- Minera Alamos (TSXV:MAI) has come to a positive construction decision for its wholly owned Copperstone gold project in La Paz County, Arizona.
- The project is expected to produce an average of 46,000 ounces of gold annually over a 6.3-year mine-life.
- Shares of Star Royalties, owner of a 4 per cent gold stream on the project, last traded at C$0.51 and have added 155 per cent year-over-year.
Minera Alamos (TSXV:MAI) has come to a positive construction decision for its wholly owned Copperstone gold project in La Paz County, Arizona. Star Royalties (TSXV:STRR) holds a 4 per cent gold stream on the project, which it expects to generate about US$39 million in pre-tax cash flow, without accounting for potential mine-life extensions through exploration and resource conversion.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
The construction decision follows a highly-prospective pre‑feasibility study (PFS) demonstrating a low‑capital, high‑return underground mining project, boasting an estimated net present value (5 per cent) of US$374 million and total after‑tax net cash flow of US$512 million at a base case gold price of only US$3,500 per ounce, representing a more than US$1,000 discount to the price per ounce at the time of writing on ADVFN. Here are the PFS highlights:
- Expected average production of 46,000 ounces of gold annually over a 6.3-year mine-life.
- Measured and indicated resources of 630,000 ounces of gold, up by 110 per cent from the previous estimate, plus proven and probable reserves of 303,000 ounces of gold.
- Initial capital costs of US$58 million at a payback period of only 1.2 years.
- Substantial exploration upside through infill drilling, step‑out drilling and down‑plunge extensions of high‑grade underground zones.
- Strong open-pit potential leveraging Copperstone’s vast historical exploration and near-surface mineralization to be explored in 2026 and 2027.
Copperstone construction will take about one year, with a planned 3-month ore stockpile before mill startup designed to expedite the commissioning process, the first gold pour expected by mid-2027 and fully ramped-up production set to more than double Minera Alamos’ annual gold output.
Leadership commentary
“We are encouraged by the Copperstone PFS results and Minera Alamos’ decision to fast‑track construction. This study confirms Copperstone as a high‑return, low‑capital project with near‑term production and significant exploration upside with the potential for a concurrent open-pit operation in the coming years,” Alex Pernin, Chief Executive Officer of Star Royalties, said in Friday’s news release. “At today’s gold prices, the economics of both the project and especially our 4 per cent gold stream continue to strengthen, yet we believe our stream’s ultimate value is still not reflected in our share price. With construction commencing shortly and first gold production expected in mid-2027, Copperstone represents a major value creation catalyst for Star Royalties shareholders.”
About Star Royalties
Star Royalties is a precious metals and carbon credit royalty and streaming company.
Star Royalties stock (TSXV:STRR) last traded at C$0.51 and has added 155 per cent year-over-year.
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