Heliostar Evaluating Test Mining Scenario for Ana Paula in 2024

Heliostar Evaluating Test Mining Scenario for Ana Paula in 2024

Highlights:

  • Heliostar undertakes review of financing options to complete the existing decline and test mining of a bulk gold sample in advance of a Feasibility Study
  • Multiple scenarios show the potential to recover >20,000 ounces of gold from stopes averaging 7-10 g/t gold
  • Demonstrates a potential pathway to production from test mining within 12 months
  • The Company is assesing non-equity funding options for this program
  • Heliostar has initiated a Preliminary Economic Assessment(" PEA") planned for completion in H2, 2024
  • Continued resource growth drilling, PEA, and underground permit modifcation submission to be completed in 2024

Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to provide an update on the potential to advance the underground decline and complete test mining to process a bulk sample from the Ana Paula deposit in Guerrero, Mexico.

Heliostar CEO, Charles Funk, commented, "Since acquiring Ana Paula 10 months ago, Heliostar's team has moved quickly to redefine Ana Paula as a high-grade underground gold project. We have successfully increased the resource, identified a >10 g/t gold zone for possible commencement of mining, identified additional resource growth areas, demonstrated significant improvement to gold recoveries, and bolstered the Company's management team. The Company intends to maintain the current high pace of progress in 2024 by studying the benefits of completing the existing underground decline to test mine a bulk sample. In our view, this will be a large step towards de-risking the underground plan for Ana Paula. In addition, it will provide greater confidence in the deposit's gold recoveries, lower the cost of infill drilling and provide a platform for deeper resource growth drilling. The gold contained in the bulk sample can potentially fund the decline development. Heliostar also intends to complete a PEA in the second half of 2024, submit the underground mining permit modifications and continue resource drilling to further grow the Ana Paula resource."

Bulk Sample Options

Ana Paula has a 412-metre-long decline currently completed to one third of its target length by a previous operator. Heliostar is undertaking an internal review on the potential to extend this decline to the base of the High Grade Panel to test mine a bulk sample of the deposit.

The engineering study indicates that the bulk sample will require an additional 1,100m of tunnel development and 317 metres of spiral and stope development. The decline design option has been designed as the best option for future mine production from the current resource.

The design indicates that a production rate of four metres per day would complete tunnel development and stope development within eleven months from commencement. Completing the development would allow for test production within 12 months of commencement of the start of construction.

Gold grades within potential stope targets vary from 7-10 g/t gold. Multiple scenarios indicate potential to recover more than 20,000 ounces of gold from a bulk sample.

Advancement of the decline and mining of a bulk sample can be completed with the current permits held by the Company.

Heliostar is advancing a detailed engineering, mining, and metallurgy review of the potential bulk sample. The Company has held discussions with potential offtake partners and currently has samples from the Ana Paula deposit being assessed for metallurgy, recovery and payability information by potential offtake partners. Preliminary financial modelling suggests the recovered gold value exceeds development costs. The Company is exploring self-funding, non-equity options to finance the decline development, test mining processes, and bulk sample collection.

Heliostar expects this review to be completed before March 30th, 2024, and will provide an update upon completion of this analysis.

Cannot view this image? Visit: https://images.newsfilecorp.com/files/7729/197241_7139878d84927954_003.jpg

Figure 1: Plan and Section map of a decline and stope design option for test mining at Ana Paula.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7729/197241_7139878d84927954_003full.jpg

Preliminary Economic Assessment and 2024 work program

Heliostar filed a technical report for the updated mineral resource estimate on January 11th, 2024 (see news release on January 12th, 2024). Following this report the company intends to complete a Preliminary Economic Assessment based on this resource in 2024. The company is finalizing the scope of this program and expects to deliver the report in the second half of 2024.

In addition to the PEA, the current resource indicates significant areas for resource expansion and the company has designed a 10,000-15,000-metre drill program to expand the current resource. The drill program's goals include resource growth, infill drilling (to convert gold ounces to higher confidence categories) and new exploration drilling. The potential for constructing the decline will have a significant impact on program design. The Company expects to provide additional details on the 2024 drill program in conjunction with the test mining and bulk sample review. Upon completion of the 2024 drill program, the company intends to provide a resource update that will support a Feasibility Study that is expected to be delivered in 2025.

Upon completion of the PEA the Company intends to use the engineering designs to submit a modification to the open pit mining permit that the company currently holds. The modification to underground only mining is expected to have a significantly smaller physical and environmental footprint than the currently approved permit. Permit modifications are expected to be received prior to completion of the Feasibility Study.

Statement of Qualified Person

Samuel D. Anderson, CPG., Vice President of Projects, of Heliostar Metals Limited, a Qualified Person, as such term is defined by NI 43-101, has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein. Samuel Anderson relied on resource information contained within the "Ana Paula Project NI 43-101 Technical Report Mineral Resource Estimate Update", filed on SEDAR on January 11, 2024 and prepared by by Lewis Teal and Rita Teal of Teal CPG Inc. Ms. Teal and Mr. Teal are each independent Qualified Persons as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About Heliostar Metals Ltd.

Heliostar is a junior mining company with a portfolio of high-grade gold projects in Mexico and Alaska.

The Company is developing the 100% owned Ana Paula Project in Guerrero, Mexico. In addition, Heliostar in conjunction with the Mexican federal and local government, is working to permit the San Antonio Gold Project in Baja Sur, Mexico. The Company continues to explore the Unga Gold Project in Alaska, United States of America.

Ana Paula hosts measured and indicated resources of 710,920 ounces of gold (320,204 measured and 390,716 indicated ounces) at 6.60 g/t gold and an inferred resource of 447,512 ounces of gold at 4.24 g/t gold. The asset is permitted for open-pit mining and contains significant existing infrastructure including a portal and a 412-metre-long decline.

For additional information, please contact:

Charles Funk

Chief Executive Officer
Heliostar Metals Limited
Email: charles.funk@heliostarmetals.com

Rob Grey

Investor Relations Manager
Heliostar Metals Limited
Email: rob.grey@heliostarmetals.com

Caution Regarding Forward-Looking Information and Statements

This press release contains statements which constitute "forward‐looking information" within the meaning of applicable securities laws. Forward‐looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" or similar expressions. Readers are cautioned that forward‐looking information is not based on historical facts but instead reflects the Company's management's expectations, estimates or projections concerning the business of the Company's future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Forward-looking information in this press release includes statements regarding exploration plans, the use of proceeds, and other future plans and objectives, and statements pertaining to receipt of TSX Venture Exchange approval. Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; decreases in the prevailing prices for products in the markets that the Company operates in; adverse changes in applicable laws or adverse changes in the application or enforcement of current laws; regulations and enforcement priorities of governmental authorities; compliance with government regulation and related costs; and other risks described in the Prospectus. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward‐looking information except as otherwise required by applicable law.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/197241

News Provided by Newsfile via QuoteMedia

HSTR:CC
The Conversation (0)
Heliostar Announces $5 Million Non-Brokered Private Placement

Heliostar Announces $5 Million Non-Brokered Private Placement

Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to announce a non-brokered private placement of up to 18,867,924 common shares (the "Offered Shares") at a price of $0.265 per Offered Share for gross proceeds of up to approximately $5 million (the "Private Placement").

The Company intends to use the net proceeds of the Private Placement for the commencement of drilling at Ana Paula and general working capital.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Heliostar Announces Letter of Intent for a US$20M Gold Linked Debt Facility to Advance Ana Paula Deposit

Heliostar Announces Letter of Intent for a US$20M Gold Linked Debt Facility to Advance Ana Paula Deposit

HIGHLIGHTS:

  • Debt Facility to fund completion of the Decline, Test Mining and processing of a Bulk Sample
  • This self-funding path is an innovative means of funding the advancement of the Ana Paula Project and minimize equity dilution
  • Funding expected to be repaid within 30 months from drawdown through sale of gold from the bulk sample
  • Completion of the decline reduces future capital expenditure and future drilling costs
  • A component of the debt funding and additional cash flows generated from the Test Mining to be used for additional drilling to grow the Ana Paula resource

Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to report it has entered into a non-binding letter of intent in respect of a senior secured debt facility (the "Facility") for the aggregate principal amount of US$20 million (the "Loan Amount") with an expected fixed 10% rate of interest with a syndicate of lenders led by a New York based Financial Institution (together, the "Lenders").

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Heliostar Metals Files Mineral Resource Update Technical Report for the Ana Paula Project

Heliostar Metals Files Mineral Resource Update Technical Report for the Ana Paula Project

Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to announce it filed its updated mineral resource estimate (the "Updated Mineral Resource Estimate") for the Ana Paula Project (the "Ana Paula Project") located in Guerrero, Mexico. The Updated Mineral Resource Estimate was completed by Rita Teal and Lewis Teal, Qualified Persons with Teal CPG Inc.

The technical report titled "Ana Paula Project NI 43-101 Technical Report Mineral Resource Estimate Update" (the "Report") is dated January 11, 2024, has an effective date of November 27, 2023 and supports the disclosure made by Heliostar in its November 27, 2023 press release titled "Heliostar Metals Announces Updated Mineral Resource Estimate for the Ana Paula Project, Mexico". There are no material differences in the Report from the results disclosed in Company's November 27, 2023 press release. The Report can be found under the Company's profile on SEDAR+ (www.sedarplus.ca) and on Heliostar's website (www.heliostarmetals.com).

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Heliostar Announces Minor Update to Closing of Warrant Incentive Program

Heliostar Announces Minor Update to Closing of Warrant Incentive Program

Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") is pleased to update its disclosure regarding the closing of its warrant exercise incentive program (the "Incentive Program"). Capitalized terms used but not defined in this news release have the meanings given to them in the Company's news release dated December 11, 2023.

An additional 18,000 Outstanding Warrants were exercised pursuant to the Incentive Program. Accordingly, the Company confirms that (a) a total of 17,599,544 common shares in the capital of the Company were issued upon the exercise of 17,599,544 Outstanding Warrants, providing aggregate gross proceeds of $5,279,863.20 to the Company, (b) a total of 5,866,504 Incentive Warrants were issued pursuant to the Incentive Program, and (c) following completion of the Incentive Program, there remains 28,764,086 Outstanding Warrants.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Heliostar Metals Board Addition and Changes

Heliostar Metals Board Addition and Changes

Heliostar Metals Limited (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") The Board of Directors is pleased to announce the following changes and additions to its Board. We believe that these changes will provide strengthened governance while also adding depth and skills, providing clarity of responsibility and purpose for the company's next stage of growth. The board has approved the following Board and Management changes.

Heliostar Chairman, Jacques Vaillancourt commented, "The past 12 -months were transformational for the Company with the addition of Ana Paula and San Antonio projects in Mexico to the Unga project in Alaska. The management team made great strides in advancing the Company the past year. The next 12-18 months will lead Heliostar inexorably from being an exploration company, to a development company with an exciting portfolio of exploration projects. This growth requires additional governance, depth, skills, judgement, discipline and clarity of purpose which we believe these changes will help ensure."

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Leigh Goehring, copper bars.

Leigh Goehring: Gold's "Massive Bull Market" Just Starting; Uranium and Copper Outlook

Leigh Goehring, managing partner at Goehring & Rozencwajg, shared his outlook for gold, outlining calculations that show the yellow metal potentially rising to the US$15,000 to US$25,000 per ounce range in this cycle.

"We're a believer that we have just entered into a massive bull market in gold, and the underlying fundamental reasons are the fact that over the last 15 years, ever since the global financial crisis, we've printed so much money," he said.

Goehring said that in a May 2000 interview with Forbes Magazine, he predicted the yellow metal could rise as high as US$2,500 — a call that was considered "outrageous" given gold's price of US$250 at the time.

Keep reading...Show less
Flynn Gold

Significant Exploration Target for Golden Ridge, NE Tasmania

Flynn Gold Limited (ASX: FG1, “Flynn” or “the Company”) is pleased to announce a maiden JORC compliant Exploration Target for the Trafalgar, Brilliant and Link Zone prospects at its 100%-owned Golden Ridge Project in North-east Tasmania.

Keep reading...Show less
Gold letters spelling "Fed" in front of a pile of gold dollar coins and US flag.

Fed Cuts Rate in Post-Election Meeting, Gold and Silver Gain

Hot on the heels of Donald Trump’s victory in the US presidential election was an important meeting of the US Federal Reserve’s Federal Open Markets Committee (FOMC) on November 6 and 7.

At the meeting, the committee decided to lower the benchmark rate by 25 basis points to 4.5 to 4.75 percent. This marks the second cut by the FOMC, which made an outsized 50 point cut at its last meeting in September.

The rate cuts have come as inflation has cooled towards the 2 percent target set by the Fed when it first began raising interest rates in February 2022. While the personal consumption expenditure index for September had fallen to an overall 2.1 percent increase year-over-year, the committee was still concerned about some stickiness, as the PCE less food and energy prices was up 2.7 percent.

Keep reading...Show less

Newmont Files Early Warning Report

Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) (together with its affiliates, " Newmont " or the " Company ") announced today that Newcrest Canada Holdings Inc. (the " Vendor "), a wholly-owned subsidiary of Newmont, sold all 14,674,056 common shares of Azucar Minerals Ltd. (" Azucar ") held by the Vendor to Almadex Minerals Ltd. (" Almadex ") and certain directors and officers of Azucar (collectively with Almadex, the " Purchasers "), for an aggregate purchase price of $220,110.84, being $0.015 per share (the " Transaction "). The Transaction was completed pursuant to a share purchase agreement among the Vendor and the Purchasers dated as of October 21, 2024 (the " Share Purchase Agreement ").

News Provided by Business Wire via QuoteMedia

Keep reading...Show less

Wheaton Precious Metals Announces Third Quarter 2024 Results and Record Quarterly Operating Cash Flow

Designated News Release
THIRD QUARTER FINANCIAL RESULTS

"Wheaton achieved record cash flow from operations in the third quarter of 2024, underscoring the effectiveness of our business model in leveraging rising commodity prices, with our cash operating margins increasing by over 30% relative to the third quarter of 2023. Our portfolio of operating assets delivered solid production levels, continuing to support our annual production guidance range for 2024 of 550,000 to 620,000 gold equivalent ounces," said Randy Smallwood, President and CEO of Wheaton Precious Metals. "Shortly following the quarter, Wheaton announced two accretive, precious metals streaming agreements, including a new stream on Montage's Koné Project and an amendment to the existing stream on Rio2's Fenix Project. Together, these transactions further diversify our strategic partnerships and the geography of our portfolio. Once ramped-up, the Koné Project is forecast to contribute meaningful near-term production, reinforcing Wheaton's already prominent position as a leader in the sector's growth landscape."

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
Mawson Finland (TSXV:MFL)

Mawson Finland Limited Provides Summary of 2024 Exploration Drilling at Rajapalot: Setting the Stage for Continued Success into 2025

Mawson Finland Limited (" Mawson " or the " Company ") (TSXV:MFL) is pleased to provide an exploration summary of the highly successful 38 hole, 11,376 metre 2024 exploration drilling programme at the Company's wholly-owned Rajapalot gold-cobalt project in Finland (see Table 1, Table 2, Table 3, and Figure 1 in Schedule "A" hereto). Additionally, the balance of outstanding cobalt results are also presented.

2024 Drilling Highlights:

Keep reading...Show less

Latest Press Releases

Related News

×