51% IRR from PEA at TriStar Gold’s Castelo de Sonhos Project (Scottsdale, AZ), On behalf of TriStar Gold Inc. (the “Company” or “TriStar”), GE21 Consultoria Mineral Ltda (“GE21”) of Belo Horizonte, Brazil, has completed the Preliminary Economic Assessment (“PEA”)
November 16, 2018 Trading Symbol: TSX-V:TSG
51% IRR from PEA at TriStar Gold’s Castelo de Sonhos Project
(Scottsdale, AZ), On behalf of TriStar Gold Inc. (the “Company” or “TriStar”), GE21 Consultoria Mineral
Ltda (“GE21”) of Belo Horizonte, Brazil, has completed the Preliminary Economic Assessment (“PEA”)
for the Company’s Castelo de Sonhos gold project in southern Pará State, Brazil.
Key highlights of the PEA include the following:
• Life-of-mine recoverable gold of 1.1 million ounces (“Moz”)
• Internal rate of return pre-tax of 51%
• Cash cost of $660
• All in sustaining cost (“AISC”) of $687
Nick Appleyard, TriStar’s President and CEO stated: “This study now shows a robust, low cost base case
for the Castelo de Sonhos gold project. With payback in less than two years and an average production of
nearly 160,000 ounces per year for the first four years, the remarkable potential of this project is coming
into focus. We intend to complete further drilling in 2019 with an aim to further increase the mineral
resource estimate”.
Table 1. Key economic parameters from the PEA for the Castelo de Sonhos gold project. 1
PARAMETER UNIT PRE-TAX POST-TAX
CASH FLOW US$ millions 441 372
IRR % 51 43
NPV 5% US$ millions 319 264
NPV 10% US$ millions 233 188
CASH COST US$/oz 660
AISC2 US$/oz 687
INITIAL
CAPITAL
US$ millions 184
LIFE OF MINE
PRODUCTION
Moz gold 1.1
AVERAGE
ANNUAL
PRODUCTION
oz gold 120,000
PAYBACK
PERIOD (MINE
LIFE)
Years 1.9 (of 9.1 years)
1Numbers have been rounded to reflect the precision of a preliminary analysis.
2The Company calculates all-in sustaining costs as the sum of total cash costs, sustaining capital expense and corporate general
and administrative expense (net of stock option expense).
3TriStar intends to file an independent NI 43-101 Technical report to SEDAR within 45 days in support of this disclosure.
Table 2. Technical assumptions for the PEA
PARAMETER UNIT VALUE
PROCESS RATE t/day 8,250
AVERAGE HEAD
GRADE
g/t 1.44
GOLD RECOVERY % 95
MINE OPERATING
COST
US$/t moved 2.17
PROCESS OPERATING
COST AND G&A
US$/t processed 10.68
LOM STRIP RATIO Waste t : process t 8 : 1
GOLD PRICE US$/oz 1,250
EXCHANGE RATE Brazilian Real/US$ 3.8
The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them
to be categorized as Mineral Reserves. There is no certainty that the economic results described in
the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
Preliminary Economic Assessment
The PEA for Castelo de Sonhos has assumed the use of a contract mining company, to conduct open pit
mining using technology equipment readily available in Brazil and elsewhere in the World. The open-pit
mine is designed assuming 55⁰ slope angle, 8m bench height and a 10% access ramp.
The material for pro cessing will be crushed and then ground to 150 microns before being leached using
Carbon-in-pulp (“CIP”) . Process t ailings will be discharged to an engineered facility designed to
international standards of safety.
The economic analysis includes allowances for milestone payments due under the original purchase
agreement, as well as mine closure and remediation.
Mineral resource
The PEA is based on the previously announced mineral resource as shown below:
Mineral Resources (above a 0.3 g/t cut-off) of:
Indicated: 17.7 million tonnes at 1.2 g/t, containing 0.7 Moz of gold
Inferred: 39.8 million tonnes at 1.0 g/t, containing 1.3 Moz of gold
Details available in the September 17th 2018 press release entitled “35% INCREASE IN RESOURCES
AT CASTELO DE SONHOS AS PRELIMINARY ECONOMIC ASSESSMENT BEGINS”
Qualified Person and QAQC
Porfirio Cabaleiro Rodriguez (MAIG #3708), Director of GE21, is the Qualified Person , as defined by
National Instrument 43-101 – Standards of Disclosure for Mineral Projects, for the Preliminary Economic
Assessment presented in this press release, is independent of the Company and has approved the technical
disclosure in this press release.
About TriStar:
TriStar Gold is an exploration and development company focused on precious metals properties in the
Americas that have potential to becom e significant producing mines. The Company’s current flagship
property is Castelo de Sonhos in Pará State, Brazil. The Company’s shares are listed on the TSX Venture
Exchange under the symbol TSG. Further information is available at www.tristargold.com.
For further information, please contact:
TriStar Gold Inc.
Nick Appleyard
President and CEO
480-794-1244
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information contained herein.
Forward-Looking Statements
Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation
which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities
Litigation Reform Act of 1995. Generally, forward-looking information can be identified by the use of forward-looking terminology
such as “expects” or “it is expected”, or variations of such words and phrases or statements that certain actions, events or results
“will” occur. Forward looking statements in this press release include all estimates from the PEA such as the cash flow, IRR,
NPVs, cash cost, AISC, initial capital, life of mine production, average annual production and payback period time, and the
Company’s intention to complete more drilling in 2019. Such forward -looking statements are based upon the Company's
reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and
competitive circumstances and contingencies. Readers are cautioned that such forward -looking statements involve known and
unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates
to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those
forward-looking statements. Risks, uncertainties and other factors that could cause the Company's plans to change include changes
in demand for and price of gold and other commodities (such as fuel and electricity) and currencies; changes or disruptions in the
securities markets; legislative, political or economic developments in Brazil; the need to obtain permits and comply with laws and
regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations
or may not realize the perceived potential of the Company’s projects; risks of accidents, equipment breakdowns and labour disputes
or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in developme nt
programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative
nature of gold exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and
the risks involved in the exploration, development and mining business. Although management of the Company has attempted to
identify important factors that could cause actual results to differ materially from those contained in forward -looking statements
or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. The
Company disclaims any intention or obligation to update or revise any forward -looking statements whether as a result of new
information, future events or otherwise, except as required by applicable securities laws.