TriStar Gold Receives Interim Ruling from Brazilian Court That Confirms Path Forward for Castelo de Sonhos Project
Brazil court permits Tristar to resume technical work at its project despite a provisional suspension of its operating license.
The Federal Court of Pará issued an interim ruling regarding the environmental licensing of Tristar Gold Inc.’s (TSG) 100%-owned Castelo de Sonhos project, ordering a provisional suspension of the preliminary environmental license (LP). The ruling explicitly permits the continuation of technical studies, environmental work, and administrative activities associated with advancing the project. Tristar must provide additional technical information and evidence of steps taken to address court requirements within 60 business days of formal notification.
The interim ruling does not restrict the ability to undertake engineering, technical, and environmental work for the Feasibility Study. The Feasibility Study is expected to take approximately two years to complete, subject to financing. Tristar plans to advance the Indigenous Component Study (ECI) and Free, Prior, and Informed Consultation (FPIC) processes concurrently with the Feasibility Study. The company anticipates a full resolution of the Civil Public Action can be completed within the same two-year timeframe.
CEO Nick Appleyard characterized the ruling as a major step forward that provides clarity on advancing the project. Management views the court's direction as establishing a practical process to address regulatory requirements while allowing continuous work.
Tristar Gold Inc. (TSG) reported a procedural development in the ongoing Civil Public Action initiated by the Federal Prosecutor's Office (MPF) and FUNAI. While the provisional suspension of the LP introduces a regulatory hurdle, the explicit permission to continue technical and environmental work neutralizes immediate operational disruption. The ruling aligns with management's previously stated strategy to run the Feasibility Study and Indigenous consultation processes in parallel over a two-year horizon.
No new financial commitments, capital raises, or operational changes are disclosed in this release. The market has been pricing in the legal risks since the December 2025 injunction denial and March 2026 formal response filings. This update confirms the litigation is progressing through standard evidentiary and procedural stages without derailing the development timeline. The 60-day window to submit technical information is a standard regulatory compliance step. The material impact is limited to continued legal monitoring and execution of the planned study work.
Tristar Gold Inc. (TSG) is a Canadian exploration and development company focused on the Castelo de Sonhos gold project in the state of Pará, Brazil. The project is 100% owned and is currently in the development stage, advancing toward construction.
An updated Pre-Feasibility Study released in May 2025 outlines a $296 million initial capital cost, an All-In Sustaining Cost (AISC) of $1,111/oz, and a 40% after-tax IRR at a $2,200/oz gold price. Mineral resources include 1.4 million ounces of Probable Reserves and 1.8 million ounces of Total Resources.
Mining is planned as a shallow open-pit operation with a 3.6 Mtpa CIL processing plant, targeting 98% gold recovery. The deposit is noted for being environmentally clean with no sulphides.