Heliostar Presents Stronger Economics at the La Colorada Mine in Updated Technical Report Technical Report Highlights:
TSX.V: HSTR
OTCQX: HSTXF
Heliostar Presents Stronger Economics at the La Colorada Mine in
Updated Technical Report
Technical Report Highlights:
• Base Case shows US$ 66.2M post tax NPV5, 24.4% IRR, with a payback multiple of 1 .9 at a
US$2,300/oz gold price
• Upside Case shows US$ 243.3M post tax NPV5, 168.4% IRR, with a payback multiple of 8.4 at a
US$3,500/oz gold price
• 286k ounces of gold produced at an AISC of US$1,626 per AuEq ounce over a 6.1-year mine life with
US$45M initial CAPEX
• US$40M increase in base case post -tax NPV5 and US$9.4M reduction in initial capital expenditure
from the previous technical report
• La Colorada Indicated Mineral Resources grow by 62k ounces to 513k ounces , grading 0.79 grams
per tonne
• Expansion potential with Veta Madre Plus. Potential to convert up to 28k Indicated Mineral
Resource ounces to Mineral R eserves to support a large r pit with drilling to be completed in Q4,
2025
• Permits received in August and September 2025 to expand the leach pad at La Colorada
Vancouver, Canada, October 17, 2025 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1)
(“Heliostar” or the “Company ”) is pleased to announce the results of an updated study on the La Colorada
Mine (“La Colorada”). This updated life of mine plan i ncludes the results from the first two phases of drilling
performed from November 2024 to March 2025 from the Company’s ongoing ~20,000-metre drilling campaign.
Heliostar CEO, Charles Funk, commented, “Today’s results show that the La Colorada mine can continue to be
a high-margin, low CAPEX operation with a 6.1-year mine life. This updated study is focused on the open pits at
La Colorada, demonstrating positive economics at conservative gold prices and a compelling opportunity at
current gold prices. The Company aims to continue to maximize cash generation from stockpiles in the near
term and internally fund capital requirements for open-pit production planned in 2027. Indicated gold resources
grew significantly with higher or maintained resource grades at El Crestón and Veta Madre. Reserves remained
almost unchanged with ounces defined by new drilling offset with more conservative pit wall angles at the El
Crestón pit.”
“Beyond this study, three clear growth opportunities exist – Veta Madre Plus, an expanded pit at El Crestón and
the explor ation potential of the larger land package . Veta Madre Plus will be tested with an infill drilling
program this quarter that could quickly show the ability to expand the pit and add an additional 28k ounces of
reserves. Should higher gold prices sustain, a larger pit at El Crestón may allow for steeper pit walls, increasing
reserves. The exploration potential of La Colorada remains significant with open resources and compelling
exploration targets across the property. These have been virtually untested over the last 10 years despite their
proximity to permitted mine infrastructure – this will change in late 2025 and 2026.”
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The technical report supporting this news release will be available on SEDAR+ (www.sedarplus.ca) and on the
Company's website (www.heliostarmetals.com) within the next 45 days. The La Colorada technical report that
is the subject of this news release will be reported in United States dollars (USD or US$) unless otherwise noted.
La Colorada Mine Updated Technical Report
Mineral Resource and Mineral Reserve estimates, as well as a life-of-mine (LOM) plan, were updated for the
100% owned La Colorada Mine located in Sonora, Mexico. The LOM plan in the La Colorada technical report is
based on production from three deposits staged sequentially: continued production from the Junkyard
Stockpile, the Veta Madre pit expansion (Veta Madre), and the El Crestón pit expansion (El Crestón).
The study includes updated Mineral Resource and Mineral Reserve estimates for Veta Madre and El Crestón.
The LOM plan indicate s an overall Probable Mineral Reserve of 376.2k ounces of gold (a decrease of 0.8k
ounces of gold compared to the previous technical report due to mining depletion), with Veta Madre having a
forecast mine life of 1.3 years and El Crestón a forecast mine life of 4.6 years, respectively. The operation will
have production rates up to the 13,000 t/d nameplate throughput capacity of the process plant at an estimated
LOM average US$1,626 per AuEq ounce all-in sustaining cost (AISC).
The La Colorada technical report is anticipated in November 2025.
Key Highlights
La Colorada - Mineral Reserve & Forecast Production Highlights
Probable Mineral Reserves (kt) 1 17,117
Gold Grade (g/t Au) 0.68
Contained Gold (koz Au) 376.2
Silver Grade (koz Ag) 9.2
Contained Silver (koz Ag) 5,055.9
Contained GEO (k GEO) 2 385.4
Processing Rate (t/d average) 3 8,200
Life of Mine (years) 4 6.1
Annual Production (oz GEO per year, average 2025-2031) 4 46,106
1. Probable Mineral Reserve.
2. GEO – Gold Equivalent Ounces
3. Processing throughput rates vary over the life of the mine, up to the nameplate capacity of the process plant, about 13,000 t/d.
4. Includes production from the Junkyard Stockpile from May 2025 onwards.
La Colorada – Forecast Financial Highlights
Average Cash Operating Costs (US$ per payable oz GEO) 1 1,533
Average AISC (US$ per payable oz GEO) 1 1,626
Total Initial Capital Cost (US$M) 2 44.5
Total Sustaining Capital Cost (US$M) 2 12.5
Total Life of Mine Capital Cost (US$M) 3 63.8
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1. Non-International Financial Reporting Standards (IFRS) measures. All-in sustaining costs (AISC) were first issued by the World Gold Council
(WGC) in 2013, with an updated Guidance note issued in 2018.
2. The initial capital cost reflects capital and capitalized investment before the first metals production from Veta Madre. Total sustainable
capital cost of US$12.5 million is included for capitalized pre-strip before first metals production from El Crestón.
3. Includes US$7.0 million reclamation expenditure at the end of the mine life.
La Colorada Forecast Return Estimates based on Gold Price 1, 2
US$2,300/oz 3 US$3,500/oz 4
IRR (%) 24.4 168.4
NPV @ 5.0% discount (US$M) 66.2 243.3
Payback (years) 3.4 2.0
1. All other key parameters are set at base assumptions, including the 5% discount rate used. More detailed analysis will be
presented in the full technical report.
2. After tax return estimates.
3. Base gold price assumption used in the La Colorada technical report.
4. Comparison of the gold price of US$3,500 with reference to the US$4,110.82 London Bullion Market Association (LBMA) PM gold
price on the trading day of October 15, 2025.
The study shows improved economics on the majority of the key metrics. The table below outlines the
differences in the base case between the January 2025 technical report and the updated technical report.
Drilling completed in 2024 and 2025 contributed additional indicated gold ounces (39k ounces at El Crestón
and 30k ounces at Veta Madre). Reserves and LOM gold production have not materially changed due to
recognition of faults in the El Crestón pit wall requiring more conservative pit wall designs . Resequencing
production from the three deposit areas further improved the economics, increasing the NPV and the IRR in
the updated technical report for La Colorada compared to the January 2025 technical report for the operation.
Changes in Key Metrics
January 2025
Technical Report
Updated Technical
Report Change
Gold Price US$2,000 US$2,300 15%
After Tax NPV5% US$25.9M US$66.2M 155%
After Tax IRR 11.9% 24.4% 105%
LOM Cash Flow US$54.9M US$105.5M 92%
Payback multiple 1.4x 1.9x 36%
Reserve gold ounces 377 koz 376.2 koz -1%
Reserve gold grade 0.65 g/t 0.68 g/t 5%
GEOs produced 297 koz 293 koz -1%
Mine life 6.5 years 6.1 years -6%*
Initial Capital Cost US$53.9M US$44.5M -17%
Total Cash Costs (per GEO) US$1,549 US$1,602 3%
AISC (per GEO) US$1,763 US$1,626 -8%
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The LOM plan outlines sequential exploitation of the three deposits beginning with continued mining from the
Junkyard Stockpile through 2025, followed by exploitation from Veta Madre , then El Crestón through the
following six years.
Figure 1 – Site Overview
Note: Infrastructure in green, stockpiles in yellow and open pits in blue
Figure 2 - Ore Mined by Pit Phase
Note: Figure prepared by Hard Rock Consulting, 2025
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Au Ounces
Ore Tonnes
Forecasted Ore Mined by Pit Phase
Junkyard Veta Madre Phs4 El Creston Phs 4.1
El Creston Phs 4.2 Au Oz's to Heap- Contained
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La Colorada Forecast Operating Cost Estimates
The mining method and process circuit at the La Colorada Mine remains unchanged for the proposed LOM plan
compared to the January 2025 technical study. The exploitation of the three deposits benefits from the existing
infrastructure at the mine, including the installed crushing and stacking equipment with a capacity of 1 3,000
tonnes per day. The expected operating performance and operating cost forecasts were compiled with the
benefit of benchmarking current and historical performance at La Colorada , the industry standard pr ocesses
being used at the mine informing the expected consumption quantities of key supplies, and commercial pricing
for goods and services in Mexico.
Total Operating Cost Summary
Operating Costs Operating Cost
(US$/oz AuEq)
Operating Cost
(US$/t ore)
Operating Cost
(US$/t mined)
Total mining 1,087 18.64 2.11
Total processing 350 6.00
Total site general and administrative 68 1.17
Refinery and transport 28 0.48
Cash operating costs 1,533 26.28
Production taxes 46 0.78
Royalties 23 0.39
Total cash costs 1,602 27.46
Sustaining capital costs 23 0.40
Total AISC 1,626 27.86
La Colorada Forecast Capital Cost Estimates
The Junkyard Stockpile is currently in production and requires only working capital.
The initial capital cost for Veta Madre is estimated at US$ 44.5M, including US$11.9M capital for leach pad
expansion and US$30.1M mining capitalized pre-stripping costs until first metal production.
The initial sustaining capital cost for El Crestón is estimated at US$ 12.5M for mining pre-stripping costs until
first metal production. Additional pre-stripping is required to fully exploit the El Crestón deposit, comprising
both capitalized and expensed pre -stripping costs shown in the technical report to be ongoing during ore
production from Veta Madre. With additional pre-stripping expenses at El Crestón, a maximum negative cash
flow of US$ 117.6M is projected at the base gold price assumption and US$46M at the upside case of
US$3,300/oz.
The LOM plan includes US$6.9M for reclamation work at the end of the mine life.
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Forecast Capital Cost Summary
Capital Costs Initial
(US$M)
Sustaining
(US$M)
Total LOM
(US$M)
Mine pre-production development 30.1 12.5 42.6
Contractor mobilization 0.2 0.0 0.2
Slope radar system 0.5 0.0 0.5
Leach pad expansion 11.9 0.0 11.9
Total direct costs 42.7 12.5 57.0
Owner costs and reclamation 0.00 6.9 6.9
Indirects and contingency 1.8 0.0 1.8
Total indirect costs 1.8 6.9 8.7
Total 44.5 19.3 63.9
La Colorada Economic Analysis
The economic analysis shows a base case after-tax net present value at a discount rate of 5% of US$66.2M, an
after-tax internal rate of return of 24.4%, and a payback period of 3.4 years at US$2,300/oz gold. The forecast
mine life is 6.1 years in the study. Approximately 374.9k ounces of gold are projected to be mined, with 286.3k
ounces of gold recovered and sold.
Summary Economic Results
Project Valuation Overview Units After Tax Before Tax
Total cashflow US$ M 105.5 162.6
NPV @ 5.0% (base case) US$ M 66.2 108.5
Internal rate of return % 24.4 33.1
Payback period Years 3.4 3.3
Payback multiple 1.9 2.4
Total initial capital US$ M 44.5 44.5
Metal Prices
The gold market has experienced significant upward price movement in the past few years . The gold price is
about 80% above the base case gold price used in the study.
The sensitivity analysis presents gold price scenarios up to US$4,100/oz Au to understand the potential impact
of continued gold price movement. From the base case price of US$2,300/oz, a change in the average gold
price of 10% (US$230/oz Au) would change the NPV5% by approximately US$34M.
With ongoing exploitation of the Junkyard Stockpile during 2025, the project will generate revenues from sales
based on current gold prices, which are expected to be significantly higher than the base case gold price used
in the study.
The LOM plan and Mineral Reserves estimates are most sensitive to changes in the gold price and gold grade.
Since silver is projected to contribute only about 4% to the revenues, LOM variations in the silver price have a
limited impact on the cashflow forecast. The LOM plan and Mineral Reserves estimates are less sensitive to
operating cost changes and least sensitive to changes in capital costs.
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Gold Price Sensitivity Analysis
Au Price
(US$/oz Au)
Net Cash Flow
(US$M)
After-Tax NPV
@ 5.0% Discount Rate
(US$ M)
IRR
(%)
Payback Period
(years) Payback Multiple
500 -444.25 -364.85 - - 0.0
800 -335.58 -280.57 - - 0.0
1100 -227.32 -196.62 - - 0.0
1400 -120.04 -113.37 -29.0% - 0.0
1700 -12.88 -30.20 -2.6% 6.0 0.0
2000 50.44 21.07 10.6% 3.8 1.3
2300 105.45 66.21 24.4% 3.4 1.9
2600 160.45 111.05 41.4% 3.0 2.8
2900 215.46 155.36 62.5% 2.6 4.5
3200 270.46 199.36 91.9% 2.3 6.6
3500 325.47 243.35 168.4% 2.0 8.4
3800 380.47 287.35 - 0.7 10.4
4100 435.48 331.35 - 0.5 12.8
Note: Dash indicates values have exceeded the limits of parameters calculated using the economic model
Commentary by Company on Next Steps, Funding and Additional Opportunities
The mining of the Junkyard Stockpile will continue through the remainder of 2025. The Company expects to
mine additional stockpile material already identified ahead of production from the Veta Madre Pit.
The total Mineral Reserve in the study is 374.9k ounces of gold, including the Junkyard Stockpile, Veta Madre
and El Crestón.
The Veta Madre Mineral Reserve can be exploited subject to receiving a C hange of Land Use (CUS) permit,
which the Company expects to receive in late 2025. The El Crestón expansion is expected to be sequenced into
the schedule in 2027.
In August and September 2025, the Company received approvals of modifications to two existing
environmental permits; the modifications authorize the expansion of the current leach pad to include an
additional 9.6Mt of capacity. This is forecast to be sufficient to mine and process material from stockpiles
included in the mining sequence and the Veta Madre pit. An additional leach pad expansion is planned for the
processing of material from the El Crestón expansion and will require an amendment of an existing
environmental permit.
Since the development plan for La Colorada represents a continuation of the historical operations, minimal
capital investment is required for new equipment and facilities ; however, pre-stripping at Veta Madre and El
Crestón will need to be funded. The Company expects this to come from a combination of cash generated from
the operations and potentially additional non-dilutive project financing if required.
A number of opportunities at La Colorada will become a focus for the Company upon submission of the updated
technical report
• Stockpiles have the potential to fund stripping costs at Veta Madre. Drilling and analysis of their
financial viability is ongoing and expected to be completed in Q4, 2025
• 28k Indicated Mineral Resource ounces at Veta Madre are not included in the mine plan. Infill drilling
of these areas is planned for 2025 , and the company is targeting converting these to reserves that
would support a larger pit, known as the Veta Madre Plus pit
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• A larger pit at El Crestón may allow for steeper pit walls, increasing resource to reserve conversion at
this deposit
• Drilling beneath the current pit boundary at El Crestón revealed widths and grades of gold mineralized
veins that maybe amenable to underground mining. The Company will further explore extensions of
high-grade mineralization at depth at El Crestón and Gran Central in late 2025 and 2026
• Outside the boundaries of the Mineral Resource estimate, several exploration targets remain largely
unexplored. These include fault offsets from known mineralization, consistent gold -in-soil anomalies
above 0.2 g/t, and areas with undrilled rock chip samples exceeding 1 g/t gold in zones of strong
alteration. Further prospecting, geophysics, drill targeting and drilling are planned for the remainder
of 2025 and 2026.
The La Colorada concession area covers 10,085ha and has seen very limited exploration beyond the immediate
areas where Mineral Resources have been estimated.
Figure 3 – Veta Madre Plus Opportunity
Mineral Resource Estimates
Mineral Resources were estimated at La Colorada for three deposits: El Crestón, Veta Madre and the Junkyard
Stockpile, and are summarized in the following table. Mineral Resources have an effective date o f April 30,
2025 and are reported in situ, using the 2014 Canadian Institute of Mining, Metallurgy and Petroleum
Definition Standards for Mineral Resources and Mineral Reserves (2014 CIM Definition Standards).