EXHIBIT
99.2
Investor Update
– September 2019
COEUR D'ALENE, Idaho, September 8,
2019 -- Star Gold Corp. ("Star Gold" or the "Company") (OTC
Markets: SRGZ) is pleased to provide an investor update of progress
at its flagship project, the Longstreet
Property.
Longstreet
Project Activities
1.
Mineral Rights
Ownership
Outlined in the press release dated
August 14, 2019, the Company executed a structured agreement
whereby Great Basin Resources, Inc. (“Great Basin”).
will assign the mineral rights governing the Longstreet Project to
Star Gold upon the satisfaction of certain conditions. Star Gold
has satisfied each of the four (4) conditions and management
expects final transfer of mineral rights from Great Basin to the
Company is imminent. As the mineral rights holder, Star Gold will
have more flexibility with respect to the development and financing
options possibilities for the Longstreet
Project.
2.
Updated Economic
Model
Since publishing the May 2014
Scoping Study (the “2014 Study”) prepared by AtoZ
Mining Consultants (available on website), management has examined
multiple options for improving the economics of the Longstreet
Project. A significant change to the positioning of the leach pad
was determined to be beneficial. The leach pad can potentially be
situated about 450 feet from the proposed location of the Main knob
mineable pit. This improved proximity reduces disturbance and
decreases estimated operating costs as the original leach pad was
to be located approximately 3 miles away from the mineable pit. As
a result, estimated road construction and infrastructure costs are
dramatically reduced. Further, the greatest potential economic gain
is in the estimated reduced operating costs of ore transport by
utilizing a gravity driven conveyor system rather than trucking ore
to the leach pad.
Star Gold also commissioned H.E.
Hunewill Construction Co. (“Hunewill”), an experienced
Nevada mining contractor, to prepare an updated cost analysis based
on the improved leach pad position and current estimated market
conditions. Star Gold then modified the variables in the 2014 Study
to reflect the new position of the leach pad and Hunewill’s
costing data. This re-costed financial model uses the same pit,
strip ratio and grade outlined in the 2014 Study. On a cautionary
note, the updated model is not a fully 43-101 or SEC Guide 7
compliant study, but it is based on, and utilizes, the original pit
design, grade, strip ratio coupled with the updated costs provided
by Hunewill. The model assumes a $1,400 per ounce gold price. The
financial model and presentation (outlining the updated estimated
operating costs) are available to existing shareholders of the
Company upon request and execution of relevant non-disclosure
materials.
Corporate
Activities
Management has determined that,
given the increased interest in the gold exploration space coupled
with the expectation Star Gold will become the sole mineral rights
holder of the Longstreet Project, the Company will contemplate
additional strategic options. Management will provide further
updates as warranted.
About Star Gold
Corp.
Star Gold is a gold
exploration/development company with claims located within the
Walker Lane belt. The Company is currently focused on developing
its flagship property, the Longstreet Property. The
Longstreet Property in its entirety comprises 142 mineral claims: 75
original optioned claims, of which 70 are unpatented staked claims
and five claims leased from local ranchers, pursuant to the
“Clifford Lease”; as well as 62 claims subsequently staked
by Star Gold. The Longstreet Property
covers a total area of approximately 2,500 acres (1,012
ha). The
Longstreet Project is at an intermediate stage of
exploration.
The Longstreet Property is located
in Nye County, Nevada.
105 N.
4th
Street, Suite 300, Coeur d’Alene, ID 83814
Telephone:
1-208-664-5066 Fax: 1-208-664-5066
www.stargoldcorp.com
Investor
Contact:
David
Segelov
Office:
208-664-5066
Cell:
646-626-3356
dsegelov@stargoldcorp.com
info@stargoldcorp.com
Disclaimers
Certain statements in this press release that are not historical
facts are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
may be identified by the use of words such as "anticipate,"
"believe," "expect," "future," "may," "will," "would," "should,"
"plan," "projected," "intend," and similar expressions. Such
forward-looking statements, involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of Star Gold Corp (the Company) to be
materially different from those expressed or implied by such
forward-looking statements. The Company's future operating results
are dependent upon many factors, including but not limited to the
Company's ability to: (i) obtain sufficient capital or a strategic
business arrangement to fund its expansion plans; (ii) build the
management and human resources and infrastructure necessary to
support the growth of its business; (iii) competitive factors and
developments beyond the Company's control; and (iv) other risk
factors discussed in the Company's periodic filings with the
Securities and Exchange Commission, which are available for review
at www.sec.gov
under "Search for Company Filings.
105 N.
4th
Street, Suite 300, Coeur d’Alene, ID 83814
Telephone:
1-208-664-5066 Fax: 1-208-664-5066
www.stargoldcorp.com