Brightstar Processing Plant Valued at Over A$60 Million Replacement Cost

Brightstar Resources Limited (ASX: BTR) (Brightstar, or the Company) is pleased to provide an update regarding its ongoing assessment of the Brightstar Processing Facility (Brightstar Plant) located south- east of Laverton.

Following release of the Company’s recent Scoping Study (Menzies and Laverton Gold Project Mine Restart Study, ASX Announcement 06/09/2023), Brightstar is progressing with work streams under its Pre- Feasibility Study regarding the refurbishment and expansion of the Brightstar Plant to support further potential increased throughput and consequential increased annual production profile from its Laverton operations.

As part of these works, Brightstar commissioned an independent valuation of the mill and associated site infrastructure. The purpose of this report is to inform the appropriate level of insurance cover to protect these strategic assets while the Company continues its regional development and assessment of potential options to commence accelerated production operations.

This report has valued the Brightstar Plant and associated infrastructure at $60.9 million on an “as new” replacement value basis.

Brightstar Plant looking from the North-West

Brightstar’s Managing Director, Alex Rovira, commented:

“The Brightstar Processing Plant and related infrastructure represents a significant advantage from a time and cost perspective for Brightstar as we advance towards re-start of mining operations at the Menzies and Laverton Gold Projects. As outlined in the recently released Scoping Study, the ability to execute a low-cost refurbishment and expansion of the processing infrastructure is a key strategic advantage for the Company that differentiates Brightstar from other aspiring WA gold explorers and developers. We are actively assessing opportunities to further increase the throughput of the mill to 1Mtpa to support an increased production profile at our Laverton Gold Project.”

The $60 million value on an ‘as new’ basis for the existing processing and associated infrastructure represents a significant cost that we do not have to incur to build our mining operations, which in the context of continued challenging debt and equity capital markets is an important asset for our business. Many of the components of the plant are brand new and have never operated since being installed, including the gravity circuit and 450kW ball mill below."

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