UK-based mining company East Star Resources is preparing to begin drilling at the Verkhuba deposit in the East Kazakhstan region to explore its reserves. The project will be financed through to the production stage by Chinese Xinhai, with which the British company has formed a joint venture in the Astana International Financial Centre (AIFC). Economist Arman Batayev pointed out the development.
East Star Resources reported on the London Stock Exchange on the progress of the Verkhuba project. In March, the company formally signed an agreement to establish a joint venture with Hong Kong Xinhai Mining Services Limited to accelerate the development of the deposit. The Verkhuba joint venture was set up in the AIFC.
Under the agreement, Xinhai must invest $65 million in the project and bring it into production before East Star joins the financing. Meanwhile, the UK-based company will retain a 30% stake in the producing mine.
Xinhai has already allocated A$500,000 (around $344,897) to update the deposit’s reserve estimate and prepare the deposit for development. Verkhuba has signed a drilling contract and has already deployed equipment to the site. Drill site preparation is underway, while capacity for core logging is being expanded and an on-site laboratory for sample analysis is being established.
Work is scheduled to begin in June 2026. A total of 5,000 meters of diamond drilling is planned to define the deposit’s reserves, support mine planning and prepare a technical and economic feasibility study.
Furthermore, the companies are working to obtain the licenses required to develop the deposit. According to the company, Verkhulba currently has JORC-compliant reserves of 20.3 million tonnes of ore, with average grades of 1.16% copper, 1.54% zinc and 0.27% lead.
In February 2025, East Star Resources announced the discovery of potential additional copper and gold reserves at the Verkhuba, Snezhnoye and Talovskoye exploration projects in Kazakhstan. Verkhuba is considered the most promising of the three deposits.
In December 2025, East Star Resources announced a partnership with Hong Kong Xinhai Mining Services Limited to develop the Verkhuba deposit. Under the agreement, Xinhai will develop up to 70% of the deposit area in five stages before the project moves into production. The Chinese company’s stake will increase progressively throughout the process.
