Blue Star Expands High-Grade Flood Zone Exposure at Surface Through Overburden Stripping and Channel Sampling Program

The October 29, 2025 press release announces the final results from the 2025 exploration program at the Ulu Project in Nunavut. The company completed 1,120 metres of diamond drilling in five holes. Key drill intercepts were modest, including 2.18 g/t Au over 0.74 metres and 1.34 g/t Au over 2.16 metres. The highlight of the release was a surface channel sampling program at the Flood Zone deposit, where mechanical stripping exposed the mineralized zone. This program yielded high-grade results, including 4.18 metres of 14.73 g/t Au and 9.82 metres of 8.31 g/t Au. The CEO's comments focused on the positive implications of the surface sampling for understanding mineralization and planning future drilling.

The news is a mixed bag and is assessed as routine and neutral. While the headline touts high-grade surface exposure, a critical look reveals less encouraging details.

• Positive: The channel sampling results from the Flood Zone are excellent (e.g., 4.18 m @ 14.73 g/t Au). This confirms the high-grade, near-surface nature of the known deposit and provides valuable geological information for future modeling and drill targeting. It successfully demonstrates that high-grade gold exists at the surface under minimal cover.

• Negative: The drill results reported in this release are low-grade and narrow, making them economically insignificant. More concerning is the discrepancy between the planned and completed drill program. On August 14, 2025, the company announced a 2,000-metre drill program. This release confirms only 1,120 metres were completed, a significant 44% shortfall. The company provides no explanation for this, which could signal operational issues, budget constraints, or a lack of encouraging targets encountered during the program.

• Neutral Context: The company has a history of producing excellent surface grab sample results (e.g., 597 g/t Au at Nutaaq on Aug 12, 151.5 g/t Au at Auma on Sep 10). The positive surface results in this release are therefore in line with expectations for this property but do not fundamentally change the investment thesis. The market has previously reacted to surface results, but the true value driver is drilling that expands the known resource at depth, which this program did not achieve.

The positive surface results are offset by the weak drilling and the unexplained reduction in the drill program's scope. Therefore, the news does not materially de-risk the project or provide a strong catalyst for a share price re-rating.

Blue Star Gold Corp. is a junior exploration company focused on gold and base metals in the High Lake Greenstone Belt in Nunavut, Canada. Its primary assets are the Ulu Gold Project and the adjacent Roma Project.

The flagship project is the Ulu Gold Project, which hosts the advanced-stage Flood Zone gold deposit. This is a high-grade, structurally controlled orogenic gold system that has been drilled to a depth of approximately 1,000 metres and remains open. The company's strategy is to expand the existing mineral resource at the Flood Zone and make new discoveries on its extensive and prospective land package, which also holds potential for Volcanogenic Massive Sulphide (VMS) deposits (copper, zinc). The properties are located near the proposed Grays Bay Road and Port, which would significantly improve project economics if constructed. The Hood River property is subject to a 3% Net Smelter Royalty (NSR).