TriStar Gold Inc. (the Company or TriStar) is pleased to announce that Royal Gold has made the final payment of US$1.5 million in connection with Royal Gold’s acquisition of a 1.5% NSR royalty on the Company’s Castelo de Sonhos (CDS) project (see press release dated August 6, 2019 “TriStar Completes US$8 million Agreement with Royal Gold” for full details). Additionally, the Company is excited to have reached a major milestone in its advance towards permitting with the approval of a unified Terms of Reference for the concessions covering the resource area at Castelo de Sonhos.
“We are proud of Royal Gold’s continued confidence in Castelo de Sonhos, and TriStar is in a strong financial position to unlock the value in this project,” says Nick Appleyard, TriStar’s President and CEO. "We're also really happy with the results we're getting from the in-fill drill program, not only for the occasional higher grade but more for the entirety of the infill drilling program which is producing results consistent with our PEA resource model. With these additional ~20,000m of infill drilling, we anticipate that we'll be able to convert much of the inferred resource in Esperança South into indicated resources which can serve as a solid base for reserve calculations in the PFS".
Final Royal Gold payment
Tristar has received payment of US$1.5 million from Royal Gold as the final instalment of the previously announced transaction. Royal Gold now holds:
- a newly created 1.5% NSR royalty on Castelo de Sonhos
- a total of 19,640,000 common share purchase warrants, each entitling Royal Gold to purchase one common share of TriStar at a price of C$0.25 per common share for a period of approximately five years from the date of issuance
- the repurchase right to acquire 50% of the existing 2% NSR royalty on CDS held by a third party
Permitting, approval of Terms of Reference
TriStar and SEMAS, the environmental authority in Pará State, have agreed upon the guidelines for the formal social and environmental studies that will form the basis for applications for the environmental permit, construction permit and operations permit. The approval of the Terms of Reference for the study and report encompasses the two contiguous concessions covering the current mineral resource.
Infill drilling results
To date TriStar has completed 167 RC holes for 17,400m, and 2 core holes for 240m from the approximately 20,000m infill drill program. During March we received results for 25 drill holes, significant intersections from these drill results include:
- 27m @ 0.7 g/t from 36-63m in RC-20-414
- 7m @ 1.6 g/t from 15-22m in RC-20-427
- 8m @ 20.4 g/t from 18-26m in RC-20-432, includes 1m @ 161.5 g/t from 24-25m
- 8m @ 1.3 g/t from 39-47m in RC-20-433
Detailed summaries of drill hole locations and significant intervals have been added to the CDS project page of the company website (www.tristargold.com) along with a complete list of all significant intervals for the project.
Figure 1, Drill plan for Esperança South, highlighting locations of drill holes discussed in this press release. Blow-up showing detailed locations of reported drill holes. New holes are drilled vertically to a maximum targeted depth of 120m.
Impact of COVID-19 virus on ongoing work
Drilling at CDS is continuing, with the project remaining isolated to protect the health of our employees. We anticipate drilling will continue until mid-April, at which time drilling and field work will be temporarily suspended. Work on the pre-feasibility study will continue remotely where possible, however the restrictions on international travel will cause delays in the completion of the study. All staff who are not isolated at Castelo de Sonhos are working from home.
The project-wide work to evaluate for the existence of additional resources beyond those already identified, is unaffected at this time as all work is being done remotely. This scope of work is being conducted in conjunction with GoldSpot Discoveries.
Assay methods, Quality Assurance and Quality Control (QA/QC)
All drill hole samples are analyzed using a fire assay analysis of the chips collected in RC holes. Any sample that returns greater than 0.1 g/t gold is automatically submitted for a duplicate fire assay analysis and the average grade is utilized. Samples are transported by truck from the site to the ALS preparation lab in Goiania, Brazil where they are dried, crushed, pulverized and packaged for shipment to the ALS analytical lab in Lima, Peru.
The ALS preparation and analytical labs are accredited to ISO 17025:2005 UKAS ref 4028 and have internal QA/QC programs for monitoring accuracy and precision. In addition to this, TriStar uses standards, blanks and field duplicates in an external QA/QC program to provide independent monitoring of laboratory analyses.
R. Mohan Srivastava (P.Geo.), Vice President of TriStar, is the Qualified Person who has reviewed the technical information contained in this news release, including data verification, and has approved its disclosure.
TriStar Gold is an exploration and development company focused on precious metals properties in the Americas that have the 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 and on the OTCQB under the symbol TSGZF. Further information is available at www.tristargold.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF THE COMPANY:
President and CEO
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 statements about the Company’s plans to complete a pre-feasibility study on the CDS project, the results of further in-fill drilling on the CDS property, the ability of the Company to complete the current in-fill drilling program, and the anticipated effects of the COVID-19 virus. 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; effects of the COVID-19 virus on all aspects of the Company’s business, 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.
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