Brightstar Resources Limited has announced a key development in its Menzies Gold Project with the execution of a non-binding Memorandum of Understanding with Paddington Gold Pty Ltd. The agreement sets out the framework for a binding ore purchase contract expected to be finalised in the September quarter. Under the terms, Brightstar will supply ore from the Lady Shenton deposit—currently defined with a mineral resource of 5.6 million tonnes at 1.5g/t gold (273,000 ounces, with 45% in the Measured/Indicated category)—to Paddington’s established carbon-in-leach processing facility located 100km south of Menzies. The MoU lays out a 30-month production period, with metal ore delivery targets of roughly 50,000 tonnes per month and overall tonnage constrained between 1.5 and 2.0 million tonnes. Mining operations from the open pit are set to begin by 30 April 2026, subject to final mining approvals and the completion of site establishment work. Brightstar noted that the launch of this project represents a significant operational learning curve from its earlier venture at Selkirk, and it benefits from minimal start-up capital expenditure since no new processing infrastructure is required. Concurrently, the company is advancing its broader exploration and development strategy. A Definitive Feasibility Study for the Menzies and Laverton projects is expected to be released soon, which will detail maiden ore reserves and further mine development. In addition to the open pit operations at Lady Shenton, there is also potential for underground mining at the Yunndaga deposit utilizing Brightstar’s wholly-owned Laverton mill. Active drilling programs at the Sandstone and Laverton projects underscore the company’s commitment to expanding its resource base, with exploration initiatives designed to bring future operational prospects into sharper focus. The news carries mixed sentiment for market participants. On the bullish side, the MoU with Paddington Gold is seen as a catalyst for de-risking the Menzies project by providing a clear end-market route and underpinning a significant increase in production volumes from an open pit operation. The additional production is poised to augment Brightstar’s current approximate run rate of 40,000 ounces per annum from its Second Fortune and Fish underground mines. Conversely, the bearish perspective points to potential challenges related to final permit approvals and the inherent risks in transitioning from planning to full-scale mining operations. Some investors may also be cautious about the forward-looking nature of these agreements, which, while promising, are subject to market conditions and operational uncertainties. Overall, the announcement reflects Brightstar Resources Limited’s strategic efforts to unlock value from its third operating mine in the calendar year 2026 while complementing its established gold production portfolio across Western Australia’s prolific mining regions.