Star Royalties: Reissued Preliminary Economic Assessment of Copperstone Gold Mine
On March 13, 2025, Star Royalties Ltd. (TSXV: STRR, OTCQX: STRFF) announced an update on the Copperstone Gold Mine Preliminary Economic Assessment (PEA) by Minera Alamos Inc. (TSXV: MAI, OTCQX: MAIFF). The reissued PEA reflects some significant changes, including a reduction in the Net Smelter Royalty (NSR) burden and an expanded gold price sensitivity analysis range.
Reduction in NSR Burden
The original PEA for the Copperstone Gold Mine, published by Sabre Gold Mines Corp. in 2023, included a 1.5% NSR on the project. However, since then, Minera Alamos has extinguished this NSR, leading to a reduced financial burden for the mine. Star Royalties will, therefore, receive a lower royalty payment from the Copperstone Gold Mine as a result.
Gold Price Sensitivity Analysis
Another major change in the reissued PEA is the expanded gold price sensitivity analysis range. With the significant rise in gold prices over the last 18 months, Minera Alamos included a gold price sensitivity analysis range of $1,000/oz to $3,000/oz. This is a considerable increase from the original PEA’s gold price sensitivity analysis range of $1,600/oz to $2,000/oz.
Impact on Star Royalties and Shareholders
For Star Royalties, the reduction in the NSR burden on the Copperstone Gold Mine means a lower royalty payment. However, the expanded gold price sensitivity analysis range could potentially lead to higher revenues if gold prices continue to rise. Shareholders of Star Royalties could benefit from this scenario, as higher gold prices would increase the overall value of the Company.
Impact on the World
The reissued PEA for the Copperstone Gold Mine could have a ripple effect on the mining industry and the global economy. The reduction in NSR burden and the expanded gold price sensitivity analysis range could encourage more investment in the mining sector, particularly in gold mines. Additionally, the potential for higher revenues for Star Royalties and other mining companies could lead to increased economic activity and job creation.
Conclusion
Star Royalties’ announcement of the reissued PEA for the Copperstone Gold Mine highlights the ongoing potential of the mine and the mining sector as a whole. With the reduction in NSR burden and the expanded gold price sensitivity analysis range, Star Royalties could see both lower royalty payments and higher revenues, benefiting shareholders. Furthermore, the potential impact on the mining industry and the global economy could be significant, with increased investment and economic activity.
- Star Royalties announces reissued PEA for Copperstone Gold Mine
- Reduction in NSR burden from 1.5% to 0%
- Expanded gold price sensitivity analysis range from $1,600/oz to $3,000/oz
- Potential for lower royalty payments and higher revenues for Star Royalties
- Potential for increased investment in mining sector and economic activity
