The Conversation (0)
(TheNewswire)
 | |||||||||
 |  |  | |||||||
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Independent corporate advisory and equity capital markets firm Rawson Lewis has given Australian gold explorer and project developer Brightstar Resources (ASX:BTR) a ‘buy’ recommendation, with a net present valuation of AU$0.033 per share at AU$3,080 per ounce.
“If it delivers on production as expected, the discount rate should fall and share price rise to AU$0.056 in one to two years,” wrote Rawson analyst Mike Harowell in the report.
The report projected gold production and sales from Brightstar’s Selkirk deposit to generate AU$3 million in cash for the company by March 2024. Assuming Brightstar joint ventures the Menzies gold project with a mining contractor, the analyst report also projects the Menzies tolling business to generate between $30 million and $50 million in cash.
Brightstar has partnered with mining contractor BML Ventures to develop the Selkirk deposit. Rawson recommends the company engage BML and other similar mining contractors to help fund and develop the additional Menzies deposits.
“Brightstar is well placed to leverage competitive tension from these providers, so any buy-in to future projects is likely to be competitively priced.”
Selkirk Pit, Menzies (looking north-east)
Rawson Lewis’ report highlighted the following:
- With support from mining contractor BML, Brightstar’s Selkirk deposit’sgold production and sales will likely generate AU$3 million cash for Brightstar by March 2024.
- Assuming it is funded by profit share joint venture or a 50 percent sale to a contractor, the Menzies tolling business could generate between $30 million and- $50 million..
- Laverton plant restart to generate AU$100 million post tax – BTR is assumed to retain 100 percent and fund the $94 million capex with retained Menzies cash and debt.
Click here for the full report
This content is intended only for persons who reside or access the website in jurisdictions with securities and other applicable laws which permit the distribution and consumption of this content and whose local law recognizes the scope and effect of this Disclaimer, its limitation of liability, and the legal effect of its exclusive jurisdiction and governing law provisions [link to Governing Law section of the Disclaimer page].
Any investment information contained on this website, including third party research reports, are provided strictly for informational purposes, are general in nature and not tailored for the specific needs of any person, and are not a solicitation or recommendation to purchase or sell a security or intended to provide investment advice. Readers are cautioned to seek the advice of a registered investment advisor regarding the appropriateness of investing in any securities or investment strategies mentioned on this website.
BTR:AU
Brightstar Resources Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Brightstar Resources
Investor Insight
A gold-focused emerging gold producer with a clear pathway to production growth, Brightstar Resources presents a compelling investment case driven by its mining and development hubs strategy and a district-scale resource opportunity.
Overview
The price of gold stays strong. In April 2024, the yellow metal’s price passed US$2,400 per ounce for the first time. The reason is multifaceted. The world teeters on the brink of a severe recession while some markets attribute the increase to safe haven rush. Amidst ballooning interest rates, bank failures and falling bond yields, demand for gold continues to rise. At this precise moment, gold is simultaneously an excellent portfolio diversifier and a compelling hedge against ongoing inflation — particularly if one invests in the right company.
Brightstar Resources (ASX:BTR) aims to be that company. An emerging mining and development company, Brightstar occupies a strategic land position of roughly 1,200 square kilometers in the Sandstone Greenstone Belt, 300 square kilometers in the Laverton Tectonic Belt and 80 square kilometers of the Menzies Shear Zone.
The company also owns an existing processing facility that can potentially provide tremendous shareholder value in a low-capital cost restart scenario.
That plant, once fully refurbished and operational, could prove a key differentiator for the company, enabling fast gold production at a low capital cost. This is especially noteworthy given that many other gold companies trading on the ASX are largely focused on greenfield exploration and development. Even once those companies discover a promising resource, mining and processing facilities would still need to be built, undertakings which can incur significant upfront capital costs and take several years.
Brightstar's Laverton gold assets are all centered on a 100 percent-owned 300-square-kilometer tenure in the Laverton Tectonic Zone and all within 70 kilometers of the Laverton Processing Plant. Additionally, all resources within this zone are open along strike and at depth. Only minor drilling programs have been conducted in recent years, paving the way for significant exploration upside with the potential for further regional and greenfields discoveries.
Brightstar also owns 100 percent of the Menzies Gold Project, a contiguous land package of granted mining leases over a strike length of roughly 20 kilometers along the Menzies Shear Zone and adjacent to the Goldfields Highway.
In 2023 and 2024, the company announced a mineral resource upgrade to the Cork Tree Well deposit (Laverton gold project) and also delivered two maiden mineral resource estimates at the Link Zone and Aspacia deposits (Menzies gold project). This has grown the total group MRE by approximately 150 koz gold through organic exploration.
The company has also acquired 100 percent of the shares and options of Linden Gold Alliance, a gold producer, developer and explorer with existing mineral resources of 350 koz @ 2.1 g/t gold near Brightstar in the Laverton district. Brightstar’s MRE has reached 1.1 Moz gold across the Menzies and Laverton projects, with an additional 0.35 Moz gold in resources added after the successful acquisition of Linden Gold Alliance.
In August 2024, Brightstar entered into a scheme implementation deed to acquire 100 percent of Alto Metals (ASX:AME), which owns the Sandstone gold project located in East Murchison. The project has a current mineral resource of 1.05 Moz of gold at 1.5 g/t.
Brightstar also completed the acquisition of the gold rights at the Montague East gold project (MEGP) from Gateway Mining Limited (ASX:GML). The project is located 70 km from the Sandstone gold project. The acquisition adds a further 9.6 Mt @ 1.6 g/t gold for 0.5 Moz gold to Brightstar’s JORC Mineral Resource Estimate, giving the company a total mineral endowment of 38.3 Mt @ 1.6 g/t gold for 2.0 Moz gold.
The acquisition of the MGEP from Gateway Mining and 100 percent of Alto’s shares creates a third district-scale resource base for the company called the Sandstone Hub. Upon consolidation of the Laverton, Menzies and Sandstone hubs, Brightstar’s mineral resources would reach 3 Moz at 1.5g/t gold.
Subsequent to the deal with Alto Metals, Brightstar entered into a $4 million drill-for-equity agreement with Topdrill to aggressively advance the consolidated Sandstone gold project. The deal strengthens Brightstar's financial capacity to fulfill its multi-hub exploration and development strategy, which includes the Menzies, Laverton and Sandstone hubs.
Company Highlights
- Brightstar Resources is an ASX-listed mining and development company with more than 3 million ounces of gold resources and an on-site processing infrastructure across its project locations in Laverton, Menzies and Sandstone in Western Australia.
- Brightstar's mineral assets are situated across roughly 300 square kilometers of 100-percent-owned land in the Laverton Tectonic Zone and ~80 square kilometers in the high-grade Menzies Shear Zone.
- The Laverton Gold project has a mineral resource of 9.7 Mt @ 1.6 g/t gold for 511 koz gold and the Menzies gold project has 13.8 Mt @ 1.3g/t gold for 595 koz gold.
- In 2023, the company completed a scoping study into the development of its Menzies and Laverton gold projects and the refurbishment and restart of its processing plant in Laverton.
- In 2023 and 2024, Brightstar completed a small-scale mining joint venture with BML Ventures which involved a 50/50 profit-sharing agreement to exploit the Selkirk deposit at Menzies. In April 2024, Brightstar announced that this joint venture delivered a net profit to Brightstar of $6.5 million.
- In June 2024, the company successfully acquired all of the issued ordinary shares and options in Linden Gold Alliance, a gold producer, developer and explorer with existing mineral resources of 350 koz @ 2.1 g/t gold near Brightstar in the Laverton district.
- As part of the merger with Linden Gold, Brightstar released a scoping study into Linden’s development-ready Jasper Hills gold project, which delivered key metrics including:
- 140 koz mined over 3.75 years (35 koz pa)
- Net present value of AU$99 million
- Internal rate of return of 736 percent
- Pre-production capital requirements of $12 million
- All-in sustaining costs of AU$1,972/oz
- Jasper Hills is located just 50 km SE of Brightstar’s processing plant in the Laverton gold project
- Brightstar has recently completed the acquisition of the gold rights at the Montague East gold project (MEGP) from Gateway Mining Limited (ASX:GML), and has entered into an agreement to acquire Alto Metals (ASX:AME) further creating the company’s third district-scale resource base known as the Sandstone Hub.
- Brightstar plans to continue generating shareholder value through a combination of development and strategic acquisitions along with some exploration.
Key Projects
Laverton Hub
Brightstar’s Laverton hub is comprised of the Cork Tree Well, Beta and Alpha project areas with the addition of the Second Fortune gold mine and the Jasper Hills projects.
Highlights:
- Cork Tree Well, Alpha and Beta have current total JORC mineral resource estimate of 9.7 Mt @ 1.6 g/t gold for 511 koz (52 percent measured and indicated category). All mineral resources are on granted mining leases
- Cork Tree Well (6.4 Mt at 1.4 g/t gold for 303 koz gold)
- Alpha (1.4 Mt at 2.3 g/t gold for 106 koz gold)
- Beta (1.9 Mt at 1.7 g/t gold for 102 koz gold)
- Main project area Cork Tree Well is open at depth and along strike with recent drilling results of 34.4 meters at 7.94 g/t gold from 43.5 meters (CTWMET004) and 27.6 meters at 17.8 g/t gold from 51 m (CTWMET003)
- Second Fortune has a mineral resource estimate head grade of ~11g/t gold with an average ore body width of ~0.6 meters.
- Jasper Hills is located 50 km from Brightstar’s existing processing facility along a wholly-owned private haul road, allowing unimpeded, direct access to both projects
- Permitted, previously mined and production-ready
- Last mined by current owners in 2020 with 23,000 oz gold mined
- Scoping Study outcomes include:
- Pre-production capex of $12 million required (maximum capital drawdown)
- Open pit mine at Lord Byron and underground mine at Fish
- Production of 141 koz over four years (35 koz per annum)
- LOM EBITDA of $135 million (@ AU$3,000/oz)
Menzies Hub
The Menzies Hub comprises a tenement holding of a contiguous land package of granted mining leases over a strike length of more than 20 km. The majority of deposits hosted along the Menzies Shear Zone are located adjacent to Goldfields Highway in Menzies (130km north of Kalgoorlie).
Highlights:
- Total Current Resource: 13.7 Mt at 1.3 g/t gold for 595 koz gold (36 percent measured and indicated)
- September 2023 scoping study showed the simultaneous development of open pit mining at Lady Shenton system and underground mining at Yunndaga:
- 1.9 Mt @ 1.63 g/t Au (100 koz) in open pit mining at Lady Shenton
- 650 kt @ 2.91 g/t (60 koz) in underground mining at Yunndaga
- Low capex of $22 million
- Significant opportunities to find virgin discoveries and brownfields mineral resource growth:
Sandstone Hub
The consolidated Sandstone project is over 100 km from existing third-party milling operations in the Murchison. This third processing hub boasts Alto’s Sandstone project with a mineral resource of 1.05 Moz at 1.4 g/t gold and Gateway’s Montague gold project with a mineral resource of 0.5 Moz @ 1.6 g/t gold.
Brightstar aims to fast-track the development timetable through:
- A focused, multi-rig infill drill out to take the inferred mineralisation into measured and indicated status to underpin mining studies and project advancement
- The application of Brightstar’s dedicated in-house geological and mining engineering team to retain crucial project IP and fast-tracked mining studies;
Brightstar Processing Facility
Situated close to Brightstar's existing mineral assets at Laverton, the Brightstar Processing Plant provides the company with a considerable operational head start over its peers.
Highlights:
- Extensive Infrastructure: Current facilities at the plant include two ball mills, a power station and gravity and elution circuits. Other infrastructure includes:
- A tailings storage dam
- An on-site process water pond
- A 60-person accommodation camp
- An airstrip at the Cork Tree Well Project
- Vehicles and equipment include a forklift, bobcat, two loaders, multiple light vehicles and a 30-tonne crane.
- A Leg Up Over Competitors: The presence of pre-existing processing infrastructure represents significant time savings compared to greenfields development. Brightstar had an independent valuation completed which valued the processing plant at AU$60 million in replacement value.
- Low Upfront Capital Cost: As part of the scoping study released in September 2023, GR Engineering estimated a capital cost requirement to refurbish and expand the milling capacity would cost just AU$18.5 million.
- Close to Existing Assets: Brightstar's major development projects — Cork Tree Well, Jasper Hills, Beta and Alpha — are all close to the plant.
Gold doré bars (BTR005 – BTR016) poured on 9 March 2024
Management Team
Alex Rovira - Managing Director
Alex Rovira is a qualified geologist and an experienced investment banker having focused on the metals and mining sector since 2013. Rovira has experience in ASX equity capital markets activities, including capital raisings, IPOs and merger and acquisitions.
Richard Crookes - Non-executive Chairman
Richard Crookes has over 35 years’ experience in the resources and investments industries. He is a geologist by training having previously worked as the chief geologist and mining manager of Ernest Henry Mining in Australia.
Crookes is managing partner of Lionhead Resources, a critical minerals investment fund and formerly an investment director at EMR Capital. Prior to that he was an executive director in Macquarie Bank’s Metals Energy Capital (MEC) division where he managed all aspects of the bank’s principal investments in mining and metals companies.
Andrew Rich - Executive Director
Andrew Rich is a degree qualified mining engineer from the WA School of Mines and has obtained a WA First Class Mine Managers Certificate. Rich has a strong background in underground gold mining with experience predominantly in the development of underground mines at Ramelius Resources (ASX:RMS) and Westgold Resources (ASX:WGX).
Ashley Fraser - Non-executive Director
Ashley Fraser is an accomplished mining professional with over 30 years experience across gold and bulk commodities. Fraser was a founder of Orionstone (which merged with Emeco in a $660-million consolidation) and is a founder/owner of Blue Cap Mining and Blue Cap Equities.
Jonathan Downes - Non-executive Director
Jonathan Downes has over 30 years’ experience in the minerals industry and has worked in various geological and corporate capacities. Experienced with gold and base metals, he has been intimately involved with the exploration process through to production. Downes is currently the managing director of Kaiser Reef, a high grade gold producer, and non-executive director of Cazaly Resources.
Matthew Bowles – Non-executive Director
Matthew Bowles is a senior corporate finance executive with extensive public corporate advisory, private equity and capital markets experience in the resources sector. Bowles has successfully negotiated domestic and cross border corporate funding, joint venture and M&A transactions for a number of ASX listed companies in Africa, the Americas and Australia. He was previously chief development officer for a West African focused ASX listed company. He commenced his career with Rio Tinto, working in corporate and commercial roles for nine years, before moving to London to work in banking and finance. Since his return to Australia, Bowles has held senior roles with global advisory firms, focusing on the resources sector. Bowles holds a Bachelor of Business, is a member of CPA Australia and a Fellow of the Financial Services Institute of Australia.
Dean Vallve – Chief Operating Officer
Dean Vallve holds technical qualifications in geology & mining engineering from the WA School of Mines, an MBA, and a WA First Class Mine Managers Certificate. Vallve was previously in senior mining and study roles at ASX listed mid-cap resources companies Hot Chili (ASX:HCH) and Calidus Resources (ASX:CAI).
JZR Gold Enters into Loan Agreement
February 11, 2025 TheNewswire - Vancouver, British Columbia, Canada JZR Gold Inc. (the " Company " or " JZR ") ( TSX-V: JZR ) announces that it has entered into a loan agreement with Eco Mining Oil & Gaz Drilling and Exploration Ltda. (" Eco ") dated September 30, 2024, pursuant to which the Company agreed to lend to Eco up to US$2,000,000 (the " Loan "). The Loan, which bears no interest, is to be advanced to Eco in tranches upon request by Eco. Pursuant to the terms of the Loan, the Company shall have no obligation to advance or make available any funds to Eco and any funds so advanced shall be at the sole discretion of the Company. As of the date of the Loan Agreement, the Company had previously advanced the sum of US$1,800,000 to Eco, which amount forms part of the Loan. Eco may pay back any amount outstanding under Loan at any time without penalty.
The Company possesses a right to receive a 50% net profit interest in gold produced from the Vila Nova gold project located in the State of Amapa, Brazil (the " Project "). The Project is currently being developed by Eco as the operator. Eco commissioned the manufacture and installation of a gravimetric mill (the " Mill ") for the Project, which Mill has been assembled and is being tested. The Company has advised that Eco requested financial assistance from the Company in order to advance, acquire and assemble the Mill and to further advance the Project. Management of the Company has determined that it is in the best interest of the Company to advance funds to Eco in order to enable Eco to acquire the Mill, bring it into operation and to further advance the Project, and has agreed to advance funds under the Loan to Eco specifically for the foregoing purposes.
As security for the Loan, Eco has pledged to the Company the Mill and certain rights of Eco pursuant to an agreement between Eco and the Cooperative dos Garimpeiros do Vila Nova.
The Company is at arm's length with Eco and is not a "related party" of the Company within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions . The Loan is subject to acceptance of the TSX Venture Exchange.
For further information, please contact:
Robert Klenk
Chief Executive Officer
rob@jazzresources.ca
Forward-Looking Statements
This news release contains forward-looking statements, which includes any information about activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. Forward-looking statements in this news release include statements with respect to respect to the details of the Loan, including the repayment terms and the anticipated use of proceeds by Eco. Forward-looking information reflects the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mineral exploration industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks related to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with the specifications or expectations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action and unanticipated events related to health, safety and environmental matters); risks related to adverse weather conditions; geopolitical risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with the Canadian securities regulators. The forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement. The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Copyright (c) 2025 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Joint Venture Secured over Advanced Gold Project in Western Australia’s World Class Gold Mining District
Highlights
- Cazaly signs binding term sheet with Brightstar Resources to earn up to 80% of the Goongarrie Gold Project located in the Kalgoorlie-Menzies district in the Eastern Goldfields of Western Australia
- The Project covers 12km strike of the Bardoc Tectonic Zone-Boulder Lefroy Shear Zone (BTZ), host to multiple world class gold deposits
- Several high priority gold drill targets with growth potential
- Gold mineralisation at the Hastings prospect extends for over 1km, and is open along strike and at depth. Anomalous intercepts include 38m @ 3.1g/t gold1
- Cazaly to spend up to $3M on exploration to earn staged equity up to 80% of the Goongarrie Project
Cazaly’s Managing Director, Tara French comments:
“The Goongarrie gold project presents Cazaly with an outstanding opportunity to explore for new gold resources in a multi-million-ounce gold district. The sizeable land package has multiple gold targets
and is largely untested at depth. We are very much looking forward to generating new gold targets and drill testing the existing prospects. With the gold price breaking A$4,600 oz for the first time, and with a positive pricing outlook, it’s the perfect time for Cazaly to get back into gold. We are pleased to have entered into the agreement for nil cash or scrip consideration with all funding going ‘into the ground’. We look forward to advancing this project and to working closely with our new partners at Brightstar to maximise value for shareholders.”
Goongarrie Gold Project
Goongarrie is located in the northeastern goldfields, 90km north of Kalgoorlie, and is easily accessible via the Goldfields Highway that runs along the western boundary of the project area. The Project consists of 70km2 of greenstone sequence within the Kalgoorlie Terrain.
Figure 1. Regional location - Goongarrie Gold Project.
Importantly the Project covers twelve kilometers of the Bardoc Tectonic Zone (BTZ), which is the northern extension of the Boulder-Lefroy Shear Zone (BLSZ) to the south, one of the richest gold mineralised structures in the Yilgarn Craton. Subsequent exploration activities have identified two additional subparallel N-S structures that also have the potential to host significant gold deposits.
Material Terms of Joint Venture Agreement
The terms of the earn-in joint venture agreement for the Goongarrie Project, subject to Cazaly completing due diligence, are:
- Cazaly to expend an initial $1m on exploration to earn a 25% interest;
- Expend further funds of $1m to earn a 51% interest;
- Expend further funds of $1m to earn to an 80% interest.
Tenements included in the Goongarrie Project are listed in Table 1.
Project History
The Goongarrie Project was acquired by Kingwest Resources Ltd (KWR) in 2019. In May 2023 KWR merged with Brightstar Resources Limited whose focus has now shifted away from the Goongarrie project following their recent merger with Alto Metals Ltd (ASX: AME)i.
Prior to KWR acquiring the Project, very little exploration activity had been completed across the project as work was focused at Menzies and Kalgoorlie. Historic work included soil sampling, trenching, auger drilling, shallow aircore drilling, and limited RC drilling. This work targeted oxide gold mineralisation at surface associated with the Bardoc Tectonic Zone-Boulder Lefroy Shear Zone (BTZ). Two gold deposits along the BTZ were initially mined in the late 1980s at Jennys Reward, and Goongarrie Lady which was recently re-commissioned by a private group. There is potential for the discovery of new gold deposits undercover along the 12km strike length of the BTZ and along largely untested parallel mineralised structures that run N-S through the length of the project.
Click here for the full ASX Release
This article includes content from Cazaly Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Earn-In with Cazaly Resources over Non-Core Goongarrie Project Streamlines Portfolio
HIGHLIGHTS
- Brightstar has signed a binding Term Sheet with Cazaly Resources Limited under which Cazaly is granted an option to elect to earn up to an 80% interest in the Goongarrie Gold Project by sole funding exploration expenditure of up to $3 million, as follows:
- Upon exercising the option, Cazaly to spend $1 million on expenditure over an initial 12-month period to earn a 25% interest;
- Cazaly to spend an additional $1 million on expenditure over a further 18-month period to earn an additional 26% interest (aggregate 51% interest); and
- Cazaly to spend an additional $1 million on expenditure over a further 18-month period to earn an additional 29% interest (aggregate 80% interest)
- Upon Cazaly earning an interest in the Goongarrie Gold Project, Brightstar and Cazaly shall form a Joint Venture
- The earn-in allows Brightstar to prioritise operational and development activities, with Definitive Feasibility Study workstreams advancing and current mining operations at Second Fortune complemented by start-up works at the Fish underground project
- Brightstar’s exploration strategy remains focused on improving and growing existing mineral resources at projects with granted mining leases and near-term commercialisation pathways, such as the Sandstone, Menzies and broader Laverton project areas
Brightstar’s Managing Director, Alex Rovira, commented:
“With our focus on development and mining operations across the broader Eastern Goldfields and Murchison regions, we are delighted to have attracted a quality partner in Cazaly to explore the Lake Goongarrie area in greater detail, while retaining exposure and upside to exploration success with the joint venture.
Our focus in the general Menzies area is on the Lady Shenton System where we are defining a large open pit mining complex as part of our DFS, whilst we continue to explore and assess other deposits such as Yunndaga and the Link Zone for future mining opportunities to increase our operational footprint in the Menzies area.”
Figure 1 – Menzies & Lake Goongarrie tenure
Under the Term Sheet, Cazaly is granted an option, exercisable within 90 days, to elect to earn up to an 80% interest in the Goongarrie Gold Project shown in Figure 1 (which is a combination of wholly owned tenements and tenements where Brightstar holds gold rights). The exercise of the option by Cazaly is subject to satisfaction of certain conditions precedent, including due diligence on the Goongarrie Gold Project by Cazaly, the tenements being in good standing and certain deeds of assignment being entered into with parties that have rights in respect of the Goongarrie Gold Project.
Click here for the full ASX Release
This article includes content from Brightstar Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Heliostar Metals
Investor Insight
Heliostar Metals has a clear, execution-focused strategy. They are on track to go from no gold production in 2023 to 150,000 ounces of annual gold production in just a couple of years. As one of the fastest-growing gold producers in the industry, Heliostar presents a compelling investment opportunity for investors looking to capitalize on a continued gold bull market.
Overview
Heliostar Metals (TSXV:HSTR,OTCQX:HSTXF,FRA:RGG1) is an emerging mid-tier gold producer focused on unlocking high-grade gold production in Mexico’s premier mining regions.
The company rapidly expanded its asset base by acquiring a diverse portfolio of producing and development-stage assets. This positions it for long-term, scalable production growth.
The company holds two operating mines (San Agustin and La Colorada), two advanced development projects (Ana Paula and Cerro del Gallo), and two additional growth assets (San Antonio and Unga in Alaska). Unlike most of its peers, Heliostar is uniquely positioned to fund growth through internal cash flow while continuing to expand its resource base.
The company prioritizes capital discipline and low-cost acquisitions, significantly expanding its asset base while maintaining a lean financial structure. Unlike many juniors reliant on heavy dilution, Heliostar leverages internal cash flow from its producing assets to drive project development.
Heliostar Metals is strategically positioned to scale its gold production to 150,000 ounces per year in the near term by leveraging its producing mines and development assets. San Agustin and La Colorada provide immediate cash flow and serve as the foundation for production growth. At La Colorada, a permitted expansion plan allows for low-cost increases in output, while the advancement of Ana Paula Phase 1 will significantly enhance production capacity.
Looking ahead, the company has a long-term vision of achieving 500,000 ounces of gold production annually by 2030. This growth will be driven by the development of Cerro del Gallo and San Antonio, both positioned as next-generation mines. Additionally, Ana Paula Phase 2 is expected to scale production beyond 100,000 ounces per year, further solidifying Heliostar’s production base. The company will also pursue strategic mergers and acquisitions to supplement organic growth and expand its project pipeline.
Heliostar’s focus is on minimizing shareholder dilution (and maximizing shareholder value) by funding growth through internal cash flow. The company is reinvesting revenue from operating mines into exploration and development, ensuring efficient capital allocation to high-impact assets. This self-sustaining approach is further strengthened by a strong institutional investor base, which holds 53 percent of the company’s shares, providing confidence in Heliostar’s growth trajectory.
Company Highlights
- Heliostar Metals is rapidly advancing from a junior explorer to a mid-tier gold producer, targeting 150,000 oz per year in the near term and 500,000 oz annually by 2030.
- Heliostar has rapidly expanded its portfolio with key acquisitions, now controlling two producing mines and four advanced-stage growth assets in Mexico. Added 3.5 million measured and indicated gold ounces for just US$15 million, reinforcing a capital-efficient growth model.
- The company prioritizes capital discipline and low-cost acquisitions to expand its asset base and maintain a lean financial structure. Unlike many juniors who dilute shareholders to grow, Heliostar leveraged gold production cash flows to drive project development.
- Its flagship project, Ana Paula, is one of Mexico’s highest-grade undeveloped gold projects. The Heliostar team took on the permitted open pit design and revised it to an underground operation. The current mine plan has potential to produce more than 100,000 gold ounces per year.
- In 2024, Heliostar acquired the La Colorada and San Agustin gold projects. Production at these two mines provide immediate cash flow. That funds Heliostar’s exploration and development without significant dilution.
- CEO Charles Funk leads a seasoned team of mine builders and exploration experts with a track record of developing world-class deposits.
- The company also features a favorable shareholder registry: 53 percent institutional investors, 42 percent high-net-worth and retail investors, and 5 percent held by the board and management.
Key Projects
Ana Paula (Flagship Development Project)
Ana Paula Project NI 43-101 Technical Report Mineral Resource Estimate Update effective November 27, 2023.
The Ana Paula project is Heliostar’s flagship high-grade underground gold deposit, located in the Guerrero Gold Belt, Mexico. With 710,920 oz measured and indicated gold (6.6 g/t) and 447,500 oz inferred gold (4.24 g/t), the project has significant exploration upside. Originally envisioned as an open-pit operation, Heliostar has transitioned Ana Paula into an underground mining project to improve economics and reduce environmental impact. The company is currently conducting a feasibility study, expected to be completed in late 2025, with a construction decision to follow.
Phase 1 production is projected at 50,000 oz per year, scaling to more than 100,000 oz in Phase 2. Exploration is ongoing to expand the high-grade panel, with exceptional drill results, including 125.9 meters @ 4.02 g/t gold (23.6 meters @ 12.5 g/t gold). Ana Paula is a high-impact, high-grade asset that will form the backbone of Heliostar’s production growth.
La Colorada Mine
Located in Sonora, Mexico, La Colorada is one of Heliostar’s cash-flow-generating assets, currently in production with a 2025 guidance of 17,000 to 23,300 oz gold. The mine features a permitted expansion plan, including the Creston Pit Cutback, which contains 220,000 oz probable reserves, and the Veta Madre Pit, which holds an additional 163,000 oz probable reserves (awaiting permitting).
Heliostar is actively drilling below the existing pits, targeting high-grade underground extensions. The company is also evaluating low-grade stockpiles and optimizing heap leach recovery to enhance profitability. By Q1 2025, La Colorada’s expansion will be restarted, leading to a significant increase in gold output.
San Agustin Mine
San Agustin is a low-cost, open-pit heap leach gold mine located in Durango, Mexico, producing between 14,650 to 14,950 oz gold in 2024. The mine offers significant upside through heap leach reprocessing, with a plan to recover 20 Mt of non-agglomerated, run-of-mine material.
The Corner Permit Cutback contains an additional 86,000 oz gold and 4.5 Moz silver, requiring approval before mining. Additionally, San Agustin has sulfide mineralization potential at depth, which remains underexplored. The mine continues to be a consistent cash flow generator, supporting Heliostar’s development pipeline.
Cerro del Gallo Project
Cerro del Gallo is a large-scale, low-cost development asset located in Guanajuato, Mexico. With 2.86 Moz measured and indicated gold and 1 Moz inferred gold, the project represents a long-term growth opportunity for Heliostar.
The company is currently advancing permitting efforts to unlock the heap leach processing potential, which could significantly contribute to its mid-term production goals. Cerro del Gallo is expected to become a core asset as Heliostar scales toward the longer-term 500,000 oz per year production goal.
Pro Forma Total Gold Resources
San Antonio Project
located in Baja California Sur, Mexico, San Antonio is an open-pit gold development project with a 1.74 Moz measured and indicated gold resource. The project is currently awaiting environmental permitting, after which Heliostar will assess development timelines. San Antonio’s favorable metallurgy and location make it a strategic asset with potential for future near-term production.
Unga Project
The Unga project in Alaska is a high-grade gold exploration asset, with an inferred resource of 384,000 oz gold (13.8 g/t). While not a primary focus, the project remains a long-term high-grade growth opportunity.
Management Team
Charles Funk – President & CEO
Charles Funk brings over 18 years of experience in business development and exploration. Before joining Heliostar, he held senior roles at Newcrest Mining and OZ Minerals, two of the world's most prominent mining companies. Funk led the Panuco discovery for Vizsla Silver in 2020, demonstrating his strong expertise in identifying and advancing high-potential gold and silver deposits. Under his leadership, Heliostar has pursued transformational acquisitions that have rapidly expanded the company’s asset base while maintaining capital efficiency.
Gregg Bush – Chief Operating Officer
A highly regarded mine builder, Gregg Bush has a strong track record in mine development, project integration, and operations management. He previously served as COO of Capstone Mining for nine years and as SVP of Mexico for Equinox Gold. With deep experience in Latin American mining operations, Bush plays a pivotal role in advancing Heliostar’s production assets, optimizing operations and ensuring efficient project execution.
Sam Anderson – VP Projects
Sam Anderson brings 20 years of experience in mine geology and project management, including 17 years at Newmont, where he served as mine geology superintendent and senior manager of exploration business development. He played a significant role in the development of Newmont’s Merian Mine in Suriname, from resource stage to steady-state operation. His expertise in mineral resource expansion and project evaluation is crucial to advancing Ana Paula and Cerro del Gallo toward production.
Mike Gingles – VP of Corporate Development
With over 35 years of corporate and entrepreneurial experience in the mining industry, Mike Gingles has been a key player in major mining deals. He led the Pueblo Viejo and Turquoise Ridge transactions for Placer Dome, two of the largest gold assets in North America. His expertise in strategic partnerships, corporate finance, and project acquisitions has positioned Heliostar for transformational growth.
Hernan Dorado – VP Sustainability & Special Projects
As a fifth-generation miner, Hernan Dorado has more than 20 years of experience in the mining sector, including a founding role at Guanajuato Silver, where he served as COO. He has extensive experience in Mexican mining operations, permitting and sustainability practices, ensuring that Heliostar’s projects meet the highest environmental and social responsibility standards.
Vitalina Lyssoun – Chief Financial Officer
Vitalina Lyssoun is a chartered professional accountant (CPA, CA) with over 16 years of financial expertise with a focus on the resource sector. She has strengths in Canadian and US public company reporting, regulatory and tax compliance, and internal controls. She is fluent in Spanish and has experience in operations based in Mexico, Central America and West Africa. Most recently, Lyssoun built and led the corporate accounting team at Gatos Silver, including through their recent merger with First Majestic Silver.
Brightstar Resources Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects