Heliostar Metals' Ana Paula Project: A High-Margin, Low-Cost Path to Mid-Tier Gold Production

In an era where gold's role as a safe-haven asset remains unshaken, junior producers with clear, near-term development timelines are attracting renewed investor attention. Among these, Heliostar Metals' Ana Paula Project stands out as a compelling case study in strategic value creation. With its low all-in sustaining costs, robust resource base, and accelerating development schedule, the project offers a blueprint for how a junior miner can transition from speculative exposure to mid-tier production status.

A Cost Structure That Defies the Curve

The Ana Paula Project's economic viability hinges on its remarkably low all-in sustaining cost (AISC) of $1,011 per gold equivalent ounce (GEO), as outlined in its Preliminary Economic Assessment (PEA) released in Q3 2025. This figure places the project in the lowest 13% of the global gold cost curve, a stark contrast to Heliostar's broader Q3 2025 consolidated AISC of $1,825 per GEO released in Q3 2025. Such a cost advantage is not accidental but a result of deliberate operational design. By transitioning to an underground-only operation-optimized for high-grade mineralization and low strip ratios-the project minimizes waste processing and capital intensity according to mining data.

The PEA further projects annual production of 101,000 GEOs post-ramp-up, with a nine-year mine life and a base-case post-tax net present value (NPV) of $426 million at a 5% discount rate as reported in the PEA. These metrics are bolstered by a gold price assumption of $2,400/oz, a level that, while ambitious, aligns with current market volatility and central bank demand. Even in a conservative scenario, the project's 28.1% internal rate of return (IRR) and 2.9-year payback period underscore its resilience according to PEA analysis.

Resource Confidence and Grade Strength

Resource estimates for Ana Paula, as of July 2025, reveal a project with both scale and grade. The deposit hosts 1,021,000 ounces of proven and probable reserves at 2.36 g/t gold and 5.22 g/t silver as detailed in company announcements, alongside 710,920 ounces of measured and indicated resources at 6.60 g/t gold as reported in the technical update. These figures are further supported by inferred resources of 447,512 ounces at 4.24 g/t gold as detailed in the technical report. Such a high-grade profile-particularly in a sector where average grades are declining-positions Ana Paula as a rare asset capable of sustaining margins even in a higher-cost environment.

The project's 2.10 g/t average grade for measured and indicated resources as reported in the PEA, constrained by optimized stoping methods, reflects a disciplined approach to mine planning. This focus on high-grade zones not only reduces dilution but also aligns with the project's underground-only strategy, which prioritizes economic extraction over bulk mining.

A Near-Term Timeline with Execution Risk Mitigation

Heliostar's development timeline for Ana Paula is both aggressive and methodical. Key milestones include:
- Permitting: Finalization of tailings design in Q3 2025, enabling a permit modification for underground development according to mining data.
- Financing: Discussions with project financiers set to begin in Q4 2025, coinciding with detailed engineering work according to mining data.
- Construction: A $300 million initial capital expenditure (CAPEX) plan, with underground access to the deposit targeted for completion by 2026 as detailed in the PEA.

- Production: Commercial operations expected by 2028, with a phased ramp-up to 101,000 GEOs annually as detailed in the PEA.

This timeline is further de-risked by Heliostar's commitment to exploration. A 20,000-meter drill program is underway to expand resource confidence and test satellite zones according to mining data, while the PEA's technical report-filed on SEDAR+-provides transparency on engineering and metallurgical parameters as reported in the filing. Such diligence is critical for a project aiming to attract project finance, which typically demands bankable feasibility studies by early 2027 as reported in company announcements.

Strategic Implications for Junior Producers

The Ana Paula Project exemplifies the strategic value of junior gold producers with clear, near-term catalysts. For investors, the project's low-cost structure and high-grade resources offer a hedge against inflation and currency devaluation. For Heliostar, Ana Paula represents a pathway to mid-tier status-a category of producers that balance scale with operational flexibility.

However, the project's success hinges on two critical factors: gold price stability and execution discipline. While the PEA assumes a $2,400/oz gold price, a drop below this threshold could strain margins. Conversely, a rise to $3,800/oz-a plausible scenario given geopolitical tensions-would amplify returns, with an upside-case NPV of $1.012 billion as detailed in the PEA. Execution risks, meanwhile, are mitigated by Heliostar's partnership with engineering firms like M3 Engineering & Technology Corp. and JDS Energy & Mining as detailed in the technical report, both of which bring expertise in complex underground operations.

Conclusion

Heliostar Metals' Ana Paula Project is more than a gold mine-it is a case study in how junior producers can leverage high-grade assets and disciplined capital allocation to achieve mid-tier status. With its low AISC, robust resource base, and accelerating timeline, the project offers a rare combination of near-term visibility and long-term scalability. For investors seeking exposure to the gold sector's next wave of growth, Ana Paula represents a compelling, well-structured opportunity.