Estrella Resources (ASX:ESR) reported the conversion of four of its reconnaissance permits to exploration and evaluation licenses under East Timor's new mining laws, according to a Wednesday Australian bourse filing.

The conversion to an exploration and evaluation license requires successful exploration results from the initial reconnaissance activity and allows the holder to pursue much more intensive exploration, such as road development, trenching, and drilling, per the filing.

The firm's initial reconnaissance was completed, and manganese and limestone prospectivity were considered very high. It requested and was granted the addition of limestone to all four newly converted licenses.

The licenses are granted for four years and can be extended up to another six years if required.

The exploration concessions will automatically be part of the joint venture concessions with the state-owned mining company Murak Rai Timor on a free carry term, until the completion of a feasibility study.

The firm plans to submit environmental applications to allow for immediate drill testing.