Star Royalties hails resource upgrade at Copperstone gold mine where it has a streaming deal

Star Royalties Ltd has hailed the upgrade of mineral resources at the Copperstone gold mine in Arizona, USA, where the company holds a streaming agreement.

Sabre Gold Mines, which operates the mine, reported that measured resources have increased 53% to 196,000 gold ounces at 7.6 grams per ton (g/t), while the lower confidence inferred increased 45% to 212,000 ounces at 5.9 g/t of the yellow metal.

In all, there was a 23% increase in gold ounces across all categories, while drilling has shown continuity of mineralization and potential to expand the resources further.

READ: Star Royalties sees 2Q revenue increase by 46% compared to previous quarter as its royalty assets continue to deliver

“The updated mineral resource statement supports our investment case, and given the significant increase in measured resources, shows good potential for an eventual update in mineral reserves,” noted Alex Pernin, CEO of Star Royalties in a statement.

“Furthermore, additional resource upside remains as several highly prospective expansion targets that have been recently identified by Sabre Gold remain untested. The Copperstone gold stream continues to represent significant, near-term cash flow for Star Royalties from a highly prospective deposit in a world-class jurisdiction.”

Under a previously announced streaming deal, Star Royalties is set to receive deliveries of refined gold equal to 9.9% of gold produced from Copperstone until a total of 21,000 ounces have been delivered.

After that, the firm would receive 3.3% of gold produced until a cumulative 27,200 ounces are delivered, and 1.2% of gold produced thereafter for the remaining life of mine, all at a cash payment of 25% of the spot gold price for each ounce delivered.

In the statement on Tuesday, Star noted that this latest Coppertone resource reflected 152 new drill holes for 12,900 meters (m) of additional drilling with an estimated gold price of US$1,700 per ounce, and with a modest reduction of 9,700 ounces when calculated using a gold price of US$1,600 per ounce.

Star Royalties is a precious metals royalty and streaming investment company, which also has an eye on green opportunities. Star Royalties pioneered one of the first forest carbon offset credit royalties and is pursuing a pipeline of additional green investments.

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Story by ProactiveInvestors