Star Gold PEA Highlights Longstreet Upside as Gold Holds Near US$4,200 Amid Central Bank Demand

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1. Disclosure for the quote from the Stewart Thomson article published on April 27, 2026

1. For this article, Star Gold Corp. has paid Street Smart, an affiliate of Streetwise Reports, US$3,500.
2. Author Certification and Compensation: Stewart Thomson was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Thomson is a retired Canadian financial advisor who has passed the Canadian Securities Course as well as additional technical analysis courses that were mandated by his former employer and approved by Ontario regulatory bodies. For the past 15 years, he has been editing and writing numerous financial newsletters that have a strong focus on charts.  The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

2. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Star Gold Corp. (SRGZ:OTCQB) is advancing its 100%-controlled Longstreet gold-silver project in Nevada with a positive Preliminary Economic Assessment (PEA) released September 22, 2026. 

The study estimates a pre-tax net present value (NPV) of US$87 million and an internal rate of return (IRR) of 48% at base-case prices of US$3,600/oz gold and US$48/oz silver. In a sensitivity case using US$4,000/oz gold and US$60/oz silver, pre-tax NPV rises to US$122 million and IRR to 63%. The company noted that the NPV on all numbers is at a 5% discount rate.

The timing aligns with a gold market where prices reached records above US$5,500/oz earlier in 2026 before settling near US$4,180/oz in mid-October, supported by sustained central bank purchases exceeding 300 tonnes in the first half alone.

Key Investor Takeaways

• Star Gold delivered a constructive PEA for Longstreet showing US$87 million pre-tax NPV and 48% IRR at base prices, rising sharply in sensitivity cases aligned with 2026 gold levels near US$4,000/oz.
• Central bank gold purchases remained robust in 2026, with China and others accumulating hundreds of tonnes and supporting prices that enhance project economics for Nevada developers like Star Gold.
• Recent regulatory approvals and a summer 2026 drill program position Longstreet for further technical de-risking ahead of a planned 2027 Plan of Operations submission.
• The Regulation A offering and new COO appointment expand access to capital and operational expertise as the company advances its 100%-controlled Nevada asset.
• Longstreet's low strip ratio, heap-leach design, and district-scale exploration potential offer leverage to sustained precious metals demand driven by sovereign buying.

Star Gold's Latest Project Updates

With rising gold prices, Star Gold sent out a newsletter titled, "Five Reasons to Look at Longstreet," on October 6, 2026, which also listed a proven resource, clear steps toward production, capital from industry insiders, and low-cost set up as reasons to invest. The company filed an 8-K on October 7, 2026, confirming the PEA details prepared under S-K 1300 by Kappes, Cassiday & Associates for a conventional open-pit, crushed heap-leach operation at Longstreet in Nye County, Nevada. Key parameters include life-of-mine payable production of 88,587 ounces gold (Au) and 354,701 ounces silver (Ag), average annual gold output around 20,000 ounces, all-in sustaining costs of US$1,729/oz, and initial capital of approximately US$70 million, with a 1.8-year after-tax payback in the base case. The mine plan processes a subset of the larger mineral resource outlined in the December 2025 technical report summary.

Additional recent milestones include a Regulation A offering launched September 16, 2026, to invite public investment, and the appointment of Tom Power as Chief Operating Officer on October 6, 2026, bringing over 35 years of precious metals operational experience. Earlier in 2026, Star Gold secured BLM and U.S. Forest Service approvals for development work and finalized a summer drill program targeting resource expansion and metallurgical testing.

Star Gold remains focused on permitting and pre-development at Longstreet, with plans to submit a full mine Plan of Operations application in 2027 following recent regulatory approvals. The company reported no revenue and elevated spending on project advancement in its latest quarterly filing, typical for an exploration-stage entity advancing toward potential production.

Gold Recovering Despite Volatility

Gold prices moved back above US$4,200 per ounce early on October 12 before giving back some gains as investors weighed rising oil prices, a stronger U.S. dollar, and upcoming inflation data. Yahoo!Finance reported that December gold futures opened at US$4,220.80 per ounce, up 2.3% from Friday's close, before retreating to approximately US$4,204.20 in early trading. The recovery followed a volatile September and early October, as shifting expectations for Federal Reserve policy and geopolitical developments continued to influence prices.

Despite the correction, investment demand remains an important source of support. The World Gold Council reported that physically backed gold exchange-traded funds attracted US$10 billion in September, bringing third-quarter inflows to a record US$31 billion. Global holdings increased by 67 tonnes during September to a record 4,256 tonnes, even as the gold price declined. North American and European funds led the inflows, suggesting that investors continued to add exposure during the pullback.

In a contributed technical analyst opinion, Stewart Thomson gave his opinion of the company on April 27, 2026. Thomson gave the stock a "Strong Speculative Buy" rating.¹

Goldman Sachs Research forecast in September that gold could reach US$4,900 per ounce by year-end 2026, citing continued central-bank purchases and a potential recovery in investment demand. The firm estimated central-bank buying at 44 tonnes in July, including significant purchases by China, although analysts cautioned that prices could remain volatile.

The near-term outlook remains sensitive to inflation, interest rates, and currency movements. Higher oil prices can intensify inflation concerns and increase expectations that interest rates will remain elevated, potentially weighing on gold because the metal does not generate interest income. Conversely, geopolitical uncertainty, central-bank purchases, and investment flows can support demand. For Star Gold, higher gold and silver prices would improve the modeled economics of Longstreet. The PEA's sensitivity case estimates a pre-tax NPV of US$122 million and an IRR of 63% at US$4,000/oz gold and US$60/oz silver. Actual results would depend on realized metal prices, costs, permitting, financing, and other project risks.

Analyst Sees "Outperformance" from Stock

¹In a contributed technical analyst opinion, Stewart Thomson gave his opinion of the company on April 27, 2026. Thomson gave the stock a "Strong Speculative Buy" rating and said that its "volume has been this high before, but not consistently, as it is now."

Thomson went on to give Star Gold a short-term price target of US$0.20 and a long-term price target of US$5.40, noting that "given the consistent outperformance of Star Gold during CDNX rallies, high long-term price targets for the stock are reasonable considerations."

Final Permit Expected

The final permit to begin production for the Main resource site is expected in Q3 or Q4 of 2027.

In an exclusive comment to Streetwise Reports, CEO Lindsay Gorrill said, "The new economic assessment Net Present Value 5% discount using US$4,000 gold is US$122 million, which is four times higher than our current market cap. We continue to move as fast as we can to file our permit to move toward production, which unlocks the true value of what we have."

Ownership & Share Information²

Star Gold Corp. has a market cap of US$32.49 million, with 204.54 million shares outstanding. The company's 52-week range is US$0.02-US$0.21.

Strategic Investors own 15.63% of shares, while Management & Insiders own 19.80%. The remaining 64.57% of shares are Retail.

Frequently Asked Questions

Q: What does the latest PEA show for Star Gold's Longstreet project?

A: The September 22, 2026, PEA outlines an open-pit heap-leach mine with strong returns at current and higher gold/silver prices, including 1.8-year after-tax payback in the base case and multiple undrilled targets for upside.

Q: How does the gold market and central bank buying relate to Star Gold?

A: Strong central bank purchases exceeding 300 tonnes in H1 2026 have supported gold prices in ranges that align with the PEA's higher sensitivity cases, providing a favorable backdrop for Longstreet economics versus peers in the sector.

Q: What are the next catalysts for Star Gold Corp.?

A: Key upcoming items include completion of the 2026 drill program results, further permitting progress, and submission of the mine Plan of Operations in early 2027.

Q: Where is the Longstreet project located, and what is its ownership?

A: Longstreet is 100%-controlled by Star Gold Corp. and located in Nye County, Nevada, within the Walker Lane Belt, with a resource supporting open-pit development.

Q: What is a Preliminary Economic Assessment (PEA) in mining?
A: A Preliminary Economic Assessment (PEA) is an early-stage technical and economic study that evaluates the potential viability of developing a mineral deposit. It estimates factors such as capital costs, operating costs, production rates, mine life, and potential project returns.

Star Gold Corp.'s PEA for its Longstreet gold-silver project in Nevada outlines a potential open-pit, heap-leach operation, but its results are preliminary and do not guarantee that the project will become a producing mine.
Q: What is net present value (NPV) in a mining project?
A: Net present value (NPV) is a financial measure that estimates the current value of a project's future cash flows after accounting for initial and ongoing costs and the time value of money.

A positive NPV indicates that projected cash flows exceed the costs under the study's assumptions. Star Gold's Longstreet PEA reported a pre-tax NPV of US$87 million under its base-case metal prices of US$3,600 per ounce of gold and US$48 per ounce of silver.
Q: What is the internal rate of return (IRR) in mining economics?
A: The internal rate of return (IRR) is the discount rate at which a project's NPV equals zero. It is used to assess the potential return of a mining investment relative to its costs and risks.

Star Gold's Longstreet PEA estimated a 48% pre-tax IRR under its base-case assumptions, increasing to 63% in a sensitivity case using higher gold and silver prices. These estimates depend on the study's assumptions and are not guaranteed investment returns.
Q: What is heap leaching in gold and silver mining?
A: Heap leaching is a mineral processing method in which crushed ore is placed on a lined pad and treated with a chemical solution that dissolves recoverable metals. The metal-bearing solution is collected and processed to recover the gold or silver. Star Gold's Longstreet PEA evaluates a conventional open-pit mining operation using crushed heap-leach processing, a method commonly used for suitable gold and silver deposits.
Q: What is a mine Plan of Operations?
A: A mine Plan of Operations is a detailed proposal describing how a mining project will be developed and operated, including planned activities, infrastructure, environmental protection, and reclamation measures. On U.S. federal lands, the plan is submitted to the relevant federal land-management agency for review and approval under applicable regulations. Star Gold plans to submit a full Plan of Operations application for Longstreet in early 2027 as it advances the project toward potential development.