Brightstar Resources has released an updated Definitive Feasibility Study for its Goldfields Project, outlining a robust six-year production plan averaging 75,000 ounces of gold annually and a pre-tax NPV of A$606 million. The study highlights a new 1.5Mtpa processing plant with expansion potential and a clear pathway to first gold by mid-2027.
- 6-year production plan averaging 75koz gold per annum
- Pre-tax NPV of A$606 million and IRR of 74% at A$6,000/oz gold price
- New 1.5Mtpa CIL processing plant with upgrade option to 2.5Mtpa
- Ore Reserves of 351koz underpinning 457koz total life of mine production
- Peak funding requirement of A$188 million with 17-month payback
Brightstar’s Goldfields Project – A Step Change
Brightstar Resources Limited has unveiled an updated Definitive Feasibility Study (DFS 2.0) for its Goldfields Project in Western Australia, marking a significant milestone in its ambition to become a mid-tier gold producer. The study sets out a six-year production plan targeting an average of 75,000 ounces of gold per annum, supported by a total life of mine production target of 457,000 ounces.
Central to this plan is the construction of a new conventional carbon-in-leach (CIL) processing plant at Laverton with a design capacity of 1.5 million tonnes per annum (Mtpa), which incorporates embedded engineering flexibility to expand to 2.5 Mtpa during operations. This upgrade from the original 1.0 Mtpa design reflects Brightstar’s confidence in the scale and quality of its Mineral Resources and Ore Reserves.
Robust Financial Metrics and De-risked Development
The DFS 2.0 delivers compelling economics with a pre-tax net present value (NPV) of A$606 million and an internal rate of return (IRR) of 74% based on a conservative gold price of A$6,000 per ounce. At spot prices near A$7,000 per ounce, the NPV rises to A$911 million with an IRR exceeding 100%, underscoring the project’s sensitivity to gold price movements.
Brightstar anticipates a peak funding requirement of A$188 million to finance the project, with a payback period of just 17 months from first gold production, targeted for June 2027. The company has already completed front-end engineering design (FEED) and site establishment, including camp upgrades and clearing of the plant site, and secured a fixed-price engineering, procurement, and construction (EPC) contract to mitigate construction risks.
Resource Base and Production Profile
The project is underpinned by Ore Reserves of 351,000 ounces at 1.6 grams per tonne gold, supported by a Mineral Resource base of 4.0 million ounces. Approximately 73% of the production target is derived from Measured and Indicated Resources, with the remaining 27% from Inferred Resources, which carry a lower geological confidence and introduce some uncertainty to the forecast production.
The Goldfields hub includes multiple mining operations such as the Lord Byron and Cork Tree Well open pits, and the Yunndaga underground mine, with a consolidated processing strategy at Laverton replacing the previous toll milling approach at Menzies. This consolidation simplifies operations and improves economics by eliminating third-party processing risks.
Strategic Growth and the Sandstone Opportunity
Brightstar’s strategy extends beyond Goldfields, with the Sandstone Project representing a significant district-scale opportunity boasting a 2.4 million ounce Mineral Resource base. While still at the pre-feasibility stage, Sandstone is positioned to complement Goldfields production and contribute to Brightstar’s aspirational target of exceeding 200,000 ounces of gold production annually by 2029.
The company plans to leverage cash flow generated from Goldfields to fund Sandstone’s development, with a pre-feasibility study due mid-2026 and a final investment decision targeted for the second half of 2027. Exploration programs are ongoing, with over 100,000 metres drilled to date to support resource upgrades and mine life extensions.
Market Position and Outlook
Trading at an enterprise value of approximately A$442 million, Brightstar’s valuation metrics suggest room for re-rating as production scales and development milestones are achieved. The company benefits from a strong management team with proven execution capabilities, demonstrated by the successful on-time and on-budget construction of the Fish Underground mine.
With a clear development pathway, robust financials, and a growing resource base in a Tier 1 jurisdiction, Brightstar is well positioned to advance its multi-hub production growth strategy. The upcoming months will be critical as the company targets its final investment decision and begins construction of the Laverton processing plant.
Bottom Line?
Brightstar’s updated DFS charts a confident course to near-term production and longer-term growth, but execution and resource conversion remain key to unlocking full value.
Questions in the middle?
- How will Brightstar manage the geological risks associated with 27% Inferred Resources in its production target?
- What financing structures will Brightstar pursue to meet the A$188 million peak funding requirement?
- How quickly can the Sandstone Project progress from pre-feasibility to production to support the TARGET200 ambition?