Brightstar Resources (ASX:BTR) used a conference presentation to outline a growth plan built around two project areas in Western Australia, highlighting recent company expansion, a newly released definitive feasibility study (DFS) for its Goldfields Hub, and an accelerated push to advance its Sandstone Hub toward development.
From junior explorer to operating producer
Managing Director Alex Rovira said Brightstar has changed significantly over the past three years, describing a transition from a sub-AUD 10 million market capitalization company with “two or three employees” and about 400,000 ounces of resources to a business with more than 4 million ounces of resources, around a AUD 500 million market cap, and roughly 140 employees.
Goldfields Hub DFS: production lift and processing plant plan
Brightstar’s presentation focused heavily on the Goldfields Hub following the release of a DFS in late January. Rovira said the plan could take the company from producing roughly 30,000 to 35,000 ounces currently to “close to 80,000 ounces, if not more,” and serve as a stepping stone toward an aspirational “mid-tier scale” profile of 200,000 to 300,000 ounces per year.
Key points Rovira highlighted from the DFS included:
- An initial six-year mine life producing “a little over” 75,000 ounces per year.
- Sensitivity analysis across gold prices down to about AUD 4,500–5,000 per ounce and up to current spot levels referenced at about AUD 7,000 per ounce.
- At spot pricing, he said the DFS economics indicated nearly AUD 1 billion in NPV and nearly AUD 1.5 billion in free cash flow over six years, equating to approximately AUD 200–230 million in annual free cash flow.
Rovira said the Goldfields strategy centers on building a centrally located processing facility near Laverton (shown in the presentation as “BTR Plant”), with ore trucked from multiple mine sources. The operating philosophy described was to have one open pit and one underground mine running at any one time, aiming to balance tonnes from open pit operations with higher grade from underground sources.
The proposed plant was described as a conventional 1.5 million tonne-per-annum mill featuring “single stage crush with a SAG mill,” using standard processing methods common to the Eastern Goldfields. Rovira also said the design includes upfront engineering to allow expansion to 2.5 million tonnes per annum during operations, such as adding a ball mill and additional leach capacity.
Timeline and contractor appointment
Rovira provided an indicative schedule that targets a final investment decision (FID) in March, followed by construction commencing from April. He described a roughly 14-month construction window, with first gold targeted for May or June next year.
He also noted that Brightstar had appointed GR Engineering as the preferred EPC contractor for the build, calling the firm “the best in the space” and emphasizing the “off-the-shelf” and conventional nature of the processing infrastructure.
Sandstone Hub: drilling, studies, and a larger-scale ambition
While the Goldfields Hub was presented as the near-term “engine room” for cash flow, Rovira positioned Sandstone as a longer-term opportunity that could materially increase production. He said Sandstone now contains about 2.4–2.5 million ounces of resources, with about 1.6 million ounces in the top 150 meters from surface. Rovira argued the belt has not been meaningfully explored in a long time and described it as a “forgotten greenstone belt.”
Operationally, Brightstar is drilling at Sandstone with four rigs on site, with an intention to increase drilling. Rovira said the company expects:
- A resource upgrade in about April or May, aimed at increasing both size and quality by upgrading inferred material into measured and indicated categories.
- A pre-feasibility study (PFS) targeted for the September quarter.
- An ambition to have the project moving toward FID by the end of next calendar year, with “FID-ready approvals” also referenced for that timeframe.
Rovira stated that Sandstone was last mined in 2010 and contrasted that period’s sub-$1,000 per ounce gold price with current levels he said are about seven times higher. He said prior operators focused on shallow oxide mineralization, leaving room for further exploration depth and resource conversion. The company has drilled about 120,000 meters so far, with “a lot more drilling to do.”
Funding position and portfolio strategy
Rovira said Brightstar recently completed a capital raising and now has about AUD 200 million in cash, describing the company as “fully funded from an equity component” to build the Goldfields Hub and to progress Sandstone through to FID and into development.
He also said the register is about 50% institutionally held, which he characterized as supportive of the company’s growth objectives. Across the broader portfolio, Rovira noted many projects were acquired from smaller ASX juniors that had struggled for capital, resulting in limited systematic exploration. He said Brightstar views the current 4 million ounce resource base as potentially expandable “in the fullness of time.”
In closing, Rovira reiterated that Brightstar’s plan is to grow from its existing assets without requiring further M&A, using Goldfields cash flow to help fund Sandstone’s development over time.
About Brightstar Resources (ASX:BTR)
Brightstar Resources Limited, together with its subsidiaries, explores for and develops mineral properties in Australia. The company primarily explores for gold deposits. It holds interests in the Alpha, Beta, and Cork Tree Well (Delta) Deposit located in Western Australia. The company was formerly known as Stone Resources Australia Limited and changed its name to Brightstar Resources Limited in December 2020. The company was incorporated in 2002 and is based in Subiaco, Australia.
