Heliostar CEO, Charles Funk, commented, "In 2025, Heliostar will drill more metres than we have in our entire Company's history. We intend to drill between 40,000-50,000 metres from the close of the mine acquisitions late last year to the end of 2025. This drilling is being funded by cashflows from our operating mines. We are particularly excited to be undertaking our largest program at Ana Paula. These first results highlight the consistency of gold mineralization at the High Grade Panel, where we have two rigs turning. One is focused on resource drilling to grow the resource and to convert inferred to higher confidence ounces, and the second is with a geotechnical focus to support the Feasibility Study. These are the first of consistent, drill results planned to be released monthly from Ana Paula through 2025 and into 2026."
Drilling Program
Heliostar has two rigs turning with 18 holes completed and 5,556 metres drilled to date. Drilling is designed along north-south sections with angled holes to best define the overall east-west orientation of the High Grade Panel. Heliostar's drilling approach at Ana Paula has been to rotate drilling by approximately 90 degrees from the majority of historic intercepts. This change has been interpreted by the Company to have contributed to demonstrating more continuous and higher-grade gold mineralization within the High Grade Panel than previous operators recognized.
Where appropriate, the holes are also being used to collect rock strength data, hydrogeologic data and samples for further metallurgical studies that will directly influence the Ana Paula mine design in the ongoing Feasibility Study.
Drill Results Summary
Holes AP-25-323 and AP-25-325 are resource conversion holes drilled at the western end of the High Grade Panel. Hole AP-25-323 was drilled further west than the most prospective polymictic breccia host unit and still returned a number of attractive intercepts, including 12.2 metres ("m") grading 8.73 grams per tonne ("g/t") gold from 344.5 m.
AP-25-325 is located ~30m southeast of AP-25-323 and intercepted the favourable breccia host unit. The hole returned a wide, high-grade interval of 30.2 m grading 6.29 g/t gold from 195.8 m and a number of deeper intercepts that have the potential to expand the resource, including 4.5 m grading 12.6 g/t gold from 277.5 m downhole beneath the High Grade Panel.
Holes AP-25-322 and AP-25-324 are geotechnical holes for mine development planning and returned assay results in line with expectations, including a hit of 14.75 m grading 13.6 g/t gold from 153.5 m in AP-25-322.
Drilling continues at the less well-defined western edge of the High Grade Panel, with results from three additional holes pending from this area. Recently, drilling has been focused in the centre of the High Grade Panel with assays from seven holes pending from this area.
The next Ana Paula drill results are anticipated to be released in mid- to late September.
Figure 1: Plan Map of the current drill program at Ana Paula
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Figure 2: Cross-Section through hole AP-25-325
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Drilling Results and Coordinates Tables
| Hole ID | From
(metres) | To
(metres) | Interval
(metres) | Au
(g/t) | Topcut
Au (to
64 g/t) | Hole
Purpose |
| AP-24-322 | 21.8 | 43.0 | 21.2 | 3.77 |
| Geotechnical Hole |
| and | 113.5 | 134.45 | 20.95 | 6.67 |
|
|
| and | 153.5 | 168.25 | 14.75 | 13.6 | 11.6 |
|
| including | 164.4 | 168.25 | 3.85 | 45.1 | 37.2 |
|
| and | 245.2 | 255.75 | 10.55 | 2.14 |
|
|
| AP-24-323 | 195.5 | 199.5 | 4.0 | 7.81 |
| Resource Hole |
| and | 224.5 | 235.5 | 11.0 | 2.26 |
|
|
| and | 344.5 | 356.7 | 12.2 | 8.72 |
|
|
| including | 353.0 | 356.7 | 3.7 | 24.4 |
|
|
| AP-25-324 | 52.0 | 65.2 | 13.2 | 2.73 |
| Geotechnical Hole |
| including | 64.15 | 65.2 | 1.05 | 18.4 |
|
|
| AP-25-325 | 81.4 | 94.5 | 13.1 | 2.10 |
| Resource Hole |
| and | 195.8 | 261.0 | 65.2 | 3.81 |
|
|
| including | 195.8 | 226.0 | 30.2 | 6.29 |
|
|
| and | 277.5 | 282.0 | 4.5 | 12.6 |
|
|
| and | 295 | 301.0 | 6.0 | 2.25 |
|
|
| and | 369.6 | 371.9 | 2.3 | 6.43 |
|
|
Table 1: Significant Drill Intersections
Drilling Coordinates Table
| Hole ID | Easting
(WGS84 Zone 14N) | Northing
(WGS84 Zone 14N) | Elevation
(metres) | Azimuth
(°) | Inclination
(°) | Length
(metres) |
| AP-25-322 | 410,129 | 1,998,045 | 924.3 | 180 | -55 | 269.4 |
| AP-25-323 | 410,055 | 1,998,154 | 954.2 | 180 | -55 | 431.0 |
| AP-25-324 | 410,205 | 1,998,017 | 932.4 | 180 | -50 | 59.4 |
| AP-25-325 | 410,080 | 1,998,140 | 950.2 | 180 | -55 | 392.0 |
Table 2: Drill Hole Details
Quality Assurance / Quality Control
Drill core is PQ size, and the core is cut in half, with half sent for analysis. Core samples were shipped to ALS Limited in Zacatecas, Zacatecas, Mexico, for sample preparation and for analysis at the ALS laboratory in North Vancouver. The Zacatecas and North Vancouver ALS facilities are ISO/IEC 17025 certified. Gold was assayed by 30-gram fire assay with atomic absorption spectroscopy finish, and overlimits were analyzed by 30-gram fire assay with gravimetric finish.
Control samples comprising certified reference and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance / quality control protocol.
True widths are not reported as mineralization at Ana Paula occurs as disseminations or vein stockworks with variable controls, including rock porosity, lithology and fault networks.
Statement of Qualified Person
Stewart Harris, P.Geo., a Qualified Person, as such term is defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein. Mr Harris is employed as Exploration Manager of the Company.
About Heliostar Metals Ltd.
Heliostar is a gold mining company with production from operating mines in Mexico. This includes the La Colorada Mine in Sonora and the San Agustin Mine in Durango. The Company also has a strong portfolio of development projects in Mexico and the USA. These include the Ana Paula project in Guerrero, the Cerro del Gallo project in Guanajuato, the San Antonio project in Baja Sur and the Unga project in Alaska, USA.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things, show the full extent of the deposit, upgrade and expand the resource base, growing our annual production profile in the near term and bringing additional production online.
Forward-looking statements and forward-looking information relating to the terms and completion of the Facility, any future mineral production, liquidity, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the receipt of necessary approvals, price of metals; no escalation in the severity of public health crises or ongoing military conflicts; costs of exploration and development; the estimated costs of development of exploration projects; and the Company's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect the Company's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political, and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or forward-looking information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: precious metals price volatility; risks associated with the conduct of the Company's mining activities in foreign jurisdictions; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding exploration and mining activities; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises, ongoing military conflicts and general economic factors to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption "Risk Factors" in the Company's public disclosure documents. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
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