Heliostar Files Technical Reports on Mines and Development Project Recently Acquired in Mexico Company Overview on La Colorada:
Heliostar Files Technical Reports on Mines and Development
Project Recently Acquired in Mexico
Company Overview on La Colorada:
• La Colorada Operations show US$25.9M NPV5, 11.9% IRR, US$53.9M CAPEX and 287k total ounces
produced at a US$2,000/oz gold price
• New mineral reserve at Junkyard Stockpile supports restart of mining at La Colorada that has
commenced this month
• El Crestón expansion at La Colorada is expected to produce over 50,000 ounces of gold per year
• Current drill program (five drill rigs) is targeting lower CAPEX and increased production for updated
technical report planned for mid-2025
Au Price
(US$/oz Au)
Net Cash
Flow
(US$M)
After-Tax NPV
@ 5.0% Discount Rate
(US$M)
IRR
(%)
Payback Period
(years) Payback Multiple
2,000 1 54.92 25.93 11.9 2.2 1.4
2,600 2 158.32 110.03 34.7 1.4 2.3
1. Base Gold Price assumption used in the La Colorada technical report.
2. Comparison gold price.
Company Overview on San Agustin:
• San Agustin Operations show US$12.7M NPV5, 156.1% IRR, US$4.2M CAPEX and 45k total ounces
produced at a US$2,100/oz gold price
• Receiving the Phase 4 Permit will allow for strong cash flow generation from San Agustin including
funding San Agustin rehabilitation costs
• Upon receipt of permit, expected in 2025, the Company will undertake drilling to potentially extend
the mine life from oxide gold production and is reviewing the projects sulphide potential
Au Price
(US$/oz Au)
Net Cash
Flow
(US$M)
After-Tax NPV
@ 5.0% Discount Rate
(US$M)
IRR
(%)
Payback Period
(years) Payback Multiple
2,100 1 14.83 12.67 156.1 0.8 1.1
2,600 2 28.84 25.22 365.0 0.3 2.2
1. Base Gold Price assumption used in the San Agustin technical report..
2. Comparison gold price.
Company Overview on San Antonio:
• San Antonio Project Preliminary Economic Assessment ( PEA) shows US$398.7M NPV5, 40.7% IRR,
US$131.3M CAPEX and 1.1 million total ounces produced at a US$1,900/oz gold price
• Mineral resource of 1.6 million ounces of gold at San Antonio project creates attractive optionality
with high grade, low CAPEX, sub-US$1,100/oz ASIC and long mine life
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Au Price
(US$/oz Au)
Net Cash
Flow
(US$M)
After-Tax NPV
@ 5% Discount Rate
(US$M)
IRR
(%)
Payback Period
(years) Payback Multiple
1,900 1 651.21 398.66 40.7 2.0 5.2
2,600 2 1,135.42 715.05 58.8 1.5 8.3
1. Base Gold Price assumption used in the San Antonio technical report..
2. Comparison gold price.
Vancouver, Canada, January 13 , 202 5 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1)
(“Heliostar” or the “Company”) advises that it has filed technical report s on the La Colorada Operations, the
San Agustin Operations and the San Antonio Project. The technical reports were prepared on material projects
acquired in 2024.
The technical reports are available on SEDAR+ ( www.sedarplus.ca) and on the Company's website
(www.heliostarmetals.com).
Heliostar CEO, Charles Funk, commented “Heliostar has filed technical reports for three of its recently acquired
Mexican projects. At La Colorada , we have restarted production this month with 2025 focused on the newly
defined Junkyard Stockpile and then expanding to over 50,000 ounces of gold per year with the El Crest ón
expansion. At San Agustin , the Phase 4 Permit area can generate strong cash flow and reduce closure costs.
More importantly receiving expansion permits will provide the trigger to restart drilling, targeting further mine
life expansion at the mine which has upside oxide and sulphide potential. The PEA at San Antonio demonstrates
a rare, 1.0 Au g/t heap leach deposit with low CAPEX, low ASIC and a long mine life. It provides attractive
optionality for our long -term growth. The combined projects have positive economics at conservative gold
prices and significantly stronger returns at today’s gold prices . In 2025, the Company will focus on reducing
front-end capital requirements for El Crestón to improve the project economics for the expansion decision and
will continue to advance Ana Paula through its Feasibility Study.”
LA COLORADA MINE
Mineral Resource and Mineral Reserve estimates and a life-of-mine (LOM) plan were completed for the 100%
owned La Colorada Operations (La Colorada) located in the state of Sonora, Mexico . The LOM plan in the La
Colorada technical report is based on continued production from three sequentially-staged deposits: the
Junkyard Stockpile (La Chatarrera), the El Crestón pit expansion (El Crestón), and the Veta Madre pit expansion
(Veta Madre). The La Colorada technical report that is the subject of this news release supersedes a technical
report that was prepared on the La Colorada Mine by Argonaut Gold Inc., which had an effective date of
October 1, 2021.
The La Colorada technical report includes first-time disclosure of a M ineral Resource and Mineral Reserve
estimate for the Junkyard and updated Mineral Resource and Mineral Reserve estimates for El Crestón and
Veta Madre. The LOM plan indicates a Probable Mineral Reserve of 377k ounces of gold exploited with two
years of pre -strip and 4.1 years of mine life, from the effective date of the La Colorada technical report, at
production rates up to the 13,000 t/d nameplate throughput capacity of the mine at an all-in sustaining capital
cost of US$1,763/oz Au.
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Key Highlights
La Colorada - Mineral Reserve & Production Highlights
Mineral Reserves (kt) 1 18,159
Gold Grade (g/t Au) 0.65
Contained Gold (koz Au) 377
Processing Rate (t/d average) 2 8,292
Life of Mine (years) 3 4.1
Annual Production (oz Au per year, 2026) 14,564
Annual Production (oz Au per year, average 2027-2030) 64,309
1. Probable Mineral Reserve.
2. Processing throughput rates vary over the Life of Mine, up to the nameplate capacity of about 13,000 t/d.
3. Excludes 2 years of metals production from the Junkyard (2025) and from near-surface ore extracted during pre-stripping (2026).
La Colorada - Financial Highlights
Average Cash Costs (US$ per oz AuEq) 1 1,549
Average AISC (US$ per oz AuEq) 1 1,763
Total Initial Capital Cost (US$M) 2 53.9
Total Sustainable Capital Cost (US$M) 9.8
Total LOM Capital Cost (US$M ) 63.7
1. Non-International Financial Reporting Standards (IFRS) measures. All-in sustaining costs (AISC) were first issued by the World Gold Council
(WGC) in 2013. In light of new accounting standards and to support further consistency of application, the WGC published an updated
Guidance note in 2018.
2. Reflects capital investment before first metals production from El Crestón. Further expenditure will be required after first metals production
for pre-stripping. A maximum negative cash flow of US$139 million is projected at the base assumptions used in the La Colorada technical
report.
La Colorada Return Estimates based on Gold Price 1
US$2,000/oz 2 US$2,600/oz 3
IRR (%) 11.9 34.7
NPV @ 5.0% discount (US$M) 25.9 110.0
NPV @ 7.5% discount (US$M) 15.0 91.2
Payback (years) 2.2 1.4
3. All other key parameters set at base assumptions , including the 5% discount rate used. More detailed analysis is presented in
the La Colorada technical report.
4. Base Gold Price assumption used in the La Colorada technical report.
5. Comparison gold price with reference to US$2,687.45 London Bullion Market Association (LBMA) PM gold price on trading day
January 10, 2025.
La Colorada Mineral Resource Estimates
Mineral Resources were estimated at La Colorada for three deposits: El Crestón, Veta Madre and the Junkyard,
and are summarized in the following tables by deposit.
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El Crestón Mineral Resource Statement
Category Tonnes
(kt)
Gold
Grade
(g/t)
Silver
Grade
(g/t)
Gold
Contained
Metal
(koz)
Silver
Contained
Metal
(koz)
Indicated 12,393 0.91 11.94 364 4,758
Inferred 202 0.70 6.07 5 39
Notes to accompany El Crestón Mineral Resource table:
1. Mineral Resources are reported insitu, using the 2014 CIM Definition Standards, and have an effective date of 31 October 2024 . The
Qualified Person for the estimate is Mr. David Thomas, P.Geo., Associate Mineral Resource Estimator with Mine Technical Services.
2. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
3. Mineral Resource estimates use the end of month October 2024 topography.
4. Mineral Resources are constrained by a conceptual pit shell using the following assumptions: a gold price of US$2,150/oz Au; a silver
price of US$26/oz Ag; rock mining cost of US$2.66/t mined; backfill mining cost of US$2.0/t mined ; crushing and conveying cost of
US$1.33/t processed; process and leaching cost of US$4.54/t processed; general and administrative cost of US$1.15/t processed; selling
cost of US$0.66/t processed; gold metallurgical recovery of 79%; silver metallurgical rec overy of 13%; and pit sl ope angles from 22º
(pad), 35–42º (pit).
5. Mineral Resources are reported at a gold equivalent cut -off of 0.14 g/t AuEq, using AuEq = (Au + Ag/equivalency factor), where
equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery)). This results in a Au:Ag ratio of 1:502.51.
6. Totals may not sum due to rounding.
Veta Madre Mineral Resource Statement
Category Tonnes
(kt)
Gold
Grade
(g/t)
Silver
Grade
(g/t)
Gold
Contained
Metal
(koz)
Silver
Contained
Metal
(koz)
Indicated 2,724 0.73 3.5 64 309
Inferred 77 0.53 2.5 1 6
Notes to accompany Veta Madre Mineral Resource table:
1. Mineral Resources are reported insitu, using the 2014 CIM Definition Standards, and have an effective date of 31 October, 2024. The
Qualified Person for the estimate is Mr. David Thomas, P.Geo., Associate Mineral Resource Estimator with Mine Technical Services.
2. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
3. Mineral Resource estimates use the end of month October 2024 topography.
4. Mineral Resources are constrained by a conceptual pit shell using the following assumptions: a gold price of US$2,150/oz Au; a silver
price of US$26/oz Ag; mining rock costs of US$2.55/t mined; crushing and conveying cost of US$1.33/t processed; process and leaching
cost of US$4.54/t processed; general and administrative cost of US$1.15/t processed; selling cost of US$0.66/t processed; gol d
metallurgical recovery of 72%; silver metallurgical recovery 9.0%; and pit slope angles averaging 45º.
5. Mineral Resources are reported at a gold equivalent cut -off of 0.15 g/t AuEq, using AuEq = (Au + Ag/equivalency factor), where
equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery)). This results in a Au:Ag ratio of 1:661.54.
6. Totals may not sum due to rounding.
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La Chatarrera Mineral Resource Statement
Category Tonnes
(kt)
Gold
Grade
(g/t)
Silver
Grade
(g/t)
Gold
Contained
Metal
(koz)
Silver
Contained
Metal
(koz)
Indicated 3,504 0.20 6.8 23 763
Inferred 1,220 0.41 33.29 16 1,305
Notes to accompany the Junkyard Stockpile Mineral Resource table:
1. Mineral Resources are reported in stockpiles, using the 2014 CIM Definition Standards, and have an effective date of 31 October, 2024.
The Qualified Person for the estimate is Mr. David Thomas, P.Geo., of Mine Technical Services.
2. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
3. Mineral Resource estimates use the end of month October 2024 topography.
4. Mineral Resources are reported using the following assumptions: a gold price of US$2,150/oz Au; a silver price of US$26/oz Ag ; a
stockpile rehandle cost of US$1.30/t mined; crushing and conveying cost of US$1.72/t processed; process and leaching cost of US$3.10/t
processed; general and administrative cost of US$1.15/t processed; selling cost of US$0.66/t processed; gold metallurgical recovery of
66%; and a silver metallurgical recovery of 27%.
5. Mineral Resources are reported at a gold equivalent cut -off of 0.17 g/t AuEq, using AuEq = (Au + Ag/equivalency factor), where
equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery)). This results in a Au:Ag ratio of 1:202.14.
6. Totals may not sum due to rounding.
La Colorada Mineral Reserve Estimates
Mineral Resources were converted to Mineral Reserves for El Crestón, Veta Madre and the Junkyard.
The Mineral Reserve estimate is based on operation of the existing crusher and conveyor system having a
nameplate throughput capacity of about 13,000 t/d, and continued operation of the heap leach and carbon-
in-circuit (CIC) process circuit and refinery to process ore from the three deposits. The Mineral Reserve
estimate is presented in the following table.
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
Notes to accompany Mineral Reserves table:
1. Mineral Reserves are reported at the point of delivery to the process plant, using the 2014 CIM Definition Standards.
2. Mineral Reserves have an effective date of 30 November 2024. The Qualified Person for the estimate is Mr. Jeffrey Choquette, P.E., of
Hard Rock Consulting.
3. A 0.16 g/t AuEq cut-off is used for reporting the Mineral Reserves at El Crestón, and a 0.175 g/t AuEq cut-off is used for reporting Mineral
Reserves at Veta Madre. Cut -offs were calculated based on a gold price of US$1,900/oz Au, silver price of US$23/oz Ag, processing
costs of US$5.87/t, general and administrative costs of US$1.15 /t, refining and selling costs of US$0.66/t, gold recovery of 79% for El
Crestón and 72% for Veta Madre and a silver recovery of 13% for El Crestón and 9% for Veta Madre. The AuEq cut-off for the Junkyard
Stockpile is 0.164 g/t AuEq based on metal prices of US$1,900/oz Au, and US$23/oz Ag, processing costs of US$4.82/t, general and
administrative costs of US$1.15/t, refining and selling costs of US$0.66/t, gold recovery of 66% and a silver recovery of 27%. The AuEq
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calculation uses the formula AuEq = (Au + Ag/equivalency factor) where equivalency factor = ((Au price in US$/g * Au recovery ) / (Ag
price in US$/g * Ag recovery)).
4. Mineral Reserves are reported within the ultimate reserve pit design. An external dilution factor of 10% and a metal loss of 5% were
factored into the Mineral Reserves estimates.
5. Tonnage and grade estimates are in metric units.
6. Mineral Reserve tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due
to rounding.
The LOM plan outlines sequential exploitation of the three deposits with two years of pre-production from the
Junkyard (2025) and from near-surface ore extracted during pre-stripping (2026), before a production LOM of
4.1 years.
Figure 1 - Ore Mined by Pit Phase
Note: Figure prepared by Hard Rock Consulting, 2024
La Colorada Operating Cost Estimates
The existing mining and process circuit at the La Colorada Mine remains unchanged for the proposed LOM plan
in the La Colorada technical report , with exploitation of the three deposits benefitting from the installed
capacity. The expected operating performance and operating cost forecasts were compiled with the benefit of
benchmarking historical performance at La Colorada and the input of seasoned professional s knowledgeable
of the conventional technologies being used at La Colorada, the expected consumption quantities of key
supplies, and commercial pricing for goods and services in Mexico.
Total Operating Cost Summary
Operating Costs Operating Cost
($/oz AuEq)
Operating Cost
($/t ore)
Operating Cost
($/t mined)
Total mining 1,038.63 17.02 2.06
Total processing 368.21 6.04
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Total site general and administrative 68.40 1.12
Refinery and transport 26.37 0.43
Cash operating costs 1,501.61 24.61
Production taxes 27.14 0.44
Royalties 20.00 0.33
Total cash costs 1,548.74 25.39
Capital costs 214.11 3.51
Total AISC 1,762.86 28.90
La Colorada Capital Cost Estimates
The Junkyard only requires working capital to bring the deposit into production.
The initial capital cost for El Crestón is estimated at US$ 54.0M, including US$9.0M capital for pad expansion
and US$43.4M mining pre-stripping costs until first production. A significant pre-strip is required to fully exploit
the El Crestón deposit, comprising both capitalized and expensed pre-stripping costs.
The LOM plan includes US$6.8M for reclamation work at the end of the mine life.
Capital Cost Summary
Capital Costs Initial
(US$ M)
Sustaining
(US$ M)
Total LOM
(US$ M)
Mine pre-production development 43.40 0.00 43.40
Contractor mobilization 0.21 0.00 0.21
Slope radar system 0.00 0.50 0.50
Leach pad expansion 8.97 2.13 11.10
Total direct costs 52.58 2.63 55.21
Owner costs and reclamation 0.00 6.80 6.80
Indirects and contingency 1.35 0.37 1.72
Total indirect costs 1.35 7.17 8.52
Total 53.93 9.80 63.73
La Colorada Economic Analysis
The financial analysis shows an after-tax net present value at a discount rate of 5% of US$25.9 M, an after-tax
internal rate of return of 11.9%, and a payback period of 2.2 years. The forecast total lifespan of the Project is
4.1 years with two years of pre -production, although some metals production is planned in these two years.
Approximately 377,000 oz of gold is projected to be mined, with 287,000 oz of gold recovered and produced
for sale.
Summary Economic Results
Project Valuation Overview Units After Tax Before Tax
Total cashflow US$ M 54.92 86.51
NPV @ 5.0% (base case) US$ M 25.93 49.77
NPV @ 7.5%; US$ M 14.99 35.82
NPV @ 10.0%; US$ M 5.90 24.14
Internal rate of return % 11.9 17.2
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Payback period Years 2.15 2.04
Payback multiple 1.35 1.55
Total initial capital US$ M 53.93 53.93
Metal Prices
The La Colorada technical report includes a sensitivity analysis for key parameters impacting the forecast
economic returns for La Colorada. The LOM plan and Mineral Reserves estimates are most sensitive to changes
in the gold price, and gold grade. Since silver is projected to contribute only about 4% to the revenues. LOM
variations in the silver price have limited impact on the cashflow forecast. The LOM plan and Mineral Reserves
estimates are less sensitive to operating cost changes, and least sensitive to changes in capital costs.
Gold Price Sensitivity Analysis
Au Price
(US$/oz Au)
Net Cash Flow
(US$ M)
After-Tax NPV
@ 5.0% Discount Rate
(US$ M)
IRR
(%)
Payback Period
(years) Payback Multiple
1,000 -235.88 -203.08 — 0.0 0.0
1,200 -167.30 -149.64 — 0.0 0.2
1,400 -99.10 -96.46 -31.1 0.0 0.5
1,600 -30.90 -43.29 -7.0 0.0 0.8
1,800 19.43 -3.17 4.2 2.7 1.1
2,000 54.92 25.93 11.9 2.2 1.4
2,200 89.39 53.96 19.4 1.8 1.6
2,400 123.85 82.00 27.0 1.6 1.9
2,600 158.32 110.03 34.7 1.4 2.3
2,800 192.79 137.88 42.3 1.2 2.7
3,000 227.26 165.60 49.7 1.1 3.2
Commentary by the Company on Relevant Matters
The results from ongoing drilling and other technical studies being performed at El Crestón are excluded from
the La Colorada technical report but will be incorporated into a mineral resource model and will support a
Mineral Reserve update that will be published with an updated technical report in mid-2025.
A total initial capital of $53.9M is a required, predominantly from waste stripping prior to the reaching the life-
of-mine strip ratio. Further stripping is required after reaching the life -of-mine strip ratio and a maximum
negative cash flow of US$139 million is projected at the base assumptions used in the La Colorada technical
report (US$117M at US$2,600 gold).
The La Colorada technical report presents cash flows based on the base gold price used. With exploitation of
the Junkyard starting this month, the project will generate revenues from sales based on current gold prices
which are expected to be higher than the base gold price used in the La Colorada technical report.
The gold market has experienced significant upward price movement in the past few years and , considering
that the gold price at the effective date of the La Colorada technical report is about 34% above the base gold
price used in the La Colorada technical report . The s ensitivity analysis presents gold price scenarios up to
US$3,000/oz Au to understand the potential impact. From the base case price of $2,000/oz (years 2026–2031),
a change in the average gold price of US$200/oz Au would change the NPV at a 5% discount rate by 10 8%, or
approximately $28.0 M