TriStar’s Flagship Project to Produce 1.1 Million Ounces of Gold

A preliminary economic assessment (PEA) on TriStar Gold’s (TSXV:TSG) Castelo de Sonhos project in Brazil revealed a life-of-mine recoverable gold of 1.1-million ounces, or an average of 120,000 ounces a year.

Castelo is the miner’s flagship project and will require a capital investment of approximately US$184 million.

“This study now shows a robust, low cost base case for the Castelo de Sonhos gold project. With payback in less than two years and an average production of nearly 160,000 ounces per year for the first four years, the remarkable potential of this project is coming into focus,” said Nick Appleyard, president and CEO.

“We intend to complete further drilling in 2019 with an aim to further increase the mineral resource estimate,” he added.

According to TriStar, highlights from the PEA also include a pre tax internal rate of return of 51 percent and a net present value at a 5 percent discount of US$319 million.

The PEA also notes a payback period of 1.9 years with a cash cost estimated at US$660 per ounce at an all-in sustaining cost of US$687 per ounce.

The PEA is based on an indicated mineral resource of 17.7-million tonnes at 1.2 grams per tonne, which contains 0.7-million ounces of gold. The inferred resource stands at 39.8-million tonnes at 1.0 grams per tonne, which contains 1.3-million ounces of gold.

The miner initially announced the beginning of the PEA in mid-September, after it was revealed that there was a 35 percent increase in resources at the Castelo de Sonhos project.

Commenting on the increase, Appleyard stated, “this year’s strong drilling results in Esperança East have been very encouraging, especially in that they clearly show the existence of the same two high-grade reefs seen earlier in Esperança South.”

“We have now seen over 600 percent growth in mineral resources over the last 2 years. This new, larger mineral resource will be used in the PEA now underway to give us the first look at the project’s potential economic viability before the end of the year,” he added.

Following the announcement on Friday (November 16), TriStar closed 7 percent higher at C$0.15. As of 11:00 a.m EST on Monday (November 19), the miner remained flat, still trading at C$0.15.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.