Brightstar Resources has completed a definitive feasibility study (DFS) for its Menzies and Laverton gold projects in Western Australia, paving the way for a staged development approach with strong financial returns and near-term production targets.
At a spot gold price of $5000 per ounce, the DFS outlines an undiscounted pre-tax cash flow of $461 million, net present value (NPV) of $316 million, and an internal rate of return (IRR) of 73 per cent.
The base case scenario of $4500 per ounce still delivers an NPV of $203 million and a 48 per cent IRR.
The initial production target spans 6.4 million tonnes at 1.81 grams per tonne (g/t) gold for 338,528 ounces over five years, underpinned by newly declared open pit reserves of 4 million tonnes at 1.63g/t gold for 210,500 ounces.
The study presents a defined, low-risk route to production, generating substantial cash flow with relatively low capital investment.
“In parallel with our existing underground mining operations, the study outlines a low-capital and staged approach to building Brightstar into a meaningful mid-tier gold miner,” Brightstar managing sirector Alex Rovira said.
Brightstar expects annual average production of approximately 70,000 ounces, with ongoing resource exploration offering scope to extend mine life.
A non-binding term sheet has also been signed with an offshore precious metals investor for a $120 million funding package incorporating gold doré offtake and equity financing at a premium.
Mining at Menzies is targeted for commencement in the first half of 2026, supported by a memorandum of understanding with Paddington Gold for toll processing up to 2 million tonnes over 2.5 years.
Development will be supported by current cash reserves of $15 million, cash flow from Second Fortune, and ramp-up at the Fish mine, which recently delivered first ore.
Brightstar aims to reach 200,000 ounces of annual gold production by 2029, with Menzies and Laverton operations providing critical cash flow to support its future Sandstone project.
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