Brightstar Resources (ASX:BTR) has kicked off mining activities alongside its joint venture (JV) partner, BML Ventures, at the Selkirk Open-Pit cutback within the Menzies Gold Project in Western Australia.
Brightstar, which has a $22.6 million market capitalisation, says the first blast occurred at the site on Monday 21 August.
The mining at Selkirk is scheduled to span for 6 months, with ore being stockpiled in Menzies to be subsequently hauled to Genesis Minerals’ (ASX:GMD) Gwalia processing facility in February 2024 for processing in a single parcel.
Brightstar says it’s looking forward to joining the ranks of Western Australian gold producers, with the cutback of the Selkirk joint venture (JV) transitioning Brightstar from a junior explorer to a producer.
Commenting on the mining activities, Brightstar Resources Managing Director Alex Rovira says: “We are pleased to see the maiden blast at Selkirk that signifies the commencement of production at the Menzie Gold Project.
Our joint venture partners BML Ventures have now mobilised to site, with the mining cycle now underway. Encouragingly, the project is budgeted on a gold price of $2,850 per ounce, compared to the current spot price in excess of $2,950 per ounce, which presents potential upside in the forecast economics for the joint venture.
“We are pleased to see the maiden blast at Selkirk that signifies the commencement of production at the Menzie Gold Project“
We remain impressed with the detailed technical and operational work BML is undertaking for the Selkirk Mining JV, and we continue to assess further opportunities at Menzies for exploitation.
Future mining opportunities at Menzies will be assessed to unlock the bigger-scale ambitions of Brightstar to continue as a gold explorer, developer and ultimately as a long-term producer via our wholly owned processing plant in Laverton.”
Brightstar Resources is a Perth-based gold exploration and development company aiming to grow its mineral resource inventory with the view to becoming a substantial future ASX gold developer and producer.
As of 30 June 2023, the company had $425,000 cash and cash equivalents at hand, according to its latest quarterly report. At the end of July, however, Brightstar announced it had received firm commitments for a share purchase plan to raise $3.5 million.
Write to Aaliyah Rogan at Mining.com.au
Images: Brightstar Resources
