Estrella Sets the Drill Bit Turning in Timor-Leste: A Manganese Frontier Beckons

In a move that could place it at the geological ground zero of Timor-Leste’s nascent minerals industry, Estrella Resources (ASX: ESR) is primed to begin the country’s first mineral drilling campaign since the adoption of a modern mining code. It’s a bold, first-mover play from a company better known for nickel pursuits back home in Western Australia, now angling to unlock manganese riches in the hills of Southeast Asia.

Estrella has inked a deal with local outfit CoreSearch Minerals and Mining Services LDA, a freshly minted subsidiary of the H2O Group, a name well-versed in Timor-Leste’s terrain through 25 years of water bore drilling. Together, they’re establishing full reverse circulation (RC) and diamond drilling capacity on Timorese soil – a national first for mineral exploration.

“This is a historic moment,” said Estrella managing director Chris Daws. “We’re not just drilling for minerals – we’re laying the foundation for a whole new industry in the country.”

The company is shipping in an SP6500 rig from Darwin, supported by carriers and compressors sourced from as far afield as Vietnam. It’s no small feat. The logistical effort includes self-loading rigs, track-mounted carriers for wet-season access, and enough rod string to tackle both supergene manganese horizons and deeper geological mysteries.

Estrella is bankrolling the operation with a US$200,000 unsecured loan, repayable through drill metres – a clever alignment of incentives. The repayment kicks in at US$10 per metre over the first 20,000 metres, giving Estrella exclusive access to the gear until the bill’s settled.

Initial plans include 10,000 metres of RC drilling and 3,000 metres of diamond drilling, targeting three prospects – Ira Miri, Sica and Lalena. All eyes are on the manganese potential within the Noni Formation, where recent IP geophysics have sparked interest. Up to 90 holes are currently under environmental review, with approvals expected to coincide with the end of the wet season in mid-April.

Importantly, Estrella isn’t just dropping in, drilling, and leaving. There’s a strong undercurrent of community engagement and local employment. The company’s joint venture partner, Murak Rai Timor, is actively involved in stakeholder consultation, cultural site registration, and environmental planning. Local workers will be tapped for support roles, giving communities a stake in the project’s success.

Environmental hurdles are being cleared one by one. A Category B licence has been conditionally granted, with final documents including the Environmental Impact Statement and Management Plan now in the hands of Timor’s Minerals Authority (ANM). Final community meetings are slated for early May, after which the drill rig can finally sink its teeth into the country’s untouched geology.

Estrella’s move into Timor-Leste is as much a geopolitical bet as it is a geological one. With a government eager to diversify away from oil dependency and a population keen on economic participation, the regulatory winds are blowing favourably.

The rig is expected to arrive in Dili in mid-April, with drilling pencilled in for May. Estrella is promising further updates as the last containers arrive and approvals crystallise.

For now, shareholders can look forward to the rare sight of an ASX junior breaking new ground – quite literally – in one of the last unexplored corners of the mineral map. And with manganese prices perking up amid the battery metals buzz, Estrella might just have timed this frontier foray to perfection.

As Daws put it: “With completely undrilled targets prospective for high-grade manganese, it is a very exciting time for Estrella Resources shareholders and management.”

Indeed – for a country new to mining, and a junior keen to punch above its weight, the drills are about to do the talking.