USD $4,127.96
Goldman MoU signals development pathway for third operating mine at Menzies Gold Project
Brightstar Resources Limited (ASX:BTR) has executed a Memorandum of Understanding (MoU) with Paddington Gold Pty Ltd, marking a significant milestone in de-risking its Menzies Gold Project and laying the groundwork for a third operating mine by early 2026.
The agreement provides a framework for a binding Ore Purchase Agreement (OPA), anticipated for execution in the September quarter, to unlock the open pit mining potential at the Lady Shenton deposit. Paddington Gold owns and operates the Paddington Processing Plant, a CIL facility located approximately 100 km south of Menzies.
Under the MoU, Brightstar plans to:
- Sell ore for 30 months (2.5 years)
- Commence mining by 30 April 2026
- Supply between 1.5Mt and 2.0Mt total ore
- Target monthly ore delivery of 50,000t to Paddington
The Lady Shenton deposit holds a Mineral Resource Estimate of 5.6Mt @ 1.5g/t Au for 273koz Au, with 45% in the Measured/Indicated category. Located on a granted Mining Lease, final approvals and documentation have been lodged with DEMIRS during Q2 2025.
The agreement is expected to boost Brightstar’s total gold production run rate beyond the current ~40kozpa generated from its Second Fortune and Fish underground mines in Laverton.
Brightstar’s Managing Director, Alex Rovira, commented:
It is pleasing to announce this MoU with Paddington Gold for the processing of Lady Shenton ore from 1H CY26. The MoU outlines the structure and details by which Brightstar will mine and deliver open pit ore from the Lady Shenton deposit at the Menzies Gold Project to the Paddington Processing Plant, located 100km south of Menzies along the sealed Goldfields Highway.
Lady Shenton will be Brightstar’s second open pit mine in Menzies, following the successful Selkirk Mining JV in 2024. Key operational learnings from Selkirk have been applied to our design and operational philosophy which will see Menzies progress into Brightstar’s next production front.
We thank the Paddington team for their support and professionalism, and we look forward to working with Paddington to complete the binding Ore Purchase Agreement in the coming months.
With the DFS nearing release and the approvals process well underway, Brightstar is positioning to commence site establishment works and commence mining in early 2026 to complement the existing gold production from our Second Fortune and Fish underground mines in Laverton.
