STLLR Gold and Tlicho Investment Corp. Partner on Solar Farm for Colomac Gold Project

STLLR Gold (TSX: STLR; OTCQX: STLRF) has announced a pioneering partnership with the Tlicho Investment Corp. (TIC), the business arm of the Tlicho government, to develop a solar farm aimed at powering operations at the Colomac gold project.

Innovative Solar Initiative to Power Operations and Cut Emissions

Colomac Gold Project

STLLR Gold (TSX: STLR; OTCQX: STLRF) has announced a pioneering partnership with the Tlicho Investment Corp. (TIC), the business arm of the Tlicho government, to develop a solar farm aimed at powering operations at the Colomac gold project. This significant initiative has secured $619,625 in funding over two years from the Canadian Northern Economic Development Agency (CanNor), with the total project cost amounting to $774,543, including an investment from TIC.

Sustainable Energy Solution for Colomac Gold Project

The Colomac gold project, wholly owned by STLLR Gold, is situated approximately 200 km north of Yellowknife in the Northwest Territories (NWT). The project involves the acquisition and installation of a comprehensive solar power generation and storage unit, comprising solar panels, inverters, and batteries. Additionally, staff will receive training on the operation and maintenance of the unit, ensuring its efficient use over its projected lifespan.

Long-Term Benefits and Environmental Impact

With an estimated lifespan of 25 years for the solar panels and 15 years for the batteries, TIC projects that STLLR Gold will achieve substantial savings and environmental benefits. The solar installation is expected to save approximately 51,000 litres of diesel annually, equivalent to a reduction of 138 tonnes of CO₂ emissions. This would reduce the Colomac camp site’s diesel consumption by an impressive 86%, significantly lowering the project’s carbon footprint.

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Solvest Contracted for Installation

Solvest, a company renowned for its expertise in renewable energy solutions, has been contracted to install the solar power system. Their involvement ensures that the project will benefit from cutting-edge technology and best practices in solar energy deployment.

Economic and Operational Insights

STLLR Gold completed a preliminary economic assessment (PEA) for the Colomac property, a past-producing mine, in 2023. The assessment revealed robust economic prospects for the project, with an after-tax net present value (NPV) of $1.2 billion at a 5% discount rate and an internal rate of return (IRR) of 34.6%, based on a gold price of US$1,600 per ounce. The initial capital investment required is estimated at $654 million, with a payback period of just 2.1 years.

Gold Production Projections

The Colomac project is poised for significant gold production, with average annual output estimated at 290,000 ounces over a mine life of 11.4 years. Peak production is anticipated to reach 340,000 ounces per year, highlighting the project’s potential as a major contributor to the gold market.

Funding and Strategic Investment

The substantial funding from CanNor underscores the importance of sustainable development in Canada’s northern regions. This financial support, coupled with TIC’s investment, reflects a strategic commitment to leveraging renewable energy to enhance mining operations and reduce environmental impact.

Training and Capacity Building

A key component of the solar farm project is the training and capacity building for staff at the Colomac site. This training will ensure that personnel are well-equipped to manage and maintain the solar power system, ensuring its long-term efficiency and reliability.

Broader Implications for the Mining Industry

The partnership between STLLR Gold and TIC represents a forward-thinking approach to integrating renewable energy solutions in the mining sector. By reducing reliance on diesel and cutting carbon emissions, the project sets a precedent for other mining operations to follow, demonstrating that economic viability and environmental stewardship can go hand in hand.

Future Prospects and Vision

As the Colomac project moves forward, the integration of solar power is expected to play a critical role in its overall success. The project not only promises substantial economic returns but also aligns with global trends towards sustainability and responsible resource management.

STLLR Gold’s commitment to innovative energy solutions and TIC’s strategic investment highlight a shared vision for a sustainable future. This collaboration is poised to deliver significant benefits to the local community, the environment, and the broader mining industry, paving the way for more renewable energy initiatives in resource extraction sectors.

The STLLR Gold and TIC solar farm project at the Colomac gold site marks a significant milestone in the pursuit of sustainable mining practices. With strong financial backing, robust economic prospects, and a clear commitment to environmental responsibility, this initiative exemplifies the potential for renewable energy to transform traditional industries and contribute to a greener, more sustainable future.

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