Star Gold Corp. Announces Positive Preliminary Economic Assessment for the Longstreet Gold-Silver Project in Nevada
The Longstreet PEA outlines robust project economics at elevated metal prices and sets up further drilling, engineering and permitting work in 2026.
Rhea-AI Summary
Star Gold (SRGZ) reported a positive Preliminary Economic Assessment for its 100%-controlled Longstreet gold-silver project in Nevada, outlining an open-pit, crushed heap-leach mine plan.
The base-case PEA, using prices of $3,600/oz gold and $48/oz silver, shows a pre-tax NPV (5%) of $87 million, pre-tax IRR of 48%, and 1.7-year payback, with after-tax NPV (5%) of $67 million, IRR of 40%, and 1.8-year payback. A higher-price sensitivity case at $4,000/oz gold and $60/oz silver indicates a pre-tax NPV (5%) of $122 million and IRR of 63%.
Key parameters include life-of-mine payable production of 88,587 oz gold and 354,701 oz silver, average annual payable gold of about 20,000 oz, total cash cost of $1,617/oz, AISC of $1,729/oz, initial capital of about $70 million, and 5,500 tpd throughput. The mine plan covers 6.55 million tons of ore, a subset of a larger S-K 1300 resource, and the company highlights multiple undrilled targets plus a 2026 drilling and engineering program to update resources and advance permitting.
Positive
- Pre-tax NPV (5%) of $87 million and 48% IRR base case
- After-tax NPV (5%) of $67 million and 40% IRR base case
- Sensitivity case pre-tax NPV (5%) of $122 million and 63% IRR
- Estimated payback period of 1.7 years pre-tax and 1.8 years after-tax
- Life-of-mine payable output of 88,587 oz gold and 354,701 oz silver
- Initial capital cost of about $70 million for 5,500 tpd operation
Negative
- None.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Pre-Tax NPV
The PEA, prepared by Kappes, Cassiday & Associates ("KCA") with contributions from James W. Ashton, Richard Kern and Reinis N. Sipols, evaluates a conventional open-pit, crushed heap-leach operation using portable crushing, diesel-generated power, conveyor stacking, and off-site carbon stripping.
PEA highlights
Economic Summary (base case:
|
Metric |
Value |
|
Pre-tax NPV ( |
|
|
Pre-tax IRR |
48 % |
|
Pre-tax payback period |
1.7 years |
|
After-tax NPV ( |
|
|
After-tax IRR |
40 % |
|
After-tax payback period |
1.8 years |
Sensitivity case (
Key Operating Parameters
|
Parameter |
Value |
|
LOM payable gold production |
88,587 oz |
|
LOM payable silver production |
354,701 oz |
|
Average annual payable gold |
~20,000 oz (peak ~31,000 oz) |
|
Total cash cost (net of by-product credits) |
|
|
All-in sustaining cost ("AISC") |
|
|
Initial capital (incl. working capital) |
|
|
LOM operating cost |
|
|
Throughput |
5,500 tons/day (crushed, P80 ¾") |
|
Strip ratio |
~0.8 : 1 |
|
Gold recovery |
84 % |
|
Silver recovery |
13 % |
"This PEA confirms what we have believed for years: Longstreet can be a simple, low-strip, oxide heap-leach mine with an estimated rapid payback in today's gold price environment," said Lindsay Gorrill, President and Chief Executive Officer of Star Gold. "The study is built on decades of metallurgical work and a mine plan that uses only a portion of the known mineralization. What matters just as much is what is not in the PEA pit; Opal Ridge, North, Cyprus Ridge, Red Knob and other surface targets across our 2,600-acre land package. Most of those zones have never been drilled at depth. This summer's program includes the first deep test of Opal Ridge. It is possible that Longstreet is not a single hill. It is the start of a district."
Process Flowsheet
The selected flowsheet, portable three-stage crushing, lime addition without cement agglomeration, 140-day leach cycle, five-column carbon-in-column (CIC) circuit, and toll stripping, was the highest-return of six options evaluated, avoiding both a high-voltage transmission line from
Mine Plan and Mineral Resource
The PEA mine plan designed pit processes approximately 6.55 million tons of ore containing 105,461 ounces of gold. That inventory is a subset of the larger mineral resource reported in the Company's December 2025 S-K 1300 technical report summary (11.1 million tons containing 132,414 oz gold and 4.84 million oz silver resources). Additional drilling is intended to convert inferred material, expand the Main zone, and test whether the cluster of mineralized hills are connected at depth in the Company's geologic setting.
2026 Work Program
Star Gold's 2026 work program, already authorized by the
The PEA technical report is available on the Star Gold website at www.stargold.com.
Star Gold Corp. is conducting a Regulation A offering.
About Star Gold
Star Gold Corp. (OTCQB: SRGZ) is an emerging precious metals exploration and development company focused on advancing its flagship Longstreet Gold-Silver Project in Nye County, Nevada. The
Qualified Persons
The PEA was prepared by Qualified Persons including Travis Manning, P.E., of Kappes, Cassiday & Associates, James W. Ashton P.E., Richard Kern CPG and Reinis N. Sipols P.E., each independent of Star Gold for the purposes of S-K 1300. Scientific and technical information in this news release has been reviewed and approved by the relevant Qualified Persons.
Cautionary Statement
The PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of applicable United States securities legislation. Forward-looking statements include, but are not limited to, statements regarding the PEA, including anticipated mine plans, processing methods, capital and operating costs, metal production estimates, economic returns, mine life, cash flows, payback periods and rates of return; statements regarding the potential of the Longstreet Project; and statements regarding planned drilling, permitting and development activities. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond the Company's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: the inherent uncertainties in mineral exploration and development; changes in gold and silver prices; the Company's ability to raise sufficient capital to fund planned activities; mining and development risks including risks related to infrastructure, weather, permitting and governmental regulation; the speculative nature of mineral exploration; environmental risks and hazards; title risks; and other risk factors described in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake to update any forward-looking statement that is made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Contacts
Star Gold Corp.
Lindsay Gorrill
Chief Executive Officer
+1 (208) 664-5066
StarGoldcorp.com
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SOURCE Star Gold Corp.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What mining and processing approach does the Longstreet PEA evaluate?
The PEA evaluates a conventional open-pit, crushed heap-leach operation using portable three-stage crushing, lime addition without cement agglomeration, a 140-day leach cycle, a five-column carbon-in-column circuit, and toll carbon stripping. The chosen flowsheet was the highest-return of six options and avoids both a high-voltage transmission line from Tonopah and a full on-site ADR plant.
How do the PEA mine plan tonnage and contained gold compare with the larger Longstreet mineral resource?
The PEA mine plan processes approximately 6.55 million tons of ore containing 105,461 oz of gold. This inventory is a subset of the larger S-K 1300 mineral resource reported in December 2025, which totals 11.1 million tons containing 132,414 oz gold and 4.84 million oz silver.
What are the key operating cost metrics in the Longstreet PEA?
The PEA outlines a total cash cost, net of by-product credits, of $1,617 per ounce of gold and an all-in sustaining cost (AISC) of $1,729 per ounce. Life-of-mine operating cost is estimated at $22.98 per ton of ore, with a strip ratio of about 0.8:1.
What exploration and development work is planned for Longstreet in 2026?
The 2026 work program, already authorized by the U.S. Forest Service and Bureau of Land Management, combines resource-expansion and metallurgical core drilling with hydrologic wells and the first deep hole at Opal Ridge. Results are expected to support an updated mineral resource estimate, further engineering studies, and the Environmental Impact Statement pathway toward a production Plan of Operations.
What upside potential beyond the current PEA pit does Star Gold highlight?
The company points to multiple surface targets across its approximately 2,600-acre land package, including Opal Ridge, North, Cyprus Ridge and Red Knob. Most of these zones have not been drilled at depth, and the company plans the first deep test of Opal Ridge, suggesting potential for a broader district-scale system beyond the current PEA pit.
Where can investors access the full Longstreet PEA technical report and learn about current financing?
The PEA technical report is available on the company website at www.stargold.com. Star Gold states that it is conducting a Regulation A offering and invites investors to consider investing in the company.