Mining has commenced at Brightstar Resources Ltd (ASX:BTR)’s Selkirk Deposit within the Menzies Gold Project as it looks to join the ranks of Western Australia’s gold producers.
The company reported today that on Monday its joint venture partner, BML Ventures, completed the first blast of the Selkirk Open Pit cutback at the project in Western Australia’s Eastern Goldfields region.
Brightstar highlights this as an important moment that sees the company transition from gold explorer to producer, with a maiden gold pour anticipated in the first quarter of 2024 along with initial cashflow.
Mining at Selkirk will proceed for approximately six months, with ore being stockpiled in Menzies before it is hauled to Genesis Minerals (ASX:GMD) Litd’s Gwalia processing facility in next February to be processed in a single parcel.
Selkirk is anticipated to be a profitable ‘proof of concept’ operation whereby mining, hauling and processing activities will support future planned mining activities in the WA Goldfields at the company’s Menzies and Laverton gold projects.
The JV parties — Brightstar and BML Ventures — have budgeted the project on a conservative gold price of $2,850 per ounce. This is intended to provide sufficient risk protection against gold price fluctuations, while it presents potential upside in the forecast economics given the current $2,950 per ounce spot price.
Brightstar managing director Alex Rovira said: “We are pleased to see the maiden blast at Selkirk that signifies the commencement of production at the Menzies Gold Project. Our joint venture partners BML Ventures have now mobilised to site, with the mining cycle now underway.
“We remain impressed with the detailed technical and operational work BML is undertaking for the Selkirk Mining JV, and we continue to assess further opportunities at Menzies for exploitation. Future mining opportunities at Menzies will be assessed to unlock the bigger-scale ambitions of Brightstar to continue as a gold explorer, developer and ultimately as a long-term producer via our wholly-owned processing plant in Laverton.”