Interview with Nick Appleyard, President & CEO of TriStar Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/tristar-gold-tsxvtsg-moving-through-permitting-process-4713

Recording date: 30th May 2025

Tristar Gold (TSXV: TSG) has emerged as a compelling investment opportunity in Brazil's mining sector following the release of updated project economics and successful resolution of permitting challenges at its Castelo de Sonhos gold project. The company recently completed a $10 million financing round that will fund strategic drilling programs and advance the project toward feasibility study completion.

The updated Preliminary Feasibility Study released in May 2025 demonstrates exceptional project economics with a 40% post-tax internal rate of return at $2,200 gold prices. With current gold trading around $3,200 per ounce, management estimates returns could exceed 70%, supported by over $1 billion in pre-tax cash flow generation and $600 million post-tax net present value. The project targets average annual production of 120,000 ounces over 11 years, with higher-grade output of 150,000 ounces during initial years.

A significant milestone involved successfully defending the environmental permit against a public prosecutor challenge regarding indigenous consultation. Despite recommendations for suspension, the permit remained valid as multiple parties confirmed no impact on indigenous lands located hundreds of kilometers from the project site. This resolution strengthens Tristar's regulatory position and eliminates a key development risk.

The company benefits from exceptional infrastructure advantages, sitting just 15 kilometers from a major highway with existing power lines and road access developed for the regional soybean industry. These factors support a sub-$300 million capital cost estimate while eliminating major infrastructure development requirements.

Management has clearly articulated its strategy as a project developer rather than mine builder, actively seeking partnerships with established mining companies over the next 12 months. This approach recognizes that optimal value creation comes through partnering with experienced operators capable of funding and operating the project through production.

The recent financing included participation from Eric Sprott, taking approximately 10% of the company, providing third-party validation of the investment opportunity. With permitting resolved and drilling programs commencing, Tristar expects improved news flow to drive valuation re-rating as the company advances toward strategic partnership.

View Tristar Gold's company profile: https://www.cruxinvestor.com/companies/tristar-gold-inc

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