Heliostar Metals Announces Updated Mineral Resource Estimate for the Ana Paula Project, Mexico Highlights of the Mineral Resource Estimate:
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Heliostar Metals Announces Updated Mineral Resource
Estimate for the Ana Paula Project, Mexico
Highlights of the Mineral Resource Estimate:
• Total measured and indicated mineral resources of 710,920 gold ounces grading 6.60 g/t gold
• Total inferred mineral resources of 447,512 gold ounces grading 4.24 g/t gold
• Mineral resource estimation cutoff grade of 2.5g/t gold. Increased from previous estimate
• A connected zone of greater than 200,000 gold ounces grading greater than 10 g/t gold within
the measured resource in the High Grade Panel that can be targeted in the initial years of mining
• 58% increase in measured and 30 % increase in indicated gold grade relative to the previous
resource estimate at same 2.5 g/t cutoff grades
Key Statistics:
• Tighter spaced drilling has led to resource grade growth which is a positive indication for
additional grade increases during conversion of the inferred resources to higher classifications
• Increase in Inferred ounces is due to stricter estimation with a view to underground mining
• The High Grade Panel at core of the resource is 280m long, 100m high and 60m thick
• All-in discovery cost of US$16 per new gold ounce, inclusive of all exploration and project costs
Vancouver, Canada, November 27, 2023 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1)
(“Heliostar” or the “ Company”) is pleased to report an updated mineral resource estimate (“Updated
Mineral Resource Estimate”) for its Ana Paula Project (the “Project” or “Ana Paula”) located in Guerrero,
Mexico. The Updated Mineral Resource Estimate was completed by Rita Teal, Qualified Person with Teal
CPG Inc.
The high -grade portion of the Ana Paula deposit has grown significantly from 860,519 measured and
indicated ounces of gold grading 4.86 grams per tonne (“g/t") and 5,564 inferred ounces of gold grading
3.72 g/t to 710,920 measured and indicated ounces of g old grading 6.60 g/t and an additional 447,512
ounces inferred ounces of gold grading 4.24 g/t.
“At the beginning of this year Heliostar set out to transform the Ana Paula Project into a deposit that will
support a high-margin, underground gold mine. Today ’s updated resource estimate is a major milestone
on this rapid path of growth and de-risking toward production. In acquiring the project, the Company saw
three key levers to improve the deposit; increases in both resource size and grade, enhanced gold
recoveries and high er upfront mining grades . Today’s resource estimate, coupled with the Company’s
recent metallurgical results have firmly delivered on each lever. The measured and indicated resource
grades are up by 58% and 30% respectively and the deposit has grown significantly. The initial
metallurgical analysis improved on our base case by over 10% to an 80.4% gold recovery utilizing a
conventional flow sheet. The continuous zone of greater than 200,000 ounces grading greater than 10 g/t
gold within the High Grade Panel can be targeted in the initial years of a mine plan. These additional
resources have been delivered at a cost of just US$16 per gold ounce. Perhaps the most exciting aspect of
this update is that the High Grade Panel, Parallel Panel and Expansion zone are all open to grow, and new
targets, immediately north of this year’ s drilling, are clear with our new exploration model.” commented
Heliostar CEO, Charles Funk.
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Figure 1: A section through the Updated Mineral Resource Estimate. Clipped to show blocks greater than 2.5g/t gold.
Figure 2: A detailed section through the High Grade Panel. Clipped to show blocks greater than 2.5g/t gold. Inset connected zone
greater than 200,000 gold ounces grading greater than 10 g/t gold labelled.
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
Table 1: Ana Paula Project High Grade Mineral Resource Estimate (2.5 g/t cutoff grade)
Classification
Cutoff Gold Grade
(g/t)
Tonnes
(Mt)
Average Gold Grade
(g/t)
Contained Gold
(Ounces)
Measured 2.5 1.11 8.97 320,204
Indicated 2.5 2.24 5.42 390,716
Total Measured &
Indicated 2.5 3.35 6.60 710,920
Inferred 2.5 3.28 4.24 447,512
Table 2: Ana Paula Project Global Mineral Resource Estimate (1.0 g/t cutoff grade)
Classification
Cutoff Gold Grade
(g/t)
Tonnes
(Mt)
Average Gold Grade
(g/t)
Contained Gold
(Ounces)
Measured 1.0 1.68 6.48 349,084
Indicated 1.0 5.89 3.01 569,708
Total Measured
& Indicated 1.0 7.56 3.78 918,792
Inferred 1.0 14.3 2.12 974,192
Notes:
• The classification of the Updated Mineral Resource Estimate into measured, indicated and inferred
mineral resources is consistent with current 2014 CIM Definition Standards for Mineral Resources and
Mineral Reserves.
• A technical report is being prepared on the Updated Mineral Resource Estimate in accordance with
National Instrument 43-101 (“NI-43-101”) and will be available on the Company’s website and SEDAR+
within 45 days of the date of this release. The effective da te of the Updated Mineral Resource
Estimate is November 27, 2023
• All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due
to rounding.
• All mineral resources are presented undiluted and in situ, constrained by continuous 3D solid models,
and are considered to have reasonable prospects for eventual economic extraction.
• Mineral resources are not mineral reserves. Mineral resources which are not mineral reserves do not
have demonstrated economic viability. An inferred mineral resource has a lower level of confidence
than that applying to an indicated mineral resource and m ust not be converted to a mineral reserve.
It is reasonably expected that the majority of inferred mineral resources could be upgraded to
indicated mineral resources with continued exploration.
• The database comprises a total of 4 19 drill holes totaling 170,674 metres of drilling for 111,352
samples completed between 2005 and 2023 by Goldcorp Inc., Newstrike Capital Inc., Timmins Gold
Corp., Alio Gold Inc., and Heliostar. This estimate includes 2023 drilling completed by Heliostar.
• Heliostar completed 18 holes totaling 3,218.8 metres for 2,794 samples which were inc luded in this
model. These were not included in previous models.
• The model was limited to an area with a minimum easting and northing of 409,450 and 1,997,000 and
a maximum easting and northing of 411,300 and 1,999,050.
• Density and specific gravity sampling totaled 7,177 samples collected between 2005 and 2023.
Samples were measured in house, principally using wax coat or sealed or sealed water im mersion
methods with check samples sent to two external labs.
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• Heliostar collected and included 1,899 specific gravity samples which were measured by wax coat
immersion with 5% of samples sent to ALS as an external check.
• High grade gold samples were commonly analyzed multiple times using three methods. In these
cases, the gold value used to estimate the resource was selected based on a preference list where
screen fire assay was preferred above fire assay with gravimetric finish was preferred above fire assay
with AAS finish.
• The Updated Mineral Resource Estimate relies on the updated geologic model completed in Leapfrog
Geo modeling software for domaining. This includes five domains: main polymictic breccia,
monomictic breccia, sediments, skarn/hornfels, and granodiorite/porphyry.
• The resource model is constrained to a 0.2 g/t gold grade shell. This was constructed in Leapfrog
Geosoftware using an ellipsoidal structural model and indicator modeling tool at a 50% probability. A
grade shell study was completed to evaluate the percentage of dilution and exclusion of gold grades
at differing probabilities. Outlying volumes that did not meet modeling criteria were removed.
• The resource model was completed in Leapfrog Edge sof tware, based on 5x5x5 metre blocks with
minimum sub-block size of 1x1x1 metre. Grade estimation is based on Ordinary Kriging using 2.0
metre composites. The top cutting for each domain was determined by analyzing log-normal
probability plots and performing Parrish analysis. A three -pass search was used to optimize block
estimation. This process ensures that blocks with more informed data are interpolated using a tighter
search ellipsoid, in contrast to b locks with less information, which are interpolated using a broader
search ellipse.
• The mineral resource estimate has been classified as either measured, indicated, or inferred based on
search passes, geologic continuity (Main Polymictic Breccia), sample spacing for measured
classification (25m x 25m), grade continuity and estimation quality (slope of regression).
• Heliostar Metals envisions that the Ana Paula deposit may be mined using underground mining
methods. Mineral resources are reported at a cutoff grade of 2.5 g/t gold. The mineral resource grade
blocks were quantified above the base case cutoff grade, below surface and within the constraining
mineralized wireframes.
• The Updated Mineral Resource Estimate may be materially affected by environmental, permitting,
legal, title, taxation, socio-political, marketing, or other relevant issues.
1090 West Georgia Street, Suite 700, Vancouver BC, V6E 3V7, Canada -- Tel +1 236 429 9306
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Table 3: Ana Paula Project Measured, Indicated and Inferred Resource Sensitivity Table
Classification
Cutoff Grade
(g/t)
Tonnes
(Mt)
Gold Grade
(g/t)
Contained Metal
(Ounces)
Measured:
>=0.6 1.99 5.57 357,157
>=1.0 1.68 6.48 349,048
>=2.0 1.23 8.33 328,516
>=2.5 1.11 8.97 320,204
>=5.0 0.79 11.12 283,597
>=7.5 0.57 13.01 239,747
>=10.0 0.38 15.27 184,509
Indicated:
>=0.6 10.10 2.08 674,085
>=1.0 5.89 3.01 569,708
>=2.0 2.87 4.72 436,143
>=2.5 2.24 5.42 390,716
>=5.0 0.87 8.45 236,564
>=7.5 0.39 11.47 142,387
>=10.0 0.19 14.52 87,449
Inferred:
>=0.6 29.23 1.43 1,339,575
>=1.0 14.29 2.12 974,192
>=2.0 4.71 3.63 549,800
>=2.5 3.28 4.24 447,512
>=5.0 0.66 7.68 162,308
>=7.5 0.21 11.49 75,983
>=10.0 0.10 14.63 47,352
Table 4: Comparison Between Updated and March 2023 Resource Estimates at 2.5g/t cutoff
Classification
Cutoff
Gold
Grade
(g/t)
Tonnes
(Mt)
Average
Gold
Grade
(g/t)
Contained
Gold
(Ounces)
Cutoff
Gold
Grade
(g/t)
Tonnes
(Mt)
Average
Gold
Grade
(g/t)
Contained
Gold
(Ounces)
Change
in
Grade
Change
in
Ounces
March 2023 MRE Updated November 2023 MRE
Measured 2.5 2.51 5.68 457,943 2.5 1.11 8.97 320,204 58% -30%
Indicated 2.5 3.00 4.18 402,576 2.5 2.24 5.42 390,716 30% -3%
Total
Measured &
Indicated 2.5 5.51 4.86 860,519 2.5 3.35 6.60 710,920 36% -17%
Inferred 2.5 0.05 3.72 5,564 2.5 3.28 4.24 447,512 14% 7,943%
Note: The March 2023 Resource Estimate was not previously presented at a cutoff gold grade of 2.5 g/t. These figures are
presented here for comparison purposes. The techn ical report to be filed in connection with the Updated Mineral Resource
Estimate will include these figures.
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
Table 5: Comparison Between Updated and March 2023 Global Resource Estimates
Classification
Cutoff
Gold
Grade
(g/t)
Tonnes
(Mt)
Average
Gold
Grade
(g/t)
Contained
Gold
(Ounces)
Cutoff
Gold
Grade
(g/t)
Tonnes
(Mt)
Average
Gold
Grade
(g/t)
Contained
Gold
(Ounces)
Change
in
Grade
Change
in
Ounces
March 2023 MRE Updated November 2023 MRE
Measured 0.6/1.6 9.18 2.09 703,800 1.0 1.68 6.48 349,048 210% -50%
Indicated 0.6/1.6 12.0 2.38 765,000 1.0 5.89 3.01 569,708 26% -26%
Total
Measured &
Indicated 0.6/1.6 21.1 2.16 1,468,880 1.0 7.56 3.78 918,792 75% -37%
Inferred 0.6/1.6 0.04 1.89 23,700 1.0 14.3 2.12 974,192 12% 4,011%
Note: The cutoff gold grades in the table above differ because the March 2023 resource estimate has a 0.6 g/t cutoff within an
open pit shell and a 1.6 g/t outside of this shell. Heliostar has selected a 1.0g/t cutoff as a representation of the global resource
estimate for the Updated Mineral Resource Estimate.
Updated Resource Estimate Discussion
The Updated Mineral Resource Estimate has been designed and optimized for an underground mining
scenario. The previous mineral resource estimate from March 2023 (the “ March 2023 estimate ”) was
designed and optimized for an open pit mining scenario with an underground component beneath the pit
shell. The simplest comparison between these estimates is undertaken using the 2.5 g/t cutoff grade for
both estimates (Table 4). A global comparison is shown for direct comparison with the previous total
resource estimate (Table 5).
The clearest contrast between the updated resource and March 2023 Estimate remains the average gold
grade. In the new resource, the gold grade has materially increased in every category.
The tighter drill spacing undertaken by Heliostar in 2023 in the area of the High Grade Panel has supported
reporting to the measured and indicated categories in the updated resource with an underground mining
focus. The broader spaced holes outboard and beneath the High Grade Panel have largely been re-
classified to inferred status in the updated resource due to the tighter drill spacing required for an
underground mining focused resource estimate. In underground mining, each resource block must be
targeted for extraction and underground development must be put in place to access it. Whereas in an
open pit scenario all blocks on each level of the mine are mined regardless of classification.
The tighter spaced drilling completed by Heliostar in 2023 was the principal driver of higher average gold
grades in the U pdated Mineral Resource Estimate. The C ompany believes the same potential exists to
increase grades in the current inferred classification when it undertakes tighter spaced drilling to convert
these resources to higher confidence classification categories.
Heliostar’s understanding o f the geological controls on mineralization has also increased between the
resource models. The Ana Paula deposit is hosted by westerly dipping, thinly bedded, calcareous
sediments and lesser tuffs. These rocks have been deformed and intruded by calc-alkalic, felspar porphyry
sills and dykes. These intrusives are believed to drive phreatomagmatic breccias that pre -date gold
mineralization. An interpreted east-west fault system control is considered key for gold mineralization.
The High Grade Panel is de fined by one of these faults, where it hosts a polymictic breccia body that is
approximately 280 metres wide, 100 metres high and 60 metres thick. The Parallel Panel is a second east-
west trending fault to the north. Gold mineralization is interpreted to have been driven by deeper
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intrusive rocks and exploits the east-west faults and porous bedding planes as a fluid conduit. Favorably
porous and reactive rock units preferentially host high -grade gold mineralization , particularly the main
polymictic breccia body that hosts the High Grade Panel.
To the north of the Parallel Panel, the Updated Mineral Resource Estimate highlights a number of poorly
defined high-grade gold intercepts. These intercepts model as discrete zones of high-grade mineralization
but remain poorly defined due to a lack of drilling. Heliostar believes these may be repetitions to the north
of the interpreted east-west fault controls that host the High Grade Panel and Parallel Panels. The y
represent excellent exploration targets for continued growth of the Ana Paula deposit (Figure 3).
Figure 3: A north-south section through the Ana Paula Update Mineral R esource Estimate. Major zones, the High Grade P anel,
Parallel Panel and Expansion Zone are labelled along with new northern exploration targets.
Exploration Discovery Cost
To date, the Company has incurred an aggregate of approximately US$4.7 million on exploration, project
holding costs, studies and related matters since acquisition of the Project on March 28, 2023. This equates
to an estimated discovery cost of US$16 per ounce for new high grade gold resources (above 2.5g/t gold)
defined in the Updated Mineral Resource Estimate.
All-in; including project acquisition costs, all site and exploration costs and G&A since the acquisition of
the Ana Paula project the company has a total cost of US$15.5 per resource ounce in the Updated Mineral
Resource Estimate.
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
Webinar Invitation
The Company is hosting a webinar tomorrow, November 28 at 1pm Pacific/4pm Eastern time, to provide
present the Updated Mineral Resource Estimate for the Ana Paula Project. Please use the link here to
register for the webinar:
https://us02web.zoom.us/webinar/register/WN_oPjMzlKFQq23gNkh0jE-zA#/registration
Quality Assurance / Quality Control
Core samples were shipped to ALS Limited 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 with atomic absorption spectroscopy finish and
overlimits were analyzed 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
The Updated Mineral Resource Estimate was completed by Rita Teal,. of Teal CPG Inc. Ms. Teal is an
independent Qualified Person as defined by NI 43 -101. Rita Teal and Lewis Teal, QP with Teal CPG, Inc.
have reviewed and approved the technical contents of this news release.
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 developing the 100% owned Ana Paula Project in Guerrero, Mexico. In addition, Heliostar
in conjunction with the Mexican federal and local government, is working to permit the San Antonio Gold
Project in Baja Sur, Mexico. The Company continues to explore the Unga Gold Project in Alaska, United
States of America.
Ana Paula hosts measured and indicated resources of 710,920 ounces of gold ( 320,204 measured and
390,716 indicated ounces) at 6.60 g/t gold and an inferred resource of 447,512 ounces of gold at 4.24 g/t
gold. The asset is permitted for open -pit mining and contains significant existing infrastructure including
a portal and a 412-metre-long decline.
For additional information please contact:
Charles Funk
Chief Executive Officer
Heliostar Metals Ltd.
Email: [email protected]
Rob Grey
Investor Relations Manager
Heliostar Metals Ltd.
Email: [email protected]