Star Gold posts Longstreet PEA with $87 million pre-tax NPV and 48% IRR
SRGZ•Star Gold’s preliminary economic assessment for its Longstreet project in Nevada estimates a pre-tax NPV of $87 million and a 48% IRR at $3,600-per-ounce gold. The study estimates initial capital of about $70 million and a pre-tax payback period of 1.7 years.
1. Project economics
Star Gold released a preliminary economic assessment for its 100%-controlled Longstreet gold-silver project in Nevada, outlining an open-pit heap-leach plan. At $3,600-per-ounce gold and $48-per-ounce silver, the base case shows a pre-tax NPV at a 5% discount rate of $87 million and a 48% IRR; after-tax NPV is $67 million and IRR is 40%. At $4,000-per-ounce gold and $60-per-ounce silver, pre-tax NPV is $122 million and IRR is 63%.
2. Mine plan and costs
The mine plan targets 6,550,000 tons of ore containing 105,461 ounces of gold, with life-of-mine payable output of 88,587 ounces of gold and 354,701 ounces of silver. Estimated initial capital is about $70 million, AISC is $1,729 per ounce, and projected payback is 1.7 years pre-tax and 1.8 years after-tax.
