Can Brightstar Overcome Permitting and Development Risks to Hit 200koz by 2029?

Brightstar’s Growth Trajectory in Western Australia

Brightstar Resources Limited, a junior gold producer focused on Western Australia, presented a comprehensive growth strategy at the Canaccord Genuity Global Metals & Mining Conference in May 2025. The company is targeting a significant ramp-up in gold production, aiming to increase from its current approximate 20,000 ounces per annum (koz pa) to around 40koz pa by mid-2025, driven primarily by the ramp-up of the Fish underground mine.

Looking further ahead, Brightstar aspires to reach a production profile exceeding 200koz pa by 2029. This ambitious target is underpinned by development plans across three key hubs: Laverton, Menzies, and Sandstone. The company’s strategy involves a blend of underground and open pit mining, supported by ongoing exploration and resource upgrades.

Key Milestones: Feasibility Studies and Resource Expansion

Critical to Brightstar’s growth are the upcoming Definitive Feasibility Studies (DFS) for the Laverton and Menzies hubs, scheduled for delivery in the first half of calendar year 2025. These studies will provide detailed assessments of mining operations, processing infrastructure, and cost parameters, enabling the company to refine its development plans and capital allocation.

Following this, a Pre-Feasibility Study (PFS) for the Sandstone project is planned for the first half of 2026. Sandstone, with a substantial 1.5 million ounce (Moz) mineral resource base, represents a potential long-life production centre. The PFS will incorporate results from an extensive 80km drilling program underway in 2025, aimed at upgrading mineral resources and delineating optimal processing strategies.

Robust Resource Base and Exploration Program

Brightstar boasts a consolidated mineral resource inventory of approximately 3.0Moz at an average grade of around 1.5 grams per tonne (g/t) gold. This includes 848koz at Laverton, 589koz at Menzies, and 1.5Moz at Sandstone. The company is executing a fully funded, aggressive drilling campaign totaling over 130,000 metres in 2025, designed to convert inferred resources to higher confidence categories and identify new mineralisation zones.

The exploration focus is not only on resource growth but also on enhancing the quality and classification of resources to support future mining operations. This systematic approach aims to underpin the feasibility studies and facilitate timely project development.

Operational Highlights and Market Position

Operationally, Brightstar is progressing well with its existing assets. The Second Fortune underground mine continues to deliver steady production and cash flow, while the Fish underground mine is advancing towards first ore production targeted for June 2025. Open pit developments at Lord Byron and Cork Tree Well are also underway, expected to provide multi-year base load ore supply.

From a market perspective, Brightstar’s enterprise value per resource ounce stands at approximately A$99/oz, positioning it attractively among Western Australian junior gold producers. The company’s strong cash position, combined with its strategic acquisitions at an average cost of A$36/oz, provides a solid foundation for value accretive growth.

Looking Ahead: Development and Value Creation

Brightstar’s near-term focus will be on delivering the DFS for Laverton and Menzies hubs, progressing permitting and approvals, and advancing the Sandstone PFS. The company’s integrated approach to development, combining underground and open pit mining with processing infrastructure upgrades, aims to unlock significant value for shareholders.

While the 200koz pa production target by 2029 remains aspirational and contingent on successful study outcomes and permitting, Brightstar’s clear roadmap and resource base provide a compelling narrative for growth in the competitive Western Australian gold sector.