Heliostar CEO, Charles Funk, commented, "We continue to build the future for the La Colorada Mine with a plan to maximize cashflow from low-to-no capex stockpiles and use that capital to expand the Veta Madre, then the Creston pits. Today's results are another example of these tactical opportunities that the Heliostar team continues to find to optimize our operations. Further metallurgy and design work is required before we move forward, but we expect the Truckshop stockpile to provide additional incremental cash flow at La Colorada."
Drill Results Summary
The Truckshop stockpile was deposited as a waste dump in the 1990s when La Colorada was operated by Eldorado Gold Corporation. It is located only 400 metres from the mine's crushing circuit. Production records suggested that some of this material could be at a grade that is potentially economic in the current gold price environment. This provides a production bridge prior to higher-grade production from the Veta Madre and Creston pits.
Having current production from the Junkyard stockpile, the Company is well placed to assess the economics of the various dumps at La Colorada. With this information, drilling of 35 holes was undertaken into the Truckshop stockpile (Figure 2) to ascertain if it has the same potential as the Junkyard.
A total of 26 separate drillholes in the waste dump returned significant widths with grades in excess of the 0.164 g/t gold-equivalent1 cut-off grade used for the Junkyard. Zone A, an easily accessible portion of the stockpile with consistently higher-grade intercepts, could be accessed quickly and added to the production profile for La Colorada (Figure 2). Zone B contains lower grades, or mineralization beneath low grade material that may be less economically viable to re-process.
The Truckshop stockpile is also underlain in parts by historic tailings, which are typically higher grade where drilled. Metallurgical assessment has not yet been completed, and assay results from these historic tailings have not been included in this release.
Figure 1: Aerial view of La Colorada showing pits, stockpiles and selected infrastructure.
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Figure 2: Isometric view of Truckshop Stockpile with drilling shown and selected results labelled.
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Next Steps
Results from the drill program are being incorporated into an internal resource model that will not be included in the upcoming La Colorada technical report.
The Company is undertaking metallurgical analyses, including bottle roll tests and column leach tests. Should the results of that program provide positive results, Heliostar will complete a mine plan with a view to proceeding with extraction and processing later this year.
Following the successful completion of this drill program, the Company will now change the focus of drilling to test the larger El Dorado stockpile (Figure 1). If that drilling is successful, it may provide additional resources and cash flow similar to that currently being generated from the producing Junkyard reserve. The intention is to produce from these low-cost stockpiles to maximize cashflow ahead of primary mining from the open pit pushbacks.
Following the completion of the full stockpile drill program, the focus of drilling will shift to stepping out on the high-grade vein intercepts beneath and along strike from the open pits. The results received to date provide optimism for the potential of an underground future at La Colorada (see our April 9, 2025, press release here). In addition, the Company will advance property scale exploration targets with mapping and geophysics to define drill targets beyond the currently mined areas.
Truckshop Zone A Drilling Results Table
| HoleID | From
(metres) | To
(metres) | Interval
(metres) | Au
(g/t) | Ag
(g/t) |
| 25-LCWD-068 | 0.0 | 10.7 | 10.7 | 1.81 | 9.8 |
| 25-LCWD-069 | 1.5 | 21.3 | 19.8 | 0.30 | 14.2 |
| 25-LCWD-070 | 0.0 | 13.7 | 13.7 | 0.61 | 10.2 |
| 25-LCWD-071 | 0.0 | 12.2 | 12.2 | 0.24 | 6.5 |
| 25-LCWD-072 | 0.0 | 10.7 | 10.7 | 0.33 | 9.3 |
| 25-LCWD-073 | 1.5 | 10.7 | 9.1 | 0.39 | 18.1 |
| 25-LCWD-076 | 3.0 | 13.7 | 10.7 | 0.34 | 6.2 |
| 25-LCWD-077 | 7.6 | 21.3 | 13.7 | 0.30 | 14.1 |
| 25-LCWD-078 | 13.7 | 21.3 | 7.6 | 0.54 | 13.6 |
| 25-LCWD-079 | 4.6 | 24.4 | 19.8 | 0.62 | 32.4 |
| 25-LCWD-080 | 6.1 | 13.7 | 7.6 | 0.44 | 11.0 |
| 25-LCWD-081 | 0.0 | 9.1 | 9.1 | 0.86 | 9.9 |
| 25-LCWD-082 | 0.0 | 12.2 | 12.2 | 0.32 | 14.9 |
| 25-LCWD-083 | 0.0 | 4.6 | 4.6 | 0.14 | 13.7 |
| 25-LCWD-084 | 0.0 | 10.7 | 10.7 | 0.31 | 9.9 |
Table 1: Significant Drill Intersections from Zone A.
Truckshop Zone B Drilling Results Table
| HoleID | From
(metres) | To
(metres) | Interval
(metres) | Au
(g/t) | Ag
(g/t) |
| 25-LCWD-057 | 15.2 | 50.3 | 35.1 | 0.19 | 5.3 |
| 25-LCWD-058 | 33.5 | 47.2 | 13.7 | 0.21 | 8.1 |
| 25-LCWD-059 | 35.1 | 45.7 | 10.7 | 0.16 | 18.0 |
| 25-LCWD-060 | 12.2 | 21.3 | 9.1 | 0.14 | 8.6 |
| and | 32.0 | 45.7 | 13.7 | 0.36 | 8.1 |
| and | 51.8 | 62.5 | 10.7 | 0.28 | 15.1 |
| 25-LCWD-061 | 27.4 | 47.2 | 19.8 | 0.42 | 5.4 |
| 25-LCWD-062 | No Significant Results |
| 25-LCWD-063 | No Significant Results |
| 25-LCWD-064 | No Significant Results |
| 25-LCWD-065 | No Significant Results |
| 25-LCWD-066 | 16.8 | 25.9 | 9.1 | 0.15 | 6.2 |
| 25-LCWD-067 | No Significant Results |
| 25-LCWD-074 | 4.6 | 10.7 | 6.1 | 0.17 | 7.6 |
| 25-LCWD-075 | No Significant Results |
| 25-LCWD-085 | 3.0 | 9.1 | 6.1 | 0.21 | 10.2 |
| 25-LCWD-086 | No Significant Results |
| 25-LCWD-087 | Assays Pending |
| 25-LCWD-088 | 12.2 | 25.9 | 13.7 | 0.24 | 10.9 |
| 25-LCWD-089 | 16.8 | 36.6 | 19.8 | 0.17 | 9.0 |
| 25-LCWD-090 | 18.3 | 27.4 | 9.1 | 0.27 | 8.7 |
| 25-LCWD-091 | No Significant Results |
Table 2: Significant Drill Intersections from Zone B.
Drilling Coordinates Table
| Hole ID | Northing
(NAD27 CONUS
Zone 12N) | Easting
(NAD27 CONUS
Zone 12N) | Elevation
(metres) | Azimuth
(°) | Inclination
(°) | Length
(metres) |
| 25-LCWD-057 | 3185752 | 542005 | 478.1 | 0 | -90 | 71.6 |
| 25-LCWD-058 | 3185681 | 542003 | 480.1 | 0 | -90 | 59.4 |
| 25-LCWD-059 | 3185666 | 541970 | 479.9 | 0 | -90 | 59.4 |
| 25-LCWD-060 | 3185770 | 541970 | 476.2 | 0 | -90 | 73.2 |
| 25-LCWD-061 | 3185754 | 541934 | 475.6 | 0 | -90 | 70.1 |
| 25-LCWD-062 | 3185647 | 541870 | 469.6 | 0 | -90 | 30.5 |
| 25-LCWD-063 | 3185665 | 541830 | 444.2 | 0 | -90 | 19.8 |
| 25-LCWD-064 | 3185710 | 541831 | 445.2 | 0 | -90 | 27.4 |
| 25-LCWD-065 | 3185745 | 541836 | 445.6 | 0 | -90 | 36.6 |
| 25-LCWD-066 | 3185782 | 541857 | 448.3 | 0 | -90 | 48.8 |
| 25-LCWD-067 | 3185630 | 541828 | 447.0 | 0 | -90 | 13.7 |
| 25-LCWD-068 | 3185839 | 541759 | 421.3 | 0 | -90 | 29.0 |
| 25-LCWD-069 | 3185770 | 541764 | 428.5 | 0 | -90 | 27.4 |
| 25-LCWD-070 | 3185735 | 541767 | 429.9 | 0 | -90 | 25.9 |
| 25-LCWD-071 | 3185700 | 541768 | 430.8 | 0 | -90 | 15.2 |
| 25-LCWD-072 | 3185890 | 541865 | 417.6 | 0 | -90 | 21.3 |
| 25-LCWD-073 | 3185860 | 541830 | 422.6 | 0 | -90 | 27.4 |
| 25-LCWD-074 | 3185602 | 541795 | 447.7 | 0 | -90 | 15.2 |
| 25-LCWD-075 | 3185572 | 541794 | 449.4 | 0 | -90 | 15.2 |
| 25-LCWD-076 | 3185683 | 541792 | 441.9 | 0 | -90 | 24.4 |
| 25-LCWD-077 | 3185717 | 541801 | 438.6 | 0 | -90 | 27.4 |
| 25-LCWD-078 | 3185752 | 541799 | 434.0 | 0 | -90 | 33.5 |
| 25-LCWD-079 | 3185787 | 541795 | 430.4 | 0 | -90 | 33.5 |
| 25-LCWD-080 | 3185832 | 541795 | 427.0 | 0 | -90 | 32.0 |
| 25-LCWD-081 | 3185867 | 541795 | 421.1 | 0 | -90 | 27.4 |
| 25-LCWD-082 | 3185885 | 541829 | 419.8 | 0 | -90 | 25.9 |
| 25-LCWD-083 | 3185921 | 541831 | 411.3 | 0 | -90 | 21.3 |
| 25-LCWD-084 | 3185922 | 541865 | 413.0 | 0 | -90 | 22.9 |
| 25-LCWD-085 | 3185629 | 541761 | 435.2 | 0 | -90 | 15.2 |
| 25-LCWD-086 | 3185780 | 541832 | 441.6 | 0 | -90 | 41.1 |
| 25-LCWD-087 | 3185831 | 541865 | 434.7 | 0 | -90 | 39.6 |
| 25-LCWD-088 | 3185819 | 541826 | 432.2 | 0 | -90 | 35.1 |
| 25-LCWD-089 | 3185752 | 541873 | 461.2 | 0 | -90 | 51.8 |
| 25-LCWD-090 | 3185717 | 541875 | 462.8 | 0 | -90 | 45.7 |
| 25-LCWD-091 | 3185629 | 541790 | 443.3 | 0 | -90 | 19.8 |
Table 3: Drill Hole Details
La Colorada Mineral Reserves Statement
| Classification | Zone | AuEq Cut-off
(g/t) | Tonnes
(kt) | Gold Grade
(g/t Au) | Silver Grade
(g/t Ag) | Contained Gold
(koz) | Contained Silver
(koz) |
| Probable | El Crestón | 0.160 | 12,841 | 0.76 | 10.1 | 312 | 4,181 |
| Veta Madre | 0.175 | 1,905 | 0.70 | 3.1 | 43 | 189 |
| La Chatarrera | 0.164 | 3,413 | 0.20 | 6.4 | 22 | 704 |
| Total |
| 18,159 | 0.65 | 8.69 | 377 | 5,074 |
2 La Colorada Operations, Sonora, Mexico, NI 43-101 technical report (the "Report") is dated January 11, 2024, has an effective date of December 4, 2024
Quality Assurance / Quality Control
Reverse circulation (RC) holes were drilled with 5-inch tools. Reverse circulation samples with a mass of >20kg were split into one-quarter, which was submitted for analysis. Reverse circulation samples with a mass of ≤20kg were split into two halves, one of which was submitted for analysis. Three-quarters or one-half of the samples, respectively, were retained as a record. Drill samples were shipped to ALS Limited in Hermosillo, Sonora, Mexico, for sample preparation and 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 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.
Statement of Qualified Person
Gregg Bush, P. Eng. and Stewart Harris, P.Geo., the Company's Qualified Persons, as such term is defined by National Instrument 43-101 — Standards of Disclosure for Mineral Projects, have reviewed the scientific and technical information that forms the basis for this news release and have approved the disclosure herein. Mr. Bush is employed as Chief Operating Officer of the Company, and Mr. Harris is employed as Exploration Manager of the Company.
Footnotes
1 The AuEq cut-off for La Chatarrera is 0.164 g/t AuEq based on metal prices of US$1,900/oz Au, and US$23/oz Ag, processing costs of US$4.82/t, general and administrative costs of US$1.15/t, refining and selling costs of US$0.66/t, gold recovery of 66% and a silver recovery of 27%. The AuEq calculation uses the formula AuEq = (Au + Ag/equivalency factor) where equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery)).
2 La Colorada Operations, Sonora, Mexico, NI 43-101 Technical Report (the "Report") is dated January 11, 2024, has an effective date of December 4, 2024 and was prepared for Heliostar Metals Inc. by Mr. Todd Wakefield, RM SME, Mr. David Thomas, P.Geo., Mr. Jeffrey Choquette, P.E., Mr. Carl Defilippi, RM SME, and Ms. Dawn Garcia, CPG. The Report can be found under the Company's profile on SEDAR+ (www.sedarplus.ca) and Heliostar's website (www.heliostarmetals.com).
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, further metallurgy and design work is required before we move forward, but we expect the Truckshop stockpile to provide additional incremental cash flow at La Colorada. Heliostar will complete a mine plan with a view to proceeding with extraction and processing later this year. The intention is to produce from these low-cost stockpiles to maximize cashflow ahead of primary mining from the open pit pushbacks. Following the completion of the full stockpile drill program, the focus will shift to stepping out on the high-grade vein intercepts beneath and along strike from the open pits. The results received to date provide optimism for the potential of an underground future at La Colorada. In addition, the Company will advance property scale exploration targets with mapping and geophysics to define drill targets beyond the currently mined areas.
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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