Heliostar CEO, Charles Funk, commented, "At La Colorada, we are seeing the combined benefit of gold production at record prices and growth from the first significant investment into the project in many years. Our aggressive five-rig drill program is designed to increase the reserves of the Creston pit. Success to date in the shallow part of the pit could lower the upfront capital costs presented in the January 13th Technical Report. The Company will use the results of this drill program to finalize a Feasibility Study in mid-2025 and then make an expansion decision on La Colorada to 50,000-100,000 ounces per year of annual production. We are also hitting high grades and widths and deeper intercepts could drive underground mining optionality beyond the open pit. We will further test this target with additional drilling in this current drill program."
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 oxide gold and silver from all three of these veins. A current Mineral Reserves of 312,000 ounces of gold grading 0.76 grams per tonne (g/t) gold and 10.1 g/t silver is defined at the Creston Pit1.
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 a continuation of veins at shallow depth, defining elevated gold grades that continue to the edge of the pit walls where they remain open for expansion (Figure 1).
Figure 1: Plan view of the Creston Pit showing historic drilling, blast hole samples and Heliostar drillholes. Selected intercepts are labelled.
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Figure 2: Cross-section view of the eastern end of the Creston Pit highlighting the lack of previous drilling beyond the pit boundary. The section shows historic drilling, new Heliostar drillhole results and pit boundary for pit expansion.
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Forty-seven holes have been completed in the program to date, with results reported for twenty-three new holes in this release. A total of 6,452 metres have been completed to date in the program. The majority of the new drill holes targeted shallow extensions of the North, Intermediate and South Veins in areas considered to be waste in the reserve estimate of the current Technical Report. Additionally, today's results include deeper holes beneath the current pit. These holes target the growth of reserves deeper within the planned pit expansion. They aim to add ounces to the overall El Creston resources and reserves.
The results show narrow to wide, low to high-grade oxide gold intercepts. They consistently return intercepts above the 0.16 g/t gold cutoff grade of reserves within the Creston pit. The results suggest that areas of waste could be converted to ore in an updated reserve model.
High-grade intercepts deeper in the pit indicate the potential for mineralization that may be amenable to underground mining beyond the current pit boundary. The Company will follow-up on these results to assess the potential to extend mine life with mineralization amenable to underground mining beneath and to the west of the Creston Pit.
Next Steps
Results from the current drill program will be incorporated into a resource model and support a reserve update to be published with a Feasibility Study in mid-2025.
Should the drilling define a material volume of gold mineralization, this program has the potential to reduce the overall strip ratio of the Crestón pit expansion, which could result in a reduction in up-front capital requirements for the restart and improve the economics of the Feasibility Study. This study will be the basis of a decision for the expansion of production at La Colorada in mid-2025.
The Company anticipates additional drilling results from the current program will be released in Q1 and Q2, 2025.
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 |
1 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
Drilling Results Table
| HoleID | From
(metres) | To
(metres) | Interval
(metres) | Au
(g/t) | Ag
(g/t) | % True
Width | Comment |
| 24-LCDD-238 | 342.4 | 354.0 | 11.6 | 1.72 | 3.7 | 89 | Intermediate Vein |
| 24-LCDD-239 | No significant intervals |
| 24-LCDD-240 | 157.0 | 177.05 | 20.05 | 0.38 | 3.3 | 72 | South Vein |
| 24-LCDD-241 | 81.25 | 86.0 | 4.75 | 0.49 | 158 | 93 | South Vein |
| 24-LCDD-242 | 96.9 | 99.5 | 2.60 | 3.07 | 3.7 | 55 | South Vein |
| 24-LCDD-243 | 98.2 | 101.35 | 3.15 | 0.19 | 20.3 | 94 | South Vein |
| 24-LCDD-244 | 151.8 | 158.7 | 6.90 | 2.38 | 9.8 | 97 | North Vein |
| and | 179.2 | 183.5 | 4.30 | 9.87 | 6.8 | 98 | Intermediate Vein |
| 179.2 | 183.5 | 4.30 | 8.88 | 6.8 | 98 | Top-cut to 23 g/t gold |
| 24-LCDD-245 | 13.45 | 17.25 | 3.80 | 6.28 | 4.3 | 100 | South Vein |
| 13.45 | 17.25 | 3.80 | 3.95 | 4.3 | 100 | Top-cut to 23 g/t gold |
| 24-LCDD-246 | 63.95 | 76.85 | 12.9 | 0.39 | 46.4 | 93 | South Vein |
| 24-LCDD-247 | 64.0 | 67.0 | 3.00 | 0.24 | 5.0 | 80 | South Vein |
| 24-LCDD-248 | 66.85 | 73.8 | 6.95 | 0.18 | 1.0 | 27 | South Vein |
| and | 98.5 | 103 | 4.50 | 0.66 | 3.1 | 9 | South Vein |
| 24-LCDD-249 | 55.0 | 61.55 | 6.55 | 0.44 | 39.0 | 82 | South Vein |
| 24-LCDD-250 | 16.35 | 22.2 | 5.85 | 0.16 | 3.8 | 97 | Intermediate Vein |
| and | 45.85 | 53.0 | 7.15 | 0.22 | 4.0 | 97 | South Vein |
| 24-LCDD-251 | 263.4 | 285 | 21.6 | 0.77 | 9.0 | 93 | North Vein |
| and | 439.35 | 454.35 | 15.0 | 2.54 | 7.5 | 89 | Intermediate Vein |
| and | 492.45 | 528.45 | 36.0 | 0.35 | 2.8 | 99 | South Vein |
| 24-LCDD-252 | No significant intervals |
| 24-LCDD-253 | 14.5 | 21.65 | 7.15 | 0.22 | 1.0 | 94 | Intermediate Vein |
| and | 31.0 | 56.8 | 25.8 | 0.35 | 4.4 | 100 | South Vein |
| 24-LCDD-254 | 35.0 | 43.25 | 8.25 | 0.49 | 9.7 | 90 | Intermediate Vein |
| and | 59.0 | 64.0 | 5.00 | 9.69 | 62.0 | 81 | Intermediate Vein |
| 59.0 | 64.0 | 5.00 | 2.89 | 62.0 | 81 | Top-cut to 23 g/t gold |
| and | 104.45 | 128 | 23.55 | 0.53 | 8.3 | 62 | Intermediate Vein |
| 24-LCDD-255 | 30.6 | 39.25 | 8.65 | 0.28 | 3.1 | 91 | South Vein |
| and | 50.5 | 53.05 | 2.55 | 0.31 | 1.4 | 98 | South Vein |
| 24-LCDD-256 | 110.95 | 112.65 | 1.70 | 0.64 | 5.7 | 76 | South Vein |
| 24-LCDD-257 | 198.45 | 209.5 | 11.05 | 1.07 | 23.3 | 74 | North Vein |
| 24-LCDD-258 | 11.0 | 24.0 | 13.0 | 0.28 | 4.0 | 72 | Intermediate Vein |
| and | 43.25 | 54.9 | 11.65 | 1.86 | 5.5 | 71 | South Vein |
| 24-LCDD-259 | 28.95 | 34.4 | 5.45 | 0.47 | 5.2 | 23 | South Vein |
| and | 104.15 | 116.5 | 12.35 | 0.93 | 6.3 | 61 | South Vein |
| 24-LCDD-260 | No significant intervals |
| 24-LCDD-261 | No significant intervals |
Table 1: Significant Drill Intersections. Holes 24-LCDD-239 and 24-LCDD-241 have been previously reported.
Drilling Coordinates Table
| Hole ID | Northing
(NAD27 CONUS
Zone 12N) | Easting
(NAD27 CONUS
Zone 12N) | Elevation
(metres) | Azimuth
(°) | Inclination
(°) | Length
(metres) |
| 24-LCDD-242 | 3185533 | 542700 | 396.5 | 000 | -49 | 141.7 |
| 24-LCDD-243 | 3185622 | 542106 | 451.7 | 152 | -48 | 147.4 |
| 24-LCDD-244 | 3185955 | 542999 | 469.0 | 180 | -41 | 267.75 |
| 24-LCDD-245 | 3185692 | 542986 | 411.7 | 210 | -60 | 100.65 |
| 24-LCDD-246 | 3185649 | 542215 | 376.4 | 180 | -50 | 95.4 |
| 24-LCDD-247 | 3185704 | 542990 | 411.9 | 210 | -75 | 80.0 |
| 24-LCDD-248 | 3185616 | 542950 | 411.8 | 000 | -43 | 107.85 |
| 24-LCDD-249 | 3185629 | 542198 | 378.0 | 192 | -57 | 109.2 |
| 24-LCDD-250 | 3185664 | 542700 | 271.6 | 180 | -0 | 119.0 |
| 24-LCDD-251 | 3186089 | 542750 | 472.4 | 180 | -53 | 551.65 |
| 24-LCDD-252 | 3185739 | 543075 | 438.5 | 180 | -40 | 89.7 |
| 24-LCDD-253 | 3185666 | 542665 | 266.1 | 180 | -29 | 84.45 |
| 24-LCDD-254 | 3185849 | 542700 | 238.8 | 180 | -66 | 217.15 |
| 24-LCDD-255 | 3185691 | 542775 | 278.6 | 180 | -10 | 75.95 |
| 24-LCDD-256 | 3185467 | 542672 | 406.2 | 355 | -50 | 164.45 |
| 24-LCDD-257 | 3185911 | 542415 | 343.0 | 180 | -58 | 278.45 |
| 24-LCDD-258 | 3185691 | 542775 | 279.6 | 180 | -15 | 78.3 |
| 24-LCDD-259 | 3185529 | 542725 | 396.3 | 000 | -41 | 132.45 |
| 24-LCDD-260 | 3185686 | 542750 | 276.6 | 180 | -7 | 81.75 |
| 24-LCDD-261 | 3185717 | 543050 | 437.5 | 180 | -40 | 52.45 |
| 24-LCDD-262 | 3185676 | 542725 | 273.8 | 180 | -15 | 98.25 |
| 24-LCDD-263 | 3185570 | 542775 | 389.8 | 000 | -42 | 47.25 |
| 24-LCDD-264 | 3185834 | 542291 | 356.6 | 180 | -51 | 279.95 |
Table 2: Drill Hole Details
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
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 has 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.
Technical Report Reference
1 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 on Heliostar's website (www.heliostarmetals.com).
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.
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, Continued success from assay results from shallow drilling in areas considered to be waste within the Creston Pit Expansion, Higher Grade intercepts demonstrate underground potential beyond the current open pit, the benefit of gold production at record prices, growth from the first significant investment into the project in many years, success to date in the shallow part of the pit could lower the upfront capital costs presented in the January 13th Technical Report, the Company will use the results of this drill program to finalize a Feasibility Study in mid-2025 and then make a decision to expand La Colorada to 50,000-100,000 ounces per year of annual production, hitting high grades and widths deeper intercepts could drive underground mining optionality beyond the open pit.
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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Figure 1 - Regional Geology of Menzies Gold Project area with resource outlines
Figure 1. Artemis tenements in Pilbara region of Western Australia with Carlow Tenement hatched