THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
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22 January 2024
East Star Resources Plc
("East Star" or the "Company")
US$0.5M Grant from BHP for Copper Porphyry Exploration, Kazakhstan
&
Appointment of Director
East Star Resources Plc (LSE:EST), which is defining mineral resources in Kazakhstan for the energy revolution, is delighted to announce it has been selected to receive a grant of up to US$0.5 million from BHP under the 2024 BHP Xplor programme to initiate a copper porphyry exploration strategy in Kazakhstan.
Highlights:
| · | Non-dilutive grant funding to advance East Star's copper porphyry exploration strategy |
| · | Exploration programme managed by East Star, supported by BHP Xplor with full access to BHP's expertise and global partnerships |
| · | Chris van Wijk, a geologist who developed the porphyry exploration strategy with East Star, to join Board as Non-Executive Director |
Alex Walker, East Star CEO, commented:
"We are extremely proud that BHP has chosen to work with East Star with the provision of $500,000 of non-dilutive grant funding to look for major new copper porphyry deposits in the region. Porphyry deposits are the primary deposit style for copper production in the world and Kazakhstan is host to several exceptional but significantly under explored regions that contain a number of world-class copper porphyry mines. This is an exciting new strand to our copper strategy as we progress both porphyry and VMS exploration."
Alongside this, we are delighted to welcome Chris van Wijk as a Non-Executive Director. Chris has exceptional exploration pedigree, having conducted joint venture management and project evaluation for major mining companies and having been involved in several exploration success stories. Chris enabled East Star to develop this opportunity and his technical expertise will be a valuable addition to our Board and exploration portfolio."
Head of the BHP Xplor Program, Charlee Johnson, commented:
"The diversity and quality of the submissions amongst the applicants is amazing and inspiring. We are excited to partner with East Star and help bring their ideas and passion for their exploration projects to life. We aim to accelerate this process and create disruptive results with new concepts, data and testing opportunities."
Copper Porphyry Exploration Strategy
East Star has developed a strategy of regional target generation for copper porphyry deposits, principally focussed on the Balkash-Ili magmatic arc, host to the Kounrad deposit (~650Mt @ 0.59% Cu) and Aktogai-Aidarly (~2.5Bt @ 0.39% Cu). By applying modern mineral systems concepts with advanced desktop analytical techniques and on the ground geological confirmation, East Star intends to secure several exploration licences within the area of interest for further field work. The BHP Xplor grant will be directed towards licence costs, field programmes, desktop evaluation work, and staff and administrative costs in the execution of the work plan. The programme will be managed by East Star with guidance from the BHP Xplor and wider expert team.
About BHP Xplor
BHP Xplor is a cohort-based world-first accelerator programme, dedicated to unearthing new critical mineral deposits by uniting BHP experts, thought leaders and innovative mineral explorers to offer participants with the opportunity to accelerate their exploration concepts and the potential to establish a long-term partnership with BHP. The programme offers participants funding, mentorship and coaching, and connection into BHP's network of suppliers and service providers.
BHP Xplor merges concepts from both venture-capital and early-stage accelerators, to establish a fit-for-purpose exploration portfolio of innovative, early-stage mineral exploration companies and helps drive their exploration campaigns. The programme provides candidates with a one-off, non-dilutive grant of up to US$500,000, together with in-kind services, mentorship, networking opportunities with industry and investors and connections. The grant is a once off opportunity and there are no obligations or commitments on East Star beyond the conclusion of the Xplor programme; however, East Star has committed to grant BHP certain pre-emption rights with respect to investments in East Star or its projects within the programme.
The Xplor programme is designed to create disruptive results in mineral exploration by identifying new concepts, leveraging new data and testing opportunities at a much faster pace than discoveries to date.
Appointment of Chris van Wijk as Non-Executive Director
East Star is pleased to announce the appointment of Chris van Wijk as a Non-Executive Director of the Company effective immediately. Chris is an experienced geologist who specialises in project evaluation and project generation and developed the porphyry exploration strategy with East Star. Chris brings a wealth of relevant experience, including base metal and gold exploration in Africa, Europe, the Americas, and Australia as well as joint venture management and project evaluation for major mining companies including BHP, IAMGOLD, First Quantum Minerals and Fortescue Metals Group. Chris has managed various successful exploration projects, including the Scoping Study at Mont Nimba in Guinea for BHP Billiton and the resource drilling at First Quantum's Sentinel Project in Zambia. Chris has a Master of Science in Ore Deposit Geology from the University of Western Australia and is a member of the Australasian Institute of Mining and Metallurgy.
East Star Resources Plc
Alex Walker, Chief Executive Officer
Tel: +44 (0)20 7390 0234 (via Vigo Consulting)
SI Capital (Corporate Broker)
Nick Emerson
Tel: +44 (0)1483 413 500
Peterhouse Capital Limited (Corporate Broker)
Peter Greensmith
Tel: +44 (0) 20 7469 0930
Vigo Consulting (Investor Relations)
Ben Simons / Peter Jacob
Tel: +44 (0)20 7390 0234
About East Star Resources Plc
East Star Resources is focused on the discovery and development of strategic minerals required for the energy revolution. With eight licences covering 1,190.3 km² in three mineral rich districts of Kazakhstan, East Star is undertaking an intensive exploration programme, applying modern geophysics to discover minerals in levels that were not previously explored. East Star's most advanced project is a copper deposit on the world-class Rudny Altai VMS Belt where the Company is working towards the delivery of a JORC compliant open pit copper resource close to infrastructure, within trucking distance of third-party mills with excess capacity. East Star's management are based permanently on the ground, supported by local expertise, a joint venture with the state mining company on certain projects, and grant funding from BHP through the BHP Xplor programme for copper porphyry exploration.
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The person who arranged for the release of this announcement was Alex Walker, CEO of the Company.
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