Up 45% since August, ASX All Ords gold stock jumps on key approval

The All Ordinaries Index (ASX: XAO) is up 0.3% in morning trade today, with ASX All Ords gold stock Brightstar Resources Ltd (ASX: BTR) charging ahead of those gains.

Brightstar Resources shares closed yesterday trading for 52.5 cents. At the time of writing, shares are changing hands for 53.5 cents apiece, up 1.9%.

That sees shares in the Aussie gold miner up 44.6% since the stock plumbed one-year closing lows of 37 cents on 20 August.

Here’s what’s catching investor interest today.

ASX All Ords gold stock leaps on regulatory approval

Investors are bidding up Brightstar Resources shares today after the company announced that the Department of Mines, Petroleum and Exploration (DMPE) has given the green light to commence mining operations at the Lady Shenton project.

The project, located in Western Australia, is an important part of the Menzies Hub resource package that Brightstar Resources is developing within the Goldfields Hub.

The ASX All Ords gold stock said that, having already received approval for the Native Vegetation Clearing Permit, the Lady Shenton deposit (estimated at 352,000 ounces of gold graded at 1.4 grams of gold per tonne) is ‘mine ready’ for production.

Brightstar plans to haul the gold ore it mines from Lady Shenton to its proposed CIL gold recovery processing plant in Laverton.

What did management say?

Commenting on the regulatory approval helping to boost the ASX All Ords gold stock today, Brightstar Resources managing director Alex Rovira said, “We are pleased to receive approval for the Mining Development and Closure Proposal for the open pit development of the Lady Shenton mine in Menzies.”

Rovira noted, “This signifies a key milestone for the development of our Menzies assets, which once in operation will represent the first mining to occur since the successful Selkirk mining JV in 2024.”

He added:

Lady Shenton is now ‘mine ready’ and represents a low capex, high-margin deposit for Brightstar that complements the broader Goldfields Hub development. We look forward to releasing the updated DFS2.0 and providing a development update and timeline for the Menzies and Laverton Gold Projects this quarter.

Rovira noted that as an unhedged gold producer, Brightstar “remains well placed in a strong gold price environment”.

The ASX All Ords gold stock owns and operates two underground mines, and is a near-term developer of the 1.6Moz at 1.6g/t Au Goldfields Hub. Brightstar Resources is targeting final investment decision (FID) in the March quarter.

Looking ahead, Rovira concluded:

With over 4 million ounces of Mineral Resources on granted mining leases, Brightstar has a strategic objective of developing both the Goldfields and Sandstone Projects in the coming years as part of our aspiration to be a multi-asset, mid-tier scale WA gold producer.

The post Up 45% since August, ASX All Ords gold stock jumps on key approval appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.