Interview with Alex Walker, Director & CEO of East Star Resources 

Our previous interview: https://www.cruxinvestor.com/posts/east-star-resources-lseest-pitch-perfect-3404 

Recording date: 28th November 2023

East Star Resources is a London-listed exploration company focused on copper and other base metals projects in Kazakhstan. CEO Alex Walker lives with his family in Kazakhstan, allowing close oversight of operations and helping to drive progress. He cites the low costs and good infrastructure as major advantages.

The company's main focus is on the Rudny Altai volcanogenic massive sulfide (VMS) belt where they have been drilling the historic Verkhuba deposit. Recent drilling aimed to demonstrate potential for an open pit resource that could be fast-tracked to production. Assays are expected shortly and Walker is excited about the potential they demonstrate. Proximity to local processing plants with spare capacity provides a clear development path.

The company raised £540k in October, providing working capital without immediate need for further financing. Focus is on advancing the copper prospects while rationalizing other assets through reduced license sizes and potential farm-outs or sales. The market is tough but Walker stresses considering optionality and cost of capital before giving assets away cheaply.At Verkhuba, historic data points to over 300kt contained copper yet the current market cap is under £3m. First mover advantage in country allows targeting high quality assets. Recent rock chip results also demonstrate potential at another target.

Next steps at Verkhuba include confirming an open pit resource and scoping study to demonstrate a clear low-capex development path, focused on first production within 1-2 years. Small scale, low strip ratio production could truck material 50km for toll treatment or on-site production of a 5% Cu concentrate. These options avoid needing to raise large capex, with potential for low opex in Kazakhstan.

In closing, Walker stresses the quality of the Verkhuba project, the potential value indicated by preliminary studies, the country advantages, and the strategic focus on demonstrating a clear, low-capex route to first cashflow in the near-term. This can help maintain shareholder confidence despite market challenges. 

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View East Star Resources company profile: https://www.cruxinvestor.com/companies/east-star-resources 

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