Compelling Scoping Study for Jasper Hills Gold Project

Brightstar Resources Limited (Brightstar or the Company) (ASX: BTR) is pleased to announce the results of a positive Scoping Study for the Jasper Hills Gold Project located in WA’s eastern Goldfields region.

Highlights:

• Positive mine restart study completed for the staged development of the Jasper Hills Gold Project (Jasper Hills) south of Laverton, Western Australia
• Initial mine production target of approximately 2.4Mt @ 1.84g/t Au for 141,958 oz mined over approximately 3.75 years
• Average recovered ounces of ~35koz per annum, with strong potential to increase production profile and mine life
• Total project pre-production capital costs of approximately $12.0 million
• Rapid restart with first gold within six months of final investment decision
• Study highlights robust financials and a competitive cost profile utilising conservative pricing assumptions (gold price of A$3,000/oz) and current cost environment:
  • Net Present Value (unlevered, pre-tax, 8%) of approximately A$99.0 million
  • Pre-tax internal rate of return of approximately 736%
  • Payback period of approximately 9 months, with this period underpinned by 100% of material processed being Measured and Indicated classified ounces
  • All-In Sustaining Costs (AISC) of approximately A$1,972/oz
• Jasper Hills is wholly-owned by Linden Gold, which is the subject of a Board-recommended off- market takeover offer by Brightstar
• Jasper Hills is located 50km SE of Brightstar’s processing infrastructure, and will, subject to final feasibility studies, permitting and approvals and final investment decision, support Brightstar’s ambition of becoming a meaningful WA gold producer

Brightstar’s Managing Director, Alex Rovira, commented “It is pleasing to announce the results of a scoping study into the Jasper Hills Gold Project, located only 50km from Brightstar’s wholly-owned processing facilities linked by established haul roads. The study outlines an attractive pathway to cashflow, featuring a low-capital approach with approximately $12 million in pre-production funding required to commence operations at Jasper Hills, with the high-grade Fish underground deposit able to generate ore within six weeks of portal establishment.

Furthermore, the Study outlines a readily deliverable 4 year LOM plan which complements Brightstar’s existing Scoping Study released in September 2023, which if combined will result in Brightstar becoming a meaningful gold producer in the WA Goldfields in conjunction with our existing projects at Menzies and Laverton combining to organically build to a 100kozpa gold producer.

The staged mined development has been optimised to minimise up-front capital costs, utilising operational cash flow to self-fund the larger cutbacks at Lord Byron generating high tonnage, baseload open pit ore feed to nearby processing facilities. The mine plan has been designed to minimise risks associated with ramp up and deliver a profitable gold producer in WA with significant upside to expand on the production profile and mine life.

In parallel with our efforts of combining the Brightstar and Linden Gold assets into a larger Pre-Feasibility Study, we continue to advance exploration efforts across the portfolio with the intent of finding additional ounces to add to the mine plan. We look forward to continuing our dual focus of development and exploration in the Goldfields, and building WA’s next meaningful gold producer”.

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.