Brightstar Resources Accelerates Growth with Aurumin Deal, Eyes 200koz Gold Output by 2029

• Proforma combined Mineral Resource of 3.9 million ounces gold
• Laverton-Menzies DFS projects 70koz annual production by 2026 with $461M free cash flow
• Aurumin acquisition consolidates Sandstone district, adding 0.9Moz resources
• Sandstone Pre-Feasibility Study due 1H 2026, FID targeted late 2027
• New 1.0Mtpa Laverton mill construction planned for late 2025

Brightstar’s Strategic Expansion in Western Australia

Brightstar Resources Limited has released a comprehensive update on its growth trajectory as a Western Australian gold producer, underscoring its ambition to become a mid-tier player in the ASX gold sector. Central to this strategy is the consolidation of key gold assets across three hubs, Laverton, Menzies, and Sandstone.

The company’s recent acquisition of Aurumin Limited significantly bolsters its Sandstone portfolio, adding 0.9 million ounces to Brightstar’s proforma Mineral Resource tally of 3.9 million ounces at an average grade of 1.5 grams per tonne. This positions Brightstar as a leading developer in the region, with unparalleled scale among ASX-listed peers.

Laverton-Menzies, A Proven Pathway to Production Growth

Brightstar’s Definitive Feasibility Study (DFS) for the Laverton and Menzies projects outlines a clear production ramp-up to approximately 70,000 ounces per annum by 2026. The DFS highlights robust economics, including a life-of-mine free cash flow of $461 million and a pre-tax net present value (NPV) of $316 million, assuming a gold price of A$5,000 per ounce.

Key operational milestones include the construction of a new 1.0 million tonnes per annum (Mtpa) processing mill at Laverton, targeted for a final investment decision (FID) in late 2025. This mill will process ore from both underground mines like Second Fortune and Fish, as well as open pit operations such as Lord Byron and Cork Tree Well. The Menzies hub is set to contribute incremental, low-cost production starting early 2026, supported by a binding ore sale agreement with Paddington.

Sandstone Hub, Aspirational Growth and District-Scale Opportunity

The Sandstone project, now consolidated through the Aurumin acquisition, represents a district-scale open pit development opportunity. Brightstar is advancing a Pre-Feasibility Study (PFS) due in the first half of calendar year 2026, evaluating processing capacities between 3 and 5 Mtpa at the existing Aurumin plant site. The company aims for a FID by late 2027 and aspires to commence first gold production by the second half of 2028.

While these production targets remain aspirational and contingent on further technical studies and approvals, the acquisition provides Brightstar with valuable infrastructure, licenses, and permitting advantages that could accelerate development timelines and reduce capital intensity.

Financial and Operational Outlook

Brightstar’s platform is underpinned by a strong balance sheet, with approximately A$65 million in cash and available liquidity, complemented by a US$11.5 million revolving debt facility. The company’s market capitalization stands at around A$272 million, reflecting investor confidence in its growth strategy.

Ongoing exploration is a critical pillar of Brightstar’s plan, with over 100,000 metres of drilling scheduled for fiscal year 2026 aimed at resource upgrades and new discoveries across its hubs. The company’s experienced management and technical team bring a track record of delivering value-accretive deals and operational execution, which bodes well for meeting its production and development milestones.

Positioning for the Future

Brightstar’s multi-hub approach, combining organic growth with strategic acquisitions, sets a clear pathway to achieving a targeted annual production of over 200,000 ounces by 2029. This growth is expected to drive further re-rating of the company’s enterprise value relative to its resource base, aligning it more closely with established producers.

However, investors should note that some production targets rely on Inferred Mineral Resources, which carry a lower level of geological confidence, and the Sandstone project’s development remains subject to completion of detailed feasibility studies and regulatory approvals.

Bottom Line?

Brightstar’s consolidation and development strategy positions it for significant growth, but upcoming feasibility milestones and operational execution will be critical to unlocking its full potential.

Questions in the middle?

• How will Brightstar finance the construction of the Sandstone processing plant amid evolving market conditions?
• What are the key risks associated with converting Inferred Resources into mineable Reserves across the hubs?
• How might gold price volatility impact Brightstar’s projected cash flows and investment decisions?