With gold punching above $3,300/oz, Brightstar’s Selkirk is reaping the rewards of all-time high prices

Selkirk JV completed, producing 8,049oz gold
Sales to the Perth Mint expected to fetch >$3,300oz
Brightstar to continue proving up its larger-scale Menzies-Laverton projects

Special Report: The small-scale mining of Brightstar Resources’ Selkirk JV with BML Ventures is now complete, producing a total of 8,049.6oz gold from 43 gold doré bars.

It’s doré for the explorer as gold digger Brightstar Resources (ASX:BTR) proves that small-scale mining of deposits around its overall +1Moz Menzies and Laverton projects is great business, especially with gold prices hitting all-time highs >$3,300oz.

BTR’s strategy has been to monetise small-scale deposits that otherwise wouldn’t be developed to fund its surrounding, large-scale project ambitions.

To date, 5,546oz out of the 8,049.6oz produced from Selkirk has been sold to the Perth Mint after refining at an average realised sale price of an eye-whopping $3,306/oz.

Quick-fire calculations measure that total sales revenue from Selkirk will come in at ~$26.61 million.

The JV model had pegged revenue from Selkirk at $2,850/oz, so sales to The Perth Mint have significantly exceeded expectations due to additional recovered ounces and the higher realised gold price for the bars.

Right place, right time, right partner

Total costs for the JV are still being finalised and reconciled and once approved, net project income will be split 50/50 between BTR and its partner BML Ventures, while total project costs are expected to be within $12-13 million.

BTR managing director Alex Rovira says gold processing of our Selkirk Mining JV material has safely and successfully concluded by the team at Genesis Minerals’ (ASX:GMD) Gwalia operation.

“Their assistance, along with JT Metallurgists acting on behalf of the joint venture, has seen the successful processing of ore from the Menzies gold project into doré bars poured at record high gold prices,” Rovira says.

“In parallel with the finalisation of gold-in-circuit calculations, which is expected to occur shortly, we are also finalising the joint venture accounts and making provisions for rehabilitation and waste dump seeding to achieve best practice environmental outcomes.

“With the Selkirk JV all but concluded, we continue our focus on building the company into a meaningful gold producer and look forward to updating the market with finalised accounts and announcing the reconciled 50% profit share value attributable to Brightstar.”

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.