Star Gold Corp. Refocuses Strategy on Longstreet Project

Rhea-AI Summary

Star Gold Corp (OTC:SRGZ) has announced the termination of its previously announced non-binding Letter of Intent to acquire properties from Romios Gold Nevada Inc. The company will instead redirect its focus to developing its Longstreet property.

CEO Lindsay Gorrill cited the challenging capital-raising environment for junior mining projects in Nevada and the current gold price environment exceeding $3,000 per ounce as key factors. The company believes Longstreet aligns with current investor preferences for projects that can potentially begin production within three years while offering long-term growth potential.

Star Gold plans to proceed with infill drilling at Longstreet and advance its permitting process while exploring other promising targets on the property.

Positive

• Strategic focus on Longstreet project which has potential for production within 3 years
• Favorable gold price environment with gold exceeding $3,000 per ounce
• Plans for infill drilling and permitting advancement at Longstreet
• Avoidance of potential capital strain from additional acquisitions

Negative

• Termination of planned acquisition of Romios Gold Nevada properties
• Challenging capital-raising environment for junior mining projects in Nevada

News Market Reaction – SRGZ

+12.99%

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+12.99% News Effect

On the day this news was published, SRGZ gained 12.99%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

COEUR D'ALENE, ID / ACCESS Newswire / May 5, 2025 / Star Gold Corp. ("Star Gold" or "the Company") (OTC:SRGZ) provides an update on the February 28^, 2025, non-binding Letter of Intent announcement to acquire all rights and interests in the two properties contained in Romios Gold Nevada Inc.

After careful consideration, Star Gold does not intend to pursue any part of the acquisition and notified Romios of the termination of the non-binding Letter of Intent. The Company will instead focus on developing its own property at Longstreet. Star Gold intends to move to the next stage at Longstreet with infill drilling, progressing on its path to permitting and exploring other highly prospective targets on the property.

Commenting on these developments, Chairman and CEO Lindsay Gorrill explained, "over the past decade, very few junior mining projects in Nevada have successfully secured capital necessary to explore, develop, construct a mine, and move toward production. A dramatic shift has also taken place with gold prices now surpassing $3,000 per ounce. Investor interest has moved toward projects that can potentially become producing mines within approximately three years while offering additional long-term upside growth opportunities. We believe Longstreet fits this profile and represents the best opportunity for Star Gold to enhance shareholder value. It is our preferred course to focus on developing this asset."

About Star Gold Corporation:

Star Gold Corporation is a leading mining company based in Nevada, dedicated to the exploration and development of high-quality mineral properties. With a strong commitment to sustainable practices and community engagement, Star Gold Corporation aims to deliver long-term value to its shareholders and stakeholders by building high grade resources in Nevada. Star Gold Corp is listed on the OTC Markets (OTCQB: SRGZ).

For more information: www.stargoldcorp.com

For further information, please contact:

Lindsay Gorrill, Chairman, Star Gold Corp. - 208-664-5066 or lgorrill@stargoldcorp.com

SOURCE: Star Gold Corp.

View the original press release on ACCESS Newswire

FAQ

Why did Star Gold Corp (SRGZ) terminate the Romios Gold Nevada acquisition?

Star Gold decided to focus on developing its Longstreet property instead, believing it offers better shareholder value and aligns with current investor preferences for projects that can potentially begin production within three years.

What are Star Gold's (SRGZ) plans for the Longstreet project in 2025?

Star Gold plans to proceed with infill drilling at Longstreet, advance the permitting process, and explore other promising targets on the property.

How has the gold price affected Star Gold's (SRGZ) strategy?

With gold prices exceeding $3,000 per ounce, Star Gold is focusing on projects like Longstreet that can potentially become producing mines within approximately three years while offering long-term growth opportunities.

What challenges do junior mining projects face in Nevada according to Star Gold (SRGZ)?

According to Star Gold, very few junior mining projects in Nevada have successfully secured the capital necessary to explore, develop, construct a mine, and move toward production over the past decade.