ASX-listed Brightstar Resources has signed a nonbinding memorandum of understanding (MoU) with Paddington Gold for the processing of ore from the Lady Shenton deposit, derisking the Menzies gold project ahead of planned production in 2026.

The MoU outlines the framework for a binding ore purchase agreement expected to be finalised in the September quarter. It covers ore sales over a 30-month period, with mining scheduled to start by April 30, 2026. Under the terms, Brightstar will deliver between 1.5-million and 2.0-million tonnes of ore to Paddington’s processing facility, targeting a nominal 50 000 t/m.

“It is pleasing to announce this MoU with Paddington Gold for the processing of Lady Shenton ore from the first half of the 2026 calendar year. The MoU outlines the structure and details by which Brightstar will mine and deliver openpit ore from the Lady Shenton deposit at the Menzies gold project to the Paddington processing plant, located 100 km south of Menzies along the sealed Goldfields Highway," said Brightstar MD Alex Rovira.

Lady Shenton, which hosts a mineral resource of 5.6-million tonnes at 1.5 g/t gold for 273 000 oz, sits on a granted mining lease. The mining proposal and mine closure plan documentation were submitted earlier in the June quarter, with permitting and site preparations well advanced.

“This will be Brightstar’s second openpit mine in Menzies, following the successful Selkirk Mining JV in 2024,” Rovira said. “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.”

The agreement will enable Brightstar to truck ore to Paddington’s carbon-in-leach plant, while potentially processing underground ore from the Yunndaga deposit through the company’s own Laverton mill.

Brightstar’s definitive feasibility study (DFS) for Menzies and Laverton is expected next week and will include the company’s maiden ore reserves for the Lady Shenton and other project areas.

“With the DFS nearing release and the approvals process well under way, 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,” Rovira said.