Brightstar Resources Ltd (ASX:BTR) is expanding its gold and lithium prospective tenure at the Menzies Gold Project in Western Australia through a tenement swap of its non-core assets with Ardea Resources Ltd (ASX:ARL, OTC:ARRRF).
The swap will see Brightstar consolidate ownership of the ‘Northern Trend’ of the Menzies Shear Zone, which is under shallow cover and represents significant exploration potential along strike of known gold resources that host resources of 505,000 ounces at 1.3 g/t gold.
Benefits for both
A binding term sheet between the two parties will also see Brightstar swap a number of non-core tenements south of the Menzies Project and at the Goongarrie Project to Ardea.
This will enable Ardea to advance the Kalgoorlie Nickel Project-Goongarrie Hub, which has recently been the focus of a pre-feasibility study.
Brightstar’s managing director Alex Rovira said: “We are pleased to have entered into an agreement with Ardea to secure highly prospective exploration ground for nil cash consideration immediately along strike of known mineralisation to the north of our Menzies Gold Project.
"The acquired ground has significant exploration potential to host further gold mineralisation given the combination of known Menzies ‘mine corridor geology’ within and adjacent to the Menzies Shear Zone and has seen limited historical exploration for gold due to shallow cover.”
Map of the Menzies tenement swap.
Lithium prospectivity
When it comes to lithium prospectivity, Brightstar has delineated at least 1 kilometre of outcropping pegmatites in the Menzies Project area with historical mining records extending known strike to more than 4 kilometres.
The consolidated ground has the potential to host lithium-bearing LCT pegmatites with geological similarities to Delta Lithium’s Mt Ida deposit.
"Whilst Brightstar rapidly advances towards development of its gold resources, it is also prudent to assess the potential for lithium mineralisation at Menzies given the geological setting and known pegmatite occurrences observed in the field and in historical records,” Rovira said.
"The acquisition of lithium and gold rights in Ardea’s E29/981, northwest of Lady Irene, is important as this is directly along strike from a +1-kilometre-long, stacked pegmatite system recently identified by Brightstar with comprehensive mapping and sampling programs underway at present.
"The structural and geological setting is ideal to host lithium-bearing LCT pegmatites, given the greenstone terrane that wraps around a granitic intrusion to the north is a similar geological setting to Delta Lithium’s Mt Ida Lithium Project located approximately 70 kilometres to the northwest.
"A hyperspectral survey is being planned and commissioned to aid exploration efforts and fast track the identification of appropriate drilling targets.”
Goongarrie rights
Brightstar will still retain all gold rights to the exploration licences at the Goongarrie Project and is only transacting on the non-gold rights and ability for Ardea to develop infrastructure on the southern half of E29/1062.
In return, Brightstar will acquire 10 prospecting licences immediately adjacent or along strike to existing Brightstar tenements in the Menzies Gold Project, in addition to the gold and lithium rights to exploration licence E29/981.
Unimpeded access
Whilst these two mineral opportunities alone represent potential, the additional tenure alongside and adjacent to existing Brightstar tenements also presents opportunities in the way of unimpeded access to the sealed Menzies-Sandstone Road in the event that economic gold or lithium resources are exploited and hauled from the combined tenement group.
The only consideration payable in the transaction is the grant of a 2.0% net smelter return royalty payable on any lithium extracted and sold from E29/981.
This tenement swap is in line with Brightstar’s objective of rationalising its portfolio across both Menzies and Laverton to maintain its streamlined pathway towards a low capex restart for gold production.
What comes next?
In addition to planned resource definition and brownfields exploration activities at Menzies and Laverton, Brightstar will conduct ‘early-stage’ greenfields exploration across the newly acquired tenements.
This will encompass regional aircore drilling, mapping and sampling programs to delineate further targets for reverse circulation drill testing of gold mineralisation.
Once assays are received from recent sampling activities, an exploration program will be delineated that will involve the comprehensive testing of pegmatite occurrences at Menzies for lithium mineralisation.