan is like Western Australia in the 1970s – East Star is the only pure play listed explorer through which to access the opportunity.
Exposure to multiple commodities with significant strategic value including gold, rare earth magnets, and copper.
Large mineral potential without large mine requirements – low economic threshold for development.