Heliostar Drills 53.2 m Grading 11.0 g/t gold and 44.5 m Grading 11.0 g/t gold at Ana Paula Project, Mexico
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Heliostar Drills 53.2 m Grading 11.0 g/t gold and 44.5 m
Grading 11.0 g/t gold at Ana Paula Project, Mexico
Highlights:
• Hole AP-23-292
- 101.1 metres @ 8.3 grams per tonne (g/t) gold including;
- 53.2 metres @ 11.0 g/t gold
• Hole AP-23-291
- 118.5 metres @ 5.4g/t gold including;
- 44.5 metres @ 11.0 g/t gold including;
- 4.0 metres @ 48.5 g/t gold
• These first drill results confirm our drilling thesis, which we believe will lead to a larger and
higher grade core within the Ana Paula deposit
Vancouver, Canada, May 23 rd, 2023 – Heliostar Metals L td. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG 1)
(“Heliostar” or the “Company”) is pleased to report its first drill results from the Ana Paula project in
Mexico. These two holes are the first drilled into the property by Heliostar, with the on-going drill program
targeting the High Grade Panel at the core of Ana Paula that Heliostar believes has the potential to host a
high margin, underground gold mine development opportunity.
Heliostar CEO, Charles Funk, comment ed, “We are thrilled with the first holes at Ana Paula. Drill results
like this are rare anywhere in the world. Ana Paula’s high grade and consistently wide intervals of gold
mineralization demonstrate the underground mine potential . Heliostar will continue the 16-24 hole
program designed to increase the Ana Paula resource , with a focus on infill and expansion of the High
Grade Panel. Both holes exceeded expectations based on the current resource model. Hole AP-23-291 is
particularly encouraging as it returned a 30% increase relative to the current resource model, at a >5 g/t
cut-off grade. This builds confidence that infill drilling can increase ounces and potentially lift the overall
grade of the deposit.”
Ana Paula is an advanced gold project with an open pit mine permit, a prefeasibility study1 and over
US$75M in recent exploration and development expenditures. These results are the first in a re-scoping
of the asset with a view to underground mining . The re-scoping program includes drilling, underground
mine design, geometallurgical optimization studies and a resource update, all of which will be delivered
in 2023. The company believes this program will deliver a technically simpler and materially improved
Net Present Value (NPV) for the project.
Drill Details
The Company’s drill program centres on resource and reserve growth , a key priority of the effort to re-
evaluate the project as a high -grade underground mine. The Company expects the drilling data will
improve resource estimation and allow the Company to evaluate potential expansion of the High Grade
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Panel. In addition, the drilling also generates the geotechnical data required for engineering evaluations
and metallurgical test work for flow sheet optimization.
Presently, the High Grade Panel is approximately 250 metres long by 100 metres high by 60 metres thick.
It begins at surface and plunges 40 to 45 degrees to the west. Previous operators’ drill holes across the
panel returned intercepts including 63.4 metres at 15.3 g/t gold and 57.6 metres at 18.6 g/t gold. The
panel is hosted primarily in a polymictic breccia unit, although it extends outward into the surrounding
granodiorite and limestone. Gold mineralization is directly associated with the proportion of sul phide
minerals in the rock. This provides a valuable visual key to the presence of gold mineralization.
There are two key opportunities to increase the resource , reserve, and grade of the High Grade Panel.
Firstly, volume increase is possible both up - and down -dip of the current plunging mineralized panel
(Figure 1). Secondly, the High Grade Panel is inadequatel y defined by historic drill ing. The High Grade
Panel contains areas of closer spaced drilling, less than 25 metres apart, and other gaps with greater than
40 metre spacing. In these greater than 40 metre gaps, despite consistent geology and mineralization in
the nearby holes, the resource model has conservatively reduced the grade with increasing distance from
data points (Figure 1). The two infill holes reported here, particularly hole AP-23-291, demonstrate this
upside, with a significant increase in high grade (greater than >5 g/t) than predicted by the resource
model.
Drill Results
HoleID From
(metres)
To
(metres)
Interval
(metres)
Au
(g/t) Comment
AP-23-291 40.45 159.0 118.55 5.44
Includes geotech
sample. Note 1
including 90.0 134.5 44.5 11.0
Includes geotech
sample. Note 1
and including 130.5 134.5 4.0 48.5
AP-23-292 43.88 145.0 101.12 8.35
Includes geotech
samples. Note 2
Including 90.0 143.2 53.2 11.0
Includes geotech
sample. Note 3
Table 1: Significant Drill Intersections
1 includes 0.5 metres of sample removed for geotechnical studies and assumed to have 0 g/t
2 includes 2.86 metres of samples removed for geotechnical studies and assumed to have 0 g/t
3 includes 0.5 metres of sample removed for geotechnical studies and assumed to have 0 g/t
Drill holes AP-23-291 and AP-23-292 (Heliostar has continued the historic drill hole naming conventions)
targeted the east and west margins of the greater than 10 g/t gold core of the High Grade Panel. The goal
was to infill gaps in the drilling and expand areas of existing high -grade. Holes have been oriented
perpendicular to the strike of the polymictic breccia. These holes are designed to grow the resource and
improve the resolution of the north and south boundaries of mineralization.
The drilling program utilized PQ-sized core to provide larger sample volumes for metallurgical testing.
Results from both drill holes show the grade, consistency, and widths that typify Ana Paula. Hole AP-23-
292 intersected 101.12 metres at 8.35 g/t gold including 53.2 metres at 11.0 g/t. Hole AP-23-291
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intersected 118.55 metres at 5.4 g/t gold including 44.5 metres at 11.0 g/t. These holes improve the drill
data resolution and should grow the resource, due to the grades and width of the gold encountered.
Gold mineralization is remarkably consistent within the High Grade Panel. The 53.2 metre interval at 11.0
g/t gold in hole AP -23-292 contains only 1 sample out of 5 6 with less than 2 g/t gold. The 44.5 metre
interval at 11.0 g/t gold in hole AP-23-291 contains only 6 samples out of 48 with less than 2 g/t gold.
As gold mineralization is widespread and disseminated in nature, estimating representative true
dimensions from the drill results can be done in multiple directions. Verticall y, the true height of the
intercepts is estimated in the range of 60-80% of the drill intervals and in a north-south direction the true
width is in the range of 30 -50% of the drilled intervals. Holes were drilled from north to south, into the
hillside to reduce the total drill metres required for each intercept (Figure 2).
Figure 1: A section through the resource model from 2023 PFS1 highlighting the High Grade Panel (clipped to greater
than 5g/t resource blocks). Heliostar results labelled in black and historic intercepts labelled in grey. Completed and
ongoing holes are shown in blue and Growth and Infill targets areas labelled.
Drill Results Impact
The potential impact of the drill results on future resource models can be demonstrated by comparing the
current results to the existing model (as reported in the 2023 prefeasibility study1). Drilling that
outperforms (i.e., is higher grade or wider than) the model may be expected to improve the grade and
size of future resource and reserve estimates. Using a 5 g/t cut-off grade provides a useful benchmark to
the most financially impactful ounces in an underground mining scenario.
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At a 5 g/t cutoff, hole AP-23-291 has a 30% increase when compared to an expected intercept calculated
from the existing resource model. Using the same criteria, AP-23-292 has a 2% increase compared to the
expected intercept from the resource model.
Drill Progress
Drilling is ongoing, with six holes completed to date. Hole AP-23-293 is approximately 20 metres west of
hole AP-23-291 and has returned a similar length interval with strong sulphide mineralization. Holes AP-
23-294, AP-23-295 and AP -23-296 (not shown in Figure 1 as it is off -section toward the north) were
completed shallower and further west than AP-23-293 and intercepted narrower zones of mineralization
as expected at the top and above the High Grade Panel. The drill rig has been moved and commenced
testing the up-dip growth target with hole AP-23-297 (See Figure 1 for locations).
Figure 2: Cross section showing hole AP -23-292 and the resource model clipped to only show greater than 5g/t
resource blocks.
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HoleID Northing
(WGS84 Zone 14N)
Easting
(WGS84 Zone 14N)
Elevation
(metres)
Azimuth
(°)
Inclination
(°)
Length
(metres)
AP-23-291 410,171 1,998,053 907.8 180 -55 201
AP-23-292 410,205 1,998,055 908.3 180 -50 186
Table 2: Drill Hole Details
Quality Assurance / Quality Control
Core samples were shipped to ALS Limited in Santiago Queretaro, Queretaro for sample preparation and
for analysis at the ALS Laboratories in North Vancouver. The ALS Queretaro and North Vancouver facilities
are ISO/IEC 17025 certified. Gold was assayed by 30-gram fire assay with atomic absorption spectroscopy
finish and overlimits were analysed by 50g fire assay with gravimetric finish.
Control samples comprising certified reference samples 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 (“NI 43 -101”), has reviewed the scientific and technical
information that forms the basis for this news release and has approved the disclosure herein. Historical
information contained in this news release cannot be relied upon as Stewart Harris has not prepared nor
verified such information.
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 Unga Gold Project in
Alaska, United States of America.
The Ana Paula Project deposit contains proven and probable mineral reserves of 1,081,000 ounces of gold
at 2.38 grams per tonne ( “g/t”) gold and 2, 547,000 ounces of silver at 5. 61 g/t silver. Ana Paula hosts
measured and indicated resources of 1,468,800 ounces of gold at 2.16 g/t gold and 3,600,000 ounces of
silver 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.
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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]
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of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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 exploration, development, and production at the
Company’s properties; permitting at the San Antonio project; the release of exploration results; and future
resource and reserve estimates.
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 futur e 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 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
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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.