Brightstar Resources (BTR.AX) has announced an interim resource update for its Sandstone project in Western Australia. The resource increased to 69 million tonnes at an average grade of 1.3 g/t gold for a total of 2.9 million ounces, of which 1.1 million ounces can be found in the indicated resource category, at a higher grade of 1.5 g/t gold.
The increased resource is the first stepping stone for Brightstar, and is based on all drilling completed before May 2026. As there are currently four drill rigs active at Sandstone, more assay results (and further resource upgrades) are around the corner. Another resource update will be published in the final quarter of the current financial year, in combination with the publication of a pre-feasibility study on the project.
This also marks an impressive 4 year performance. Brightstar only owned half a million ounces just four years ago, and has now expanded this to a total of 4.5 million ounces of gold, of which about 2/3rd are located on the Sandstone zone.
At the same time, the company is advancing the Goldfields hub which hosts 1.6 million ounces of gold at 1.6 g/t gold, where the construction of a processing plant with a capacity of 1.5 million tonnes per year is underway. The company should be fully funded to start production there with an initial mine plan to produce 75,000 ounces of gold per year for an initial period of six years. The cash flows from the Goldfields hub should be helpful to help fund additional exploration activities there, as well as (helping to) fund(ing) the construction of the Sandstone hub on the back of a positive pre-feasibility study.
Disclosure: The author has a long position in Brightstar Resources. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
