Tumblegum South Gold Project Set to Yield Up to 15,900 Ounces Over Two Years
Star Minerals has received mining approval for its Tumblegum South Gold Project, setting the stage for mining to commence in early 2026. With robust production targets and a key partnership in place, the project is poised to advance swiftly.
- Mining approval granted by WA Department of Mines
- Mining scheduled to start in Q1 2026
- Two-year mining operation planned with MEGA Resources
- Updated production target between 11.8koz and 15.9koz gold
- Only Native Vegetation Clearing Permit remains outstanding
Mining Approval Clears Path for Tumblegum South
Star Minerals Limited (ASX, SMS) has achieved a significant regulatory milestone with the approval of its Mining Proposal for the Tumblegum South Gold Project by the Western Australian Department of Mines, Petroleum and Exploration. This green light is a crucial step forward, enabling the company to proceed toward mining operations expected to commence in the first quarter of 2026.
Managing Director Ashley Jones expressed appreciation for the expedited approval process, noting that the department's new system facilitated a timely review. With only the Native Vegetation Clearing Permit pending, the project is well-positioned to maintain its development schedule.
Strategic Partnerships and Operational Plans
The mining operation is planned as a two-year campaign, encompassing extraction through to final rehabilitation. Star Minerals has entered into a 'Right to Mine Agreement' with MEGA Resources and Bain Global Resources, the latter having recently become a substantial shareholder in Star Minerals. MEGA Resources will oversee the mining activities, including the coordination of grade control drilling, which is advancing rapidly under their geological team.
This partnership not only secures operational expertise but also aligns financial backing with project execution, a critical factor in advancing from development to production.
Robust Production Targets Amid Strong Gold Prices
The updated production targets for Tumblegum South anticipate gold output ranging from approximately 11,800 to 15,900 ounces over the life of the project. These estimates are based on mining between 167,000 and 255,000 tonnes of ore at grades between 2.16 and 2.43 grams per tonne. Importantly, the project's economics appear robust across a range of gold prices, with projected cash surpluses between A$9.4 million and A$19.6 million, excluding pre-mining capital costs.
Given current gold prices significantly exceed those used in earlier scoping studies, the financial outlook for the project is promising, potentially enhancing shareholder value as mining progresses.
Looking Ahead, Regulatory and Operational Milestones
While the mining approval marks a major step forward, the pending Native Vegetation Clearing Permit remains a key regulatory hurdle. Its timely receipt will be essential to avoid delays in the planned Q1 2026 start. Investors and analysts will be watching closely for updates on this front.
As grade control drilling ramps up and mining preparations accelerate, Star Minerals is entering a critical phase that will test the project's operational and financial assumptions. The coming months will be telling in confirming the project's viability and its contribution to the company's growth trajectory.
Bottom Line?
With mining approval secured, Star Minerals is poised to translate its resource potential into production, but regulatory and operational execution remain pivotal.
Questions in the middle?
- When will the Native Vegetation Clearing Permit be granted, and could it delay mining start?
- How will MEGA Resources' operational performance impact project timelines and costs?
- What are the implications of fluctuating gold prices on the project's profitability?
