Click here to close now.


News Feed Item

Star Gold Completes Scoping Study on Longstreet Property

COEUR D'ALENE, ID -- (Marketwired) -- 06/02/14 -- Star Gold Corp. ("Star Gold" or the "Company") (OTCQB: SRGZ) reported a Scoping Study ("The Study") of the Main Zone which is part of the Longstreet deposit completed by A-Z Mining Professionals of Ontario, Canada. The full version of the Scoping Study will be available on the Star Gold website at

Highlights of the Scoping Study Include:

Net Present Value (NPV): $13.3m at a 10% discount rate, pre-tax.

Internal Rate of Return (IRR): 29%.

Payback Period: 2.7 years.

Capital Cost: $25.4 Million, including a contingency provision and working capital.

Gold and Silver Pricing Assumptions: Gold at $1350/oz and Silver at $24/oz.

Mining Rate: 2,800 tons per day (TPD).

Net Recoveries: 86% gold and 15% silver.

Heap Leach Processing Technology: conventional technology utilizing leach pads.

Mine Life: 4.4 years

Direct Employment: 11 employees.

Royalty: Includes a 3% Net Smelter Royalty (NSR) owed to Minquest.

"The Study of the Main Zone of the Longstreet deposit shows that a small, at-surface pit using heap leach recoveries could be an attractive project at $1350 gold. The Study highlights that a modest $25m CAPEX would be required for the outlined pit and this could be leveraged by further expansion and /or the discovery and development of other satellite deposits on Longstreet. The Longstreet project displays great optionality especially to the gold price" said David Segelov, President & CEO of Star Gold Corp. "The Study also importantly details the risks associated with the project."

Overview of the Longstreet Project and PEA
The tonnage incorporated into the Study includes a pit containing 4.4 million tons, with an average gold grade of 0.02 oz/ton. Gold recoveries are estimated at 86%. Silver would be a by-product and would add approximately 7% to the project value. Operating costs would be $808oz for gold and with the gold and silver combined would be $760oz.

The Base Case of the Study was constructed using $1350 per/oz gold price. The two variables which show the most sensitivity for the IRR of the project are gold price and grade mined.

A summary of the operating assumptions and financial model for the project is as follows:

Item                                           TOTAL
Tonnes Mined                                   4,400,000

Mined Grade (oz/t)                             0.022
Strip Ratio (waste to ore)                     0.70:1
Life of Mine Total Revenue                                $119
Initial Capital Expenditure                               $25.4
Life of Mine Sustaining Capital                           $0
Total Before-Tax Cash Flow (undiscounted)                 $28.5
Before-tax NPV @ 10%                                      $13.3
Before-tax IRR (%)                                        29 %

Capital Cost Estimate
Initial capital cost estimates for the project are as follows:

Item                                                Total Cost
Permitting                                          $2.0
Mine                                                $0.2
Heap Leach Pad & Processing Plant                   $10.
Surface Infrastructure & Mobile Equipment           $4.0
EPCM, Contractor O/H & Owners Costs                 $2.5
Contingency                                         $2.6
Working Capital                                     $3.7
Total Capital Cost                                  $25.4

Initial capital costs include all costs required to bring the facility to production. The ongoing life of mine sustaining capital costs are estimated to be nil over the 4.4 year mine life.

Operating Cost Estimate

Item                      Unit Cost
                          ($/ton mined)
Mining                    $9.09
Processing                $3.65
G&A                       $2.13
Total Operating Cost      $14.87

Sensitivity Analysis
A sensitivity analysis was performed. The two most
volatile assumptions to the project are gold prices and
gold grade.

Changes to selling price of GOLD    NPV at 10%,  IRR, %

Increase of 15% ($1552 oz)          $26.0        46%
Base Case ($1350 oz)                $13.3        29%
Decrease of 15% ($1147 oz)          $1           12%

About Star Gold Corp.

Star Gold is a gold exploration/development company with 115 unpatented claims and located within the historically prolific Walker Lane belt. The Company is currently focused on developing its flagship property, Longstreet Project. The Longstreet Project is located in Nye County, Nevada.

Cautionary Note to Investors

The United States Securities and Exchange Commission ("SEC") limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce.

The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. Under SEC Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and all necessary permits and government approvals must be filed with the appropriate governmental authority. This study is not a final or bankable feasibility study and our project currently does not contain any known proven or probable ore reserves under SEC Industry Guide 7 reporting standards.

We advise U.S. investors that various terms used in this report are not recognized under the SEC's Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Mineral resources in these categories have a great amount of uncertainty as to their economic and legal feasibility. "

The results of this study disclosed in this press release are preliminary in nature and material 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 results of the this study will be realized.

U.S. investors are urged to consider closely the disclosure in our latest reports and registration statements filed with the SEC. You can review and obtain copies of these filings at U.S. Investors are cautioned not to assume that any defined resource will ever be converted into SEC Industry Guide 7 compliant reserves.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding the potential development of the Longstreet project, estimates and projections regarding the economic feasibility of the Longstreet project from the Study, including, NPV, IRR, payback period, capital cost, pricing assumptions, mining rate, average recoveries, oxide production amounts and methodologies, mine life, employment requirements, resource amounts and grades, projected revenues, initial capital costs, life of mine sustaining capital, cash flow projections, capital and operating cost estimates and projections, and sensitivity analysis.

When used in this press release, the words "potential," "indicate," "expect," "intend," "hopes," "believe," "may," "will," "if, "anticipate," and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements.

Such factors include, among others, uncertainty of mineralized material and mineral resource estimates, risks to projected and estimated economics not reflecting actual economic results due to the uncertainty of mining processes, potential non-uniform sections of mineralized material, potential mining hazards and accidents, changes in equipment and labor costs, changes in projected gold and silver prices and demand, competition in the industry, risks related to project development determinations, the inherently hazardous nature of mining-related activities, potential effects on the Company's operations of environmental regulations, risks due to legal proceedings, liquidity risks and risks related to uncertainty of being able to raise capital on favorable terms or at all, as well as those factors discussed under the heading "Risk Factors" in the Company's latest annual report on Form 10-K.

Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.