Estrella fires up rig in Timor Leste high purity limestone

Estrella Resources has flicked the switch on its first drilling campaign at the Werumata Limestone Project in Timor-Leste where it is chasing one of Asia’s cleanest, calcite-rich carbonate deposits.

The maiden program includes six diamond and 26 reverse circulation (RC) holes, targeting the vast Baucau and Batu Putih limestone formations that dominate the country’s northern plateau. The units are renowned for their near-pure calcite composition and low impurities; a premium blend sought after across Asia for industrial and environmental uses from acid neutralisation to construction materials.

Assay results from the current program will feed into a follow-up round of drilling as Estrella looks to define a JORC-compliant inferred resource of at least 500 million dry metric tonnes.

That number is no coincidence; it’s a key milestone under a master agreement with an international mining services partner that may look to lock in exclusive marketing and offtake rights for Estrella’s limestone.

Adding further geological intrigue, the Werumata limestone sits directly atop the manganese-rich Noni Formation. This means every hole drilled for limestone could also shed light on underlying manganese mineralisation, a two-for-one advantage that streamlines exploration costs.

Estrella already knows the terrain well. At its nearby Ira Miri prospect, the company’s latest diamond drilling intersected thick zones of supergene manganese, giving management confidence the two commodities can be explored in tandem.

The company first unveiled its plan to commercialise Timor-Leste’s high-grade limestone back in May, when it inked an exclusive marketing and offtake deal with Indonesian energy and mining group PT Raka Energi Mandiri. The agreement opens the door to South-East Asia’s surging industrial minerals market and could see up to 500 million tonnes of limestone exported from Timor-Leste over the next five years.

Operationally, Estrella has already completed water bores for drilling and dust suppression, with activities running ahead of both schedule and budget; a rarity in early-stage exploration.

The company’s foothold in Timor-Leste stems from management’s long-standing involvement in the nation’s mineral development strategy and its collaboration with government agencies keen to build a new mining industry.

In 2023, Timor-Leste launched its first-ever minerals tender and Estrella was one of only four successful applicants - and one of just two ASX-listed companies - to secure concessions. The explorer walked away with three of four exploration concessions and eight reconnaissance permits, covering prime ground across the country’s limestone and manganese belts.

Managing Director Chris Daws said the pace of progress had been remarkable.

He commented; “Drilling our first holes into Werumata has come with exceptional speed. Initial grab sample assay, project concept and third-party agreements with potential partners has all come in rapid time as we assist in building a totally new industry with Timor-Leste. All those that have been involved  should be proud of the speed and execution of their work, with zero LTIs, or zero equipment loss.”

Daws also said Estrella continues to receive outstanding support from government bodies and partners as it firms up resource estimates and undertakes early design work for port, power, and later, mine infrastructure.

He said: “Our commitment to Timor-Leste is unwavering, Timor-Leste’s official entry into ASEAN as the 11th Nation is another strong reason to build on our efforts to grow with Timor-Leste and its people.”

With approvals in place, rigs on the ground and a potential offtake deal on the horizon, Estrella appears perfectly positioned to capitalise on its first-mover advantage in Timor-Leste. For a junior explorer, the limestone opportunity could prove every bit as valuable as the manganese sitting just below it in what is a not so classic one two geological punch.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au