Estrella Resources (ASX:ESR) said that extraction activities intercepted a manganese horizon and identified further mineralization within its Ira Miri project at Timor-Leste, according to a Friday filing with the Australian bourse.

The extraction aimed to produce up to 30,000 tonnes of high-grade manganese material from the project, the filing said.

The horizon intercepted validates the company's exploration model and provides further confidence in the project development, the filing added.

ESR has now started the production ramp-up plan at the project, and has advanced talks with several potential international end-users, the company said.

Shares of the company fell 6% in recent Friday trade.