Star Minerals files mining proposal, on course to mine Tumblegum South gold in early 2026

• Star Minerals submits mining proposal for Tumblegum South gold project in WA
• Company expects to remain on track to start mining at the start of 2026
• Project expected to leverage record gold prices to deliver strong returns

Special Report: Star Minerals has taken another step towards bringing its Tumblegum South gold project into production in early 2026 with the submission of the mining proposal application.

Turnaround time for the mining proposal is expected to be relatively quick given the WA Department of Mines, Petroleum and Exploration’s target to complete 80% of all assessments within 30 business days.

This could be supported by the relatively simple nature of mining proposed by Star Minerals (ASX:SMS) for the project near Meekatharra in WA.

“We are pleased to have to submitted our application into the Department of Mines, Petroleum and Exploration’s new online system,” managing director Ashley Jones said.

“As a relatively simple project, we anticipate a quick turnaround. Timelines for the project remain on track for mining commencement at the beginning of next year, enabling us to leverage the gold price which continues to grow.”

More from Star Minerals: High-grade gold assays at Tumblegum South exceed expectations

Tumblegum South

Tumblegum South is just 40km from Meekatharra and has a contained gold resource of 45,000oz on a mining lease.

Using a conservative gold price ranging from $3000 to $3800 per ounce, the updated production target ranges from 167,000t at 2.43g/t, or 11,800oz of contained gold, to 255,000t at 2.16g/t, or 15,900oz.

This is expected to generate free cash flow of between $9.4m and $19.6m whilst pre-mining capital and start-up costs are estimated to be just $700,000 to $1.5m.

Given the Australian spot price for gold has passed the $5500/oz mark, returns could be even more lucrative than modelled.

SMS has already reached a memorandum of understanding with MEGA Resources for mine development and mining, while ResourcesWA has been appointed to undertake the mine approvals process.

Recent drilling has also returned shallow gold intersections that point to the potential for resource growth, which could increase mine life.

Further drilling is planned to evaluate the potential of the western area for significant shallow mineralisation and potential of a repeat duplex structure west of the currently defined mineral resource.

A resource update is also expected soon.

This article was developed in collaboration with Star Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.