First Ore Mined at Selkirk & Pre-Feasibility Study Update

Brightstar Resources Limited (ASX: BTR) (Brightstar) is pleased to announce that the first ore has been mined at Selkirk, with end of month (EOM) physical reporting from October 2023 indicating a second consecutive month of high productivity and above-budget material movement from Brightstar’s joint venture partner, BML Ventures Pty Ltd (BML Ventures).

HIGHLIGHTS

• Mining operations are progressing ahead of schedule at the Selkirk Deposit within the Menzies Gold Project, with second consecutive month of +10% production above agreed budget achieved in October boding well for project economics
• ~1,500t @ 3.01g/t Au ore from hangingwall lode outside of the mine plan has been mined and stockpiled on Selkirk ROM Pad
• Haulage of ore to Genesis Minerals’ Gwalia Processing Plant scheduled for February 2024 with 50% Project Cashflow to be generated and distributed to Brightstar in Q1 2024
• Additional resources within the Brightstar portfolio actively being investigated for future potential “Selkirk 2.0” early mining operations
• Key consultants appointed for Pre-Feasibility Study with works commenced on critical path items

Encouragingly, the mined hangingwall lode, which is within the resource model but not within the mine plan budget targeting +5.0g/t Au mineralisation, was delineated and mined during October. Approximately 1,500t of this material, grading over 3.0g/t Au, will be added to the known +5.0g/t material contained within the high grade main lode and trucked to Gwalia for processing into Brightstar’s maiden gold pour in Q1 2024.

Brightstar’s Managing Director, Alex Rovira, commented “We are pleased to see the continued strong progress made by BML at Selkirk, who are currently ahead of the mine schedule. Pleasingly, the hangingwall lode has been successfully mined and stockpiled on the ROM pad, representing upside to the budgeted outcome for the joint venture.

Positively, the project is budgeted on a gold price of A$2,850 per ounce, compared to the current spot price of A$3,050 per ounce which presents upside in the forecast economics for the joint venture.

As the mining campaign at Selkirk advances, we continue to assess further opportunities at Menzies for potential near-term and low risk exploitation. These opportunities are targeted to deliver organic funding that will provide working capital for the continued exploration across the Brightstar portfolio and the PFS underway.”

Mining at Selkirk is progressing ahead of schedule, with material from the 385rl being mined in October representing the halfway point with blasting of the 380rl bench conducted towards the end of the month. Material movements over the final three months are anticipated to reduce in line with increased ore delivery, tighter working areas and normal mining constraints associated with reduced volumes at the base of open pit mines.

Over the coming months, ore will be stockpiled at the Selkirk ROM Pad and subsequently hauled to Genesis Minerals Limited’s (ASX:GMD) Gwalia Processing facility in February 2024 for processing in a single parcel during currently elevated AUD gold prices of +$3,050/oz which is above the budgeted conservative gold price of $2,850/oz.

Figure 1 - Progress photograph (looking NW) of Selkirk Cutback, end October 2023

Brightstar is actively engaged in reviewing its deposits within its portfolio for other potential mining campaigns, with a “Selkirk 2.0” model envisaged to generate future cashflow opportunities. In particular, the Menzies Gold Project contains near-surface, oxide material which could potentially represent a low-cost mining and processing opportunity for low risk, high margin gold ounces.

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