Investor Insight
Heliostar Metals has a clear, execution-focused strategy. They are on track to go from no gold production in 2023 to 150,000 ounces of annual gold production in just a couple of years. As one of the fastest-growing gold producers in the industry, Heliostar presents a compelling investment opportunity for investors looking to capitalize on a continued gold bull market.
Overview
Heliostar Metals (TSXV:HSTR,OTCQX:HSTXF,FRA:RGG1) is an emerging mid-tier gold producer focused on unlocking high-grade gold production in Mexico’s premier mining regions.
The company rapidly expanded its asset base by acquiring a diverse portfolio of producing and development-stage assets. This positions it for long-term, scalable production growth.
The company holds two operating mines (San Agustin and
La Colorada), two advanced development projects (Ana Paula and Cerro del Gallo), and two additional growth assets (San Antonio and Unga in Alaska). Unlike most of its peers, Heliostar is uniquely positioned to fund growth through internal cash flow while continuing to expand its
resource base.
The company prioritizes capital discipline and low-cost acquisitions, significantly expanding its asset base while maintaining a lean financial structure. Unlike many juniors reliant on heavy dilution, Heliostar leverages internal cash flow from its producing assets to drive project development.
Heliostar Metals is strategically positioned to scale its gold production to 150,000 ounces per year in the near term by leveraging its producing mines and development assets. San Agustin and La Colorada provide immediate cash flow and serve as the foundation for production growth. At La Colorada, a permitted expansion plan allows for low-cost increases in output, while the advancement of Ana Paula Phase 1 will significantly enhance production capacity.
Looking ahead, the company has a long-term vision of achieving 500,000 ounces of gold production annually by 2030. This growth will be driven by the development of Cerro del Gallo and San Antonio, both positioned as next-generation mines. Additionally, Ana Paula Phase 2 is expected to scale production beyond 100,000 ounces per year, further solidifying Heliostar’s production base. The company will also pursue strategic mergers and acquisitions to supplement organic growth and expand its project pipeline.
Heliostar’s focus is on minimizing shareholder dilution (and maximizing shareholder value) by funding growth through internal cash flow. The company is reinvesting revenue from operating mines into exploration and development, ensuring efficient capital allocation to high-impact assets. This self-sustaining approach is further strengthened by a strong institutional investor base, which holds 53 percent of the company’s shares, providing confidence in Heliostar’s growth trajectory.
Company Highlights
- Heliostar Metals is rapidly advancing from a junior explorer to a mid-tier gold producer, targeting 150,000 oz per year in the near term and 500,000 oz annually by 2030.
- Heliostar has rapidly expanded its portfolio with key acquisitions, now controlling two producing mines and four advanced-stage growth assets in Mexico. Added 3.5 million measured and indicated gold ounces for just US$15 million, reinforcing a capital-efficient growth model.
- The company prioritizes capital discipline and low-cost acquisitions to expand its asset base and maintain a lean financial structure. Unlike many juniors who dilute shareholders to grow, Heliostar leveraged gold production cash flows to drive project development.
- Its flagship project, Ana Paula, is one of Mexico’s highest-grade undeveloped gold projects. The Heliostar team took on the permitted open pit design and revised it to an underground operation. The current mine plan has potential to produce more than 100,000 gold ounces per year.
- In 2024, Heliostar acquired the La Colorada and San Agustin gold projects. Production at these two mines provide immediate cash flow. That funds Heliostar’s exploration and development without significant dilution.
- CEO Charles Funk leads a seasoned team of mine builders and exploration experts with a track record of developing world-class deposits.
- The company also features a favorable shareholder registry: 53 percent institutional investors, 42 percent high-net-worth and retail investors, and 5 percent held by the board and management.
Key Projects
Ana Paula (Flagship Development Project)
Ana Paula Project NI 43-101 Technical Report Mineral Resource Estimate Update effective November 27, 2023.
The Ana Paula project is Heliostar’s flagship high-grade underground gold deposit, located in the Guerrero Gold Belt, Mexico. With 710,920 oz measured and indicated gold (6.6 g/t) and 447,500 oz inferred gold (4.24 g/t), the project has significant exploration upside. Originally envisioned as an open-pit operation, Heliostar has transitioned Ana Paula into an underground mining project to improve economics and reduce environmental impact. The company is currently conducting a feasibility study, expected to be completed in late 2025, with a construction decision to follow.
Phase 1 production is projected at 50,000 oz per year, scaling to more than 100,000 oz in Phase 2. Exploration is ongoing to expand the high-grade panel, with exceptional drill results, including 125.9 meters @ 4.02 g/t gold (23.6 meters @ 12.5 g/t gold). Ana Paula is a high-impact, high-grade asset that will form the backbone of Heliostar’s production growth.
La Colorada Mine
Located in Sonora, Mexico, La Colorada is one of Heliostar’s cash-flow-generating assets, currently in production with a 2025 guidance of 17,000 to 23,300 oz gold. The mine features a permitted expansion plan, including the Creston Pit Cutback, which contains 220,000 oz probable reserves, and the Veta Madre Pit, which holds an additional 163,000 oz probable reserves (awaiting permitting).
Heliostar is actively drilling below the existing pits, targeting high-grade underground extensions. The company is also evaluating low-grade stockpiles and optimizing heap leach recovery to enhance profitability. By Q1 2025, La Colorada’s expansion will be restarted, leading to a significant increase in gold output.
San Agustin Mine
San Agustin is a low-cost, open-pit heap leach gold mine located in Durango, Mexico, producing between 14,650 to 14,950 oz gold in 2024. The mine offers significant upside through heap leach reprocessing, with a plan to recover 20 Mt of non-agglomerated, run-of-mine material.
The Corner Permit Cutback contains an additional 86,000 oz gold and 4.5 Moz silver, requiring approval before mining. Additionally, San Agustin has sulfide mineralization potential at depth, which remains underexplored. The mine continues to be a consistent cash flow generator, supporting Heliostar’s development pipeline.
Cerro del Gallo Project
Cerro del Gallo is a large-scale, low-cost development asset located in Guanajuato, Mexico. With 2.86 Moz measured and indicated gold and 1 Moz inferred gold, the project represents a long-term growth opportunity for Heliostar.
The company is currently advancing permitting efforts to unlock the heap leach processing potential, which could significantly contribute to its mid-term production goals. Cerro del Gallo is expected to become a core asset as Heliostar scales toward the longer-term 500,000 oz per year production goal.
Pro Forma Total Gold Resources
San Antonio Project
located in Baja California Sur, Mexico, San Antonio is an open-pit gold development project with a 1.74 Moz measured and indicated gold resource. The project is currently awaiting environmental permitting, after which Heliostar will assess development timelines. San Antonio’s favorable metallurgy and location make it a strategic asset with potential for future near-term production.
Unga Project
The Unga project in Alaska is a high-grade gold exploration asset, with an inferred resource of 384,000 oz gold (13.8 g/t). While not a primary focus, the project remains a long-term high-grade growth opportunity.
Management Team
Charles Funk – President & CEO
Charles Funk brings over 18 years of experience in business development and exploration. Before joining Heliostar, he held senior roles at Newcrest Mining and OZ Minerals, two of the world's most prominent mining companies. Funk led the Panuco discovery for Vizsla Silver in 2020, demonstrating his strong expertise in identifying and advancing high-potential gold and silver deposits. Under his leadership, Heliostar has pursued transformational acquisitions that have rapidly expanded the company’s asset base while maintaining capital efficiency.
Gregg Bush – Chief Operating Officer
A highly regarded mine builder, Gregg Bush has a strong track record in mine development, project integration, and operations management. He previously served as COO of Capstone Mining for nine years and as SVP of Mexico for Equinox Gold. With deep experience in Latin American mining operations, Bush plays a pivotal role in advancing Heliostar’s production assets, optimizing operations and ensuring efficient project execution.
Sam Anderson – VP Projects
Sam Anderson brings 20 years of experience in mine geology and project management, including 17 years at Newmont, where he served as mine geology superintendent and senior manager of exploration business development. He played a significant role in the development of Newmont’s Merian Mine in Suriname, from resource stage to steady-state operation. His expertise in mineral resource expansion and project evaluation is crucial to advancing Ana Paula and Cerro del Gallo toward production.
Mike Gingles – VP of Corporate Development
With over 35 years of corporate and entrepreneurial experience in the mining industry, Mike Gingles has been a key player in major mining deals. He led the Pueblo Viejo and Turquoise Ridge transactions for Placer Dome, two of the largest gold assets in North America. His expertise in strategic partnerships, corporate finance, and project acquisitions has positioned Heliostar for transformational growth.
Hernan Dorado – VP Sustainability & Special Projects
As a fifth-generation miner, Hernan Dorado has more than 20 years of experience in the mining sector, including a founding role at Guanajuato Silver, where he served as COO. He has extensive experience in Mexican mining operations, permitting and sustainability practices, ensuring that Heliostar’s projects meet the highest environmental and social responsibility standards.
Vitalina Lyssoun – Chief Financial Officer
Vitalina Lyssoun is a chartered professional accountant (CPA, CA) with over 16 years of financial expertise with a focus on the resource sector. She has strengths in Canadian and US public company reporting, regulatory and tax compliance, and internal controls. She is fluent in Spanish and has experience in operations based in Mexico, Central America and West Africa. Most recently, Lyssoun built and led the corporate accounting team at Gatos Silver, including through their recent merger with First Majestic Silver.
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Pro Forma Total Gold Resources
Figure 1. Regional location - Goongarrie Gold Project.
Figure 1 – Menzies & Lake Goongarrie tenure
