Welcome!

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 www.stargoldcorp.com.

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
                                                          ($million)
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
                                                    ($million)
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

                          Average
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, %
                                    $million

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 http://www.sec.gov/edgar.shtml. 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.

Company Contact:

David Segelov
CEO
Office: 208-664-5066
Cell: 646-626-3356
[email protected]
[email protected]

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
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
"Digital transformation - what we knew about it in the past has been redefined. Automation is going to play such a huge role in that because the culture, the technology, and the business operations are being shifted now," stated Brian Boeggeman, VP of Alliances & Partnerships at Ayehu, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
You know you need the cloud, but you're hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You're looking at private cloud solutions based on hyperconverged infrastructure, but you're concerned with the limits inherent in those technologies. What do you do?
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
"We started a Master of Science in business analytics - that's the hot topic. We serve the business community around San Francisco so we educate the working professionals and this is where they all want to be," explained Judy Lee, Associate Professor and Department Chair at Golden Gate University, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...