Star Gold Announces $87 Million Pre-Tax NPV for Longstreet Gold-Silver Project PEA

en.Wedoany.com Reported - Star Gold Corp. (SRGZ:OTCQB) announced the results of a Preliminary Economic Assessment (PEA) for its wholly owned Longstreet Gold-Silver Project. Under the base-case scenario using a gold price of $3,600/oz and a silver price of $48/oz, the project has a pre-tax net present value (NPV) of $87 million at a 5% discount rate, an internal rate of return (IRR) of 48%, and a payback period of 1.7 years; the after-tax NPV is $67 million, the IRR is 40%, and the payback period is 1.8 years. Under the sensitivity scenario of $4,000/oz gold and $60/oz silver, the pre-tax NPV increases to $122 million and the IRR increases to 63%.

The proposed operation will process 5,500 tonnes of ore per day over the mine life, producing 88,587 payable ounces of gold and 354,701 payable ounces of silver; average annual gold production is estimated at 20,000 ounces, reaching 31,000 ounces in the peak year. Cash costs are estimated at $1,617/oz of gold, with all-in sustaining costs (AISC) of $1,729/oz. Initial capital, including working capital, is approximately $70 million. The gold recovery model is 84%, and the silver recovery is 13%.

Star Gold Corp. is a U.S.-based gold and silver exploration company focused on the Walker Lane Belt in Nevada. The wholly owned Longstreet Project covers approximately 2,600 acres and includes 137 unpatented mining claims, plus 5 mining claims held under lease with purchase options. The PEA mine plan uses only a portion of the known mineralization, leaving multiple surface targets outside the open-pit boundary. The study cites total resources of 11.1 million tonnes containing 132,414 ounces of gold and 4.84 million ounces of silver.

The 2026 exploration program has been authorized by the U.S. Forest Service and the Bureau of Land Management, including resource expansion drilling, metallurgical drilling, hydrological wells, and the first deep hole at the Opal Ridge target. Results are expected to support an updated Mineral Resource Estimate, further engineering work, and the Environmental Impact Statement process to advance a potential Plan of Operations. Final permitting for production from the Main resource area is expected in the third or fourth quarter of 2027.

Star Gold President and CEO Lindsay Gorrill said the PEA confirms the company's long-held view that, in today's gold price environment, Longstreet can be a simple, low-strip-ratio oxide heap leach mine with a short payback period. The study builds on decades of metallurgical work and a mine plan that uses only a portion of the known mineralization. Beyond the PEA pit, there are Opal Ridge, North, Cyprus Ridge, Red Knob, and other surface targets across the 2,600-acre land package, most of which have never been drilled at depth. The summer 2026 program includes the first deep test at Opal Ridge. He believes Longstreet is not an isolated hill but the beginning of a mining district.

On September 21, 2026, the gold price held above $4,300/oz; Kitco's real-time gold price showed the spot bid near $4,340/oz during afternoon trading. Even after pulling back from the high of $5,589.38/oz set in January 2026, the price remains well above historical averages. The World Gold Council reported that global gold demand in the first half of 2026 was 2,522 tonnes, with a record value of $380 billion; investment demand and central bank purchases supported the market. Trading Economics gold market data showed the gold price holding above $4,350/oz after recent trading sessions. This price environment improves the project economics of early-stage gold assets in stable jurisdictions such as Nevada.

The PEA is preliminary in nature and includes Inferred mineral resources; these resources are too speculative to be classified as mineral reserves based on economic considerations. There is no guarantee that the PEA will be realized. A preliminary economic assessment is an early-stage study used to evaluate the potential economics of a mineral project but does not confirm its economic viability.

In a contributed technical analyst opinion article for Streetwise Reports on March 6, 2026, John Newell of John Newell & Associates commented on Star Gold's stock. He noted that the stock's chart showed structure after a long period of neglect and highlighted the potential for the share price to break above $0.18 and move toward the $0.40 area amid sustained increases in volume. In another contributed article on April 27, 2026, Stewart Thomson commented on the company, giving it a "Strong Speculative Buy" rating, with a short-term target price of $0.20 and a long-term target price of $5.40.

Star Gold Corp. has a market capitalization of $32.73 million and 204.54 million shares outstanding. The 52-week price range is $0.01 to $0.21. Strategic investors hold 15.63%, management and insiders hold 19.80%, and retail investors hold the remaining 64.57%.