Star Gold Corp. (SRGZ:OTCQB) reported a US$87 million pre-tax net present value (NPV) and a 48% internal rate of return (IRR) for its 100%-controlled Longstreet Gold-Silver Project in Nevada, according to a September 2026 Preliminary Economic Assessment (PEA). The study, prepared by Kappes, Cassiday, & Associates in accordance with U.S. S-K 1300 standards, uses assumed prices of US$3,600 per ounce gold and US$48 per ounce silver.
The assessment outlined a conventional open-pit, crushed heap-leach operation requiring approximately US$70 million in initial capital. Star Gold is also evaluating additional exploration targets beyond the initial mine plan as it advances engineering and permitting.
Key Investor Takeaways
- The September 2026 PEA estimates an US$87 million pre-tax NPV and 48% IRR at US$3,600/oz gold and US$48/oz silver.
- A higher-price sensitivity case of US$4,000/oz gold and US$60/oz silver projects a US$122 million pre-tax NPV and 63% IRR.
- The proposed operation targets average annual payable gold production of approximately 20,000 ounces, with estimated AISC of US$1,729/oz.
- The October 27 water-rights lease covers 2,471 acre-feet, supporting planned operations and potential expansion.
- Additional drilling at Opal Ridge and other exploration targets could help evaluate mineralization beyond the initial mine plan.
A PEA Informs Future Plans
Star Gold's September 22, 2026, PEA projects an after-tax NPV of US$67 million, a 40% IRR, and a 1.8-year payback period. Before taxes, the study estimates an NPV of US$87 million, a 48% IRR, and a 1.7-year payback period, using a 5% discount rate. A sensitivity case using US$4,000 gold and US$60 silver increases projected pre-tax NPV to US$122 million and IRR to 63%. The PEA evaluates a proposed operation processing approximately 5,500 tons of ore per day. The mine plan includes approximately 6.55 million tons of ore containing 105,461 ounces of gold, compared with a larger reported mineral resource of 11.1 million tons containing 132,414 ounces of gold and 4.84 million ounces of silver.
Estimated life-of-mine payable production totals 88,587 ounces of gold and 354,701 ounces of silver. Average annual payable gold production is projected at approximately 20,000 ounces, with peak annual output of about 31,000 ounces. The study estimates total cash costs of US$1,617 per ounce of gold and all-in sustaining costs (AISC) of US$1,729 per ounce. Gold and silver recovery rates are estimated at 84% and 13%, respectively.
Beyond the initial mine plan, Star Gold has identified additional exploration targets, including Opal Ridge, North, Cyprus Ridge, and Red Knob. CEO Lindsay Gorrill said the PEA incorporates only a portion of the known mineralization across the company's approximately 2,600-acre land package. "This PEA confirms what we have believed for years: Longstreet can be a simple, low-strip, oxide heap-leach mine with an estimated rapid payback in today's gold price environment," Gorrill said.
The company's 2026 work program includes resource-expansion and metallurgical drilling, hydrologic work, and the first deep test of Opal Ridge. Results are intended to support an updated mineral resource estimate and further engineering studies. However, mineralization outside the current mine plan remains subject to additional exploration and evaluation.
Most recently, on October 27, Star Gold announced a long-term lease covering 2,471 acre-feet of water rights for Longstreet. The company estimates annual water requirements of approximately 600 acre-feet for planned operations, or 720 acre-feet with a 30% contingency. The agreement provides additional water capacity for potential expansion and allows detailed design engineering to proceed using a defined supply assumption.
Gold Sector in Corrective Phase
Gold prices fell below US$4,000 per ounce on October 30, 2026, extending a sharp October correction as persistent U.S. inflation, rising energy costs, and expectations of additional Federal Reserve interest-rate increases weighed on bullion. At the time of writing, the metal was down approximately 4.3% for October and heading for a second consecutive monthly decline.
The latest decline followed stronger-than-expected U.S. economic growth and accelerating inflation. U.S. GDP expanded more than anticipated in Q3, while September inflation increased as consumers paid more for gasoline and other goods. The Federal Reserve held interest rates steady at its October meeting, but persistent price pressures have strengthened expectations that policymakers could raise rates again in December. Higher interest rates generally weigh on gold because the non-yielding metal becomes less attractive relative to interest-bearing investments.
For investors watching the November 3 U.S. midterm elections, the correction adds another variable to the gold outlook. Congressional control could influence fiscal policy, geopolitical funding, and the administration's regulatory agenda, but the immediate direction of bullion will also depend on inflation, Federal Reserve policy, energy prices, and the U.S. dollar. The World Gold Council's October analysis emphasized that the policies following an election, rather than the result itself, are generally more consequential for gold. Consequently, the midterms could influence the metal's longer-term outlook without necessarily reversing its current downward momentum.
Upcoming Catalysts into 2027
The final permit to begin production for the Main resource site is expected in Q3 or Q4 of 2027. Star Gold is also advancing the permitting process. The U.S. Forest Service approved its exploration and development Plan of Operations in May 2026, followed by Bureau of Land Management approval of a development work program in June. The company plans to submit a complete mine Plan of Operations application in early 2027, according to the PEA report.
In an exclusive comment to Streetwise Reports, CEO Lindsay Gorrill said, "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 and Share Structure1
Management and insiders own approximately 20.40% of Star Gold, while institutions hold about 15.60%, with retail investors accounting for the balance.
The largest disclosed holders include Myrmikan Capital LLC / Myrmikan Gold Fund LLC (15.60%), Lindsay Edward Gorrill (15.30%), Thomas Power (2.40%), David Segelov (1.80%), and Gerard Pascale (0.18%).
The company has roughly 204.71 million shares outstanding and a market capitalization of about US$30.6 million.
No verified insider open-market buys or sells were found for the last six months.
One series of warrants remains outstanding. Public records show one historical share restructure.
Common Questions From Investors
What does the Longstreet PEA project?
The September 2026 assessment estimates an US$87 million pre-tax NPV at a 5% discount rate and a 48% IRR, based on US$3,600/oz gold and US$48/oz silver. After taxes, NPV is estimated at US$67 million and IRR at 40%.
What are Star Gold's next development milestones?
The company plans to submit its complete mine Plan of Operations application in early 2027. Additional drilling, engineering, and permitting work are also planned as Star Gold advances Longstreet toward potential production.
What is Longstreet's estimated initial capital cost?
The PEA estimates approximately US$70 million in initial capital, including working capital.
What processing method does the project use?
Longstreet is designed as a conventional open-pit, crushed ore heap-leach operation.
How much of the known gold resource is included in the mine plan?
The mine plan includes 105,461 ounces of gold from a larger reported resource of 132,414 ounces.
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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
Ownership percentages, named holders, share count, market capitalization, and the 52-week range for Star Gold were compiled from company public filings and investor materials, exchange notices, insider-trade reports (SEDI / equivalent), and third-party data providers. Figures are as of 2026-10-29 unless a source was dated earlier. Pie slices are normalized to 100% of basic shares outstanding; retail is the residual after disclosed institutions, management, insiders, and strategic holders. Warrant terms are current outstanding series only. Restructures are historical consolidations, splits, and symbol or name changes. Insider buying and selling covers open-market trades from the prior six months through 2026-10-29 and excludes option exercises. These are public-source estimates and can differ from a later official register.
