Introduction
BHP has announced its second cohort of six companies, chosen from a pool of over 500 applicants, to join the BHP Xplor* accelerator program.
BHP Xplor is a global accelerator program targeting innovative, early-stage mineral exploration companies to find the critical resources necessary to drive the energy transition.
Out of six companies, BHP Xplor invited two companies to explore copper and other base and precious metals in Kazakhstan.: Pallas Resources and East Star Resources. Both companies will receive up to US$500,000 in non-dilutive funding. Proceeds will go toward accelerating exploration over a defined area of interest hunting significant copper systems.
A Momentous Achievement for East Star Resources
East Star Resources’ CEO, Alex Walker, expressed his gratitude for the grant and highlighted the extensive application process. BHP, known for their stringent due diligence, selected East Star Resources as a partner, signalling the potential of their copper exploration project in Kazakhstan.
The Application Process
The application process involved pitching an exploration concept, a task that required careful planning and consideration. Copper porphyries, known for their complexity and substantial financial requirements, presented a challenging proposition for East Star Resources. However, with the guidance of their new director, Chris Van Weck, they formulated a compelling exploration concept.
BHP’s Role
BHP’s involvement goes beyond financial support. They bring a wealth of expertise in exploration, ecology, environmental impact, and governance. Access to a network of service providers and international experts enhances East Star Resources’ capabilities.
The Significance of Prospectivity
Kazakhstan holds enormous potential for copper exploration, akin to Western Australia in the 1970s. With two world-class copper projects already identified in a vast area, the odds are that more remain undiscovered. BHP recognises this prospectivity and views East Star Resources as a valuable partner in unlocking this potential.
Dual Exploration Strategies
East Star Resources is pursuing two parallel exploration strategies. While the VMS (Volcanogenic Massive Sulfide) projects remain a focus due to their excellent return on invested capital, the grant from BHP will fund the copper porphyry exploration. This dual approach maximizes their chances of success in a burgeoning copper market.
Financial Prudence
It’s essential to use the grant wisely. East Star Resources aims to de-risk the project with the initial funding, making it an attractive proposition for future investors. While there is no specific obligation tied to the funding, having BHP as a potential partner is a significant advantage.
Plans for Q1 and Beyond
East Star Resources is actively building the copper porphyry exploration team and refining its strategy. With Chris Van Weck’s geological expertise, they are poised for a successful exploration campaign. The company also plans to continue advancing its VMS projects, aiming to reach drilling-ready status and apply for mining licenses.
2024 promises to be a pivotal year for East Star Resources. With increasing demand for copper and forecasts of significant deficits in the coming years, the company’s exploration activities are well-timed. As they embark on both VMS and copper porphyry exploration, shareholders can anticipate an eventful and potentially rewarding year.
In conclusion, East Star Resources’ partnership with BHP and their dual exploration strategies position them as a key player in the evolving copper market. As they continue their exploration journey, the mining industry and investors alike will closely watch their progress.
Watch the interview with Alex Walker the CEO of East Star Resources following news that the company have received $500,000 in grant funding from BHP Xplor.
