Tristar’s Castelo de Sonhos Reaches Major Milestone
February 6, 2017
Scottsdale, AZ, TriStar Gold Inc. (the “Company” or “TriStar”) announces that Brazil’s Departamento Nacional de Produção Mineral (“DNPM”) has reviewed TriStar’s Final Exploration Report (the “Report”) for the main concession of the Castelo de Sonhos gold project. The recommendation from DNPM officials is for approval of the Report, subject to an agreement on the reduction of the area of the concession.
“This is wonderful news for the project,” says Nick Appleyard, TriStar’s President and CEO, “because it is a large step forward in converting the central part of the project area from an exploration concession to a mining concession”.
Final DNPM approval commonly requires that companies submit a proposal for new legal boundaries for the concession that will delimit the area where the reported resources lie. TriStar’s proposal, which has already been submitted to DNPM and awaits their review, removes the eastern third of the original mineral concession, and retains all of the area on the Castelo de Sonhos plateau where gold mineralization has been identified (Figure 1).
Figure 1. TriStar’s proposal for new concession boundaries for the Castelo de Sonhos gold project.
The DNPM approval pertains to concession 850329/2002 (see Figure 1). Gold mineralization at Castelo de Sonhos spans parts of four other mineral concessions, all of which are held by TriStar’s 100%-owned Brazilian subsidiary, Mineração Castelo dos Sonhos Ltda. For three of these concessions (850310/2011, 850311/211 and 850784/2009) Final Exploration Reports will be submitted to DNPM in Q3 of 2017. For the fourth concession, its Final Exploration Reports is not due until 2022.
Under the regulatory and permitting system administered by DNPM in Brazil, once a concession’s Final Exploration Report has been approved, the holder has one year to submit the Plano de Aproveitamento Economico (Economic Exploitation Plan) required to convert an exploration concession to a mining concession. Once a mining concession is established, an environmental impact study and an application for an operational permit follow. Once these milestones are achieved, groups of contiguous concessions can be consolidated into a single operating mine.
TriStar Gold is an exploration and development company focused on precious metals properties in the Americas that have potential to become significant producing mines. The Company’s current flagship property is Castelo de Sonhos in Pará State, Brazil. The Company’s shares are listed on the TSX Venture Exchange under the symbol TSG. Further information is available at www.tristargold.com.
For further information, please contact:
TriStar Gold Inc.
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects” or “it is expected”, or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward looking statements in this press release include, the scope and success of the planned exploration program at the Castelo de Sonhos project and the Company's opinion that it has clear title to the Castelo de Sonhos property Such forward-looking statements are based upon the Company's reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause the Company's plans to change include changes in demand for and price of gold and other commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments in Brazil; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of the Company’s projects; risks of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.