Heliostar Delivers Strong Shallow Oxide Gold Hits at the La Colorada Mine, Sonora, Mexico
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Heliostar Delivers Strong Shallow Oxide Gold Hits at the
La Colorada Mine, Sonora, Mexico
HIGHLIGHTS:
• 5.0m grading 9.69 g/t gold
• 4.3m grading 9.87 g/t gold
• 15.0m grading 2.54 g/t gold
• 11.65m grading 1.86 g/t gold
• 11.6m grading 1.72 g/t gold
• 21.6m grading 0.77 g/t gold
• 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
Vancouver, Canada – January 30 , 202 5 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: 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 reserve s ahead of a Feasibility Study and expansion
decision planned for mid-2025.
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).
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Figure 1: Plan view of the Creston Pit showing historic drilling, blast hole samples and Heliostar drillholes.
Selected intercepts are labelled.
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 t wenty-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 i n 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
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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
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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).
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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 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 infor mation 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, 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 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
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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 c ontractors; 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; c ontests 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 publ ic 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 rel ations, 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 qua ntities 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 di ffer 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.