Brightstar Resources to line its pockets with Laverton gold in second processing round
Brightstar Resources has started processing the second parcel of ore from its Laverton Hub at Genesis Minerals’ nearby mill.
Brightstar Resources starts second round of ore processing at Genesis Minerals’ Laverton Mill
About 55,000t of ore grading more than 2g/t gold delivered to Laverton mill ROM pad in the May parcel
Development of the Fish underground mine progressing well with first ore expected in June
Special Report: Brightstar Resources has started a second ore processing campaign under its Laverton Hub ore purchase agreement with Genesis Minerals, which leverages current high gold prices.
The May campaign will process the ~55,000t of ore grading more than 2g/t gold that has been delivered to the Laverton mill ROM pad.
It follows the first parcel of 56,449t of ore which reconciled at a blended head grade of 2.51g/t gold – higher than the initial blended estimate of +2g/t gold – and achieved a strong recovery rate of 94.25% to deliver 4297oz of gold.
Under the ore purchase agreement, Brightstar Resources (ASX:BTR) will deliver, sell and process up to 500,000t of ore from its Laverton Hub through Genesis Minerals’ (ASX:GMD) Laverton mill over CY25 and Q1 CY26.
The company is hedge free, allowing it to benefit from current high gold prices of about US$3185 ($4955) per ounce.
While produced ore is currently a blend of high-grade material from the Second Fortune underground mine and existing lower-grade stockpiles from the Laverton Hub, continued development of the Fish underground mine is expected to start delivering ore in June, which will in turn increase mill feed grade for future processing campaigns.
Revenue generated by the agreement will help support the company’s exploration and development initiatives across its Menzies, Laverton, and Sandstone Hubs.
“It is great to see the commencement of processing for the second parcel of ore under our Ore Purchase Agreement with Genesis,” managing director Alex Rovira said.
“Mining operations at Second Fortune continue to ramp up successfully following the resumption of stoping in December, successfully delivering high-grade tonnes into the OPA.
“The Fish underground mine is advancing well, with mining of first ore on track for June which is set to add high-grade Fish tonnes into future processing campaigns under the OPA.”
Laverton operations
Operations at the Second Fortune mine continue to ramp up beyond the modelled steady state run rate of 10,000t per month towards the targeted 12,000t per month aspirational operational run rate.
Work streams on updating resources across the company’s portfolio are continuing towards completion with updated figures for Second Fortune being based on resource definition and expansion drilling undertaken in the December 2024 quarter.
This was aimed at delivering the infill data required to enable an upgrade to the resource model with the declaration of maiden ore reserves and mine life guidance expected in the current quarter.
Second Fortune remains open at depth and along strike and the current mine plan is only limited by drilling.
At Fish, development is continuing on schedule and budget, with significant progress made on underground mining operations and continued site establishment and infrastructure installation occurring on site.
Since the portal was fired in early April, BTR has developed 220m of decline and capital development, with an underground drill platform being established in the coming weeks to support extensional and infill drilling at depth within the Fish orebody.
Construction of the camp and ancillary infrastructure is due for completion this month.
Adding interest, key capital works for site establishment to facilitate mining at Fish are expected to deliver material synergies to future potential development of the Lord Byron open pit operation about 7km to the southwest.
Watch: Brightstar carries on Indomitable Sandstone gold strikes
Other activity
BTR is also close to completing the combined Laverton and Menzies definitive feasibility study with delivery expected in H1, 2025.
Rovira expects the DFS to position the company to become a multi-asset gold producer across multiple mines and locations.
“In parallel with the DFS, Brightstar has been undertaking a debt financing process with the company engaging with a number of ‘Big 4’ domestic banks and non-bank natural resource specialist financers for the financing of the Menzies and Laverton operations, with demonstrable support indicating a strongly financeable project,” he added.
The company seeks to be capable of producing more than 200,000oz per annum of gold within five years.As part of this objective, it will increase its drilling phase considerably with an additional three rigs mobilising to site in the coming weeks for extensional drilling across Menzies, Laverton and Sandstone.
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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