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.
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-218
24.85
35.0
10.15
0.85
9.8
100
Intermediate Vein
24-LCDD-219
77.9
87.75
9.85
0.25
19.7
90
South Vein
24-LCDD-220
47.0
53.0
6.0
0.37
7.2
100
North Vein
24-LCDD-221
No significant intervals
24-LCDD-222
9.9
21.75
11.85
1.71
21.6
100
North Vein
including
15.55
16.8
1.25
13.1
20.5
100
North Vein
24-LCDD-223
74.4
76.4
2.0
0.55
38.8
100
South Vein
24-LCDD-224
0.0
22.15
22.15
0.40
8.8
85
Intermediate Vein
24-LCDD-225
22.2
23.15
0.95
4.43
0.5
100
North Vein
and
35.75
45.5
9.75
0.16
8.1
100
North Vein
and
93.0
101.35
8.35
0.22
53.9
95
Intermediate Vein
24-LCDD-226
18.05
35.9
17.85
0.34
69.0
90
South Vein
24-LCDD-227
1.1
14.8
13.7
0.25
37.5
90
South Vein
24-LCDD-228
27.15
39.1
11.95
0.18
35.7
90
South Vein
and
46.7
51.15
4.45
0.29
43.8
90
South Vein
24-LCDD-229
15.45
19.55
4.1
2.27
4.0
100
North Vein
and
82.2
89.15
6.95
0.38
3.4
85
Intermediate Vein
24-LCDD-230
73.8
79.9
6.1
0.79
3.3
90
South Vein
24-LCDD-231
0.0
13.0
13.0
2.22
5.1
90
Intermediate Vein
including
0.0
3.0
3.0
8.79
4.8
90
Intermediate Vein
and
36.5
41.5
5.0
18.5
20.3
90
Intermediate Vein
36.5
41.5
5.0
6.62
20.3
90
Top-cut to 23 g/t gold
and
67.4
73.5
6.1
0.34
3.5
100
South Vein
and
96.2
133.15
36.95
1.24
5.4
85
South Vein
24-LCDD-232
65.0
82.5
17.5
0.39
4.9
95
North Vein
24-LCDD-233
168.3
171.55
3.25
0.26
123
90
North Vein
24-LCDD-234
79.5
89.3
9.8
0.36
4.8
95
North Vein
24-LCDD-235
82.55
86.1
3.55
0.25
8.9
95
North Vein
and
169.5
184.0
14.5
1.69
5.2
100
North Vein
including
174.35
175.6
1.25
16.6
13.6
100
North Vein
24-LCDD-236
43.0
53.4
10.4
0.26
25.7
90
South Vein
24-LCDD-237
45.9
58.25
12.35
0.20
26.4
100
South Vein
24-LCDD-238
Assays pending
24-LCDD-239
No significant intervals
24-LCDD-240
Assays pending
24-LCDD-241
81.25
86.0
4.75
0.49
158
100
South Vein
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-218
3185843
543104
442.1
180
-40
118.20
24-LCDD-219
3185579
542101
455.8
155
-47
156.45
24-LCDD-220
3185874
543079
445.9
180
-40
150.75
24-LCDD-221
3185629
542111
450.9
175
-50
175.50
24-LCDD-222
3185837
543080
440.9
180
-40
100.00
24-LCDD-223
3185603
542104
453.3
167
-48
147.20
24-LCDD-224
3185798
543080
437.8
180
-40
97.40
24-LCDD-225
3185881
543105
442.3
180
-40
136.45
24-LCDD-226
3185537
542126
441.3
160
-55
66.70
24-LCDD-227
3185581
542191
382.0
180
-55
77.30
24-LCDD-228
3185603
542195
380.4
191
-57
107.20
24-LCDD-229
3185871
543129
443.4
180
-45
128.70
24-LCDD-230
3185835
543128
441.0
180
-45
88.45
24-LCDD-231
3185732
542533
190.9
139
-45
142.70
24-LCDD-232
3185892
543053
444.3
180
-40
140.85
24-LCDD-233
3185887
542390
346.9
180
-49
175.25
24-LCDD-234
3185899
543025
441.6
180
-49
191.50
24-LCDD-235
3185974
542975
475.0
180
-42
267.40
24-LCDD-236
3185625
542212
378.8
180
-50
78.80
24-LCDD-237
3185563
542091
457.5
180
-45
78.70
24-LCDD-238
3186027
542850
479.7
180
-51
419.85
24-LCDD-239
3185594
542089
454.8
180
-45
89.35
24-LCDD-240
3185472
542671
405.9
355
-40
200.35
24-LCDD-241
3185607
542101
453.2
146
-40
122.40
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.
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