TriStar Gold’s Brazil Project Value Surges on Updated Prefeasibility Study

TriStar Gold’s Castelo de Sonhos project in Brazil’s northern Pará state has seen its economic value nearly double in an updated prefeasibility study (PFS) released Monday, primarily driven by higher gold price assumptions in a market reaching record levels.

The TSX Venture-listed company reported an after-tax net present value of $603 million for the project, up from $321 million in its 2021 assessment. The internal rate of return improved to 40% from 28%, while the payback period shortened to two years from the previous estimate.

“This updated study demonstrates significant gold price leverage at a time of record high prices and scarcity of permitted development assets,” said Nick Appleyard, TriStar’s Chief Executive Officer.

The revised economic projections come despite increased capital cost estimates of $296 million, up 13% from the earlier $261 million figure. The new assessment uses a base-case gold price of $2,200 per ounce, compared to $1,550 in the 2021 study, reflecting current market conditions.

Mineral reserve estimates remain unchanged at 38.7 million tonnes grading 1.1 grams gold per tonne, containing approximately 1.4 million ounces. The planned open-pit operation with a 10,000-tonne-per-day processing facility is projected to operate for 11 years in two phases, with annual production averaging 146,000 ounces during the initial six years before declining to 91,000 ounces annually for the remainder of mine life.

The project’s permitting status has gained clarity following a legal challenge to its preliminary mining permit issued in August 2024. According to TriStar, independent legal opinion indicates the project “does not have the potential to interfere with Indigenous lands named in the prosecutor’s case.” The company also reported that SEMAS, Pará state’s regulatory permitting authority, has confirmed the permit remains valid and in good standing.

Environmental concerns raised in a civil inquiry appear unlikely to derail the project, with legal counsel determining the environmental impact assessment to be “complete, robust and adequate,” according to the company statement.

Castelo de Sonhos represents one of several gold projects advancing in Brazil’s northern mineral belt as producers seek to capitalize on gold prices that have held above $2,000 per ounce throughout 2025.