Blue Star Updates its Ulu Gold Project Mineral Resource Estimate

Blue Star Gold’s most recent release (May 21, 2026) provides an updated Mineral Resource Estimate for its flagship Ulu Gold Project in Nunavut. The MRE reports a high-grade Measured & Indicated resource of 558,000 oz Au at 7.87 g/t and an Inferred resource of 476,000 oz Au at 4.54 g/t (total 1,034,000 oz). The estimate was prepared by P&E Mining Consultants using updated economic assumptions: a gold price of US$3,350/oz, processing cost C$75/t, open-pit mining cost C$5/t, underground mining C$165/t, and 92% recoveries. Cut-off grades are 0.8 g/t for open pit and 2.0 g/t for underground. The project includes the Ulu Mining Lease and Hood River Property, with the Flood Zone Deposit as the centerpiece. The news follows a series of exploration updates, a just-announced $3M private placement at $0.24/unit, and a $2.73M loan renewal with a controlling shareholder. The report itself states that mineralization is open in all zones and highlights the potential for resource expansion.

• Positive elements: The updated MRE crosses the psychological 1 million ounce threshold, defines a solid high-grade open-pit/underground resource, and demonstrates scale for a micro-cap explorer. The project benefits from a mining lease, existing camp/airstrip/deep decline, and proximity to the proposed Grays Bay all-weather road and port, which could materially lower future development costs. Recent exploration results (high-grade surface samples, Nutaaq intercepts, Auma discoveries) support upside beyond the current resource.
• Negative/cautionary elements: The resource relies on an aggressive gold price assumption of US$3,350/oz—well above historic norms and even current higher prices—making the contained ounces sensitive to a correction. The project remains at an early stage; no PEA or PFS exists, and no reserves have been declared. The remote Arctic location adds capital intensity and seasonal constraints. Financially, Blue Star is a serial diluter: it has closed multiple small flow-through and unit placements over the past 12 months and just launched another $3M deal. The loan to a related party ($2.73M) underscores the lack of conventional debt capacity. The resource update itself is an expected step in the exploration lifecycle; it is not a surprise breakthrough.
• Net assessment: The news is genuinely positive and market-moving for a junior explorer, as it quantifies a meaningful gold resource for the first time in the company’s public timeline. However, it does not rise to “Game Changer” because it lacks an economic study, a major new strategic investor, or a takeover catalyst. It is Material - Positive.

Blue Star Gold is a junior exploration company focused on gold and critical minerals in the High Lake Greenstone Belt, Nunavut, Canada. It controls approximately 270 sq km of prospective ground, making it the largest titleholder in the belt. The flagship Ulu Gold Project includes the Ulu Mining Lease and the Hood River Property. The project hosts the high-grade Flood Zone Gold Deposit, which is served by existing infrastructure: a 40‑person camp, a 1,350 m gravel airstrip, a network of roads, a quarry, and an underground decline. Blue Star also holds the Roma Project (VMS copper‑zinc‑silver‑gold, including the Ataani discovery and the Sand Lake prospect) and the Auma Property (high‑grade gold). All projects are strategically located near the proposed Grays Bay deep‑water port and all‑season road corridor, a potential regional infrastructure game changer.