Estrella Resources (ASX:ESR) pleased with $1.015m R&D tax refund

• Estrella resources (ESR) receives over $1 million in a refundable tax offset for research and development (R&D) conducted at its Carr Boyd Nickel project during the 2021-22 financial year
• The tax refund of $1.015 million is part of the Australian government’s R&D tax incentive which offsets R&D costs to support innovation
• Estrella says its R&D activities mostly focused on a genesis model that improves identification of mineralisation
• ESR shares are up 6.2 per cent, trading at 1.7 cents at 12:48pm AEDT

Estrella Resources (ESR) has received over $1 million in a refundable tax offset for research and development (R&D) conducted at its Carr Boyd Nickel project during the 2021-22 financial year.

The tax refund of $1.015 million is part of the Australian government’s R&D tax incentive, which supports “companies innovate and grow” by offsetting costs associated with R&D.

Estrella said its R&D activities mostly focused on testing hypothesis relating to the formation and emplacement processes responsible for the Carr Boyd Igneous Complex.

The company said these activities resulted in the formation of an improved genesis model that improves the identification of mineralisation.

Last week, Estrella has completed mining and crushing of bulk high grade nickel sulphide ore from the 5A nickel mine in Spargoville, WA.

The company estimates it will be able to truck approximately 2,500 tonnes of the ore to Glencore’s Murrin Murrin HPAL process facility this month.

Laboratory assays are underway to determine the expected delivered ore grade and moisture contents.

ESR shares were up 6.2 per cent, trading at 1.7 cents at 12:48pm AEDT.