TriStar Gold (TSXV:TSG) - Moving Through Permitting Process
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Show Notes
Interview with Nick Appleyard, President & CEO of TriStar Gold Inc.
Our previous interview: https://www.cruxinvestor.com/posts/tristar-gold-tsg-key-environmental-permits-anticipated-in-h2-2023-3099
Recording date: 13th December 2023
Permitting Will De-Risk TriStar's Castelo de Sonhos Gold Project Towards Production
TriStar Gold is advancing permitting on its wholly-owned Castelo de Sonhos gold project in Pará State, Brazil, with the key preliminary installation license expected in Q1 2024. Recent permitting milestones and community support tighten the timeline for this modest 10,000 tonne per day operation to move into production.
With permitting progressing smoothly, TriStar plans to secure a construction partner, likely a strategic holding 20% equity, before development starts. An experienced Brazil mine builder would optimize technical execution and provide vital expertise in building Castelo.
CEO Nick Appleyard sees strong in-country talent, showcased on comparable G-Mining, facilitating Castelo construction. The partner would also help manage costs as TriStar oversees its first-ever mine development.
Castelo de Sonhos boasts a strong 2021 PFS with an after tax IRR of 28%, an initial capital cost of US$261 million and an AISC of $900 per ounce, at conservative $1550/oz gold prices. While costs have risen, TriStar believes higher gold renders economics intact, perhaps even improved. Exploration continues seeking to upgrade the 1.4 g/t reserve grade and expand beyond the 17 million tonne resource.
Brazil's mining sector support further de-risks Castelo. TriStar may attract mid-tiers diversifying country risk into stable Brazil from elsewhere in South America. Project financing options also expand in a jurisdiction favoring new gold investment with infrastructure advantages.
With C$5.5 million in cash, TriStar is funded through permitting and the subsequent strategic partner and development decision. Castelo advanced permitting in a stable country with project optimization and exploration upside reduces risk. These qualities position TriStar to offer investors quality leveraged returns as gold support builds.
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View TriStar Gold's company profile: https://www.cruxinvestor.com/companies/tristar-gold-inc
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