Brightstar Resources (ASX: BTR) is making significant strides in its exploration efforts, particularly at the Pericles deposit, as it embarks on a comprehensive drilling campaign. The company is focused on enhancing its gold resource base, with plans to increase its current portfolio from 2 million ounces to an anticipated 3 million ounces following the acquisition of Alto Metals, located in the Sandstone district.
Drilling Campaign and Resource Expansion
Brightstar’s ongoing infill drilling program is part of a broader reverse circulation and diamond drilling campaign aimed at tapping into gold mineralization. The company has targeted specific areas within delineated pit shells and underground designs outlined in its scoping study. Additionally, some drilling efforts are being directed towards extending the current resource base.
Managing Director Alex Rovira commented on the drilling results, noting that the high-grade and wide intercepts received from this campaign enhance the company’s understanding of the Lady Shenton System. The results indicate consistent mineralization both within and immediately below the $2,750 per ounce pit shell established during the scoping study.
Rovira highlighted that the initial gold price projection of $2,750 was conservative, especially in light of the current spot gold price, which exceeds $4,100 per ounce. He emphasized the company’s commitment to immediately commence a mineral resource estimate update for the Pericles deposit, with the objective of reinforcing confidence in the definitive feasibility study (DFS) mine design alongside ongoing workstreams.
Drilling Results and Future Potential
In 2024, Brightstar completed two drilling campaigns at the Pericles deposit, totaling 54 holes. Assays from 26 drill holes released in July showcased promising results, including significant intercepts such as 5 meters at 15.62 grams per tonne (g/t) gold from a depth of 104 meters and 2 meters at 22.32 g/t gold from 95 meters. The latest assay results, received from the remaining drill holes, are expected to further bolster the company’s resource estimates.
These drilling campaigns were specifically designed to confirm the positions of mineralized lodes within the pit shell. By infilling key areas, Brightstar aims to enhance resource confidence and support the potential declaration of an ore reserve as part of its definitive feasibility study. Notably, the high-grade domains within the deposit remain open down plunge, presenting opportunities for additional drilling to potentially outline mineralization for future open-pit cutbacks or underground mining scenarios.
Strategic Developments Beyond Pericles
In addition to the positive drilling results at Pericles, Brightstar Resources is actively exploring opportunities to consolidate its position in the Sandstone district. The company has issued a non-binding and indicative offer to enter a joint venture at Aurumin’s (ASX: AUN) Central Sandstone project, which is situated adjacent to Alto Metals’ ground. The Central Sandstone project boasts a significant resource of 881,300 ounces of gold, as per its last upgrade.
This strategic move aligns with Brightstar’s broader goals of enhancing its resource base and expanding its operational footprint in the region.
Financial Arrangements to Support Growth
Brightstar has secured terms for an $11.5 million gold prepayment debt facility from Ocean Partners. This agreement entails the delivery of approximately 4,600 ounces of gold to Ocean Partners over the course of 2025. Repayment will occur at an interest rate proposed to be based on the three-month term SOFR plus 11% per annum.
The funds generated from this facility will primarily be utilized for general working capital. Additionally, part of the funds will be allocated to the development of the Fish underground project, which is expected to enhance the company’s overall production capabilities.
Processing Agreements and Increased Production
The company is currently engaged in negotiations with multiple parties in the Eastern Goldfields regarding the processing of ore from its Menzies and Laverton gold projects. Brightstar is exploring both toll milling agreements and ore purchase agreements, which could significantly increase its gold production capacity in 2025.
These potential arrangements highlight the company’s proactive approach to scaling up operations and maximizing the value of its gold assets.
Progressing Approvals for Menzies Project
Rovira indicated that Brightstar is advancing its efforts to secure approvals for the Menzies project. The company is focused on proactive environmental planning and community engagement to facilitate mining operations, with a target start date set for 2025.
With the recent receipt of the Menzies reverse circulation (RC) assays, the company is optimistic about the project’s prospects. Rovira noted that the company is eagerly anticipating the outstanding diamond hole assays from the Fish and Lord Byron projects at Jasper Hills in the coming weeks. Additionally, the company plans to recommence RC drilling at its newly acquired Montague East Gold Project, located north of Sandstone in the Murchison region.
Conclusion
Brightstar Resources is positioning itself for significant growth as it navigates an expansive drilling program and strategic acquisitions in the Sandstone district. With promising drilling results from the Pericles deposit and proactive steps towards consolidating its resource base, the company is poised to enhance its gold production capabilities. As it advances through various project approvals and financial arrangements, Brightstar continues to demonstrate its commitment to building a robust gold portfolio in a dynamic market environment.
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