COEUR D'ALENE, ID--(Marketwired - Mar 11, 2014) - Star Gold Corp. ("Star Gold" or the "Company") (OTCQB: SRGZ) today announced that it has released an updated and expanded Technical Report covering its flagship property, the Longstreet Property, located near Tonopah, Nevada (referred to herein as the "Longstreet Property" or the "Longstreet Project"). The Technical Report was produced under the National Instrument (NI) 43-101 standards; please refer to the Cautionary Statement Regarding Mineral Resources set forth at the end of this Press Release.
The independent Technical Report entitled "Longstreet Project, Nye County, Nevada Revised Technical Review and Resource Estimate" (the "Technical Report" or "The Noland Report"), dated February 16th, 2014, was prepared for Star Gold by Paul D. Noland CPG ("Noland"). Noland has no direct or indirect interest in Star Gold Corp. The Noland Report incorporates all historical drilling and drilling done by Star Gold Corp at the Longstreet Property. The Noland Report is independent of and separate from the "Agnerian Report" which was announced by the Company on February 10, 2014; a copy of which is posted on the Company's website at: http://www.stargoldcorp.com. Interested parties are advised to review both the Agnerian Report and the Noland Report (as well as all other materials posted on the Company's website and/or filed with the Securities and Exchange Commission and available at www.sec.gov).
The Noland Report will be available, after 4pm Eastern Daylight Time today, on the Company's website.
In the Technical Report Noland states that "The 2012 and 2013 drilling programs at Longstreet have extended the resource to the east and internal holes have continued to prove the continuity of the deposit. Good thicknesses of mineralization have been discovered to the northwest, east and southeast of the original resource. Additional expansion drilling is recommended."
The analysis set forth in the Technical Report finds that there exists at the Main Zone of the Longstreet Project:
- An indicated resource of approximately 173,000 ounces of gold equivalent (AuEq) at an average grade of 0.020 ounces per ton (oz/ton). The indicated resource contains approximately 113,000 ounces of gold (Au) and 3.6 million ounces of silver (Ag). This derives from an average Au grade of 0.013 oz/ton and Ag grade of 0.411 oz/ton.
- An additional inferred resource was estimated at 40,000 ounces of AuEq at an average grade of 0.017 oz/ton. The inferred resource is estimated to contain approximately 19,000 ounces of Au and 1.3 million ounces of Ag.
- A preliminary pit was designed which covered the entire selected resource using a cut-off grade of 0.005 oz/ton. This is resulted in a strip ratio of 1:1.70.
A graphical video of the Noland Report proposed pit and the enclosed resource, grade and tonnage can be found on the Company's website.
"This is a different examination of the Longstreet Main Zone. Noland's pit is substantially larger and includes more tonnage than what we had previously thought," said David Segelov, President and CEO of Star Gold Corp.
Further, the Noland Report makes two recommendations for further exploration work including:
- A Phase 1 program focused on the Opal Ridge fault and parts to the east of the Main Zone where the highest grade silver ever found on Main zone was drilled in 2013 (hole LS-1319).
- A Phase 2 program should be undertaken to test the primary high-grade target at Cyprus Ridge. According to the Noland Report "The discovery of a Midas or Fire Creek style deposit would instantly change the economics of Longstreet for a minimal cost."
Paul D. Noland is a Qualified person as set out in NI-43-101 and is Certified Professional Geologist #11293 from AIPG, member of Geological Society of Nevada. Paul D Noland is responsible for all sections of the Noland Report.
About Star Gold Corp.
Star Gold is a gold exploration/development company with 115 unpatented claims located within the Walker Lane belt. The Company is currently focused on developing its flagship property, the Longstreet Property. The Longstreet Property is located in Nye County, Nevada.
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Star Gold Corp (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings.
CAUTIONARY STATEMENT REGARDING MINERAL RESOURCES
This Press Release and/or other information that may be released by the Company in the future uses the terms "resources", "measured resources", "indicated resources" and "inferred resources". United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Mineral resources that are not mineral reserves do not have demonstrated economic viability. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Inferred resources are in addition to measured and indicated resources. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in this Press Release and in press releases by the Company in the future, have been or will be prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. The requirements of NI 43- 101 are not the same as those of the SEC.
The terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in the United States Securities and Exchange Commission ("SEC") Industry Guide 7 under the United States Securities Act of 1933, as amended (the "Securities Act"). Under SEC Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that all or any part of a mineral deposit in these categories will ever be converted into reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable.
Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures.
Subject to the forgoing Cautionary Statement, the following are the definitions of the terms used in the Longstreet NI 43-101 Report:
NI 43-101 Definitions:
Indicated mineral resource: The term "indicated mineral resource" refers to that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be established with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.
Inferred mineral resource: The term "inferred mineral resource" refers to that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
Measured mineral resource: The term "measured mineral resource" refers to that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.