Brightstar Resources (ASX:BTR) has begun its 2025 gold production program with ore now being hauled from its Laverton Hub to Genesis Minerals’ (ASX:GMD) Laverton Mill in Western Australia.
Genesis and Brightstar previously executed an ore purchase agreement, in which Brightstar will deliver, sell, and process up to 500,000 tonnes at the Laverton Mill over 2025 and Q1 2026.
The initial ore came from the Second Fortune run of mine pad, while the remainder will come from the operating Second Fortune underground mine, historical stockpiles from the Lord Byron open pit and, subject to final regulatory approvals, the development of the Fish underground project.
Brightstar, which has a market capitalisation of $239.52 million, says the agreement provides the company with a definitive processing solution to monetise existing value of its stockpiles and sets a platform to construct its second underground mining operation at the Fish Project, subject to final regulatory approvals.
The company notes the beginning of haulage to the Laverton Mill represents a key final step in Brightstar executing on its accelerated 2025 Laverton production strategy.
As such, Brightstar anticipates sufficient ore to be delivered to Genesis’ Mt Morgans Mine in Q1 to allow for a first processing campaign and gold pour in March.
Managing Director Alex Rovira says the company is now well-positioned to see a return on its time and capital invested, particularly at a time of record gold prices.
Gold’s spot price is currently sitting at $4,444.57 per ounce as of 12.30pm AEDT on 29 January 2025.
Rovira says introducing a second underground mine will add additional ore into its production profile and diversify production across the Laverton hub.
“Contemporaneous with the gold production from our Laverton hub via the ore purchase agreement, Definitive Feasibility Study work continues apace on Brightstar’s Menzies and Laverton assets that will position Brightstar to become a multi-asset gold producer across multiple mines and locations,” Rovira notes.
“Additionally, our geology team is focused on the 55,000m extensional and infill drilling program at the Sandstone Gold Project, striving to rapidly grow and improve the existing 1.5 million ounce @ 1.5 grams per tonne gold mineral resource and move that asset through the development pathway towards production opportunities.”
At the Second Fortune underground operation, the company is advancing a resource upgrade which is scheduled to be released early this year.
In December 2024, stoping activities restarted which has allowed development work to advance. Brightstar aims to establish almost two levels worth of stope panels, putting the mine in a production position entering into this calendar year.
Meanwhile, at the Fish underground development project, ore is expected to be accessed within six weeks of cutting the underground portal. As a result, the project is anticipated to have relatively low peak funding requirements due to early cashflow via the agreement with Genesis.
Brightstar has begun site works, including haul road maintenance and preparation, as well as early works for camp and site establishment for which all approvals are in place.
The company adds that Fish is expected to deliver material synergies to future potential development of the Lord Byron open pit operation.
Brightstar Resources is a Perth-based gold developer which hosts a portfolio of assets hosted in the prolific Goldfields region of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Brightstar Resources
