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Castelo de Sonhos Gold Project

Resource 2018 CasteloDeSonhos

The Castelo de Sonhos gold project is situated in the southwestern Pará state, Brazil, approximately 20km from the town of Castelo de Sonhos. It is a paleoplacer gold deposit with 19 km of conglomerate outcrop. Large upside potential remains with only around 60% of the prospective area drilled thus far.

Key Attributes

  • 26,750 Ha property, 100% owned → no external ownership
  • Deposit open along strike and down-dip → growth potential
  • Substantial amounts of the target prospective area still untested → growth potential
  • Gold resource has grown by factor of 7 in last three years → efficient exploration
  • Robust Preliminary Economic Assessment → strong financial metrics
  • Mineralization at surface → simple open pit
  • Good metallurgical properties → high gold recovery
  • Connected to grid power, close to highway → good infrastructure


The plateau hosts several identified mineralized conglomerate targets:

  • In Esperança East, the largest of the under-explored, high-priority targets, 2018 drilling has shown reefs with higher grades and thicknesses than previously believed and has also shown that mineralization extends further to the south.
  • Esperança South continues to provide positive assay results, indicating that the well-mineralized reefs may thicken to the north
  • The New Discovery Zone on the west and the Upper Conglomerate Zone, have only recently been discovered and have not yet been drilled.

Preliminary Economic Assessment results in November 2018 indicate pre-tax IRR of 51% at a current gold price of US$1250, with a low cost base and strong leverage for higher gold prices. The PEA Fact Sheet can be downloaded here.

Key Economic Parameters

Parameter Unit Pre-tax Post-tax
Cash Flow US$ millions 441 372
IRR % 51 43
NPV 5% US$ millions 319 264
NPV 10% US$ millions 233 188
Cash Cost US$/oz 660  
AISC US$/oz 687  
Initial Capital US$ millions 184  
Life of Mine Production Moz gold 1.1  
Average Annual Production oz gold 130,000  
Payback Period (Mine Life) years 1.9 (of 8.1 years)  

 Details are reported in press release dated Nov 16, 2018 titled '51% IRR from PEA at TriStar Gold’s Castelo de Sonhos Project’

The PEA has outlined several areas for future work to enhance and continue to de-risk the project. TriStar intends to undertake additional drilling with the aim to further expand mineral resources and increase confidence.

Location

  • Pará state Brazil, an established mining jurisdiction.
  • Far from environmentally sensitive areas and indigenous communities
  • 20km from the town of Castelo de Sonhos
  • Connected to ports and cities by paved national highway 163 through the town

Power

The property was connected to the national grid power from the town of Castelo de Sonhos in early 2018.

The project currently has mineral resources of:

Indicated: 17.7 million tonnes at 1.2 g/t, containing 0.7 million ounces (“Moz”) of gold.
Inferred: 39.8 million tonnes at 1.0 g/t, containing 1.3 Moz of gold.

The resource has grown by a factor of 7 in the past three years and upside potential remains. Exploration is ongoing and new mineralised areas identified in 2018 are yet to be drill tested.

Drilling significant intervals can be viewed here.

As at September 17, 2018

 Region Classification

Tonnage
(Mt)

Grade
(g/t Au)

Metal Content
(Moz Au)

Esperança South Indicated 11.8 1.4 0.5
Inferred 21.7 1.2 0.8
Esperança East Indicated - - -
Inferred 11.8 0.9 0.4
Esperança Center Indicated 5.9 0.9 0.2
Inferred 6.3 0.7 0.1
Project Total Indicated 17.7 1.2 0.7
Inferred 39.8 1.0 1.3


Details are reported in press release dated Sept 17, 2018 titled 35% Increase In Resources At Castelo De Sonhos As Preliminary Economic Assessment Begins’

 

GEOLOGY

Learn more about the geology of the Castelo de Sonhos plateau

LEARN MORE GEOLOGY

WHERE WE OPERATE

Learn more about mining in Brazil and Pará state

LEARN MORE ABOUT BRAZIL

HISTORICAL FACTS

Learn more about the Castelo de Sonhos gold rush

LEARN MORE FACTS