Brightstar Resources Ltd (ASX:BTR) has mined first ore from the Selkirk Deposit within the Menzies Gold Project in Western Australia as mining operations progress on schedule.
Providing strong encouragement for the company is end-of-month physical reporting from October 2023 that indicates the second consecutive month of +10% production above agreed budget.
Bodes well for economics
Consecutive high productivity and above-budget material movement from Brightstar’s joint venture partner, BML Ventures Pty Ltd, also bodes well for strong project economics.
The mined hangingwall lode, which is within the resource model but not within the mine plan budget targeting +5.0 g/t gold mineralisation, was also delineated and mined during October.
Around 1,500 tonnes of this material, grading better than 3.0 g/t, will be added to the known +5.0 g/t material contained within the high-grade main lode and trucked to Gwalia for processing into Brightstar’s maiden gold pour in the first quarter of 2024.
“Strong progress”
Brightstar’s managing director Alex Rovira said: “We are pleased to see the continued strong progress made by BML at Selkirk, who are currently ahead of the mine schedule.
"Pleasingly, the hangingwall lode has been successfully mined and stockpiled on the ROM pad, representing upside to the budgeted outcome for the joint venture.
"Positively, the project is budgeted on a gold price of A$2,850 per ounce, compared to the current spot price of A$3,050 per ounce which presents upside in the forecast economics for the joint venture.”
At halfway point
Mining at Selkirk is progressing ahead of schedule with BML mining material from the 385rl in October. This represents the halfway point with blasting of the 380rl bench conducted towards the end of the month.
Brightstar expects that material movements over the final three months will reduce in line with increased ore delivery, tighter working areas and normal mining constraints associated with reduced volumes at the base of open pit mines.
In the coming months, ore will be stockpiled at the Selkirk ROM Pad and subsequently hauled to Genesis Minerals (ASX:ASX:GMD) Limited’s Gwalia Processing facility in February 2024 for processing in a single parcel during currently elevated AUD gold prices of +$3,050/ounce, which is above the budgeted conservative gold price of $2,850.
Review of deposits
The company is reviewing its deposits within its portfolio for other potential mining campaigns, with a ‘Selkirk 2.0’ model envisaged to generate future cashflow opportunities.
In particular, the Menzies Gold Project contains near-surface, oxide material which could potentially represent a low-cost mining and processing opportunity for low-risk, high-margin gold ounces.
"As the mining campaign at Selkirk advances, we continue to assess further opportunities at Menzies for potential near-term and low-risk exploitation,” Rovira said.
"These opportunities are targeted to deliver organic funding that will provide working capital for the continued exploration across the Brightstar portfolio and the PFS underway.”
PFS workstreams
After a competitive tender process, Brightstar has selected a number of consultants and experts to undertake specialist work as part of the pre-feasibility study (PFS) in conjunction with parallel mining approval workstreams to fast-track development opportunities.
The consultants include:
- ABGM Pty Ltd - mining engineering, mine design & scheduling;
- Como Engineers - process plant design, opex & capex estimation;
- Independent Metallurgical Operations Pty Ltd - metallurgy;
- Resolve Mining Consultants - open pit & underground geotechnical; and
- WSPGolder - tailings deposition.
Project planning is ongoing with critical path tasks identified and actioned. Geotechnical and metallurgical test work is beginning to inform diamond drilling programs occurring next quarter ahead of mining engineering, process plant upgrades and tailings deposition.
Concurrently with these studies, environmental workstreams including new heritage surveys, groundwater and waste geochemistry studies are underway to advance permitting activities.