thickness vs share price, page-4

Interesting discussion

The reality is, price response will come down to a mix of three things:

1. Length of intercepts

2. Grade (% Mn)

3. Market sentiment at the time of release

But beyond just grade and thickness, there are several other factors that will determine how the market reacts:

• Depth and Strip Ratio: Shallow mineralisation (e.g. <30m) is vastly more valuable than deeper intercepts. For a bulk commodity like manganese, open-pit potential is key.

• Continuity and Geometry: A single flashy intercept is nice, but consistent hits across multiple holes is what builds scale, confidence, and re-rates.

• Purity and Metallurgy: The early rock chip samples from Ira Miri showed low levels of deleterious elements (silica, boron, phosphorus), which is a huge tick. Lab assays confirming this will be critical.

• Market Conditions: If small-cap sentiment improves or battery metals catch a tailwind, even moderate hits could see big price moves — particularly with ESR’s tight register and first-mover story.

• Follow-Up Drilling and Momentum: If Estrella can go straight into further drilling off the back of success, it keeps attention and capital flowing. Delays can kill momentum.

• Jurisdictional Narrative: Timor-Leste’s emergence as a mining destination is part of the story. Government support, new mining code, regional infrastructure — it all adds to the appeal if the geology stacks up.

• Strategic Location: Timor sits right in the middle of a resource-rich neighbourhood — near major nickel operations in Indonesia (Weda Bay, Morowali), and within reach of copper-gold giants like Grasberg in PNG/Indonesian Papua. If they can prove something real, the proximity to Asia’s EV battery manufacturing hub becomes a genuine logistical advantage.

So yeah — if they hit +6m at 50% Mn, especially in shallow supergene, that could be enough to justify a re-rate into the 10–15c zone quickly. Anything over 4m at 30–40% will still get attention, particularly if the assays confirm low impurity levels.

But more than just grade and thickness, the overall package — geology, follow-up, sentiment, communication, and jurisdictional momentum — will dictate how this trades.

And for what it’s worth, if they hit consistently across the program, even with moderately wide intercepts at strong grades, I don’t think 25c is out of the question within 3–9 months. That kind of move isn’t uncommon for early-stage discoveries with tight capital structures, genuine scale potential, and a fresh narrative. Especially when it’s unfolding in a brand-new, highly supportive jurisdiction like Timor-Leste.

That said, my biggest concern — and I think it’s one worth keeping front of mind — is around the ongoing political support and potential for corruption or policy instability in Timor-Leste. This is a country still finding its footing in the mining sector, and while the introduction of a mining code and apparent support for Estrella are encouraging signs, we’ve seen in other frontier jurisdictions how things can change quickly.

Estrella’s success will ultimately depend not just on what’s in the ground, but on their ability to navigate government processes, maintain transparent and respectful community relations, and show that they can operate to international standards in an emerging environment.

If they can thread that needle — and the geology stacks up — the reward could be substantial. But it’s not without its risks, and anyone investing here should be eyes wide open on that front.

The upside is asymmetric, but trust and execution will matter just as much as the drill results.

GO ESTRELLA