Estrella Resources (ASX: ESR) has been a solid performer on the ASX in its first month of public life, with the company's shares holding up more than some other new listings.
Estrella completed a successful IPO recently after offering 30 million shares at $0.20 to raise up to $6 million, with the company's shares last changing hands at $0.15.
The company is focused on copper and gold exploration in Chile, and has already secured the rights to four large exploration projects, Agustina, Luna, Inca and Venus. Chile is the largest copper producing country in the world.
Importantly, the company is ready to begin drilling, with encouraging initial sampling results and the identification of a large geophysical anomaly at the flagship Agustina Project.
At the end of last month grab samples from Agustina returned values of over 2% copper, while other samples delivered near 30% iron, along with low levels of gold.
A maiden drilling campaign for 2000 metres has already started at the project, which will test the Orion Prospect.
Chilean projects
Estrella’s projects are located in Region IV, central northern Chile, within 100 kilometres of the La Serena regional mining hub. La Serena includes the port city of Coquimbo.
The proximity and access to mining infrastructure could mean lower capital expenditures for Estrella’s projects.
Agustina is situated in the El Agua Grande mining district of Chile’s Coastal Belt, and features a number of artisan mine adits that were previously exploited on a small scale for copper, gold and iron ore.
The Luna and Inca projects together form a large early stage exploration project which is prospective for copper mineralisation within epithermal breccia systems. Several small scale artisan copper mines are hosted on the project area, increasing prospectivity.
Meanwhile, Estrella’s greenfields Venus project, immediately south of Agustina, hosts several small scale gold mining operations. The company considers the project to be prospective for copper and gold.
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