Selkirk mining completed with >35,000t of ore already stockpiled at Gwalia for processing
Brightstar Resources to use proceed from gold production to progress development of its Menzies and Laverton projects
5,000m RC drill campaign to kick off at Menzies
Special Report: The Inaugural gold pour from Brightstar Resources’ completed Selkirk JV is imminent, with gold revenues to be split 50/50 with BML Ventures and proceeds to provide cash flow for further exploration of its assets.
Strategic mining of the Selkirk deposit will provide cash flow for Brightstar Resources (ASX:BTR) to put towards exploration and development of its Menzies and Laverton projects after consolidating the assets in a merger with Kingwest Resources last year.
Selkirk funds to grow resource base
With already >35,000t of ore hauled to Genesis Minerals’ (ASX:GMD) Gwalia processing plant, funds from the processed gold from the now completed mining of Selkirk will go towards increasing BTR’s current resource base of 22Mt @ 1.5g/t gold for 1,036,000oz.
A 5,000m RC drill campaign is being planned to upgrade confidence in the resource ahead of the release of a pre-feasibility study (PFS) on Menzies.
BTR managing director Alex Rovira says the company is soon to join the ranks of Australian gold producers through the toll-treatment of Selkirk JV ore through the Gwalia processing plant, expected to begin in March.
“Our joint venture with BML Ventures has been conducted in a safe, productive and professional manner with gold revenues to be split on a 50/50 basis after project cost reconciliations,” Rovira says.
“The JV budget utilised a conservative gold price of A$2,850 per ounce, compared to the current spot price of >$3,100 per ounce which will provide financial upside to the JV.”
Linking up more cash flow opportunities
BTR is also looking to prove up the Link Zone deposits for an additional potential small-scale mining campaign which could generate further funds for overall project development.
Rovira believes this can be “executed contemporaneously” with the ongoing exploration and development workstreams.
“Open pit optimisations are currently ongoing in parallel with relevant permitting and approval processes for potential expedited development,” he says.
“We look forward to sharing news of Brightstar’s inaugural gold pour in March and further activities related to our PFS as they occur, including an RC program to commence at Menzies in the near future.”
This article was developed in collaboration with Brightstar Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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