Brightstar Resources has completed its strategic acquisition of Aurumin Limited, consolidating its Sandstone gold assets and boosting production by 12% in the December quarter. The company also advanced key feasibility studies, underpinning a promising growth trajectory.
- Completion of Aurumin acquisition consolidates Sandstone resources to 2.4Moz gold
- December quarter gold production rises 12% to 7,846oz, with record output from Fish mine
- Goldfields DFS 2.0 released with improved economics and targeted Final Investment Decision in Q1 2026
- Menzies Mineral Resource upgraded by 22%, supporting expanded mine plans
- Strong cash position of $23 million and fully drawn $17.2 million loan facility
Strategic Acquisition Completes Sandstone Consolidation
Brightstar Resources (ASX – BTR) marked a significant milestone in December 2025 with the completion of its acquisition of Aurumin Limited. This move finalises Brightstar’s consolidation strategy for the Sandstone gold district, delivering a combined Mineral Resource of 2.4 million ounces at an average grade of 1.5 grams per tonne. Notably, 1.6 million ounces of this resource lie within the top 150 metres from surface, positioning the company well for near-term development.
The acquisition also brought together six active drilling rigs across the Sandstone project, accelerating exploration and resource definition efforts. Brightstar is advancing a Pre-Feasibility Study (PFS) for Sandstone, targeting completion in the first half of 2026, with a focus on optimising open pit designs, metallurgical recoveries, and permitting pathways. The company aims for a Final Investment Decision (FID) on Sandstone development in the second half of 2027.
Operational Performance and Production Growth
Operationally, Brightstar delivered a 12% quarter-on-quarter increase in gold production during the December quarter, mining 88,300 tonnes at 2.76 g/t Au for 7,846 ounces. The Fish underground mine was a standout, achieving a record quarterly production of 5,078 ounces, a 42% increase from the previous quarter, driven by strong mine development and ore drive advances ahead of schedule.
The Second Fortune underground mine also contributed 2,767 ounces, with ongoing development of the newly discovered FTV lode extending mineralisation strike by 260%. Processing campaigns through Genesis Minerals’ Laverton Mill processed approximately 83,000 tonnes at 2.32 g/t Au, recovering 4,652 ounces, albeit at a lower-than-expected 75% recovery rate due to suboptimal leaching conditions. Management anticipates improved recoveries in the upcoming March 2026 campaign.
Enhanced Economics from Goldfields DFS 2.0
Brightstar released an updated Definitive Feasibility Study (DFS 2.0) for its Goldfields project post-quarter, showcasing significantly improved project economics. The study highlights robust free cash flows, attractive payback periods, and strong net present values across a range of gold price scenarios. The company is targeting a Final Investment Decision and full funding solution for Goldfields by the end of the March quarter 2026.
Complementing this, a 22% Mineral Resource upgrade at the Menzies hub, including a 32% increase at Yunndaga and 29% at Lady Shenton, provides a solid foundation for mine plan optimisation and reserve upgrades feeding into the DFS outcomes.
Corporate Developments and Financial Position
Brightstar strengthened its leadership team with key appointments in project delivery, health and safety, and environmental management, reflecting its focus on operational excellence as production scales. The company also transitioned to KPMG as its new auditor and saw the resignation of Non-Executive Director Ashley Fraser.
Financially, Brightstar ended the quarter with $23 million in cash and a fully drawn $17.2 million loan facility. Despite ongoing capital expenditures, particularly on the Fish mine development and exploration activities, the company maintains a solid liquidity position to support its growth initiatives.
Looking Ahead
Brightstar’s December quarter results underscore its transition from exploration to production and development, with multiple projects advancing towards operational readiness. The upcoming months will be critical as the company finalises its Goldfields funding and investment decisions, progresses the Sandstone PFS, and seeks to improve processing recoveries. These developments will shape Brightstar’s trajectory towards its aspirational production target of over 200,000 ounces per annum by 2029.
Bottom Line?
Brightstar’s consolidation and operational momentum set the stage for pivotal investment decisions and growth in 2026.
Questions in the middle?
- Will Brightstar secure full funding and make the Final Investment Decision for Goldfields on schedule?
- How will improved processing recoveries impact near-term cash flow and production forecasts?
- What are the timelines and risks associated with the Sandstone Pre-Feasibility Study and subsequent development?