STLLR Gold (TSX: STLR; OTCQX: STLRF) announced the summary results of the updated mineral resource estimate and updated preliminary economic assessment for its Tower gold project in the prolific Timmins mining camp in Ontario. InnovExplo (a member of Norda Stelo) prepared the 2025 MRE and G Mining Services compiled the 2025 PEA.
STLLR President and CEO Keyvan Salehi commented: "Tower is one of Canada's largest undeveloped gold projects, with size and scale matched only by a few Canadian gold projects. The 2025 PEA showcases the potential to produce 273,000 ounces of gold annually over 19 years, with peak production of 325,000 ounces. We believe the 2025 PEA delivers compelling economics with defensible capital and operating cost estimates. We designed the conceptual mine plan to maximize the output, which we believe is the best path to advance the project and deliver long-term value. Furthermore, it is also our view that the geological environment hosting the project continues along strike and at depth with solid upside potential for exploration. We believe this mine plan represents a strong foundation for a project with meaningful potential to grow in size, scale, and conceptual mine life."
Salehi added: "The 2025 MRE and 2025 PEA represent major advancements for Tower. We rebuilt the geological model from first principles, integrating detailed structural and lithological data to better represent the gold mineralization. Our disciplined approach has strengthened the 2025 MRE, increasing confidence and credibility, while laying the groundwork for more targeted and efficient future drilling,”
He continued, “The Tower deposits remain open at depth and along strike to the west and east, with strong potential for expansion. In tandem, the mine plan was also developed using a comprehensive, bottom-up approach grounded in first principles, delivering a technically robust and executable strategy. Opportunities to grow the known mineralization, optimize the mine plan, and enhance project economics will continue to be pursued aggressively. Pre-feasibility study work is underway, with completion targeted for 2027. In parallel, we are advancing permitting efforts to potentially bring Tower to shovel-ready status by 2029. We believe Tower is one of a select group of large-scale gold projects in Ontario with a clear path to development in the foreseeable future."
The company will focus its construction plan initially on the development of the OP deposits, supported by the installation of key surface infrastructure, including a processing plant, tailings management facility, and other essential site services. STLLR will executive a construction phase under an integrated project management team model over a 30-month period.
The company expects that pre-production activities will begin in month 24, with first gold production during the subsequent six-month commissioning and ramp-up phase. Stripping of overburden will commence at the seventh month and OP mining operations will transition to a primarily owner-operated model upon the start of commercial production.
Using a base case gold price of US$2,500 per ounce and a USD: CAD exchange rate of 1.34, the Tower gold project is estimated to generate an after-tax NPV5% of US$1.0 billion and an after-tax IRR of 13.4%.
The 2025 PEA provides the basis for the project notice and project description that will kick off the provincial and federal permitting process for Tower, including the Federal Impact Assessment and associated environmental studies. STLLR will continue to engage with local Indigenous communities and municipalities as it advances to the next stage of the Tower project.
More information is posted on www.StllrGold.com.
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