The PEA de-risks the Longstreet project with robust economics at current gold prices, but it remains preliminary and relies on inferred resources. Key catalysts to watch: results from the 2026 drilling program (especially the Opal Ridge deep test), submission of the Plan of Operations in early 2027, and the company's ability to secure the ~$70 million in initial capital. The stock trades on OTCQB with limited liquidity, so price discovery may be gradual.
Price Chart
Executive Summary
Star Gold Corp. announced a positive Preliminary Economic Assessment (PEA) for its 100%-controlled Longstreet Gold-Silver Project in Nevada. The base-case PEA shows an after-tax NPV (5%) of $67 million and a 40% after-tax IRR at $3,600/oz gold and $48/oz silver, based on a 4-year open-pit heap-leach operation producing 88,587 oz gold and 354,701 oz silver. The filing is a project advancement milestone for this OTC-traded exploration-stage company, but the PEA is preliminary and includes inferred resources that are not yet demonstrated as economic.
Key Facts
- After-tax NPV (5%) of $67 million and after-tax IRR of 40% at base-case metal prices ($3,600/oz Au, $48/oz Ag)
- Pre-tax NPV (5%) of $87 million and pre-tax IRR of 48%
- Sensitivity case at $4,000/oz Au and $60/oz Ag yields pre-tax NPV of $122 million and 63% IRR
- Life-of-mine payable gold production of 88,587 oz and silver production of 354,701 oz over 4 years
- Total initial capital estimated at ~$70 million (including working capital); LOM operating cost of $22.98/ton
- Total cash cost of $1,617/oz Au and AISC of $1,729/oz Au
- Mineral resource (M&I + Inferred): 6.78 million tons at 0.016 oz/t Au and 0.418 oz/t Ag, containing 110,600 oz Au and 2.83 million oz Ag
- PEA mine plan processes 6.55 million tons of ore containing 105,461 oz gold, a subset of the larger resource
- Permitting timeline estimated at 12-14 months after submission of Plan of Operations, targeted for early 2027
- 2026 work program includes resource-expansion drilling, first deep test at Opal Ridge, and hydrologic wells
Financial Impact
After-tax NPV of $67 million at 5% discount rate; initial capital of ~$70 million; LOM operating cost of $22.98/ton; total cash cost of $1,617/oz Au
Risk Factors
- PEA is preliminary and includes inferred mineral resources that are too speculative to have economic considerations applied; no mineral reserves have been established
- Project requires ~$70 million in initial capital; financing risk for an OTC-traded exploration company
- Permitting timeline of 12-14 months is an estimate and could face delays from regulatory or environmental challenges
- Metallurgical recovery for silver is low at 13%, limiting by-product credits
- Gold and silver price assumptions ($3,600/oz Au, $48/oz Ag) are above current spot prices; economics are sensitive to metal price declines
- Short 4-year mine life limits long-term value creation and increases reliance on resource expansion
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-032255 |
| Exhibit: ex_1022459.htm | 0001437749-26-032255 |
| Document: srgz20260922_8k.htm | 0001437749-26-032255 |
| Document: 0001437749-26-032255-index-headers.html | 0001437749-26-032255 |
| Document: 0001437749-26-032255-index.html | 0001437749-26-032255 |
| Document: 0001437749-26-032255.txt | 0001437749-26-032255 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 6, 2026 20d ago | 8-K | $0.1550 $0.1580 | ▲ +1.94% | ▲ +2.92% | $0.1500 (−3.23%) |
Jun 5, 2026 20w ago | 8-K | $0.1788 $0.1905 | ▼ −6.54% | ▼ −4.43% | $0.1500 (+16.11%) |
Mar 4, 2026 33w ago | 8-K | $0.1900 $0.1750 | ▲ +7.89% | ▲ +5.66% | $0.1500 (+21.05%) |
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