Heliostar Metals

Heliostar Announces First Results from 2024 Drilling Program at La Colorada Mine


Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to announce the first results from a 12,500 metre drilling program at the La Colorada Mine in Sonora, Mexico. La Colorada is currently producing gold from residual leaching having ceased mining in late 2023. Heliostar is reviewing the potential to restart mining in 2025 and is completing a drill program intended to expand the mineral reserve ahead of this decision.

HIGHLIGHTS:

  • 5.0m grading 18.0 g/t gold
  • 37.0m grading 1.24 g/t gold
  • 11.8m grading 1.71 g/t gold
  • 14.5m grading 1.69 g/t gold
  • 10.1m grading 0.85 g/t gold
  • Five drill rigs operating at site completing a 12,500m drill program
  • Program designed to expand oxide mineral reserves at the El Creston pit
  • Results show shallow mineralization is open and can positively impact mining economics
  • Production decision at El Creston expected by mid-2025

Heliostar CEO, Charles Funk, commented, "La Colorada has long been a successful mine that helped build El Dorado Gold in 1990s and Argonaut Gold in the 2010s. It has operated profitably over its history and has reserves to support growth. Mining ceased in 2023 when stripping to expand the pit was not completed. This pre-strip is now a capital project and the opportunity to restart is a priority for Heliostar in 2025. Our team recognized that there are significant opportunities to expand shallow mineralization and today's results demonstrate the potential to convert a portion of the previously assumed waste into ore. This can result in lower capital costs and higher cash flow at the beginning of the restart. We value speed as a guiding business principle at Heliostar and have hit the ground running to deliver these results at the mine. I believe La Colorada will help build a third mining company over the next decade!"

Drill Results Summary

Mineralization at La Colorada's Creston Pit is predominantly hosted in three veins: the North, Intermediate and South Veins (Figure 1). These veins trend northeast-southwest to east-west, dip northward and are surrounded by halos of smaller mineralized vein zones. The Creston Pit has historically mined all three of these veins. Drilling prior to Heliostar's acquisition of the mine had successfully focussed on these veins beneath the pit and had expanded the mineral reserve.

Reviewing the expansion potential revealed two opportunities for reserve growth; near surface extensions of known veins where little or no drilling had been completed and upgrading and expanding mineralization beneath the pit. Both opportunities were defined using historical drilling, blasthole data, mining shapes, and the geological model.

High density blast hole data strongly emphasizes the potential for continuation of veins at shallow depth. It defines elevated gold grades continuing to the edge of the pit walls where they remain open for expansion.

Cannot view this image? Visit: https://images.newsfilecorp.com/files/7729/231392_cd32a07ff498da60_003.jpg

Figure 1: Plan view of the Creston Pit showing historic drilling, blast hole samples and new Heliostar drillholes

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7729/231392_cd32a07ff498da60_003full.jpg

Twenty-four holes are reported in this release for a total of 3257.1 metres, principally targeting shallow zones to the east and west of the Creston Pit. The results show narrow to wide, low to high grade oxide gold intercepts. They consistently return intercepts above the average above the mining cutoff of the pit while it was in operation and suggest that areas of waste could be converted to ore in an updated reserve model.

Next Steps

An updated technical report will be completed in January 2025 using the existing resource model at La Colorada. This report will not include the drill results presented in this press release. Results from the current drill program will be incorporated into a resource model and will support a reserve update that will be published with a feasibility study in mid-2025.

Should the drilling define a significant enough volume of gold mineralization, the results have the potential to reduce the capital requirements and improve the economics of the feasibility study. This study will be the basis of a construction decision for the restart of mining from the Creston Pit at La Colorada in mid-2025.

Drilling continues at the mine with three areas of focus. Additional shallow drilling, to follow up these results, is designed to bring production ounces forward in the mine plan. A program of infill and expansion drilling deeper in the pit will attempt to grow the overall gold reserves. A small allocation of drill metres will also test new areas of potential gold mineralization.

The Company anticipates additional drilling results from the current program will be released early next year.

Drilling Results Table

Table 1: Significant Drill Intersections

Hole ID

From
(metres)

To
(metres)

Interval
(metres)

Au
(g/t)

Ag
(g/t)

% True Width

Comment
24-LCDD-21824.8535.010.150.859.8100Intermediate Vein
24-LCDD-21977.987.759.850.2519.790South Vein
24-LCDD-22047.053.06.00.377.2100North Vein
24-LCDD-221No significant intervals
24-LCDD-2229.921.7511.851.7121.6100North Vein
including15.5516.81.2513.120.5100North Vein
24-LCDD-22374.476.42.00.5538.8100South Vein
24-LCDD-2240.022.1522.150.408.885Intermediate Vein
24-LCDD-22522.223.150.954.430.5100North Vein
and35.7545.59.750.168.1100North Vein
and93.0101.358.350.2253.995Intermediate Vein
24-LCDD-22618.0535.917.850.3469.090South Vein
24-LCDD-2271.114.813.70.2537.590South Vein
24-LCDD-22827.1539.111.950.1835.790South Vein
and46.751.154.450.2943.890South Vein
24-LCDD-22915.4519.554.12.274.0100North Vein
and82.289.156.950.383.485Intermediate Vein
24-LCDD-23073.879.96.10.793.390South Vein
24-LCDD-2310.013.013.02.225.190Intermediate Vein
including0.03.03.08.794.890Intermediate Vein
and36.541.55.018.520.390Intermediate Vein
36.541.55.06.6220.390Top-cut to 23 g/t gold
and67.473.56.10.343.5100South Vein
and96.2133.1536.951.245.485South Vein
24-LCDD-23265.082.517.50.394.995North Vein
24-LCDD-233168.3171.553.250.2612390North Vein
24-LCDD-23479.589.39.80.364.895North Vein
24-LCDD-23582.5586.13.550.258.995North Vein
and169.5184.014.51.695.2100North Vein
including174.35175.61.2516.613.6100North Vein
24-LCDD-23643.053.410.40.2625.790South Vein
24-LCDD-23745.958.2512.350.2026.4100South Vein
24-LCDD-238Assays pending
24-LCDD-239No significant intervals
24-LCDD-240Assays pending
24-LCDD-24181.2586.04.750.49158100South Vein

Cannot view this image? Visit: https://images.newsfilecorp.com/files/7729/231392_cd32a07ff498da60_004.jpg

Figure 2: Longitudinal section view of the western end of the Creston Pit highlighting the lack of previous drilling beyond the pit boundary. Section shows historic drilling, blast hole samples and new Heliostar drillhole results.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7729/231392_cd32a07ff498da60_004full.jpg

Drilling Coordinates Table

Table 2: Drill Hole Details

Hole ID

Northing
(NAD27 CONUS Zone 12N)

Easting
(NAD27 CONUS Zone 12N)

Elevation
(metres)

Azimuth
(°)

Inclination
(°)

Length
(metres)

24-LCDD-2183185843543104442.1180-40118.20
24-LCDD-2193185579542101455.8155-47156.45
24-LCDD-2203185874543079445.9180-40150.75
24-LCDD-2213185629542111450.9175-50175.50
24-LCDD-2223185837543080440.9180-40100.00
24-LCDD-2233185603542104453.3167-48147.20
24-LCDD-2243185798543080437.8180-4097.40
24-LCDD-2253185881543105442.3180-40136.45
24-LCDD-2263185537542126441.3160-5566.70
24-LCDD-2273185581542191382.0180-5577.30
24-LCDD-2283185603542195380.4191-57107.20
24-LCDD-2293185871543129443.4180-45128.70
24-LCDD-2303185835543128441.0180-4588.45
24-LCDD-2313185732542533190.9139-45142.70
24-LCDD-2323185892543053444.3180-40140.85
24-LCDD-2333185887542390346.9180-49175.25
24-LCDD-2343185899543025441.6180-49191.50
24-LCDD-2353185974542975475.0180-42267.40
24-LCDD-2363185625542212378.8180-5078.80
24-LCDD-2373185563542091457.5180-4578.70
24-LCDD-2383186027542850479.7180-51419.85
24-LCDD-2393185594542089454.8180-4589.35
24-LCDD-2403185472542671405.9355-40200.35
24-LCDD-2413185607542101453.2146-40122.40

Quality Assurance / Quality Control

Core samples were shipped to ALS Limited in Hermosillo, Sonora, Mexico for sample preparation and for analysis at the ALS laboratory in North Vancouver. The Hermosillo 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 analysed 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.

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 producer with production from operating mines in Mexico. This includes the La Colorada Mine in Sonora and 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:

Charles Funk
President and Chief Executive Officer
Heliostar Metals Limited
Email: charles.funk@heliostarmetals.com
Phone: +1 844-753-0045

Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: rob.grey@heliostarmetals.com
Phone: +1 844-753-0045

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, the Company's plans, prospects and business strategies; the potential update and expansion of mineral reserves; the Company's integration of acquisitions and any anticipated benefits thereof; the completion of a Feasibility Study on the La Colorada Mine in 2025; the potential re-start of mining operations at the Creston Pit;; the release of an updated technical report on the La Colorada Mine; exploration and development plans, including drilling; and expectations for other economic, business, and/or competitive factors.

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.

Source

HSTR:CA
Heliostar Metals

Heliostar Metals Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Heliostar Metals (TSXV:HSTR)

Heliostar Metals


Keep reading...Show less

Gold miner with a portfolio of producing and developing gold projects in Mexico.

Three gold bars on price chart with magnifying glass.

What Was the Highest Price for Gold?

Gold has long been considered a store of wealth, and the price of gold all time high often makes its biggest gains during turbulent times as investors look for cover in this safe-haven asset.

The 21st century has so far been heavily marked by episodes of economic and sociopolitical upheaval. Uncertainty has pushed the precious metal to record highs as market participants seek its perceived security. And each time the gold price rises, there are calls for even higher record-breaking levels.

Gold market gurus from Lynette Zang to Chris Blasi to Jordan Roy-Byrne have shared eye-popping predictions on the gold price that would intrigue any investor — gold bug or not.

Keep reading...Show less
Gold coin stacks with up arrow.

Gold Price Hits New Record, Breaking US$2,975 for First Time

The gold price reached yet another record high on Thursday (March 13), breaking US$2,975 per ounce.

The precious metal has seen significant momentum since the start of the year.

Recent US consumer and producer price index data released on Wednesday (March 12) and Thursday shows that inflation has become stuck, adding more fuel to recession speculation and buoying gold.

Keep reading...Show less
John Feneck, stock charts.

John Feneck: Gold Landscape Never Better, Plus 9 Stocks on My Radar Now

John Feneck, portfolio manager and consultant at Feneck Consulting, shares his updated outlook for gold, saying that the yellow metal still has space to run.

He also discusses nine gold and "special situations" companies that are on his radar.

Watch the interview for more, or click here for the Investing News Network's Prospectors & Developers Association of Canada convention playlist on YouTube.

Keep reading...Show less
Brian Leni, mine site.

Brian Leni: Latest Mining Stock Wins and How I'm Deploying Cash Now

Brian Leni, founder of Junior Stock Review, runs through his investment strategy, saying he's looking for stocks with an "X factor" that's being overlooked.

Watch the interview above for more of this thoughts.

You can also click here to view the Investing News Network's Prospectors & Developers Association of Canada convention playlist on YouTube.

Keep reading...Show less
Willem Middelkoop, gold bars.

Willem Middelkoop: Gold to Benefit as Chaos Rises, Silver's Path to US$100

Willem Middelkoop, founder of Commodity Discovery Fund, shared his thoughts on the commodities space, saying that an "era of shortages" is arriving.

He believes that will propel prices up from today's rock-bottom levels, creating investment opportunities.

Middelkoop also discussed geopolitics, looking at recent moves from the Trump administration.

Keep reading...Show less
Heliostar Metals

Heliostar Metals Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×