Brightstar Resources (ASX:BTR) Advances Production and Development Programs
Production Campaign Underway
Brightstar Resources has begun its second ore processing campaign under the Ore Purchase Agreement with Genesis Minerals Ltd (ASX:GMD). Approximately 55kt of ore at +2.0g/t Au was delivered to the Laverton Mill for processing in the May parcel.
Financial and Operational Strength
The company remains hedge free and is well-funded through the Ocean Partners revolving stockpile facility, enhancing its working capital to support ongoing development activities. Brightstar aims to strengthen its financial position to fund future growth.
Underground Mine Developments
Development of the Fish underground mine is progressing, with the first ore expected in June. This will increase the mill feed grade for upcoming processing campaigns. Additionally, drilling activities are set to increase with three more rigs being mobilised for extensional drilling at Menzies, Laverton, and Sandstone.
Feasibility Study and Future Outlook
The Definitive Feasibility Study for the Laverton and Menzies operations is nearing completion, targeting delivery in the first half of CY25. Brightstar aims to become a +200koz p.a. gold producer within five years, positioning itself as a significant multi-asset gold producer in the WA Goldfields.
Executive Comments
Managing Director Alex Rovira stated, “It is great to see the commencement of processing for the second parcel of ore under our Ore Purchase Agreement with Genesis. Mining operations at Second Fortune continue to ramp up successfully following the resumption of stoping in December, successfully delivering high-grade tonnes into the OPA. The Fish underground mine is advancing well, with mining of first ore on track for June which is set to add high-grade Fish tonnes into future processing campaigns under the OPA. Additionally, a drilling platform is being developed underground to enable a substantial drill out of the Fish ore body at depth where we are seeking to materially increase Mineral Resource confidence at depth and extend the mine life. Our definitive feasibility study work is nearing finalisation on the Menzies and Laverton assets that will position Brightstar to become a multi-asset gold producer across multiple mines and locations. In parallel with the DFS, Brightstar has been undertaking a debt financing process with the Company engaging with a number of ‘Big 4’ domestic banks and non-bank natural resource specialist financers for the financing of the Menzies and Laverton operations, with demonstrable support indicating a strongly financeable project. With ongoing gold production and cash flow, a second high-grade gold mine coming into first ore shortly, a DFS nearing completion and multiple drilling rigs in the field ramping up exploration, it’s an exciting time for Brightstar as we advance our portfolio of projects across the WA goldfields.”
Next Steps
Brightstar will provide a detailed update on the May processing parcel’s performance, including final recovered ounces, after completing metallurgical reconciliation in the coming weeks. The company is also preparing for a third processing parcel for the Laverton Mill, scheduled for Q3 CY25. The Definitive Feasibility Study on the broader Laverton-Menzies development strategy is on track for delivery in the first half of CY25.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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