Brightstar Resources Limited · ASX:BTR
Brightstar Resources — RIU Explorers Conference 2024
40 slides from Brightstar Resources's conference presentation, Feb 13, 2024
Slide 1: Building Western Australia's Next Gold Miner
Building Western Australia’s Next Gold Miner FEBRUARY 2024
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer Important Notices This Presentation has been prepared by Brightstar Resources Limited (Brightstar) and is authorised by the Board of Directors of Brightstar. Disclaimer • This Presentation has been prepared by Brightstar based on information from its own and third party
Slide 3: Project Overview
Project Overview +1Moz JORC Resources – Open and growing to deliver scale to become a material and relevant participant in the WA gold sector Tier-1 jurisdiction with compelling land position in two proven goldfields with multi-million ounce endowments: • Significant operations nearby include Granny
Slide 4: Corporate Overview
Corporate Overview SHARE PRICE $0.013 2.4bn Share Price Shares on issue 50 0.020 45 1 $31m $4.8m Share Price (A$/share) 40 Market Capitalisation Net Cash 0.015 35 Volume (M) 30 $2.1m $26m 0.010 25 Average Monthly Liquidity Enterprise Value 20 15 0.005 1.04Moz $25/oz 10 JORC Mineral Resources Enterpr
Slide 5: 2023 Year In Review
2023 Year In Review OPERATIONAL: ✓ Drilled +24,000m across the Menzies and Laverton Gold Projects ✓ Mining operations commenced at the Selkirk deposit under the JV with BML Ventures ✓ Multiple Mineral Resource upgrades, taking the total Mineral Resource to +1 million oz Au: o Resource upgrade at Cor
Slide 6: Compelling Economics Delivered in a Low-Risk Start-Up
Compelling Economics Delivered in a Low-Risk Start-Up Total Material Processed LOM Gold Produced Plant Throughput2 Open Pit: 4.2Mt @ 1.8g/t Au 322koz over 8 years 480ktpa Mining Underground: 1.1Mt @ 3.0g/t Au Physicals Annual Production C1 Cash Cost1 Gold Price Assumption 40koz pa A$1,765/oz A$2,900
Slide 7: Selkirk Mining Joint Venture
Selkirk Mining Joint Venture • 50:50 Mining JV with BML Ventures Pty Ltd • Mine plan of 30kt of ore at +5g/t Au o First Blast: Mid-August 2023 o Mining due to complete: February 2024 o Processing: Scheduled for processing through the Gwalia processing plant in Q1 2024 • Brightstar are actively asses
Slide 8: Production Summary and Overview
Production Summary and Overview • Two project areas: o Menzies Gold Project (MGP) o Laverton Gold Project (LGP) UG • Four mines: o 1x open pit and 1x underground at MGP o 1x open pit and 1x underground at LGP UG OP • Upfront capital required: A$22 million UG • Payback: 1.5 years UG OP OP OP OP • Cum
Slide 9: Mining Phase 1 – Menzies Gold Project
Mining Phase 1 – Menzies Gold Project Selkirk • Development of 1x large open pit complex and 1x underground mine at the MGP • Lady Shenton System comprised of three open pit mining areas / deposits: o Pericles, Stirling (new pits) and Lady Shenton cutback Menzies Town • Yunndaga underground utilisin
Slide 10: Menzies Gold Project
Menzies Gold Project Simultaneous development of open pit mining at Lady Shenton system and underground mining at Yunndaga • 3 open pit mining areas at Lady Shenton • Mining Physicals: o Total movement of 10 million BCM o Average strip ratio of 10.8:1 o Ore of 1.9Mt @ 1.63g/t Au for 100koz mined • O
Slide 11: Menzies Gold Project – Upside Through Exploration
Menzies Gold Project – Upside Through Exploration Link Zone • Maiden Mineral Resource released in Q4 2023 of 21koz @ 1.1g/t Au • Presents as an opportunity for near term monetisation as a shallow open pit mine • Recent drilling results illustrate shallow, stacked lodes: o 1m @ 54.77g/t Au from 10m (
Slide 12: Mining Phase 2 – Laverton Gold Project
Mining Phase 2 – Laverton Gold Project • Portfolio is spread across multiple project areas: Alpha U/G o Cork Tree Well (6.4Mt @ 1.4g/t Au for 303koz Au) o Alpha (1.4Mt @ 2.3g/t Au for 106koz Au) o Beta (1.9Mt @ 1.7g/t Au for 102koz Au) • Development of 4 open pits at Cork Tree Well and 1x undergroun
Slide 13: Laverton Gold Project
Laverton Gold Project Staged development of open pit mining at Cork Tree Well and underground mining at Alpha • 4 open pit mining areas at Cork Tree Well: o 2 cut-backs (South 1 & 2), 2 new open pits (Central & Delta) • Mining Physicals: o Total movement of 12 million BCM o Average strip ratio of 11
Slide 14: Laverton Gold Project – Upside Through Exploration
Laverton Gold Project – Upside Through Exploration Mineral Resource Estimate: +303koz @ 1.4g/t Au Open along strike and at depth Significant upside to continue to grow CTW at depth. Open at depth along the 3km of strike. CTW is open along strike to the north with highly anomalous aircore drilling re
Slide 15: Laverton Gold Project – Upside Through Exploration
Laverton Gold Project – Upside Through Exploration CTWMET004 VG @ 71.85m down hole CTWMET004 VG @ 48.8m down hole 34.4m @ 7.94g/t Au from 43.5m (CTWMET0041) Foliated metadolerite with intervals of brecciated quartz veins Brightstar Resources Limited | Investor Presentation | 15 1. Source - Refer ASX
Slide 16: Laverton Processing Strategy
Laverton Processing Strategy • Infrastructure has an independent replacement valuation of A$60 million • The 2023 Scoping Study articulated a refurbishment and expansion study to upgrade to 480ktpa (fresh rock throughput) • Total Capital Cost $18.5 million o Replace entire crushing circuit and upgra
Slide 17: Attractive Low Capital Development vs Peers
Attractive Low Capital Development vs Peers Scoping Study outputs indicate a readily fundable project with a compelling return on capital investment Brightstar Rox Capricorn Black Cat Astral Black Cat Musgrave Black Cat Pantoro Calidus AusGold Bellevue Gold Red 5 Resources Resources Metals Syndicate
Slide 18: Upside and Opportunities for PFS
Upside and Opportunities for PFS MENZIES LAVERTON Yunndaga Upside Infill drilling to convert Infill drilling to convert Inferred Resources to Inferred Resources to Indicated classification Indicated classification Targeted drilling on the edges / adjacent to Extensional drilling at optimised pit she
Slide 19: Key Catalysts and Value Drivers
Key Catalysts and Value Drivers Year CY2024 CY2025 Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DRILLING Resource Definition - Menzies & Laverton Diamond Drilling (Met, Geotech, Extensional) Ongoing RC Resource Definition Programs Targeted Resource Updates - Menzies & Laverton Exploration Greenfields (Mapping, S
Slide 20: Summary
Summary +30% conversion of Resource ounces to De-risked staged mine plan: Laverton processing plant unlocks Mine Plan delivering 322koz recovered 2 project areas with 1x open pit and inorganic opportunities in the Laverton from 1.02Moz JORC Resource base 1x underground mine in each project district
Slide 21: Project Overview
PROJECT OVERVIEW
Slide 22: Laverton Gold Project Overview
Laverton Gold Project Overview Base load resources with material exploration upside and a processing solution Approximately 300km2 of 100%-owned tenure in the Laverton Tectonic Zone which is renowned for its significant mines currently being mined to >1,500m depth (Sunrise Dam and Granny Smith) Port
Slide 23: Cork Tree Well – Scale & Upside
Cork Tree Well – Scale & Upside Open pit +303koz JORC Resource Open Along Strike and at Depth JORC Mineral Resource upgrade to 6.4Mt @ 1.4g/t Au for 303koz o Including 157koz @ 1.6g/t Au in Indicated classification OPEN OPEN Cork Tree Well’s detailed exploration to date has been limited to close pro
Slide 24: Menzies Gold Project Overview
Menzies Gold Project Overview Contiguous land package in prolific historic mining field Consists of a tenement holding of a contiguous land package of granted mining leases over a strike length of +20km Majority of deposits are hosted along the Menzies Shear Zone and located adjacent to Goldfields H
Slide 25: Exploration Upside – Menzies Gold Project
Exploration Upside – Menzies Gold Project Limited and ineffective historical exploration provides high-grade opportunities at Menzies Despite a long and successful mining history, exploration drilling at Menzies was historically focused on: • Near mine exploration in and around the active mining cen
Slide 26: Appendices
APPENDICES
Slide 27: Board & Management
Board & Management ALEX DEAN GREG JONATHAN JOSH ROVIRA VALLVE BITTAR DOWNES HUNT MANAGING DIRECTOR CHIEF OPERATING OFFICER NON-EXECUTIVE CHAIRMAN NON-EXEC DIRECTOR NON-EXEC DIRECTOR Mr Rovira is a qualified Mr Vallve holds technical Mr Bittar holds a Master of Mr Downes has over 30 Mr Hunt is an exp
Slide 28: Appendix 1 Consolidated JORC 2012 Resources
Appendix 1 Consolidated JORC 2012 Resources LOCATION MEASURED INDICATED INFERRED TOTAL Cut-off Kt g/t Au Koz Kt g/t Au Koz Kt g/t Au Koz Kt g/t Au Koz (g/t) Alpha 0.5 623 1.6 33 374 2.1 25 455 3.3 48 1,452 2.3 106 Beta 0.5 345 1.7 19 576 1.6 29 961 1.7 54 1,882 1.7 102 Cork Tree Well 0.5 - - - 3,036
Slide 29: Appendix 2 Production Summary
Appendix 2 Production Summary Total gold produced of 322koz at an AISC of A$2,041/oz over the life of mine • LOM production underpinned by 66% production of ounces from Measured and Indicated Resource classification • Payback period (first 1.5 years of production) comprised of 70% Mineral Resources
Slide 30: Appendix 3 Project Costs and Financial Metrics
Appendix 3 PROJECT COSTS FINANCIAL METRICS SUMMARY CAPITAL COSTS Gold Price Assumed A$/oz A$2,900 Pre-Production Capital A$m 22 Spot Gold Price 1 A$/oz A$3,000 Sustaining Capital A$m 53 Discount Rate % 8 Growth Capital A$m 94 PROJECT VALUATION @ A$2,900/oz OPERATING COSTS LOM EBITDA A$m 153 Open Pit
Slide 31: Appendix 4 Project Sensitivity Analysis
Appendix 4 Project Sensitivity Analysis The combined development displays robust financial metrics under different scenario analysis and various downside scenarios Project NPV (unleveraged and pre-tax) Sensitivity Analysis Scenario Analysis (Gold Price Assumptions) Base case Current spot Gold Price
Slide 32: Appendix 5 Project All In Sustaining Costs
Appendix 5 Project All In Sustaining Costs The project displays attractive LOM AISC margins utilising conservative gold price assumption at A$2,900/oz • Application of real mining and processing costs obtained from June 2023 market quotes • Opportunities to reduce AISC through further optimisation o
Slide 33: Appendix 6 Menzies Gold Project Physicals
Appendix 6 Menzies Gold Project Physicals • 3.5 years of toll treatment processing • Combined processing physicals: o 2.6Mt of ore o Average head grade of 1.95g/t Au o Recovered gold 153koz Au o Recovery 95% • Robust early mine life production profile: o Year 1: 49koz o Year 2: 63koz o Year 3: 36koz
Slide 34: Appendix 7 Laverton Gold Project Physicals
Appendix 7 Laverton Gold Project Physicals • +5 years of owner operator processing LAVERTON GOLD PROJECT - PRODUCTION 18,000 180,000 • Cork Tree Well open pit and Alpha underground mine 16,000 160,000 • Combined processing physicals: o 2.7Mt of ore QUARTERLY RECOVERED GOLD (OZ) 14,000 140,000 o Aver
Slide 35: Appendix 8 Recent M&A in WA Pre-development Gold
Appendix 8 Recent M&A Increase in WA Pre-development Gold Space M&A activity for ASX-listed WA pre-production gold assets Enterprise Value per Ounce (A$/oz) (M,I&I)1 $950/oz $226/oz 226 $217/oz 217 $176/oz 2 176 M&A Average* EV/oz of A$108/oz Brightstar EV/oz: A$25/oz $66/oz 66 $56/oz 56 $48/oz 48 $
Slide 36: Peer Comparison: Enterprise Value per Resource Ounce
Appendix 9 Peer Comparison - combination of attractively priced ounces that belies the inherent value of Brightstar’s assets $100 90% $404M $386M $90 80% Enterprise Value (A$ per Resource Ounce) $80 70% Measured & Indicated % $70 60% EV/Resource oz Average = A$59/oz $60 50% $50 40% $40 30% $30 20% $
Slide 37: Appendix 10 Pre-production WA Gold M&A Peer Comparison
Appendix 10 Pre-production WA Gold M&A Peer Comparison Information & References TOTAL Deal Value EV/oz MEASURED INDICATED INFERRED GRADE Acquirer Target Stage Date RESOURCE Source ($Am) ($AUD/oz) (Koz) (Koz) (Koz) (g/t) (Koz) Northern Star Strickland Minerals Sale of Millrose Project Resource Develo
Slide 38: Appendix 11 Peer Comparison Information & References
Appendix 11 Peer Comparison Information & References Source: IRESS, Company Announcements . Pricing as at 09/02/2024. Cash balance as reported in December 2023 Quarterly Report TOTAL RESOURCE CODE COMPANY STAGE MARKET CAP (A$M) CASH (A$M) EV (A$M) SHARE PRICE MEASURED (Koz) INDICATED (Koz) INFERRED
Slide 39: Appendix 12 WA Gold Peer Mining Studies
Appendix 12 WA Gold M&A Peer Comparison Information & References for Mining Studies Pre-tax Net Capital Source Production Pre-Production NPV Discount Payback NPV/Capex Gold Price Code Company Study Stage Project LOM (Yr) Present Value Intensity (ASX Date Profile (ozpa) Capex (A$m) Rate Used (%) Peri
Slide 40: Alex Rovira brightstarresources.com.au
Corporate Video ALEX ROVIRA Managing Director alex@brightstarresources.com.au brightstarresources.com.au