Red Hill Acquires 2% Royalty Amid Brightstar’s 80,000m Drilling Success
Red Hill Minerals has completed the acquisition of a 2% gross revenue royalty on Brightstar Resources’ Sandstone Gold Project, coinciding with promising high-grade drilling results that underscore the project’s potential.
- Acquisition of 2% gross revenue royalty over Sandstone Gold Project
- Brightstar’s ongoing +80,000m drilling program at Sandstone Hub
- Recent high-grade assay results from Musketeer deposit
- Red Hill’s confidence in Brightstar’s path to production
- Royalty acquisition expands Red Hill’s portfolio in Western Australia
Royalty Acquisition Completed
Red Hill Minerals Limited (ASX, RHI) has officially completed its purchase of a 2% gross revenue royalty on the Sandstone Gold Project, operated by Brightstar Resources Limited (ASX, BTR) in Western Australia. This strategic move, announced on 19 June 2025, marks a significant expansion of Red Hill’s royalty portfolio, positioning the company to benefit from future production at one of the region’s promising gold developments.
Brightstar’s Drilling Success Fuels Optimism
Brightstar is actively advancing the Sandstone Gold Project with an extensive drilling campaign exceeding 80,000 metres. Recent assay results from the Musketeer deposit, part of the royalty tenements, have revealed impressive high-grade gold intersections. Highlights include a standout 10 metres grading 43.8 grams per tonne gold, featuring an exceptional 1 metre at 356 grams per tonne, alongside other significant intercepts demonstrating both shallow and extensional mineralisation.
Strategic Implications for Red Hill Minerals
Red Hill’s Executive Chairman, Joshua Pitt, expressed strong confidence in Brightstar’s ability to progress the project towards production. The royalty acquisition not only diversifies Red Hill’s income streams but also aligns the company with a project showing tangible signs of resource growth and potential economic viability. While the financial terms of the acquisition remain undisclosed, the timing alongside Brightstar’s drilling success suggests a calculated bet on the project’s future cash flow generation.
Market and Sector Context
The Sandstone Gold Project sits within a prolific gold region of Western Australia, where exploration and development activity continues to attract investor interest. High-grade results such as those reported by Brightstar often serve as catalysts for re-rating junior miners and royalty holders alike. For Red Hill, this acquisition could enhance its profile as a royalty company with exposure to quality assets without the operational risks of mining.
Looking Ahead
As Brightstar continues its drilling program and moves closer to defining a mine plan, Red Hill stands to benefit from any future production royalties. Investors will be watching closely for updates on resource delineation, project financing, and development timelines that will ultimately determine the royalty’s value contribution to Red Hill’s earnings.
Bottom Line?
Red Hill’s royalty acquisition stakes a claim in a high-potential gold project, setting the stage for future revenue as Brightstar advances drilling and development.
Questions in the middle?
- What are the financial terms and upfront costs of the royalty acquisition?
- When does Brightstar anticipate commencing production at Sandstone?
- How will Red Hill integrate this royalty into its broader portfolio strategy?
