STARCORE Reports Fourth Quarter Production Results

• Q4 2026 Production Decline: Starcore reported a decrease in production for the fourth fiscal quarter ended April 2026 compared to Q3 2026.
  • Ore Milled: 45,550 tonnes (down 13% from Q3).
  • Gold Equivalent Ounces: 1,722 oz (down 20% from Q3's 2,162 oz).
  • Grades declined across the board (Gold -8%, Silver -5%).
• Operational Challenges: The decline was attributed to mining difficulties within high-grade Manto reserves caused by a fault and soft material.
• Mitigation & New Targets:
  • A new high-grade ore body was reached by the end of Q4 to counteract dilution issues.
  • Carbonaceous ore processing is active, averaging 3 g/t gold and 25 g/t silver with ~80% recovery at 100 tons/day milling rate.
• Exploration Update: Geophysical surveys (MT and IP) covering significant portions of the concession are completed; results expected by end of May 2026.

• Production Miss: The 20% year-over-quarter drop in gold equivalent ounces is a negative operational signal, reducing near-term cash flow expectations compared to the strong Q3 performance (C$6.2M earnings).
• Grade Dilution: Lower grades and recoveries indicate geological complexity that management must manage carefully; this tempers the optimism from the previous quarter's "return to full production."
• Positive Counterpoints: The discovery of a new high-grade ore body and successful processing of carbonaceous ore (3 g/t Au) suggests the company is not resource-constrained but rather geology-constrained in the short term.
• Catalyst Timing: Geophysical results are due end of May 2026, which could provide upside catalysts to offset the production miss if targets are confirmed.
• Overall Impact: The news is negative for immediate sentiment and cash flow projections but does not threaten solvency or long-term viability given the new ore body discovery and completed financing in late 2025. It fits the definition of Routine - Negative as it reflects expected operational variance rather than a fundamental business failure.

• Flagship Project: San Martin Mine (Querétaro, Mexico). Low-sulfidation epithermal gold-silver system.
• Secondary Asset: La Tortilla Silver Mine (Leased property in Querétaro, Mexico). High-grade silver zones identified (up to 973 g/t Ag).
• Corporate Structure: Completed spin-out of African assets (Côte d'Ivoire) into EU Gold Mining Inc. in March 2026 to focus management on Mexican operations.
• Development Stage: San Martin is a producing mine; La Tortilla is in exploration/lease phase pending bulk sampling.