Heliostar Advances Underground Mining Scenarios at the Ana Paula Project, Mexico
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Heliostar Advances Underground Mining Scenarios at the Ana
Paula Project, Mexico
Highlights:
• The Ana Paula measured and indicated resource contains an average of 5,350 ounces of gold
per vertical metre between 725-950 metres of elevation (immediately below surface)
• The deposit’s favourable orientation, width, and shallow depth make the resource amenable to
underground mining configurations
• Heliostar is currently reviewing undergound mining scenarios at multiple cut -off grades and
potential throughput rates
• Potential underground mining scenerios take advantage of the existing 412 m etre long,
production sized, portal and decline
Vancouver, Canada, August 3rd 2023 – Heliostar Metals L td. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG 1)
(“Heliostar” or the “Company ”) is pleased to report progress on re -scoping of the current Pre -Feasibility
Study ( the “PFS”) at the Company’s Ana Paula Project in Mexico (“Ana Paula” or the “Ana Paula Project”)
to evaluate potential underground mining scenarios. The Company is evaluating three underground
mining scenarios , with different cut -off grades and mining rates , that are being advanced for more
detailed evaluation and comparison. All three demonstrate the potential to deliver high grades early and
throughout the mine life.
Heliostar CEO, Charles Funk, comment ed, “We are quickly advancing the re-scoping of Ana Paula towards
an underground mine. The High Grade Panel is shallow and wide with a favourable orientation for
productive underground mining. The Company is refining three scenarios to choose the approach that
maximises the profitability of mining and shortens the timeline to production. One of the keys to achieving
this is mining high grades early in the mine life , as compared to the open pit scenario. We will choose the
best outcome and work through the Feasibility Study in 2023. We expect further improvements to the
mine economics as current analysis does not include the excellent results from Heliostar’s 2023 drill
program.”
Gold Distribution within the Resource
Ana Paula’s 2023 PFS measured and indicated resource contains an average of 5,350 ounces of gold per
vertical metre between 725 -950 metres of elevation (immediately below surface) . The zone ranges
between a maximum of 8,540 ounces per vertical metre at 775 metres of elevation and a minimum of
1,080 ounces per vertical metre at 925 metres of elevation. The ounce distribution in the open pit portion
of the resource is constrained by the 2023 PFS open pit shell and in the underground portion by a 1.6
gram per tonne (g/t) gold cutoff resource shell.
Figure 1 shows a graphical representation of the contained measured and indicated ounces by elevation
within the 2023 PFS resource.
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1090 West Georgia Street, Suite 700, Vancouver BC, V6E 3V7, Canada -- Tel +1 236 429 9306
www.heliostarmetals.com | Trading Symbols: TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
Figure 1: View of resource model from 2023 PFS 1 in section looking to north. Chart presenting measured and
indicated ounces by elevation in section .
Underground Mining Scenarios
Multiple potential mining scenarios are in review for Ana Paula. The project re -scoping is assessing the
most applicable mining scenario with a focus on increasi ng project economics (NPV and IRR) while
reducing initial CAPEX when compared to the open pit mining scenario proposed in the 2023 P FS.
The Company contracted JDS Energy & Mining Inc., who completed the existing decline on the property,
to evaluate the options . Currently, the engineers are assessing three scenarios with different cutoff
grades and throughput rates for the Ana Paula deposit using the 2023 pre -feasibility study resource
model. The Company will refine the options upon receipt of an updated resource model and metallurgical
program results, both of which rely on drilling completed in 2023. Metallurgical results will be reported
in October and an updated resource model is expected in November 2023.
The best outcome will then be selected and taken through Feasibility Study in 2024.
1090 West Georgia Street, Suite 700, Vancouver BC, V6E 3V7, Canada -- Tel +1 236 429 9306
www.heliostarmetals.com | Trading Symbols: TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
Elevation breakdown from 2023 PFS Resource Estimate. Does not include Heliostar ’s 2023 drilling
Open Pit >0.6 g/t Underground >1.6 g/t Above Cutoff Grade
Elevation
Gold
Ounces
Gold
Grade
(g/t)
Gold
Ounces
Gold
Grade
(g/t)
Total Gold
Ounces per
25m
Elevation
Step
Gold
Ounces
per
Vertical
Metre
Comment
1075 100 0.70 - - 100 -
1050 6,100 0.87 - - 6,100 250
1025 13,500 0.96 - - 13,500 540
1000 17,300 0.93 - - 17,300 690
975 12,500 0.86 - - 12,500 500
950 10,900 0.92 - - 10,900 440
925 27,100 1.44 - - 27,100 1,080 Includes the High Grade Panel
900 89,700 1.99 - - 89,700 3,590 Includes the High Grade Panel
875 129,300 1.71 - - 129,300 5,170 Includes the High Grade Panel
850 160,600 1.90 - - 160,600 6,420 Includes the High Grade Panel
825 185,600 2.26 - - 185,600 7,420 Includes the High Grade Panel
800 199,500 2.70 - - 199,500 7,980 Includes the High Grade Panel
775 212,200 3.06 1,200 2.25 213,400 8,540 Includes the High Grade Panel
750 135,400 2.47 1,400 2.22 136,800 5,470 Includes the High Grade Panel
725 58,300 1.89 2,900 2.25 61,200 2,450 Includes the High Grade Panel
700 11,900 1.10 4,600 2.26 16,500 660
675 2,100 1.03 6,000 2.44 8,100 320
650 - - 13,100 2.42 13,100 520
625 - - 7,200 2.52 7,200 290
600 - - 7,800 2.39 7,800 310
575 - - 6,900 2.47 6,900 270
550 - - 2,800 2.01 2,800 110
525 - - 5,400 2.50 5,400 210
500 - - 7,100 1.98 7,100 280
475 - - 21,700 2.79 21,700 870 Expansion Zone
450 - - 39,700 3.18 39,700 1,590 Expansion Zone
425 - - 30,700 2.68 30,700 1,230 Expansion Zone
400 - - 17,900 2.45 17,900 720 Expansion Zone
375 - - 1,100 2.21 1,100 40 Expansion Zone
350 - - 8,800 6.54 8,800 350 Expansion Zone
325 - - 18,700 5.27 18,700 750 Expansion Zone
300 - - 2,400 2.96 2,400 90
Table 1: Weighted Average measured and indicated gold grades and total ounces by elevation from
2023 PFS Resource 1. Results may slightly vary from resource estimate due to rounding.
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Statement of Qualified Person
Samuel Anderson, CPG., a Qualified Person, as such term is defined by National Instrument 43 -101 –
Standards of Disclosure for Mineral Projects (“NI 43 -101”), has reviewed the scientific and technical
information that forms the basis for this news release and has approved the d isclosure herein.
About Heliostar Metals Ltd.
Heliostar is a junior mining company with a portfolio of high -grade gold projects in Mexico and Alaska.
The Company is focused on developing the 100% owned Ana Paula Project in Guerrero, Mexico. In
addition, Heliostar is working with the Mexican federal and local government to permit the San Antonio
Gold Project in Baja Sur, Mexico. The Company continues efforts to explore the Un ga Gold Project in
Alaska, United States of America.
The Ana Paula Project deposit contains proven and probable mineral reserves of 1,0 81,000 ounces of gold
(630,000 proven and 451,000 probable ounces) at 2.38 grams per tonne (“g/t”) gold and 2,547,000 ounces
of silver (1,322,000 proven and 1,226,000 probable ounces) at 5.61 g/t silver. Ana Paula hosts measured
and indicated resources of 1,46 8,800 ounces of gold (703,800 measured and 765,000 indicated ounces)
at 2.16 g/t gold and 3, 600,000 ounces of silver (1,637,000 measured and 1,963,000 indicated ounces) at
5.3 g/t silver. The asset is permitted for open -pit mining and contains significant existing infrastructure
including a portal and a 412-metre-long decline.
References
1 An updated prefeasibility study titled “Ana Paula Project NI 43 -101 Technical Report Preliminary
Feasibility Study Update” was filed on SEDAR on April 6, 2023, with an effective date of February
28, 2023, prepared for the Company by Daniel H. Neff, PE, Art S. Ibrado, PhD, PE, Richard K.
Zimmerman, RG, SME-RM, Craig Gibson, PhD, CPG, Andrew Kelly, P.Eng., Gordon Zurowski, P.Eng.,
Paul Daigle, P.Geo., Gilberto Dominguez, PE and James A. Cremeens, PE, PG.
For additional information please contact:
Charles Funk
Chief Executive Officer
Heliostar Metals Limited
Email: [email protected]
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: [email protected]
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.
1090 West Georgia Street, Suite 700, Vancouver BC, V6E 3V7, Canada -- Tel +1 236 429 9306
www.heliostarmetals.com | Trading Symbols: TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
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", "wou ld", "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 exploration, development, and production at the
Company’s prop erties; permitting at the San Antonio project; the release of exploration results; future
resource and reserve estimates ; and the completion and timing of a feasibility study for the Ana Paula
Project.
Forward–looking statements and forward –looking information relating to any future mineral production,
liquidity, enhanced value and capital markets profile of the Company, future growth potential for the
Company and its business, and future exploration plans are based on management's reasonable
assumptions, e stimates, 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, b ut which may prove to be
incorrect. Assumptions have been made regarding, among other things, the 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 ev ents 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 wit h 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 i ssuances; 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 undevelope d 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 at tributing
undue certainty to forward –looking statements or forward-looking information. Although the Company
has attempted to identify key factors that could cause actual results to differ materially, there may be
1090 West Georgia Street, Suite 700, Vancouver BC, V6E 3V7, Canada -- Tel +1 236 429 9306
www.heliostarmetals.com | Trading Symbols: TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1
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 event s
affecting such statements or information, other than as required by applicable law.