BTR executes processing MoU for Menzies Gold Project

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Stock Brightstar Resources Ltd (BTR.ASX)
Release Time 25 Jun 2025, 8:21 a.m.
Price Sensitive Yes
 BTR executes processing MoU for Menzies Gold Project
Key Points
  • Brightstar executes MoU with Paddington Gold for processing of ore from Lady Shenton deposit
  • MoU outlines 30-month ore sales, mining to commence by April 2026, and delivery of 1.5-2.0Mt of ore
  • Lady Shenton deposit has 273koz Au resource, with studies and approvals well advanced
Full Summary

Brightstar Resources Limited (ASX: BTR) has executed a non-binding Memorandum of Understanding (MoU) with Paddington Gold Pty Ltd, owner and operator of the gold processing facility at the Paddington mine site, located 100km south of Menzies. The MoU establishes the commercial particulars that will underpin a binding ore purchase agreement (OPA) presently being negotiated and intended for execution in the September quarter. The execution of a binding OPA will enable Brightstar to immediately commence, subject to receipt of final mining approvals, site establishment works in Menzies to allow open pit mining operations to commence early in CY2026. This is expected to deliver an additional step-change to Brightstar's gold production profile, increasing from the current targeted run rate of ~40kozpa from the Company's Second Fortune and Fish underground mines in Laverton. The MoU outlines the following key particulars: ore sales for 30 months (2.5 years) of production, mining to commence by 30 April 2026, a minimum total tonnage of 1.5Mt and a maximum total tonnage of 2.0Mt, and a nominal 50,000t ore per month target for delivery to Paddington. The Lady Shenton deposit has a current Mineral Resource Estimate of 5.6Mt @ 1.5g/t Au for 273koz Au, with 45% in the Measured/Indicated classification. The deposit is located on a granted Mining Lease, with Mining Proposal and Mine Closure Plan documentation lodged with DEMIRS early in the June Quarter 2025. Studies and approvals are well advanced, with camp designs finalised and commercial contracts for mining, hauling, travel and camp services underway.

Guidance

Brightstar's DFS for the Menzies and Laverton targeted for release next week, which will declare maiden Ore Reserves for Lady Shenton and other project areas.