East Star Resources (LSE:EST) has taken further steps to advance its Verkhuba copper project in Kazakhstan through its joint venture with Hong Kong Xinhai Mining Services, establishing Verkhuba Limited within the Astana International Financial Centre and securing an initial funding payment of A$500,000. The payment forms part of a proposed investment programme worth approximately US$65 million and supports the continued development of the project under the farm-in agreement.
The arrangement leaves East Star fully carried through to production, allowing the company to retain a 30% interest in a future mining operation based on the Verkhuba deposit’s JORC Inferred Resource of 20.3 million tonnes containing copper, zinc and lead.
Development activity is now moving from transaction completion to operational execution. Key milestones include the transfer of the Verkhuba licence into the joint venture structure, the signing of a drilling contract and preparations for an initial 5,000-metre diamond drilling campaign scheduled to commence in June 2026. Drill rigs are being mobilised to site as the partners begin advancing the next phase of exploration and project evaluation.
Alongside the drilling programme, the joint venture is progressing early site development work and engaging in discussions related to land acquisition and infrastructure requirements. These initiatives are expected to support the long-term development pathway for Verkhuba and could accelerate the project’s progression toward future production and cash generation.
Management believes the ongoing work strengthens East Star’s position within Kazakhstan’s base metals sector while advancing one of the company’s most significant development assets.
More about East Star Resources
East Star Resources is a London-listed exploration and development company focused on copper and gold opportunities across Kazakhstan. Its portfolio includes the Verkhuba copper deposit, a number of volcanogenic massive sulphide prospects, a gold exploration joint venture with Endeavour Mining, and several large-scale copper porphyry and epithermal gold targets located within established mineral belts.
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