Star Gold Corp. Bets Big on Nevada’s Longstreet Project Amid Gold Surge

Star Gold Corp. (OTCQB: SRGZ) has made a bold pivot in its strategy, abandoning a planned acquisition of properties in Nevada to focus exclusively on advancing its flagship Longstreet Project. The move, announced in May 2025, reflects CEO Lindsay Gorrill’s belief that the project’s near-term production potential and long-term growth profile are uniquely positioned to capitalize on soaring gold prices and investor demand for tangible outcomes.

The Longstreet Project: A Cornerstone Asset

The Longstreet Project, located in Nevada’s Walker Lane mineral belt—a region that has produced over 15 million ounces of gold—covers 2,500 acres and hosts a gold-silver resource estimated at 101,100 ounces of gold and 2.46 million ounces of silver (Indicated + Inferred categories) as of 2021. At gold prices of $1,500/oz and silver at $18/oz, the project’s pre-tax NPV stands at $53 million, with an IRR of 89%, according to a National Instrument 43-101 report. While these figures predate today’s gold prices—currently exceeding $3,000/oz—Star Gold estimates that the economics are now “significantly better,” though no updated NPV/IRR calculations have been released.

The project’s development path is advanced: it has secured water rights, is nearing permitting completion, and has seven unexplored targets, including the Opal Ridge zone, which could expand its resource base. Management aims to fast-track infill drilling and permitting, with production potentially achievable within three years.

Why the Strategic Shift?

In May .2025, Star Gold terminated a non-binding $1.5 million deal to acquire Romios Gold Nevada’s Scossa and Kinkaid properties. Gorrill cited two key reasons:

1. Market Dynamics: Gold prices have surged beyond $3,000/oz, and investors now prioritize projects with clear, short timelines to production. Longstreet’s 2-year permitting timeline and existing infrastructure make it a lower-risk bet.
2. Capital Efficiency: With junior mining firms struggling to secure funding for multi-stage projects, focusing on a single asset reduces dilution risks and allows Star Gold to concentrate resources on a project with a proven resource base and a path to production.

Gorrill emphasized: “We’re shifting from a ‘spread out’ approach to a singular focus on Longstreet, where every dollar and effort will drive toward production.”

Risks and Challenges

While the Longstreet Project’s potential is compelling, several risks remain:
- Permitting Delays: Final regulatory approvals could stretch beyond the estimated 2-year timeline, especially in Nevada’s increasingly stringent environmental review process.
- Capital Requirements: Even with a focused strategy, Star Gold will need $50–100 million for development—a significant hurdle for a small-cap firm.
- Gold Price Volatility: A sharp drop in gold prices could erode the project’s economics.

Conclusion: A High-Reward, High-Risk Play

Star Gold’s pivot to Longstreet is a calculated gamble. The project’s $53 million NPV at $1,500/oz gold suggests substantial upside if current prices hold. With Nevada’s mining-friendly regulatory environment and Longstreet’s advanced stage, the company could emerge as a mid-tier producer within three years.

However, investors must weigh the risks: permitting delays, capital constraints, and market volatility could derail progress. For those willing to take on these risks, Star Gold’s bet on Longstreet offers a rare opportunity to back a Nevada-focused asset with a clear production pathway—a rarity in today’s gold sector.

As Gorrill noted: “In a world where most juniors are stuck in exploration purgatory, Longstreet is our ticket to becoming a producer.” The next 12–18 months will reveal whether this strategy delivers.

Data as of Q2 2025. Past performance does not guarantee future results.