Estrella Resources (ASX: ESR) continues to make waves in the mineral exploration sector with a recent high-grade manganese discovery at the Samalari Prospect in Timor-Leste. This breakthrough comes hot on the heels of the company’s successful bid for four new exploration licenses in the Baucau Municipality. The discovery not only signals the region’s untapped mineral potential but also places Timor-Leste on the map as a key player in the global manganese market, with significant implications for both Estrella and the Timor-Leste government.
A Strategic Joint Venture with Murak Rai Timor E.P.
Central to Estrella’s success in the region is its joint venture (JV) with Murak Rai Timor E.P. (MRT), Timor-Leste’s National Mining and Services Company. This partnership is critical for navigating the local landscape and represents a strong vote of confidence from the Timor-Leste government in Estrella’s exploration capabilities. Under this JV, Estrella holds a 70% stake, while MRT retains 30%, ensuring local stakeholders have significant ownership of the project.
This partnership was further solidified during the Exploration and Evaluation License Granting Ceremony held in September 2024. The ceremony, attended by top government officials, including representatives from MRT, highlighted the Timor-Leste government’s commitment to fostering a robust mining sector.
The Samalari Manganese Prospect: High-Grade Discovery
Estrella’s exploration work in Timor-Leste is already yielding remarkable results. The Samalari Manganese Prospect, located just 5 km from Baucau, Timor-Leste's third-largest city, is home to extensive outcropping supergene manganese. Fieldwork at the site has revealed manganese mineralisation extending over a 1.7-kilometre strike, with widths of up to 5 metres.
Initial grab samples taken from the site have returned impressive grades, ranging from 32.7% to 53.9% manganese. These results, confirmed by analysis from ALS Laboratory in Australia, suggest that Samalari could become a significant manganese asset.
In fact, these early findings position the Samalari Prospect as one of the most promising discoveries within Estrella’s growing portfolio in Timor-Leste. The deposit benefits from its proximity to infrastructure, being only 7.5 km from a major national highway, enhancing its future development prospects.
A Growing Footprint in Timor-Leste
The new exploration licenses awarded to Estrella cover 194.4 square kilometres in the Baucau region, bringing the company’s total landholding in Timor-Leste to 698 square kilometres. This makes Estrella the largest concession holder in the country, a remarkable achievement that further underscores its commitment to exploration in the region.
These newly granted licenses offer more than just potential—they are home to some of the highest-grade manganese outcrops seen in Timor-Leste. The discovery of bedded manganese and chert horizons, believed to have been enriched by supergene processes, points to a high-grade resource that could be economically viable.
Timor-Leste: A Frontier for Mineral Exploration
Timor-Leste is an emerging frontier for mineral exploration, with vast untapped potential. Historically, the country has been underexplored due to its complex geography and relatively recent independence. However, the adoption of a new Mining Code in 2021 has opened the door for foreign entities like Estrella to explore its resources through the direct grant process.
Timor-Leste’s geology is particularly favourable for manganese exploration, with several mineralised zones identified across the country. The Samalari discovery, coupled with Estrella’s extensive landholding, gives the company a strategic foothold in this developing region. Manganese, a critical mineral in steelmaking and battery technologies, is in high demand globally, making Timor-Leste’s deposits especially valuable.
What’s Next for Estrella and MRT?
With such promising results from Samalari, Estrella is ramping up its exploration activities. The company has already begun additional sampling, field pXRF analysis, and is planning a comprehensive exploration program that includes ground geophysics and scout drilling to assess the deeper manganese potential.
Environmental clearances are also in progress, ensuring that future exploration and potential mining activities adhere to both local and international environmental standards. The exploration program will likely pave the way for resource estimation and, eventually, feasibility studies.
Conclusion: A Bright Future for Estrella in Timor-Leste
Estrella Resources is well-positioned to become a major player in the manganese space, not just in Timor-Leste but globally. Its strategic JV with Murak Rai Timor E.P. ensures that local interests are aligned with its exploration goals, while the Timor-Leste government’s support provides a stable foundation for growth.
The Samalari discovery is just the beginning. As Estrella continues to explore its vast landholding in Timor-Leste, the company’s prospects look increasingly bright. For retail investors and stakeholders, the company’s ongoing developments in this emerging region are worth watching closely as Estrella works to unlock the full potential of its manganese assets.
