US-based Star Gold has revealed a new technical report on the Longstreet property, situated near Tonopah of Nevada, US.
The Technical Report on the Longstreet Gold-Silver Property was prepared by Agnerian Consulting, to examine the drilling conducted at the main zone of the property, on behalf of Star Gold.
With only fifteen diamond drill holes completed by former operators and four diamond drill holes completed by Star Gold during its 2012 and 2013 exploration programmes, most of the historical drilling has comprised of relatively shallow air track or reverse circulation holes.
The technical report said the mineral resources of the main zone totalled around 4.4 million tonnes at an average grade of 0.64g per tonne of gold and 15.6g per tonne of silver, at a pit discard cut-off grade of 0.137g per tonne of gold.
The resources include around 91,000oz of gold and 2.2 million ounces of silver, and 305,000t of inferred mineral resources at an average grade of 0.48g per tonne of gold and 14.6g per tonne of silver, containing about 4,750oz of gold and 143,000oz of silver.
With an ore-to-waste strip ratio of 1:0.56, the Longstreet mineral resources are contained in a conceptual open pit and contain around 84% of the global mineral resources.
The 462 drill holes have been drilled from the 1980s to 2012 on the main zone, of which 420 holes encountered gold and silver mineralisation of more than 0.2g per tonne of gold and 10g per tonne of silver over intervals ranging from 1m to approximately 85m.
Star Gold president and CEO David Segelov said the updated technical report for the shallow pit design, low strip-ratio and anticipated low operating costs, demonstrates the likely potential for a starter pit at the top of the main zone.
"Agnerian's Report places some economic parameters around such a plan by designing a pit and using explicit operating cost assumptions, further discussed below, which result in this report demonstrating the potential to generate positive operating cash-flows for the project," Segelov said.
The report states that "hydrothermal alteration comprises argillisation, silicification, and K-feldspar alteration, similar to the alteration assemblage associated with the gold mineralisation at the Round Mountain mine in Nevada."