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8-K - STAR GOLD CORP FORM 8-K - Star Gold Corp. | stargold_8k-17590.htm |
Star Gold Investor Letter January 2019
Star
Gold Corp. (“Star Gold” or the “Company”)
continues to make progress following closely the path that was
outlined in the 2018 Investor Update dated 18th March 2018
(http://www.stargoldcorp.com/news/20180320ShareholderLetter.pdf
). Star Gold continues to maintain a singular focus on obtaining a
mining permit for its flagship project, the Longstreet Project (the
“Project”) based in Nevada.
As
outlined the steps still required to be completed are as
follows:
STEP 1: Submission of the following reports
a.
Hydrology Study
– awaiting a Drilling Permit;
b.
Geochemical
analysis; and
c.
Plan of Operations
Development (Mine Plan, Civil Engineering Designs).
STEP 2: Receiving permission from relevant governmental
agencies to proceed to a formal Environmental Impact Study
(“EIS”). Permission to prepare a formal EIS is not
automatically granted and the relevant agencies may request further
clarifications before granting approval to proceed to an
EIS.
STEP 3: Publishing the EIS and conducting a public comment
period and mitigating comments deemed relevant by regulatory
agencies; followed by the expected issuance of a permit to mine the
Project.
Project Details
A plan
of operations for drilling the process water and required monitor
wells (the “Hydrology Drilling Plan”) was developed and
filed for review by the United States Forest Service (the
“USFS” or “Forest Service”) in April 2018.
The Hydrology Drilling Plan also included permitting for possible
additional core holes in the mine area if “new” core is
required by the Nevada Department of Environmental Protection (the
“NDEP”) for rock mass characterization work that would
be used to develop a geochemical testing program for the
Project.
The
USFS review of our Hydrology Drilling Plan was significantly
delayed due to certain staffing issues in the USFS. More
importantly, Star Gold was given some guidance as to how to
approach their submissions that proved to be unwarranted. Once
comments were received from the USFS in late August and September
2018, the Hydrology Drilling Plan was revised and finalized and
resubmitted to the USFS in early November 2018. The final revisions
were decided upon during a mine site meeting with USFS and Star
Gold management in mid-October 2018. This meeting also provided an
opportunity to review the Longstreet Project in detail with the
USFS to gather input on how to streamline the Mine Plan of
Operations (the “Mine Plan”) development and approval
by including in the initial submission all mitigants for issues of
concern such as archeological impacts, wildlife issues, stormwater
management, drainage diversion as well as overall operations
development and management. Input and feedback from the USFS was
very positive and constructive. Management is keeping the USFS
informed of all ongoing activities regarding the
Project
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A
geochemistry work plan (the “Geochemistry Plan”) will
also need to be engineered once the mine sequencing is developed
and the Mine Plan is complete. The Company will then submit the
Geochemistry Plan to the NDEP for review and comments. The
NDEP will either approve the Geochemistry Plan as submitted or
issue comments to the Company. If comments are issued by NDEP the
Company will revise and resubmit the Geochemistry Plan for
approval. The NDEP may require additional drill core to be
obtained if they feel that additional core is required to properly
illustrate the rock mass in the mine. Once the Geochemistry Plan is
approved, samples are taken from existing drill core and submitted
to a laboratory testing to determine the extent (if any) of acid
generation. Engineering work is completed after test results
are received to mitigate any acid generation from the rock
mined.
Work
commenced in mid-December 2018 on the USFS requested wildlife
management plan (the “Wildlife Plan”) for the proposed
hydrology drilling program and the draft of this Wildlife Plan was
received for management review on January 11, 2019. The Wildlife
Plan will be filed with the USFS shortly. However, the Federal
government shutdown has slowed the final review of the overall
Wildlife Plan and hydrology drilling will likely not commence until
July 2019 due to restrictions on drilling activities that could
potentially disturb the Sage Grouse during its breeding season from
March-June. The current U.S. Government shut-down has temporarily
interrupted on-site progress on the Project until
resolved.
While
the wait for the drilling permit has been frustrating, Star Gold
has not stood still. The Company has been pro-active
by:
●
Completing
preliminary hydrogeologic work with respect to determining possible
process water and monitor well locations.
●
Completing an
updated raptor study in May 2018.
●
Soliciting bids to
complete the Mine Plan of Operations from Dyer Engineering and
Golder in late May 2018. Presentations and a review of these bids
was conducted during a management meeting in late June. During this
meeting, the details of the proposed “slot” mining
method were detailed and post this meeting discussions were opened
up with potential mining contactors.
●
Completing
conceptual design work on the proposed heap leach pads in several
different possible configurations as well as preliminary drainage
diversion designs to facilitate a large heap leach pad in the
valley next to the proposed Longstreet Mine.
●
Designing crushing
plant and conveying layouts specifying how the mined and crushed
rock was to be transported to the proposed heap leach
pad.
Corporate
Star
Gold’s management continues to be actively involved in
driving the process towards the EIS phase. It is this phase where
value will, in the view of management, accrue to shareholders as
very few viable new projects exist in Nevada at the current
time.
For the
fourth successive year, neither Star Gold’s President nor any
member of the Board of Directors drew salaries from the Company.
The Officers and Directors remain fully committed to the Project
and devote significant time to ensuring all the steps are
thoroughly planned and properly executed.
Management
also re-iterates its desire to update, upon completion of the Mine
Plan of Operations, the existing economic model for the Project.
Any updated economic model will be made available to
shareholders.
On
December 4, 2018 Star Gold amended the Longstreet Property Option
Agreement (the “Longstreet Agreement”) to change the
due date of certain expenditures required by that agreement (the
“Amendment”). The Amendment moves the due date of the
“2019” expenditures from January 16, 2019 to August 31,
2019 and also moves the due date of the “2020”
expenditures from January 16, 2020 to August 31, 2019. No other
provisions of the Longstreet Agreement, as previously amended, were
affected by the Amendment.
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Effective
December 5, 2018 the Company completed all measures necessary to
switch Star Gold’s transfer agent responsibilities from
Pacific Stock Transfer to Columbia Stock Transfer
Company.
The
Company encourages all shareholders to review its periodic reports
(on Forms 8-K, 10-Q and 10-K) filed with the Securities and
Exchange Commission; available at
https://www.sec.gov/
About Star Gold Corp.
Star
Gold is a gold exploration/development company with 125 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.
Investor Contact:
David
Segelov
Office:
208-664-5066
Cell:
646-626-3356
dsegelov@stargoldcorp.com
info@stargoldcorp.com
Disclaimers
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.
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