“Given the ready access to existing infrastructure, an existing processing plant that requires small refurbishment costs as well as other non processing infrastructure, we think Brightstar is on a fast track to transition from currently a junior gold producer from small-scale toll-treating operations to a serious WA gold producer, potentially within the next two years,” the report noted.
Brightstar’s multiple gold projects are located in the Eastern Goldfields of Western Australia, with a total defined gold resources estimate of 1.45Moz at 1.6g/t in addition to an existing processing plant that requires minimal refurbishment, which helps in reducing costs and accelerating project timelines.
Brightstar Resources’ combined scoping studies for its Menzies, Laverton and Jasper Hills projects show a combined NPV of AU$227 million with a small pre-production Capex of only AU$34 million. More importantly, this valuation is based on gold price inputs of A$2,900/oz and A$3,000/oz, which are now significantly below the current spot gold price.
The analyst further noted that positive NPV and low Capex requirements indicate strong economic viability, making the projects attractive for further development and investment.
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