Heliostar Intersects 242m Grading 9.06 g/t Gold - The Longest and Highest-Grade Drill Hole in the History of the Ana Paula project in Mexico
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Heliostar Intersects 242m Grading 9.06 g/t Gold - The Longest
and Highest-Grade Drill Hole in the History of the Ana Paula
project in Mexico
Highlights:
• Hole AP-23-297
- 241.95 metres @ 9.06 grams per tonne (g/t) gold including
- 31.5 metres @ 21.5 g/t gold including
- 5.00 metres @ 51.0 g/t gold and including
- 35.2 metres @ 23.6 g/t gold including
- 9.90 metres @ 42.4 g/t gold
• Hole AP-23-298
- 104.1 metres @ 6.14 g/t gold including
- 19.5 metres @ 15.11 g/t gold
• Hole AP -23-297 is the longest , highest grade interval drilled in the history of the Ana Paula
project.
• These holes exceed the resource model’s predicted high grades, and extends high grade
mineralization up plunge.
Vancouver, Canada, July 18 th 2023 – Heliostar Metals L td. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG 1)
(“Heliostar” or the “Company”) is pleased to report additional drill results from the Ana Paula project in
Mexico. These two holes continue to assess mineralization up plunge of and within the High Grade Panel
at the core of Ana Paula.
Heliostar believes that the up plunge area of the High Grade Panel has the potential to increase the current
mineral resource. The current drill program continues to demonstrate higher overall grades over broad
widths relative to the current mineral resource. The current program will evaluate Ana Paula’s ability to
host a high-margin, underground gold mine.
Heliostar CEO, Charles Funk, comment ed, “Hole AP-23-297, 242m grading 9.06 g/t gold, is an incredible
gold intercept that exceeded our expectations. It shows potential to add ounces at higher grade in the up-
plunge growth target. And it illustrates the excellent continuity of high grade along the length of the High
Grade Panel. Holes AP-23-297 and AP-23-298 are both respectively 33% and 38% increases relative to the
current resource model prediction, at a >5 g/t gold cut-off grade. Heliostar is well placed with a recently
strengthened cash balance, continued flow of infill and growth drilling results and impactful metallurgical
and geotechnical studies pending. The Company continues to tick off the catalysts to deliver the updated
resource and re-scope of Ana Paula in 2023.”
Drill Results
Results from this press release are the first from Heliostar’s up-plunge growth target at Ana Paula. Hole
AP-23-297 was drilled to achieve four objectives:
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- Test the up-plunge growth target in the High Grade Panel. Drilling has returned an
increase in both grade and volume of higher grade in this region. The high -grade
material is expected to be readily suitable for underground mining.
- Confirm continuity of mineralization within the High Grade Panel on a metre -by-
metre scale. The new drill ing has infilled data between the existing 25 -50m spaced
holes currently defining the panel
- Collect a large volume of high-grade mineralization for metallurgical testing
- Add an east-to-west hole to the geotechnical program to reduce orientation bias and
identify potentially unidentified faults to incorporate in mine design. No significant
faults were encountered.
Figure 1: A plan map with the resource model from 2023 PFS 1 highlighting the High Grade Panel (clipped to greater
than 5g/t resource blocks). Heliostar results labelled with new holes in red boxes . Completed and ongoing holes are
shown in blue, and Growth and Infill targets areas labelled.
These results show a lon g interval of gold mineralization, 241.95 metres grading 9.06 g/t from 43.05
metres downhole, that contains two significant internal zones. An internal zone of 31.5 metres grading
21.5 g/t zone and a lower zone hosts 35.2 metres grading 23.6 g/t including 9.9 metres grading 42.4 g/t
gold.
The new data extends the consistent high -grade mineralization in the panel into the up -plunge growth
target. The ‘gap’ of low grade in the up-plunge target in Figure 1 was infilled with an interval returning 24
metres at 8.76 g/t gold. Hole AP -23-297 drilled through the lower margin of the High Grade Panel and
was terminated in low grade mineralization.
Hole AP-23-298 was a second drill hole targeting the up-plunge growth target from the same platform as
hole AP-23-297. It expanded the volume of high-grade gold mineralization above and below the currently
defined resource (Figure 2). Hole AP-23-298 returned 104.1m grading 6.1g/t gold including 19.5m grading
15.1 g/t gold.
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Figure 2: 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 with new holes in red boxes . Completed and ongoing holes are
shown in blue, and Growth and Infill targets areas labelled.
HoleID From
(metres)
To
(metres)
Interval
(metres)
Au
(g/t) Comment
AP-23-297 43.05 285.0 241.95 9.06
Includes 12.0 metres internal dilution and
geotech samples. Note 1
including 70.5 102.0 31.5 21.5
Includes geotech
samples. Note 1
and including 97.0 102.0 5.0 51.0
including 194.5 229.7 35.2 23.6
including 212.1 222.0 9.9 42.4
AP-23-298 17.9 122.0 104.1 6.14
Includes geotech
samples. Note 2
including 28.5 48.0 19.5 15.1
Includes geotech
samples. Note 2
Table 1: Significant Drill Intersections
1 includes 2.55 metres of sample removed for geotechnical studies and assumed to have 0 g/t
2 includes 1.03 metres of samples removed for geotechnical studies and assumed to have 0 g/t
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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 study 1). 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.
At a 5 g/t cutoff, hole AP-23-297 has a 33% increase when compared to an expected intercept calculated
from the existing resource model. Using the same criteria, AP -23-298 has a 38% increase compared to
the expected intercept from the resource model.
Drilling Progress
The Company is on schedule and on budget with the drilling program . T o-date, the Company has
completed sixteen holes at Ana Paula. The Company has reported results from eight holes so far. Holes
AP-23-299, AP -23-300 and AP -23-301 continue to assess the up -plunge growth target. Sulfide
mineralization occurs throughout each hole, particularly AP-23-300. Holes AP-23-302 and AP-23-303 are
the Company’s first holes targeting high-grade mineralization further west into the down -plunge target.
The holes intersected sulfide mineralization throughout, particularly AP-23-303.
The Company will commence two infill holes in the vicinity of hole AP-23-291. The result will be a cross -
section of tightly spaced intercepts. This data will support resource modelling and provide metallurgical
material for analysis.
Hole ID Northing
(WGS84 Zone 14N)
Easting
(WGS84 Zone 14N)
Elevation
(metres)
Azimuth
(°)
Inclination
(°)
Length
(metres)
AP-23-297 410,272 1,997,995 936 270 -46 285.0
AP-23-298 410,272 1,997,995 936 270 -85 129.0
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 North Vancouver ALS facility is ISO/IEC 17025
certified. Gold was assayed by 30 -gram fire assay wi th 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
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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.
Investor Relations
The Company is pleased to announce that it has retained the services of Swiss Resource Capital AG (“SRC”)
to undertake European focused investor relations activities on behalf of the Company. SRC is an
independent arms-length entity based in Switzerland who will introduce the Company to its European
investor network by recording, translating, broadcasting, and disseminating on its digital platform's news,
articles, interviews, and webinars. Under the terms of the Agreement, the Company will compensate SRC
5,000 CHF per month for a 12-month term, previously incorrectly reported as 3,500 Euro per month for a
12-month term.
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 minin g 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]
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
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: [email protected]
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This news release includes certain "Forward–Looking Statements" within the meaning of the United States
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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 future 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
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
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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 key 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.