Brightstar To Join Gold Producer Ranks With Selkirk Open Pit Mining JV At Menzies

Brightstar Resources Limited (ASX:BTR) (Brightstar) is pleased to confirm that mining operations will recommence at Menzies, with personnel and equipment supplied by BML Ventures Pty Ltd (BML) scheduled for mobilisation to site in late July 2023.

HIGHLIGHTS

• Mobilisation planned for late July with first material movement in August for mining of 30kt of ore at a head grade of +6.0g/t from within the Selkirk Open Pit mine
• Current AUD gold price provides favourable pricing environment to deliver strong potential margins
• Cashflow anticipated in Q1 CY24 from processing allocation at St Barbara’s (ASX:SBM) Gwalia Processing Plant in early 2024
• Opportunities for additional near-term mining at Menzies being assessed, including the Stirling and Pericles deposits which contains 45,000oz @ 5.2g/t Au¹ close to surface

With key milestones met, including a recent site visit (Figure 1) and Toll Milling Arrangement with St Barbara (ASX:SBM) executed for the Selkirk JV², the project scope has now been agreed between the JV parties to pave the way for mobilisation and mining commencement in August 2023 with a conventional 100t class mining fleet typical of the WA Goldfields being utilised.

Ore haulage and processing at Gwalia is scheduled for Q1 CY2024, with BML responsible for all capital, mining and haulage costs with profits split on an even (50:50) basis upon reconciliation of gold sales and project costs.

Brightstar’s Managing Director, Alex Rovira, commented “We are excited for Brightstar to become Australia’s next gold producer via our mining JV with BML. The Selkirk open pit is the first production opportunity for Brightstar with a significant portfolio of advanced-stage gold resources in the development pipeline in Menzies and Laverton.

This mining JV with BML signifies the first production for Brightstar that will generate meaningful free cash for the Company to organically fund additional exploration and development efforts underway across the broader portfolio, which contains 965,000oz Au JORC Mineral Resources.

The Mineral Resources contained within Brightstar’s Menzies Gold Project presents a significant opportunity for Brightstar to extract value which will assist to fund larger-scale development endeavours underway to create a genuine WA gold developer with meaningful scale through Brightstar’s existing processing infrastructure and robust resource base in WA’s goldfields region.”

Infill drilling completed at Selkirk in the second half of 2022 returned exceptional results including³:

• 6m @ 24.62 g/t Au from 92m in 22SKRC017
  
• 3m @ 14.68 g/t Au from 47m in 22SKRC008
• 2m @ 12.55 g/t Au from 32m in 22SKRC001
• 2m @ 13.44 g/t Au from 55m in 22SKRC012
• 7m @ 24.8 g/t Au from 43m in 22SKRC029
• 6m @ 20.0 g/t Au from 41m in 22SKRC036
• 2m @ 12.9 g/t Au from 42m in 22SKRC038

Next Steps

Brightstar looks forward to sharing news on Selkirk as BML commences development, mobilises and conducts earthmoving activities in the near future. Concurrently, Brightstar will continue resource definition and extensional drilling to enhance the existing resource base at the Laverton and Menzies Gold Projects.

Figure 1 - BML Ventures Pty Ltd operations (May 2023)

Figure 2 - Selkirk Pit, Menzies (looking north-east)

This ASX announcement has been approved by the Managing Director on behalf of the board of Brightstar.

Click here for the full ASX Release

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