The Conversation (0)
Brightstar Resources Limited (ASX: BTR) (Brightstar) is pleased to announce the second round of priority assay results from the remaining two metallurgical diamond drillholes at Cork Tree Well (CTW) within the Laverton Gold Project (LGP). These two holes were part of a broader 20 hole diamond drilling program1 which has now been successfully completed.
HIGHLIGHTS
- Assays received from the final two metallurgical diamond holes completed at Cork Tree Well with bonanza-grade gold assays up to 1028.37g/t Au
- High-grade results substantiated by numerous observations of visible gold in both drill holes
- Intercepts returned include 27.6m @ 17.77g/t Au from 51m (CTWMET003)
- CTWMET003 was drilled into the unmined central deposit at Cork Tree Well, with the gold mineralisation entirely contained within a dolerite - quartz breccia unit
- Intercepts returned below the historical shallow open pit within CTWMET001 include:
- 11.4m @ 3.1g/t Au from 133.5m (estimated true width), and
- 8.3m at 1.45g/t Au from 120.7m (estimated true width)
- Twenty-hole diamond drilling program successfully concluded with metallurgical and geotechnical testwork underway to feed into PFS workstreams
Brightstar’s Managing Director, Alex Rovira, commented“It is great to see further high-grades assays continuing and visible gold being observed from the diamond drilling program that has recently been completed at Cork Tree Well. CTWMET003 returned an excellent high-grade, shallow intersection of 27.6m @ 17.77g/t Au from 51m, which complements the previously announced2 intersections which included a strong result of 34.4m @ 7.94g/t Au (CTWMET004) drilled 1km to the north.
The drilling campaign represented the first diamond holes drilled at Cork Tree Well by Brightstar, with our understanding of the geology and mineralisation styles being strengthened by the knowledge being gained from this recently completed program.
Today’s results continue to reinforce our view that the gold mineralisation at Cork Tree Well is structurally hosted, with a mafic metadolerite host rock observed in CTWMET003 whilst gold mineralisation returned in CTWMET001 is positioned within the sedimentary package underneath the historically mined shallow open pit.
The four metallurgical drillholes (CTWMET001 – 004) were drilled into the known orebody locations that fall within the optimised $2,750/oz pit shells generated in the 2023 Scoping Study3, with CTWMET003 and CTWMET004 drilled down plunge to the orebody to deliver maximum rock mass for metallurgical testwork and CTWMET001 and CTWMET002 drilled perpendicular to the orebody and represent estimated true width.
Given the calibre of the assays received from the drilling to date, Brightstar continues to see strong potential to build on the existing 303koz @ 1.4g/t Au Mineral Resource4 both at depth with high-grade plunging shoots and strike extensions targeting the structurally-controlled mineralised trends. The high-grade results returned to date are significantly higher than the current 1.4g/t Au head grade of the Mineral Resource and 1.85g/t mine grade from the 2023 Scoping Study, representing significant upside.
We look forward to updating shareholders with more information on the diamond program, which forms the basis for metallurgical and geotechnical testwork workstreams within our ongoing Pre-Feasibility Study5.
Figure 1 - CTWMET003 at 54.05m, showing visible gold (VG, circled) with $2 coin (20.5mm diameter) for scale
Figure 2 - CTWMET001 at 138.75m, showing visible gold (VG, circled) with tape measure for scale
Table 1 - Significant Intercepts (>1g/t Au) for CTWMET001 & CTWMET003
Figure 3 - Q1/24 Diamond Drill Program – Cork Tree Well
Due to the nuggety and high-grade nature of the gold mineralisation observed in CTWMET001 and CTWMET003, multiple samples had repeat assays completed following from best QA/QC laboratory practice. The repeat fire-assays provided additional analytical insight into the nuggety nature of mineralisation in addition to the visible gold observed. Where multiple repeat assay runs occurred, an average of the results has been used in the reporting in Table 1 above and within this announcement. The full breakdown of the re-assayed samples are outlined below in Table 2-3.
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.
BTR:AU
Brightstar Resources Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Brightstar Resources
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 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 a relevant interest in 96.75 percent shares and 96.81 percent optionshares and 96.81 percent option 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. Brightstar has commenced the compulsory acquisition process for the remaining Linden shares and options in respect of which it has not received acceptances under the agreemnt.Company Highlights
- Brightstar Resources is an ASX-listed mining and development company with more than one million ounces of gold resources and an on-site processing infrastructure.
- 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 @ 1.6g/t gold for 511 koz gold and the Menzies gold project has 13.8Mt @ 1.3g/t gold for 595 koz gold. This is a total combined existing mineral resource of 23 Mt @ 1.5 g/t gold for 1.1 Moz of 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.
- The scoping study produced robust operating outcomes and compelling financial outputs, including:
- 322 koz of gold recovered over eight years (40 koz per annum)
- Net present value of AU$103 million (using a gold price of AU$2,900/oz)
- Internal rate of return of 79 percent
- Pre-production capital requirements of AU$22 million
- All-in sustaining costs of A$2,041/oz
- Once refurbished, this infrastructure will allow Brightstar to fill a growing investment void for near-term gold developers in Western Australia, producing large quantities of gold at low capital cost.
- 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.
- Linden is currently a gold producer, mining 15-20 koz pa from its high-grade underground Second Fortune Mine south of Laverton.
- Brightstar’s total MRE across the Menzies and Laverton gold projects increased to 1.45 Moz gold after acquiring Linden. All of the mineral resources are located on granted mining licenses.
- 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 plans to continue generating shareholder value through a combination of development and strategic acquisitions along with some exploration.
Key Projects
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
- An operational 60-person accommodation camp
- An airstrip at the nearby 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
Cork Tree Well
Cork Tree Well is a formerly operating mine, producing 45 koz of gold over its lifespan. Located roughly 35 kilometers north of Laverton on Bandya Station Road, the project’s JORC 2012-compliant mineral resource of 6.4 Mt at 1.4 g/t for 303 koz of gold.
Highlights:
- Promising Drilling Results: Two 6,000-meter drill programs were completed in late 2022, and in the first quarter of 2023 delivered an uplift in tonnages and ounces at a discovery cost of AU$30 per ounce. In 2023 the JORC 2012 Mineral Resource Estimate increased by 20 percent to 303 koz, representing a 65-percent increase to the indicated ounces to 157 koz @ 1.6 g/t gold.
- Upcoming Feasibility Studies: The drilling program will underpin several feasibility studies that Brightstar intends to conduct later this year. At present, Brightstar has defined a resource envelope over a strike length of approximately 1 kilometer and down to 200 meters.
- Area Geology: The Cork Tree deposit is situated along the western limb of the Erlistoun synclical structure, a sequence which includes mafic volcanic lavas, tuffs and tuffaceous sediments alongside minor interflow graphitic shales and banded iron formation. The mine itself consists of chlorite schist-altered high-magnesium basalt footwalls overlain by graphitic shales containing banded iron and chert beds. Gold mineralization is contained within sediments intruded by concordant porphyry sills spanning the length of the mineralized zone.
- High-grade Assays from the 2024 Drill Program: First round of assay results from 20 diamond drill holes at Cork Tree Well were extremely positive, with intercepts returned including 34.4 metres @ 7.94 g/t gold from 43.5 metres (CTWMET004) and 27.6 metres @ 17.8 g/t gold from 51 metres (CTWMET003).
Second Fortune Gold Mine
Second Fortune is an operating underground gold mine owned and run by Linden Gold, which is the subject of an off-market takeover by Brightstar announced in March 2024. Second Fortune has produced +14,000oz gold in FY24 year to date and is run under an ‘owner operator’ model.
Second Fortune has a high-grade MRE of 165kt @ 10.9 g/t gold for 58 koz. Limited modern and systematic exploration has occurred across the ~20km of strike length of prospective geology at Second Fortune. This presents a superb opportunity to leverage existing team, camp & related infrastructure to rapidly assess targets and conduct efficient drilling programs to further grow the MRE and extend the mine life at Second Fortune.
Menzies Gold Project
Situated 130 kilometers north of the globally significant Kalgoorlie gold deposit, Menzies represents one of Western Australia's leading historic gold fields. The project, fully owned and operated by Kingwest before its merger with Brightstar, consists of a contiguous land package of a strike length above 20 kilometers. All deposits are now 100 percent owned by Brightstar and lie within granted mining leases.
Brightstar intends to leverage existing processing infrastructure in the district to monetise the high-grade open pit ounces produced by this mine.
Highlights:
- Significant Historical Production: Menzies has hosted multiple historically mined high-grade gold deposits which together produced a total of over 800,000 ounces at 19 g/t gold. This includes 643,000 oz @ 22.5 g/t gold from underground.
- Profit Sharing: Brightstar and BLM Ventures had a 50/50 profit-sharing joint venture agreement to exploit the Selkirk deposit at Menzies. In March 2024, Brighstar announced the successful completion of all the ore processing from the Selkirk JV, with a total of 430.7 kg of gold doré poured which netted Brightstar $6.5 million as part of its profit share.
- Area Geology: The Menzies Gold Project is hosted along the Menzies Shear Zone in the western margin of the Menzies greenstone belt. It displays a geologic setting similar to the Sand Queen Gold Mine at Comet Vale.
LAVERTON GOLD PROJECT – OTHER RESOURCES
Beta
Located immediately adjacent to the Brightstar Plant, the Beta Project includes a 60-person camp. It contains a combined JORC 2012-compliant mineral resource of 1,882 kt at 1.7 g/t for 102 koz of gold. The deposit occurs along the Eastern Margin of the Laverton Tectonic Zone, notable for hosting multiple major gold occurrences including Granny Smith, Keringal, Red October and Sunrise Dam.
Alpha
Hosting a combined JORC 2012-compliant mineral resource of 1,452 gold at 2.3 g/t for 106 koz, the Alpha Project. Future exploration programs and feasibility studies will seek to potentially capitalize on Alpha's close proximity to Beta.
Management Team – Post Completion of Linden Merger
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.
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).
Kirgella Gift and Providence: First Inferred Mineral Resource Estimate of 76,400 oz Au from only 3m depth
Highlights
- First Inferred Mineral Resource Estimate for Kirgella Gift and Providence of: 2.34 Mt @ 1.0 g/t Au for 76,400 oz at a 0.5 g/t gold cut-off from only 3m depth.
- Gold mineralisation remains open at depth and along strike between Kirgella Gift and Providence:
- Potential for significant resource growth and upgrade following additional drilling to expand on unclassified blocks outside current model limits.
- Highly economic discovery with KalGold’s direct exploration expenditure cost (drilling and assay) of only ~A$4.20 per gold ounce.
- KalGold’s Total Mineral Resource base, comprising this new resource from the Pinjin Project, and the La Mascotte deposit at Bulong Taurus (see ASX: KAL 7th March 2023), now stands at 214,300 oz.
- Elevated gold price of over A$3,600/oz continues to drive interest in mineable gold projects.
KalGold Managing Director and CEO Matt Painter said:
“KalGold is proud to report the first Mineral Resource Estimate at the Kirgella Gift and Providence gold deposits. It totals ~76,000 oz defined at over 1.0 g/t Au from only 3m depth, remains open in several directions, and is considered the first step in defining the full potential of the Kirgella Gift and Providence gold deposits. Pleasingly, we have defined a shallow gold resource at a very low cost to the Company of around A$4.20 per gold ounce.
The Kirgella and Providence mineral resource estimate is comparable to other deposits within the Laverton Tectonic Zone and is considered typical of the region. This is particularly true of some of the constituent deposits at Ramelius Resources’ (ASX:RMS) Rebecca Gold Project, around 20 km to the south along strike.
KalGold now has defined a total resource base of 214,300 oz of gold. The increased resource base enables KalGold to commence high level mining optimisation studies to assess pathways to production. KalGold looks forward to continuing to progress its work in the Pinjin area with the aim of significantly growing this initial JORC Code (2012) resource and defining a suite of additional shallow resources.”
First Gold MRE at KalGold’s Pinjin Project
The Inferred MRE of 2.34 Mt @ 1.0 g/t Au for 76,400 oz Au has been defined at a 0.5 g/t gold cut-off from the Company’s recent drill focus on the shallow portion of the Kirgella Gift and adjacent Providence gold deposits (see Table 1), combined with thoroughly validated historic datasets. Work continues on both deposits, with gold mineralisation open at depth and along strike between the two. This MRE is expected to form the basis of future updates as drilling and exploration continues.
Table 1 – Kirgella Gift and Providence Mineral Resource at a 0.5 g/t gold cut-off Note totals may not sum due to rounding.Click here for the full ASX Release
This article includes content from Kalgoorlie Gold Mining Limited, 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.
Brightstar Resources Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects