Brightstar’s Fish Mine Development and Debt Facility Signal Growth Amid Rising Costs

Operational Momentum Builds at Second Fortune

Brightstar Resources Limited (ASX: BTR) has delivered a strong operational and financial performance in the March 2025 quarter, with its flagship Second Fortune underground mine successfully transitioning from development to full production. The mine produced 28,182 tonnes at a grade of 3.31 g/t Au, yielding approximately 3,002 ounces of contained gold. Notably, production ramped beyond the modelled steady-state run rate of 10kt per month, reaching an aspirational 12kt per month by quarter-end.

Development activities remained robust, with 697 metres advanced including decline, capital, and operating development. The company also invested in fleet upgrades to enhance underground operational reliability, reflecting a commitment to sustaining and improving production efficiency.

Fish Mine Development Signals Production Growth

Key regulatory approvals were secured during the quarter to commence mining at the Fish underground mine, including Mining Proposal, Mine Closure Plan, and explosives licenses. Portal development began in early April, with first ore production and revenue generation scheduled for the June quarter. The Fish mine is expected to materially increase Brightstar’s current ~20,000 ounces per annum production run rate, becoming a significant second high-grade underground operation.

Supporting infrastructure, including a 48-room accommodation camp and ancillary facilities, is well advanced, underscoring the company’s capability in project execution. Haul road upgrades and logistics preparations are also underway to facilitate ore haulage to the Genesis Minerals Laverton Mill.

Ore Sales and Processing Performance

Brightstar sold a total of 74.9kt of ore under its Ore Purchase Agreement with Genesis Minerals, at a blended grade of 2.30 g/t Au, containing 5,529 ounces of gold. This comprised 43.9kt from Second Fortune at 3.28 g/t Au and 30.9kt from Lord Byron stockpiles at 0.90 g/t Au. The first processing parcel through Genesis’ Laverton Mill was successfully completed, processing 56.4kt at 2.51 g/t Au and recovering 4,297 ounces at a recovery rate of 94.25%. The next processing campaign is scheduled for May 2025.

Advancing Definitive Feasibility Studies and Exploration

Brightstar continues to progress its consolidated Definitive Feasibility Study (DFS) for the Laverton and Menzies Gold Projects, targeting delivery in the first half of 2025. Metallurgical testwork at Cork Tree Well has returned excellent recoveries exceeding 90% across all rock types, supporting the DFS assumptions.

Exploration drilling remains a key focus, with 193 reverse circulation holes drilled for 23,500 metres during the quarter across Laverton, Menzies, and Sandstone hubs. High-grade intercepts were reported at Second Fortune, Lord Byron, and Sandstone’s Lord Nelson deposit, confirming continuity and potential for resource upgrades. The Sandstone district, consolidated by Brightstar in the past 24 months, is earmarked for a significant portion of the 2025 drilling budget, aiming to support a tier-one scale open pit development.

Financial Strength and Strategic Partnerships

Financially, Brightstar reported gold sales of 5,207 ounces at an average price of A$4,744 per ounce, generating mine operating cash flow of $4.72 million and net mine cash flow of $2.06 million after growth capital expenditure. The company ended the quarter with $7.03 million in cash and secured a US$11.5 million (~A$18 million) revolving debt facility with Ocean Partners USA LLC, providing balance sheet flexibility to fund ongoing operations and near-term growth initiatives.

Additionally, Cazaly Resources Limited exercised its option to earn up to an 80% interest in the Goongarrie Gold Project by sole funding exploration expenditure of up to $3 million, allowing Brightstar to focus on its core assets.

Corporate and Governance Updates

During the quarter, Matthew Bowles resigned as a Non-Executive Director. Brightstar also announced its inclusion in the S&P/ASX All Ordinaries Index, reflecting its growing market capitalisation and prominence within the ASX mining sector.

Managing Director Alex Rovira highlighted the company’s strong operational momentum, disciplined project development, and aggressive exploration program as key drivers to significantly enhance Brightstar’s value proposition as a gold producer, developer, and explorer.