Heliostar Announces First Results from 2024 Drilling Program at La Colorada Mine
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Heliostar Announces First Results from 2024
Drilling Program at La Colorada Mine
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
Vancouver, Canada - November 26, 2024 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: 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.
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 u pgrading and expanding mineralization
beneath the pit. Both opportunities were defined using historical drilling, blasthole data, mining shapes, and
the geological model.
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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
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.
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Drilling Results Table
HoleID 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
Table 1: Significant Drill Intersections
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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.
Drilling Coordinates Table
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
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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
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
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: [email protected]
Phone: +1 844-753-0045
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: [email protected]
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
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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 in formation. 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, expectation s, 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 est imated 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 p roperties, 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 e conomic 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,
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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.