On behalf of TriStar Gold Inc. (TSX-V: TSG), GE21 Consultoria Mineral Ltda of Belo Horizonte, Brazil, has completed the Preliminary Economic Assessment 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

Table 2. Technical assumptions for the PEA

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 processing will be crushed and then ground to 150 microns before being leached using Carbon-in-pulp (“CIP”). Process tailings 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 become significant producing mines. The Company’s current flagship property is Castelo de Sonhos in Pará State, Brazil.