HELIOSTAR METALS LTD - HSTXF STOCK NEWS

Heliostar Metals (HSTXF) has announced plans to restart mining operations at the La Colorada Mine in January 2025, focusing on the Junkyard Stockpile. The company has completed 57 drill holes totaling 2,290 metres on the stockpile, which contains material previously mined from the Gran Central Pit in the 1990s. The drilling program revealed a historic tailings facility beneath the stockpile, requiring additional metallurgical testing.

The planned restart will initially supplement and then replace current gold production from residual leaching at the mine. A technical report including drilling results, resource modeling, and metallurgy for the Junkyard Stockpile, along with Creston Pit expansion details, will be published in January 2025.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) has appointed Ramon Tomas Dávila Flores as non-executive director to its board with immediate effect. Dávila brings extensive experience from his roles as President of Guanajuato Silver, Minister of Economic Development for Durango State (2016-2020), COO of First Majestic Silver (until 2014), and President of Pan American Silver's Mexican operations.

As part of his compensation, Dávila will receive 200,000 share purchase options with a five-year term at C$0.70 strike price and 50,000 Restricted Share Units. He will join the company's Technical Committee, HSESD Committee, and Human Resources and Compensation Committee.

Heliostar Metals announced significant drill results from its Ana Paula project in Mexico. Notable intersections include 87.8 metres @ 16.0 g/t gold including 16.1 metres @ 71.8 g/t gold in hole AP-24-317, and 125.9 metres @ 4.02 g/t gold including 23.6 metres @ 12.5 g/t gold in hole AP-24-315. The drilling program, consisting of 2,600 metres in phase one followed by 2,400 metres in phase two, continues to expand the High Grade Panel to the north and down-dip while increasing resource confidence. Eight holes have been completed totaling 2,860.1 meters, with drilling focus shifting to geotechnical and water testing before returning to resource drilling in 2025.

Heliostar Metals has announced initial results from its 12,500-metre drilling program at the La Colorada Mine in Sonora, Mexico. Key highlights include intercepts of 5.0m grading 18.0 g/t gold and 37.0m grading 1.24 g/t gold. The company is operating five drill rigs at the site, focusing on expanding oxide mineral reserves at the El Creston pit. The program aims to support a potential mining restart in 2025, with results showing shallow mineralization remains open and could positively impact mining economics. A feasibility study and production decision for El Creston are expected by mid-2025.

Heliostar Metals has announced production guidance for July-December 2024 following its acquisition of the San Agustin and La Colorada mines in Mexico. The company expects total gold sales of 19,350-19,750 ounces at cash costs of US$1,500-1,600 per ounce and AISC of US$1,650-1,750 per ounce.

La Colorada continues production from leach pads while evaluating a 4.2 million tonne stockpile for potential restart. San Agustin has ceased mining due to permit constraints but continues producing from existing leach pads. The company has submitted a permit application to expand operations in 2025, without which the mine will transition to care and maintenance.

Heliostar Metals has completed the acquisition of Florida Canyon Gold Inc.'s Mexican mining assets for US$5 million. The acquisition includes the San Agustin mine, La Colorada mine, Cerro del Gallo project, and San Antonio project. The deal eliminates US$20 million in contingent payments related to the Ana Paula project, as well as US$150 million in conditional option payments and a 2% net smelter returns royalty on the San Antonio project. The transaction includes all cash generated since July 11, 2024, minus US$5 million in operating cash flow attributable to FCGI, with a minimum US$2 million net working capital requirement.

Heliostar Metals (TSXV: HSTR) (OTCQX: HSTXF) has closed two debt facilities totaling US$10 million to support its acquisition of assets from Florida Canyon Gold. The facilities include a Working Capital Facility and Transaction Closing Facility with Ocean Partners USA and Deans Knight Capital Management respectively. The company has drawn US$5 million from the Transaction Closing Facility and has access to an additional US$5 million from the Working Capital Facility. As part of the arrangement, Heliostar issued 1,500,000 common shares subject to a four-month statutory hold period.

Heliostar Metals announced significant drilling results from its Ana Paula project in Guerrero, Mexico. Key findings include a 16.0-metre intersection grading 16.7 g/t gold in a newly discovered zone from hole AP-24-314, and a 6.05-metre intersection grading 8.24 g/t gold from hole AP-24-313. The company is executing a 2,600-metre Phase One drilling program, with plans for an additional 2,400 metres in Phase Two. The results suggest potential expansion of the High Grade Panel by over 115m down plunge and indicate new gold zones surrounding the main panel. Five holes totaling 1994.8 meters have been completed to date.

Heliostar Metals has received clearance from COFECE (Comisión Federal de Competencia Económica) for its planned acquisition of the Mexico Business Unit from Florida Canyon Gold. This regulatory approval was the final major requirement needed before closing the acquisition, which is expected to take place in early November 2024. The company trades under the symbols HSTR on TSXV, HSTXF on OTCQX, and RGG1 on FSE.