Star Gold Corp. (OTCQB: SRGZ) has released an updated Preliminary Economic Assessment (PEA) for its Longstreet Gold-Silver Project in Nye County, Nevada. The study, prepared by Kappes, Cassiday & Associates, evaluates a conventional open-pit, crushed heap-leach operation.
Under the base case assumptions of $3,600 per ounce for gold and $48 per ounce for silver, the project demonstrates a pre-tax Net Present Value (NPV) of $87 million and an Internal Rate of Return (IRR) of 48%. The after-tax NPV is estimated at $67 million with an IRR of 40%. The pre-tax payback period is reported as 1.7 years.
A sensitivity case utilizing higher metal prices of $4,000 per ounce for gold and $60 per ounce for silver projects a pre-tax NPV of $122 million and an IRR of 63%.
Key operating parameters for the life-of-mine (LOM) include total payable gold production of 88,587 ounces and silver production of 354,701 ounces. The mine plan processes approximately 6.55 million tons of ore. The selected flowsheet utilizes portable crushing and a carbon-in-column circuit to avoid the costs associated with a high-voltage transmission line.
Star Gold’s management notes that the PEA mine plan utilizes only a portion of the known mineralization. The company highlights multiple undrilled targets, including Opal Ridge, North, Cyprus Ridge, and Red Knob, across its 2,600-acre land package. A 2026 work program is underway, authorized by the U.S. Forest Service and Bureau of Land Management, to conduct resource expansion drilling and hydrologic studies.
