Scottsdale, Arizona, Apr 01, 2020 (Newsfile Corp via COMTEX) -- Scottsdale, Arizona--(Newsfile Corp. - April 1, 2020) - TriStar Gold Inc. (the Company or TriStar) is pleased to announce that Royal Gold has made the final payment of US$1.5 million in connection with Royal Gold's acquisition of a 1.5% NSR royalty on the Company's Castelo de Sonhos (CDS) project (see press release dated August 6, 2019 "TriStar Completes US$8 million Agreement with Royal Gold" for full details). Additionally, the Company is excited to have reached a major milestone in its advance towards permitting with the approval of a unified Terms of Reference for the concessions covering the resource area at Castelo de Sonhos.
"We are proud of Royal Gold's continued confidence in Castelo de Sonhos, and TriStar is in a strong financial position to unlock the value in this project," says Nick Appleyard, TriStar's President and CEO. "We're also really happy with the results we're getting from the in-fill drill program, not only for the occasional higher grade but more for the entirety of the infill drilling program which is producing results consistent with our PEA resource model. With these additional ~20,000m of infill drilling, we anticipate that we'll be able to convert much of the inferred resource in Esperança South into indicated resources which can serve as a solid base for reserve calculations in the PFS."
Final Royal Gold payment
Tristar has received payment of US$1.5 million from Royal Gold as the final instalment of the previously announced transaction. Royal Gold now holds:
✓ a newly created 1.5% NSR royalty on Castelo de Sonhos
✓ a total of 19,640,000 common share purchase warrants, each entitling Royal Gold to purchase one common share of TriStar at a price of C$0.25 per common share for a period of approximately five years from the date of issuance
✓ the repurchase right to acquire 50% of the existing 2% NSR royalty on CDS held by a third party
Permitting, approval of Terms of Reference
TriStar and SEMAS, the environmental authority in Pará State, have agreed upon the guidelines for the formal social and environmental studies that will form the basis for applications for the environmental permit, construction permit and operations permit. The approval of the Terms of Reference for the study and report encompasses the two contiguous concessions covering the current mineral resource.
Infill drilling results
To date TriStar has completed 167 RC holes for 17,400m, and 2 core holes for 240m from the approximately 20,000m infill drill program. During March we received results for 25 drill holes, significant intersections from these drill results include:
27m @ 0.7 g/t from 36-63m in RC-20-414
7m @ 1.6 g/t from 15-22m in RC-20-427
8m @ 20.4 g/t from 18-26m in RC-20-432, includes 1m @ 161.5 g/t from 24-25m
8m @ 1.3 g/t from 39-47m in RC-20-433
Detailed summaries of drill hole locations and significant intervals have been added to the CDS project page of the company website ( www.tristargold.com ) along with a complete list of all significant intervals for the project.
Figure 1, Drill plan for Esperança South, highlighting locations of drill holes discussed in this press release. Blow-up showing detailed locations of reported drill holes. New holes are drilled vertically to a maximum targeted depth of 120m.
To view an enhanced version of this graphic, please visit: