STLLR Gold Inc. Announces Promising Developments for Tower Gold Project

In a significant development for the mining sector, STLLR Gold Inc., a Canadian materials resources exploration and development company, has recently unveiled an updated mineral resource estimate and a preliminary economic assessment (PEA) for its Tower Gold Project in Ontario, Canada. This announcement, made on May 15, 2025, has captured the attention of investors and industry analysts alike, highlighting the project’s potential to significantly impact the gold mining landscape.

The updated PEA demonstrates a robust after-tax net present value (NPV5%) of US$1.0 billion for the Tower Gold Project, underscoring its viability and potential profitability. This valuation is based on a comprehensive analysis of the project’s resources, production profile, and economic parameters. The project boasts an impressive average annual gold production of 273,000 ounces over a 19-year conceptual mine life (CML), with peak production reaching 316,000 ounces annually during the first five years and a maximum of 325,000 ounces in Year 15.

Over the 19-year CML, the Tower Gold Project is expected to produce a total of 5.2 million ounces of gold. The financial metrics further reveal a Base Case After-Tax NPV5% of C$1.36 billion (US$1.01 billion) and an internal rate of return (IRR) of 13.4% at a gold price of US$2,500/oz. In a more optimistic scenario, with gold priced at US$3,200/oz, the Spot Price After-Tax NPV5% escalates to C$3.30 billion (US$2.46 billion), with an IRR of 24.0%.

The 2025 Mineral Resource Estimate (MRE) for the project stands at 4.0 million ounces, indicating a substantial resource base that includes 4.0 million ounces Indicated and 7.0 million ounces Inferred. This large resource base, coupled with the project’s strategic location near existing infrastructure in the Timmins Mining Camp, positions the Tower Gold Project as a significant player in the gold mining industry.

Despite the promising outlook, the project faces challenges, including a high initial capital expenditure requirement of C$1.87 billion, a relatively modest Base Case IRR of 13.4%, and a long payback period of 5.8 years at the base case. Additionally, the project’s average cash cost of sales (AISC) is high at US$1,537/oz, and it features a high strip ratio of 6.3:1, including overburden. Notably, production is not expected to commence until 2029, adding to the project’s long-term investment horizon.

STLLR Gold Inc., listed on the Toronto Stock Exchange and operating in the Metals & Mining sector, has demonstrated its commitment to advancing the Tower Gold Project. With a market capitalization of 133,854,012 CAD and a close price of 1.01 CAD as of May 14, 2025, the company is poised to leverage this project to enhance its portfolio and contribute to the global gold supply.

As the Tower Gold Project progresses, stakeholders will closely monitor its development, balancing the project’s potential rewards against its challenges. The updated mineral resource estimate and PEA serve as a testament to STLLR Gold Inc.’s strategic vision and operational capabilities, marking a significant milestone in the company’s journey towards realizing the project’s full potential.