Heliostar's Shallow Oxide Gold Hits at La Colorada: A Game Changer for Expansion Plans

Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) has delivered strong shallow oxide gold hits at the La Colorada Mine in Sonora, Mexico, potentially transforming the project's economics and expansion plans. The Company's aggressive five-rig drill program, targeting shallow extensions of known veins and deeper intercepts beneath the current pit, has yielded impressive results. These results could lower upfront capital costs, improve cash flow, and even extend mine life through underground mining optionality.

The drill results show narrow to wide, low to high-grade oxide gold intercepts, consistently returning intercepts above the 0.16 g/t gold cutoff grade of reserves within the Creston pit. This suggests that areas of waste could be converted to ore in an updated reserve model, reducing the capital requirements for the El Crestón expansion. Higher-grade intercepts deeper in the pit indicate the potential for mineralization that may be amenable to underground mining beyond the current pit boundary, extending mine life and providing additional ounces of gold.



Heliostar's CEO, Charles Funk, commented on the results, stating that the Company will use the results of this drill program to finalize a Feasibility Study in mid-2025 and then make an expansion decision on La Colorada to 50,000-100,000 ounces per year of annual production. The Company will also further test the underground mining potential with additional drilling in the current drill program.

In conclusion, Heliostar's strong shallow oxide gold hits at the La Colorada Mine have the potential to significantly enhance the project's economics and expansion plans. By converting waste to ore, reducing upfront capital costs, and exploring underground mining optionality, the Company is well-positioned to make a compelling case for expansion in its mid-2025 Feasibility Study. Investors should closely monitor Heliostar's progress at La Colorada as the project continues to unfold.