Brightstar Resources is just weeks away from first gold pour under ore purchase agreement with Genesis Minerals. Pic: Getty Images
Brightstar speeds towards first gold under deal to monetise existing Laverton stockpiles
Mining
share
- Brightstar starts ore haulage to Genesis Minerals’ Laverton mill under their ore purchase agreement
- Cash flow from OPA to fund company’s expansion
- This includes aggressive exploration, a DFS for Laverton-Menzies and refurbishment of its processing plant
Special Report: Brightstar Resources is poised to enter the ranks of gold producers with the start of the production program under its ore purchase agreement to process ore from its Laverton Hub at Genesis Minerals’ Laverton mill.
The company has now started ore haulage from existing stockpiles at the Second Fortune ROM pad containing ~9000oz of gold. A first processing campaign and gold pour is scheduled for March 2025 with all associated mining costs already sunk.
Brightstar Resources (ASX:BTR) can process up to 500,000t of ore over the course of 2025 and Q1 2026 at the Laverton Mill under the OPA with Genesis Minerals (ASX:GMD).
This will include further ore from the operating Second Fortune underground mine, historical stockpiles from the Lord Byron open pit at Jasper Hills and – subject to final regulatory approvals – development of the Fish underground project.
Cash flow from the OPA will help fuel the company’s expansion plans, which include aggressive exploration in parallel with the anticipated release of its definitive feasibility study for the wider Laverton-Menzies development and the refurbishment of its wholly owned processing plant near Laverton.
The OPA is part of the ~$240m market cap explorer’s plans to accelerate production opportunities at its Laverton Hub in 2025.
Its August 2024 merger with Alto Metals and the acquisition of roughly 1.5Moz resources around WA’s Sandstone district took its inventory to ~3Moz while a successful $30m raising in early December 2024 placed it in the hot seat to capitalise on further opportunities.
Major milestone
The announcement could not be better timed. Gold prices climbed above $4400/oz in Aussie dollars for the first time overnight.
“The commencement of haulage to Mt Morgans is a major milestone for Brightstar following months of mine development, approvals and commercial work streams. We are now well positioned to see a return on this time and capital invested, particularly at a time of record AUD gold prices,” managing director Alex Rovira said.
“The introduction of a second underground mine at the Jasper Hills Gold Project will add additional high-grade ore into our production profile and diversify the company’s production across the Laverton Hub.
“We look forward to working with all stakeholders in the Laverton district to deliver a step change in Brightstar’s production profile.
“Contemporaneous with the gold production from our Laverton Hub via the OPA, DFS study work continues apace on Brightstar’s Menzies and Laverton assets that will position Brightstar to become a multi-asset gold producer across multiple mines and locations.
“Additionally, our geology team is focused on the +55,000m extensional and infill drilling program at the Sandstone gold project, striving to rapidly grow and improve the existing 1.5Moz at 1.5g/t Au mineral resource and move that asset through the development pathway towards production opportunities.”
Mine updates
At Second Fortune, which sits at the southern end of the Laverton Tectonic Zone on the eastern margin of the Norseman-Wiluna Belt, the company has completed considerable drilling and underground development activities since it completed the acquisition of Linden Gold in June 2024.
This included ongoing capital (decline) and operating (ore drive) development in the mine, underground drilling programs along with regular upgrades to the mine’s mobile plant such as a rebuilt, zero hour, single boom jumbo.
BTR is currently advancing a resource upgrade for the mine in early 2025 from the current 165,000t at 10.9g/t gold, or 58,000oz contained gold, with the majority of drilling in key areas now infilled on a nominal 25m by 25m spacing.
Stoping activities recommenced in December 2024 with almost two levels worth of stope panels established, putting the mine in an excellent position entering into 2025.
During the December 2024 quarter, the company also completed a 29-hole resource definition and expansion underground diamond drilling program totalling 4057m with assays expected in early Q1 2025.
Meanwhile, the Fish underground development is expected to provide a step change in its production and grade profile.
Fish was previously an open pit mine and is located on a granted mining lease. Necessary updates to the Mining Proposal, Mine Closure Plan and Mining Operations Notice have been submitted to, and are being assessed by, the Department of Energy, Mines, Industry Regulation and Safety.
A scoping study released in March 2024 delineated an underground mining inventory of 190,000t at 4.4g/t for 27,000oz of contained gold.
Ore is expected to be accessed within six weeks of cutting the underground portal, with the project expected to have relatively low peak funding requirements due to early cash flow via the OPA.
BTR has started site works, including haul road maintenance and preparation, and early works for camp and site establishment for which all approvals are in place.
This article was developed in collaboration with Brightstar Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
