Brightstar Resources has signed a pivotal Memorandum of Understanding with Paddington Gold, setting the stage for open pit mining at the Lady Shenton deposit starting early 2026. This agreement promises to significantly boost production and de-risk the Menzies Gold Project.
- Non-binding MoU executed with Paddington Gold for ore processing
- Ore Purchase Agreement targeted for September quarter finalisation
- Open pit mining at Lady Shenton to commence by April 2026
- Projected ore sales of 1.5 to 2.0 million tonnes over 30 months
- Definitive Feasibility Study imminent, expected to declare maiden Ore Reserves
Brightstar’s Strategic Partnership with Paddington Gold
Brightstar Resources Limited (ASX – BTR) has taken a significant step forward in advancing its Menzies Gold Project by executing a non-binding Memorandum of Understanding (MoU) with Paddington Gold Pty Ltd. This agreement outlines the framework for a binding Ore Purchase Agreement (OPA) expected to be finalised in the September quarter of 2025. The MoU enables Brightstar to deliver ore from the Lady Shenton open pit deposit to the well-established Paddington Processing Plant, located approximately 100 kilometres south of Menzies.
Unlocking Value from Lady Shenton Deposit
The Lady Shenton deposit boasts a substantial Mineral Resource Estimate of 5.6 million tonnes at 1.5 grams per tonne gold, equating to 273,000 ounces of gold, with 45% classified as Measured and Indicated. Situated on a granted Mining Lease, the deposit is well positioned for development with mining proposals and closure plans already lodged with regulatory authorities. Brightstar plans to commence mining operations by 30 April 2026, targeting a monthly ore delivery of 50,000 tonnes to Paddington over a 30-month period, translating to a total ore volume between 1.5 and 2.0 million tonnes.
Minimal Capital Expenditure and Operational Synergies
One of the key advantages of this arrangement is the minimal start-up capital expenditure required, as Brightstar will leverage existing processing infrastructure at Paddington. This approach mitigates the need for costly new processing facilities, accelerating the path to production. Additionally, Brightstar is advancing studies and approvals, with camp designs finalised and commercial contracts for mining, hauling, and camp services underway, reflecting a well-coordinated operational plan.
Complementing Existing Operations and Future Growth
The Menzies open pit operation at Lady Shenton will complement Brightstar’s existing underground mines at Laverton; Second Fortune and Fish; currently producing around 40,000 ounces per annum. The upcoming Definitive Feasibility Study (DFS) for Menzies and Laverton, expected next week, is set to declare maiden Ore Reserves for Lady Shenton and other project areas, providing further clarity on the project’s economic potential. Exploration efforts continue robustly across Brightstar’s portfolio, including ongoing drilling at Sandstone, Laverton, and Menzies, with particular focus on the Yunndaga deposit, which is targeted to become the company’s third underground mine.
Looking Ahead
Brightstar’s Managing Director, Alex Rovira, emphasised the strategic importance of the MoU, highlighting the operational learnings from previous open pit mining at Selkirk and the strong collaboration with Paddington Gold. With final binding agreements and regulatory approvals anticipated by late 2025, Brightstar is well positioned to commence site establishment and mining activities in early 2026, marking a new production frontier for the company.
Bottom Line?
Brightstar’s MoU with Paddington Gold sets a clear path to expand gold production from Menzies, but final agreements and approvals remain critical next steps.
Questions in the middle?
- Will the binding Ore Purchase Agreement be executed on the anticipated timeline?
- How will the Definitive Feasibility Study impact Brightstar’s valuation and project financing?
- What are the potential risks or delays in obtaining final mining approvals for Lady Shenton?