Heliostar Drills 8.85 Metres Grading 25.0 g/t Gold and 768 g/t Silver at the La Colorada Mine, Sonora, Mexico
HIGHLIGHTS:
8.85m grading 25.0 g/t gold and 768 g/t silver
8.55m grading 5.52 g/t gold and 121 g/t silver
3.5m grading 5.41 g/t gold and 87 g/t silver
5.5m grading 11.1 g/t gold
2.9m grading 10.5 g/t gold
4.6m grading 5.78 g/t gold
5.75m grading 4.72 g/t gold
Higher-grade intercepts demonstrate underground potential beyond the current open pit
The success of this drill program called for additional step-out drilling. Results for these drill holes are expected in Q2, 2025
La Colorada technical report update incorporating these results is expected in mid-2025
Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) (‘Heliostar’ or the ‘Company’) is pleased to announce additional results from a 12,500-metre drilling program at the La Colorada Mine in Sonora, Mexico. La Colorada restarted production in early January 2025, and the current drill program is intended to expand the mineral reserves ahead of an updated technical report and expansion decision planned for mid-2025.
Heliostar CEO, Charles Funk, commented, ‘Heliostar closed the first quarter of 2025 with a US$27M (C$38M) cash balance, over half of which was generated from operating profits. This places the Company in a strong position to achieve our planned production and resource growth goals. Today’s results reflect these growth plans and further cement our confidence in the future of La Colorada. They are expected to positively impact the economics of the mine when we update the La Colorada technical report in mid-2025. Our goal is for the study to support a decision to expand production to 50,000 to 100,000 ounces of gold per year. Additionally, the high-grades intersected demonstrate a potential underground future for the mine. We intend to target these deeper zones in more detail after we complete the technical report.’
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 Probable Mineral Reserve of 312,000 ounces of gold grading 0.76 grams per tonne (g/t) gold and 5,074,000 ounces of silver at 10.1 g/t silver is defined at the Creston Pit1.
A technical review of expansion potential identified two opportunities for reserve growth. The near-surface extensions of known veins with little or no drill data and exploring the under-sampled mineralization beneath the pit. Both opportunities were defined using historical drilling, blast hole data, mining shapes, and the geological model.
Figure 1: Plan view of the Creston Pit showing historic drilling, blast hole samples and Heliostar drill holes.
Selected intercepts are labelled.
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Figure 2: Cross-section view looking west at the western end of the Creston Pit. The section shows historic drilling and new Heliostar drill hole results below the planned pit boundary.
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Blast hole data clearly shows the potential for a continuation of veins at shallow depths. They contain elevated gold grades that continue to the edge of the pit walls, where they remain open for expansion (Figure 1). At depth, drill spacing is wider than the area above. Additional drilling allows for improved estimation of grade and continuity.
The Company has completed seventy-two holes totalling 11,075 metres in the program to date. This release reports results for twenty-three new holes. The majority of the new drill holes targeted extensions of the North, Intermediate, and South Veins in areas where drilling is widely spaced yet within the current resource. They aim to add ounces to the overall El Creston resources and reserves.
Assay results show narrow to wide, low- to high-grade oxide gold intercepts. Targeted vein zones consistently return intercepts above the 0.16 g/t gold-equivalent cutoff grade of reserves within the Creston pit. The results may increase the tonnes and grade of mineralization in an updated pit shell. If so, that would add to the total reserves in an updated technical report.
Further, the success of the drill program to date has required modification of the remaining drill program plans. Numerous step-out drill holes have been added to follow-up on intercepts reported here. Results remain pending for these follow-up drill holes and are expected to be received in April and May.
Next Steps
Results from the current drill program are being incorporated into a resource model. They will support a reserve update to be published with a technical report in mid-2025.
This drill program is important because if it increases the volume of rock containing gold mineralization, it could improve the overall mine economics. Any zones of waste material with new gold intercepts from this program have the potential to reduce the overall strip ratio of the Creston pit expansion.
That, in turn, could reduce the up-front capital requirements for the restart and improve the economics of the Technical Report. This study will be the basis of a decision for the expansion of production at La Colorada.
The Company anticipates additional drilling results from the current program will be released in 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-262
36.35
40.4
4.05
0.53
8.6
94
South Vein
24-LCDD-263
Abandoned
24-LCDD-264
165.05
178.4
13.35
0.34
43
74
North Vein
24-LCDD-265
8.35
11.1
2.75
0.34
6.2
28
South Vein
and
15.7
20.55
4.85
0.24
5.2
28
South Vein
and
76.9
92.3
15.4
0.19
2.8
44
South Vein
24-LCDD-266
22.3
28.95
6.65
0.50
2.5
82
South Vein
24-LCDD-267
No significant intervals
24-LCDD-268
15.85
28.1
12.25
0.40
4.8
15
South Vein
and
77.9
90.0
12.1
0.19
6.8
61
South Vein
24-LCDD-269
163.75
181.65
17.9
1.69
8.8
84
North Vein
including
167.7
172.3
4.6
5.78
16
84
North Vein
24-LCDD-270
24.55
33.4
8.85
1.89
82
89
South Vein
including
29.0
33.4
4.4
3.52
155
90
South Vein
24-LCDD-271
4.0
11.95
7.95
0.38
12
84
Intermediate Vein
and
50.0
58.85
8.85
25.0
768
71
South Vein
50.0
58.85
8.85
10.4
768
71
Top-cut to 20 g/t gold
and
64.2
68.0
3.8
4.32
178
70
South Vein
24-LCDD-272
2.05
35.6
33.55
1.04
22
68
Intermediate Vein
including
6.0
8.85
2.85
6.10
135
68
Intermediate Vein
and
70.2
80.85
10.65
0.22
5.4
81
South Vein
and
90.8
94.3
3.5
5.41
88
79
South Vein
90.8
94.3
3.5
4.31
88
79
Top-cut to 20 g/t gold
including
90.8
91.35
0.55
27.0
433
79
South Vein
90.8
91.35
0.55
20.0
433
79
Top-cut to 20 g/t gold
and
103.65
104.4
0.75
10.3
255
79
South Vein
and
107.55
112.05
4.5
0.84
23
79
South Vein
24-LCDD-273
7.85
10.2
2.35
0.45
10
79
Intermediate Vein
and
48.0
69.75
21.75
2.37
62
87
South Vein
48.0
69.75
21.75
1.97
62
87
Top-cut to 20 g/t gold
including
59.25
67.8
8.55
5.52
121
87
South Vein
59.25
67.8
8.55
4.50
121
87
Top-cut to 20 g/t gold
24-LCDD-274
103.8
126.15
22.35
0.21
6.5
67
North Vein
and
137.4
147.6
10.2
0.39
6.4
67
North Vein
25-LCDD-275
20.4
23.35
2.95
2.07
166
75
Intermediate Vein
and
29.25
33.75
4.5
0.40
9.0
89
Intermediate Vein
and
88.85
101.85
13.0
0.57
8.8
42
Intermediate Vein
and
120.55
128.1
7.55
0.72
13
100
South Vein
25-LCDD-276
104.7
135.95
31.25
0.53
4.2
49
North Vein
and
155.15
170.25
15.1
0.45
2.4
49
North Vein
25-LCDD-277
No significant intervals
25-LCDD-278
6.25
9.0
2.75
1.06
63
100
South Vein
and
14.1
33.0
18.9
0.61
31
100
South Vein
25-LCDD-279
0.0
5.6
5.6
0.72
30
100
Intermediate Vein
and
62.0
83.85
21.85
0.63
9.6
99
South Vein
25-LCDD-280
130.05
135.6
5.55
0.26
57
88
North Vein
and
141.85
145.9
4.05
0.27
54
88
North Vein
25-LCDD-281
Abandoned
25-LCDD-282
11.15
16.5
5.35
0.67
39
33
Intermediate Vein
25-LCDD-283
60.5
66.2
5.7
1.51
20
90
Intermediate Vein
and
82.15
99.65
17.5
1.90
6.8
84
Intermediate Vein
82.15
99.65
17.5
1.53
6.8
84
Top-cut to 23 g/t gold
including
89.05
91.95
2.9
10.5
15
84
Intermediate Vein
89.05
91.95
2.9
8.32
15
84
Top-cut to 23 g/t gold
and
107.0
110.0
3.0
1.92
21
85
Intermediate Vein
and
127.0
132.5
5.5
11.1
23
88
Intermediate Vein
127.0
132.5
5.5
9.14
23
88
Top-cut to 23 g/t gold
and
165.1
173.0
7.9
0.20
1.0
96
South Vein
and
179.95
191.85
11.9
0.23
2.2
96
South Vein
25-LCDD-284
52.0
61.0
9.0
1.87
3.2
84
Intermediate Vein
including
53.0
55.4
2.4
6.14
6.1
84
Intermediate Vein
and
69.2
74.6
5.4
0.52
3.2
84
Intermediate Vein
and
128.0
150.7
22.7
0.53
2.1
84
South Vein
25-LCDD-285
45.3
50.2
4.9
0.36
27
87
Intermediate Vein
and
79.45
100.75
21.3
0.28
9.8
84
Intermediate Vein
and
109.65
123.55
13.9
0.24
2.7
87
Intermediate Vein
and
130.15
140.1
9.95
0.38
5.0
99
Intermediate Vein
and
190.2
201.0
10.8
1.25
0.7
92
South Vein
including
199.05
201.0
1.95
5.94
1.1
94
South Vein
25-LCDD-286
38.05
43.8
5.75
4.72
10
92
Intermediate Vein
including
38.05
43.8
5.75
2.41
10
92
Top-cut to 23 g/t gold
and
67.5
95.45
27.95
0.35
7.7
95
Intermediate Vein
and
163.9
171.15
7.25
0.59
5.1
91
South Vein
25-LCDD-287
8.15
17.4
9.25
1.02
2.5
79
Intermediate Vein
and
28.05
39.7
11.65
0.63
6.3
74
Intermediate Vein
and
56.5
61.45
4.95
0.33
3.0
68
Intermediate Vein
and
116.0
146.75
30.75
0.18
1.4
86
South Vein
25-LCDD-288
13.4
17.0
3.6
0.46
15
91
Intermediate Vein
and
48.5
70.1
21.6
0.33
2.5
77
Intermediate Vein
and
120.75
125.5
4.75
0.58
1.0
99
South Vein
and
130.9
150.65
19.75
0.99
5.9
99
South Vein
including
132.0
133.1
1.1
10.1
50
99
South Vein
25-LCDD-289
10.5
23.05
12.55
0.55
17
95
North Vein
and
56.95
64.0
7.05
2.62
8.8
92
Intermediate Vein
including
56.95
58.9
1.95
8.76
14
92
Intermediate Vein
and
125.0
133.65
8.65
0.15
5.0
84
Intermediate Vein
and
169.3
179.4
10.1
0.82
4.1
82
Intermediate Vein
Table 2: Significant Drill Intersections
Drilling Coordinates Table
Hole ID
Northing
(NAD27 CONUS
Zone 12N)
Easting
(NAD27 CONUS
Zone 12N)
Elevation
(metres)
Azimuth
(°)
Inclination
(°)
Length
(metres)
24-LCDD-265
3185570
542775
389.8
000
-47
113.4
24-LCDD-266
3185676
542725
274.8
180
10
96.05
24-LCDD-267
3185754
543056
438.3
187
-40
69.5
24-LCDD-268
3185555
542750
392.4
000
-45
102.85
24-LCDD-269
3185954
542540
331.2
179
-60
298.3
24-LCDD-270
3185622
542401
206.7
202
-32
75.35
24-LCDD-271
3185633
542396
207.2
220
-31
124.45
24-LCDD-272
3185664
542415
206.5
217
-36
147.7
24-LCDD-273
3185636
542403
205.9
200
-54
114.05
24-LCDD-274
3185816
542788
248.7
000
+2
159.3
25-LCDD-275
3185715
542439
215.5
180
-56
167.0
25-LCDD-276
3185949
542700
315.6
180
-83
225.35
25-LCDD-277
3185853
542315
353.9
180
-56
258.6
25-LCDD-278
3185618
542414
209.0
180
0
55.15
25-LCDD-279
3185683
542515
198.1
180
-20
105.0
25-LCDD-280
3185810
542265
360.0
178
-50
325.7
25-LCDD-281
3185886
542389
346.7
178
-47
149.35
25-LCDD-282
3185786
542515
220.3
180
-85
124.6
25-LCDD-283
3185843
542685
237.6
169
-57
246.35
25-LCDD-284
3185822
542751
244.4
179
-62
191.4
25-LCDD-285
3185839
542715
240.5
173
-61
240.25
25-LCDD-286
3185837
542701
239.5
180
-48
205.05
25-LCDD-287
3185758
542735
251.1
215
-60
150.15
25-LCDD-288
3185817
542726
242.4
180
-58
180.5
25-LCDD-289
3185895
542775
305.9
193
-60
292.25
Table 3: Drill Hole Details
Quality Assurance / Quality Control
Core was drilled with PQ, HQ, and NQ tools, and the drill core was sawn in half, with one half submitted for analysis and one half retained as a record. 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 a 30-gram fire assay with an atomic absorption spectroscopy finish, and overlimits were analyzed by a 30-gram fire assay with a 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 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:
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, this places the Company in a strong position to achieve our planned production and resource growth goals. Today’s results reflect these growth plans and further cement our confidence in the future of La Colorada. They are expected to positively impact the economics of the mine when we update the La Colorada technical report in mid-2025. Our goal is for the study to support a decision to expand production to 50,000 to 100,000 ounces of gold per year. Additionally, the high grades intersected demonstrate a potential underground future for the mine. We intend to target these deeper zones in more detail after we complete the technical report. The Company anticipates additional drilling results from the current program will be released in Q2, 2025.
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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