East Star Resources (LSE:EST), the Kazakhstan-focused gold and copper exploration company listed on the London Stock Exchange, has commenced diamond core drilling at its Verkhuba copper deposit, marking the first major operational step under its joint venture with Hong Kong Xinhai Mining Services Ltd.
The programme covers approximately 5,000 metres and is designed to support resource conversion, geological modelling, mine planning and feasibility study work, with particular emphasis on the first three to five years of potential mining operations.
Drilling is expected to take up to three months, with assays and an updated resource estimate to follow shortly after completion.
East Star is fully carried to production under the JV structure, meaning the programme costs nothing to the company; Xinhai is funding the work entirely, including the two East Star geologists and administrative support deployed on site.
On reaching production, East Star will hold a 30% interest in the mine, which sits on a current JORC Inferred Resource of 20.3 million tonnes grading 1.16% copper, 1.54% zinc and 0.27% lead.
"This circa 5,000-metre programme will provide the data required to support resource conversion and inform mine planning, bringing us closer to production of a sizeable deposit at no further cost to East Star," said CEO Alex Walker.
