Execution Risks Loom as Brightstar Targets Multi-Hub Gold Growth in Western Australia

Feasibility Study Sets Stage for Growth

Brightstar Resources Limited has released a comprehensive Definitive Feasibility Study (DFS) update for its Laverton-Menzies gold projects in Western Australia, outlining a production target of approximately 70,000 ounces per annum over the next five years. The study is anchored by a new 1.0 million tonnes per annum (Mtpa) carbon-in-leach (CIL) processing plant at Laverton, scheduled for commissioning in early 2027, and a low capital expenditure open pit development at Menzies commencing in early 2026.

The DFS projects a robust pre-tax net present value (NPV) of AUD 316 million and an internal rate of return (IRR) of 73% based on a spot gold price of AUD 5,000 per ounce. The payback period is notably short, estimated at just one year post mill commissioning, underscoring the project's economic viability.

Multi-Hub Production and Strategic Funding

The Laverton-Menzies operation is designed as a multi-hub production platform. Menzies will initially operate under a toll-treating arrangement via a Memorandum of Understanding with Paddington Gold, allowing ore processing with minimal upfront capital. This approach reduces risk and accelerates cash flow generation, with Menzies expected to contribute around 30,000 ounces annually starting in 2026.

Meanwhile, Laverton will host the new processing plant, leveraging existing permits and infrastructure to fast-track development. The plant is designed to process 1.0Mtpa of fresh rock with potential for higher throughput when blending oxide material. Open pit mines such as Lord Byron and Cork Tree Well will provide base load feed, complemented by underground operations at Second Fortune and Fish.

Brightstar is targeting a debt-to-equity funding ratio of approximately 70 – 30, with strong interest from Tier 1 domestic and international banks. The company emphasizes funding optionality and staged investment decisions to optimize shareholder value and minimize dilution.

Sandstone Project – Aspirational Growth Beyond 2029

Beyond Laverton-Menzies, Brightstar is advancing the Sandstone Gold Project, which holds a substantial mineral resource of 1.5 million ounces at 1.5 grams per tonne gold. A Pre-Feasibility Study (PFS) is targeted for the first half of 2026, following an aggressive drilling campaign planned for 2025. The Sandstone project aims to become a long-life production centre, with aspirational targets exceeding 200,000 ounces per annum by 2029.

While Sandstone’s production targets remain aspirational pending further studies and approvals, the project benefits from a strategic location, existing infrastructure, and promising recent drilling results, including high-grade intercepts. Brightstar is also exploring inorganic growth opportunities in the Sandstone district to complement its organic expansion.

Operational and Exploration Outlook

Brightstar’s operational ramp-up is supported by ongoing exploration and resource upgrades across its portfolio. The company plans over 130,000 metres of drilling in 2025, targeting resource growth and mine life extensions, particularly at Laverton and Sandstone. The Laverton-Menzies DFS production is underpinned by 70% of ounces from Measured and Indicated Mineral Resources, though a portion remains in the lower-confidence Inferred category, which introduces some execution risk.

The company’s experienced management and technical team, with deep expertise in Western Australian gold mining, is focused on delivering staged development and maximizing free cash flow. Brightstar’s strategy balances near-term production with longer-term growth, positioning it as a growing gold producer in a Tier 1 jurisdiction.