Star Gold Corp. (SRGZ:OTCQB) announced that it has secured a long-term lease covering 2,471 acre-feet of water rights for its flagship Longstreet Gold-Silver Project in Nye County, Nevada.
The company said the agreement clears a key milestone for detailed design engineering and permitting by establishing a water supply intended to support planned operations and potential future growth.
Key Takeaways
- Star Gold announced a long-term lease covering 2,471 acre-feet of water rights. The company estimates planned annual use at approximately 600 acre-feet, or 720 acre-feet with a 30% contingency.
- The company said the lease allows detailed design engineering to proceed using a defined water-supply assumption and supports parallel engineering and permitting work.
- The U.S. Forest Service approved the Plan of Operations in May 2026, followed by BLM approval of a development work program in June 2026.
- The September 2026 assessment estimated a US$87 million pre-tax NPV and 48% pre-tax IRR at assumed prices of US$3,600/oz gold and US$48/oz silver.
- Water rights address one important project requirement, but further engineering, environmental review, permitting, financing, and execution remain necessary before potential production.
Water Rights Lease Secured
Star Gold said preliminary water-balance work estimates annual water consumption at approximately 600 acre-feet for planned operations, or about 720 acre-feet with a 30% contingency. The estimate includes initial heap loading, makeup water sized for a conservative dry year, and water for processing, trucks, sanitation, and other site uses. The 2,471 acre-feet covered by the newly announced lease is approximately 3.4 times the company's contingency-adjusted annual estimate. Star Gold said the additional capacity is intended to provide flexibility during dry conditions and accommodate potential increases in throughput as additional resources are confirmed.
"Water rights in Nevada are hard assets, and they are getting harder to secure every year," said Lindsay Gorrill, Chief Executive Officer of Star Gold Corp. "Locking in a long-term lease at this volume does two things for our shareholders. It derisks Longstreet, and it gives us room to grow. We did not secure water for the mine plan we have today. We secured water for the company we intend to build, and that includes the resource growth we expect at Longstreet and the projects that come after it."
The company argued that securing the water supply allows detailed design engineering to advance using a defined water-supply assumption. Water availability affects several elements of a heap-leach operation, including process design, heap configuration, leach-pad dimensions, pond capacity, and solution management.
In the release, Reinis Sipols, Star Gold's director of project management, said the agreement allows consultants to use a firm water-supply figure in detailed design rather than working with a range of assumptions. The company also said engineering and permitting workstreams can now advance in parallel, reducing a recurring qualification in the project's development process.
The new announcement follows other permitting and technical milestones. The U.S. Forest Service approved Star Gold's Plan of Operations in May 2026, and the Bureau of Land Management approved a development work program in June 2026. Those approvals support planned exploration and development work, while the project continues through the permitting process required for potential production.
Longstreet Project Overview and Recent Catalysts
Longstreet is a 100%-owned, open-pit gold-silver project in Nevada's Walker Lane Belt, approximately 57 miles northeast of Tonopah. Star Gold describes the property as covering approximately 2,600 acres.
In September 2026, the company announced a positive Preliminary Economic Assessment (PEA) prepared in accordance with U.S. S-K 1300 standards. At assumed prices of US$3,600 per ounce of gold and US$48 per ounce of silver, the study estimated a pre-tax net present value (NPV) of US$87 million at a 5% discount rate and a pre-tax internal rate of return (IRR) of 48%. The after-tax NPV was estimated at US$67 million, with a 40% IRR. A sensitivity case using US$4,000 per ounce gold and US$60 per ounce silver estimated a pre-tax NPV of US$122 million and a 63% IRR. These are study estimates based on specified metal-price assumptions, not guarantees of future project performance.
The PEA evaluates a conventional open-pit, crushed heap-leach operation processing approximately 5,500 tons of ore per day. Star Gold's next steps include advancing engineering and permitting work, including the technical and environmental work needed to progress toward a potential production permit. The company has also identified resource growth as a potential avenue for expanding the project's scale.
Gold Recovering as Week Begins
Gold prices have pulled back from January's record highs amid shifting interest-rate expectations, geopolitical developments, and changes in investor positioning. Spot gold traded near US$4,019 per ounce on October 26, 2026, recovering from a decline to US$3,975 on October 23, 2026. The metal's near-term direction remains sensitive to U.S. Federal Reserve policy, Treasury yields, inflation data, and movements in the U.S. dollar.
Central bank purchases and investment demand continue to influence the longer-term outlook. The World Gold Council reported that central banks recorded net gold purchases of 39 metric tons in August, with China, Uzbekistan, and Poland among the leading buyers. In an October 5 report, Reuters reported that central bankers continued to view gold as a strategic reserve asset amid geopolitical tensions, concerns about government debt, and economic fragmentation. Consultancy Metals Focus forecast that central bank gold purchases would decline 15% year over year to 720 metric tons in 2026, although demand would remain above pre-2022 levels. However, elevated prices have weighed on jewelry consumption, while higher real interest rates can make non-yielding gold less attractive relative to interest-bearing assets.
Analysts remain divided on the metal's price trajectory. In September, Goldman Sachs maintained a year-end 2026 gold price forecast of US$4,900 per ounce, citing continued central bank demand and the potential for renewed investor inflows, according to Kitco News. Renewed geopolitical tensions, lower interest-rate expectations, or stronger investment demand could support prices, while persistent inflation, rising yields, and a stronger U.S. dollar could limit gains.
A Final Permit on the Horizon
The final permit to begin production for the Main resource site is expected in Q3 or Q4 of 2027.
Streetwise Ownership Overview*
Star Gold Corp. (SRGZ:OTCQB)
| Strike Price | Number | Expiry Date |
|---|---|---|
| $0.08 | 45,973,125 | 02/25/27 |
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 03/01/12 | SRGZD:OTCQB | 1 | SRGZ:OTCQB | 1 |
| 02/02/12 | SRGZ:OTCQB | 6 | SRGZD:OTCQB | 1 |
| 09/25/09 | SRGO:OTCQB | 1 | SRGZ:OTCQB | 2 |
| 08/20/08 | SRGOE:OTCQB | 1 | SRGO:OTCQB | 1 |
| 08/04/08 | SRGO:OTCQB | 1 | SRGOE:OTCQB | 1 |
| 06/25/08 | EDVL:OTCQB | 1 | SRGO:OTCQB | 1 |
| 03/05/08 | ELNV:OTCQB | 1 | EDVL:OTCQB | 3 |
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 Information1
Star Gold Corp. has a market cap of US$30.68 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.
Common Questions from Investors
What does the water rights lease mean for Longstreet?
Star Gold says the lease provides a water supply for its planned heap-leach operations and additional capacity for potential expansion. It also allows detailed design engineering to proceed using a defined water-supply assumption. The lease alone does not establish that all permits required for production have been obtained.
How much water does Longstreet expect to use?
Preliminary water-balance work estimates annual consumption of approximately 600 acre-feet, increasing to about 720 acre-feet when a 30% contingency is included. The newly announced lease covers 2,471 acre-feet, approximately 3.4 times that contingency-adjusted estimate.
What did the September 2026 PEA estimate?
At assumed prices of US$3,600/oz gold and US$48/oz silver, the PEA estimated a pre-tax NPV of US$87 million at a 5% discount rate and a 48% pre-tax IRR. At US$4,000/oz gold and US$60/oz silver, the sensitivity case estimated a pre-tax NPV of US$122 million and a 63% IRR. These preliminary estimates depend on the study's assumptions.
What comes next for the Longstreet project?
Star Gold plans to advance detailed design engineering and permitting, with water availability now established as a basis for that work. The project still requires continued technical and environmental work and the applicable regulatory approvals before it can proceed to production.
Important Disclosures:
- Star Gold Corp. is a billboard sponsor of Streetwise Reports. The company pays a monthly sponsorship fee of US$3,000–US$6,000 for banner advertising and an enhanced company profile page. Streetwise Reports’ editorial content is fully independent and is not influenced by sponsorship.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Star Gold Corp.
- Cori Fisher wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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1. 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.
