Brightstar Resources has signed a memorandum of understanding (MoU) with Paddington Gold to accelerate ore processing from its Menzies gold project.
“It is pleasing to announce this MoU with Paddington Gold for the processing of Lady Shenton ore from the first half of 2026,” Brightstar managing director Alex Rovira said.
The MoU covers ore sales over 30 months of production, targeting monthly deliveries of 50,000 tonnes from the Lady Shenton deposit to the Paddington processing plant, 100km south of Menzies.
The agreement sets the stage for a binding ore purchase agreement (OPA), expected to be finalised in the September quarter.
Mining is scheduled to begin by April 30, 2026, with total ore volumes ranging from 1.5 to 2 million tonnes.
Lady Shenton holds a mineral resource estimate (MRE) of 5.6 million tonnes at 1.5 grams per tonne (g/t) gold for 273,000 ounces, with 45 per cent classified as measured and indicated.
Documentation for the mining proposal and mine closure plan was lodged with the Department of Energy, Mines, Industry Regulation and Safety early in the June quarter.
Brightstar said approvals and planning are well advanced, with camp designs finalised and contracts underway for mining, haulage, travel and camp services.
The company expects low start-up capital requirements at Menzies as there is no need for processing infrastructure.
Brightstar is also considering processing ore from potential underground mining at the Yunndaga deposit through its Laverton mill.
This would complement output from its Second Fortune and Fish underground operations, with Brightstar targeting a production run rate of around 40,000 ounces per annum.
A definitive feasibility study for the Menzies and Laverton projects is due next week and will include maiden ore reserves for Lady Shenton.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
