Goldfields Project to Produce 457,000oz with A$188M Capital and 17-Month Payback

Robust Economics Drive Goldfields Project Forward

Brightstar Resources Limited (ASX – BTR) has unveiled an updated Definitive Feasibility Study (DFS2.0) for its 100%-owned Goldfields Project in Western Australia, delivering a compelling economic outlook. The study forecasts an impressive pre-tax free cash flow of A$1.0 billion and a robust internal rate of return (IRR) of 74% based on a conservative gold price of A$6,000 per ounce. This marks a significant improvement over the previous DFS released in June 2025, reflecting the company’s strategic shift to a consolidated processing approach at its Laverton plant and an expanded ore reserve base.

The Goldfields Project, comprising assets at Menzies and Laverton, is positioned as a material standalone gold development in a Tier-1 jurisdiction. The updated study incorporates a right-sized processing plant with a throughput capacity increased to 1.5 million tonnes per annum (Mtpa), up from 1.0 Mtpa, enhancing production profiles and mine life. Brightstar anticipates recovering approximately 457,000 ounces of gold over six years, averaging 75,000 ounces annually, with potential for mine life extension through ongoing exploration.

Funding and Development Pathway

The project requires a peak capital investment of A$188 million, with Brightstar advancing a funding package that includes debt financing discussions targeting between A$100 million and A$150 million. The company is well progressed in securing this financing, with multiple non-binding term sheets in place and advisory support from Burnvoir Corporate Finance Ltd. The payback period is projected at a swift 17 months post-commissioning, underscoring the project's financial resilience.

Brightstar’s Managing Director, Alex Rovira, emphasised the significance of the DFS2.0, stating it “illustrates that the development of our Goldfields Hub is a material stand-alone WA gold development by any measure, and will generate outstanding financial metrics and unlock significant value for our shareholders.” The company targets a Final Investment Decision (FID) in the March quarter of 2026, following completion of financing and receipt of final operational permits.

Operational and Technical Highlights

The updated study reflects a strategic transition from a toll milling approach at Menzies to processing all ore at the upgraded Laverton plant, mitigating third-party processing risks and improving operational control. The processing plant design includes provisions for future expansion to 2.5 Mtpa, offering scalability aligned with exploration success or potential acquisitions.

Mining operations will utilise conventional open pit and underground methods across multiple deposits, including Lady Shenton, Lord Byron, Cork Tree Well, and Yunndaga. Metallurgical test work confirms high gold recoveries, with the processing flowsheet optimised for operational flexibility and efficiency. Tailings storage solutions leverage existing pit infrastructure to minimise environmental disturbance, complemented by a conventional paddock tailings storage facility planned for later stages.

Exploration Upside and Growth Potential

Brightstar highlights significant exploration upside within its Goldfields portfolio. Several deposits remain open at depth and along strike, with high-grade shoots identified at Lord Byron, Fish, and Lady Shenton. The company has allocated budgets for near-mine brownfields exploration and is actively pursuing growth opportunities to extend mine life and increase production. The processing plant’s design flexibility supports potential inorganic growth through acquisitions or strategic partnerships in the broader Menzies-Leonora-Laverton districts.

Risks and Considerations

While the DFS2.0 presents a strong economic case, Brightstar acknowledges key risks including gold price volatility, operating cost fluctuations, labour supply challenges, contractual risks, and the need for regulatory approvals. The company is evaluating hedging strategies, such as put options, to mitigate price risks during commissioning and early production phases. Funding availability remains a critical factor, though the company’s robust financial metrics and clean corporate structure are expected to support capital raising efforts.