Brightstar Resources Limited (ASX: BTR) (Brightstar or the Company) is pleased to announce that the Company has executed a binding term sheet with Ardea Resources Limited (ASX:ARL) (Ardea) for a tenement swap of exploration tenure from the Menzies and Goongarrie Gold Projects in order to allow both companies to advance the exploration and development of Brightstar’s Menzies Gold Project and Ardea’s Kalgoorlie Nickel Project – Goongarrie Hub, respectively.
HIGHLIGHTS
- Brightstar adds 12km2 of highly prospective gold tenure adjacent to the Menzies Gold Project (MGP) and divests non-core assets in tenement swap with Ardea Resources (ASX: ARL)
- Tenement swap consolidates ownership of the ‘Northern Trend’ of the Menzies Shear Zone, which is under shallow cover and represents significant exploration potential along strike of known gold resources (MRE 505koz @ 1.3g/t Au at MGP)
- Brightstar has delineated +1km of outcropping pegmatites in the Menzies Project area with historical mining records extending known strike to +4km
- Consolidated ground has the potential to host lithium-bearing LCT pegmatites with geological similarities to the Delta Lithium (ASX: DLI) Mt Ida deposit
- Scoping Study progressing to outline underground and open pit mining scenarios at Menzies and Laverton, plant refurbishment costs and conceptual production profiles – due for completion in August
Brightstar’s Managing Director, Alex Rovira, commented: “We are pleased to have entered into an agreement with Ardea to secure highly prospective exploration ground for nil cash consideration immediately along strike of
known mineralisation to the north of our Menzies Gold Project. The acquired ground has significant exploration potential to host further gold mineralisation given the combination of known Menzies ‘mine corridor geology’ within and adjacent to the Menzies Shear Zone and has seen limited historical exploration for gold due to shallow cover.
Whilst Brightstar rapidly advances towards development of its gold resources, it is also prudent to assess the potential for lithium mineralisation at Menzies given the geological setting and known pegmatite occurrences observed in the field and in historical records. The acquisition of lithium and gold rights in Ardea’s E29/981, northwest of Lady Irene, is important as this is directly along strike from a +1km long, stacked pegmatite system recently identified by Brightstar with comprehensive mapping and sampling programs underway at present.
The structural and geological setting is ideal to host lithium-bearing LCT Pegmatites, given the greenstone terrane that wraps around a granitic intrusion to the north is a similar geological setting to Delta Lithium’s (ASX:DLI) Mt Ida Lithium Project located approximately 70km to the northwest. A hyperspectral survey is being planned and commissioned to aid exploration efforts and fast track the identification of appropriate drilling targets.”
Figure 1 - Outcropping pegmatite in BTR's Menzies Gold Project (P29/2585)
Figure 2 – Map of the Menzies Tenement Swap
Transaction Overview
The transaction will see Brightstar swap a number of non-core tenements south of the Menzies Gold Project and at the Goongarrie Project to Ardea, in order for Ardea to advance the Kalgoorlie Nickel Project – Goongarrie Hub which has recently been the focus of a Pre-Feasibility Study as announced to the ASX on 5 July 2023.
Importantly, Brightstar will still retain all the gold rights to the exploration licences at the Goongarrie Project and is only transacting on the non- gold rights and ability for Ardea to develop infrastructure on the southern half of E29/1062.
In return, Brightstar will acquire ten (10) prospecting licenses immediately adjacent or along strike to existing Brightstar tenements in the Menzies Gold Project, in addition to the gold and lithium rights to exploration licence E29/981.
The only consideration payable in the transaction is the grant of a 2.0% net smelter return royalty payable on any Lithium extracted and sold from E29/981.
The tenement swap is in line with Brightstar’s objective of rationalising its portfolio across both Menzies and Laverton to maintain its streamlined pathway towards a low capex restart for gold production.
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Figure 1 - Outcropping pegmatite in BTR's Menzies Gold Project (P29/2585)
Figure 2 – Map of the Menzies Tenement Swap
