Heliostar Files Technical Reports on Mines and Development Project Recently Acquired in Mexico
Heliostar Metals has filed technical reports for three recently acquired Mexican projects. The La Colorada Operations show US$25.9M NPV5, 11.9% IRR, with US$53.9M CAPEX and expected production of 287k total ounces at US$2,000/oz gold. Production restart commenced this month at the Junkyard Stockpile, with El Crestón expansion expected to produce over 50,000 ounces of gold per year.
The San Agustin Operations demonstrate US$12.7M NPV5, 156.1% IRR, US$4.2M CAPEX and 45k total ounces produced at US$2,100/oz gold. The Phase 4 Permit, expected in 2025, will enable cash flow generation and rehabilitation costs funding.
The San Antonio Project PEA shows US$398.7M NPV5, 40.7% IRR, US$131.3M CAPEX and 1.1 million total ounces produced at US$1,900/oz gold, with a mineral resource of 1.6 million ounces.
Heliostar Metals ha presentato rapporti tecnici per tre progetti messicani recentemente acquisiti. Le Operazioni La Colorada mostrano un NPV5 di 25,9 milioni di dollari, un IRR dell'11,9%, con un CAPEX di 53,9 milioni di dollari e una produzione prevista di 287k once totali a 2.000 dollari/oncia d'oro. Il riavvio della produzione è iniziato questo mese presso il Junkyard Stockpile, con l'espansione di El Crestón prevista per produrre oltre 50.000 once d'oro all'anno.
Le Operazioni San Agustin dimostrano un NPV5 di 12,7 milioni di dollari, un IRR del 156,1%, un CAPEX di 4,2 milioni di dollari e 45k once totali prodotte a 2.100 dollari/oncia d'oro. Il Permesso Fase 4, previsto per il 2025, permetterà la generazione di flussi di cassa e il finanziamento dei costi di riabilitazione.
Il PEA del Progetto San Antonio mostra un NPV5 di 398,7 milioni di dollari, un IRR del 40,7%, un CAPEX di 131,3 milioni di dollari e 1,1 milioni di once totali prodotte a 1.900 dollari/oncia d'oro, con una riserva mineraria di 1,6 milioni di once.
Heliostar Metals ha presentado informes técnicos para tres proyectos mexicanos recientemente adquiridos. Las Operaciones La Colorada muestran un NPV5 de 25.9 millones de dólares, un IRR del 11.9%, con un CAPEX de 53.9 millones de dólares y una producción esperada de 287k onzas totales a 2,000 dólares/onza de oro. El reinicio de la producción comenzó este mes en el Junkyard Stockpile, con la expansión de El Crestón que se espera produzca más de 50,000 onzas de oro por año.
Las Operaciones San Agustin demuestran un NPV5 de 12.7 millones de dólares, un IRR del 156.1%, un CAPEX de 4.2 millones de dólares y 45k onzas totales producidas a 2,100 dólares/onza de oro. El Permiso Fase 4, que se espera en 2025, permitirá la generación de flujo de efectivo y el financiamiento de los costos de rehabilitación.
El PEA del Proyecto San Antonio muestra un NPV5 de 398.7 millones de dólares, un IRR del 40.7%, un CAPEX de 131.3 millones de dólares y 1.1 millones de onzas totales producidas a 1,900 dólares/onza de oro, con un recurso mineral de 1.6 millones de onzas.
Heliostar Metals는 최근 획득한 세 가지 멕시코 프로젝트에 대한 기술 보고서를 제출했습니다. 라 코로라다 오퍼레이션은 2,590만 달러의 NPV5, 11.9%의 IRR, 5,390만 달러의 CAPEX 및 금 2,000달러/온스 기준으로 287,000온스의 예상 생산량을 보여줍니다. 잭야드 재고에서 본격적인 생산 재개가 이달 시작되었으며, 엘 크레스트론 확장은 연간 50,000온스 이상의 금을 생산할 것으로 예상됩니다.
산 아구스틴 오퍼레이션은 1,270만 달러의 NPV5, 156.1%의 IRR, 420만 달러의 CAPEX 및 금 2,100달러/온스 기준으로 총 45,000온스를 생산했습니다. 2025년으로 예상되는 4단계 허가는 현금 흐름 생성 및 재활 비용 자금 조달을 가능하게 할 것입니다.
산 안토니오 프로젝트의 PEA는 3억 9,870만 달러의 NPV5, 40.7%의 IRR, 1억 3,130만 달러의 CAPEX 및 금 1,900달러/온스 기준으로 총 110만 온스를 생산했으며, 광물 자원은 160만 온스입니다.
Heliostar Metals a déposé des rapports techniques pour trois projets mexicains récemment acquis. Les Opérations La Colorada affichent une VAN à 5 % de 25,9 millions de dollars, un TIR de 11,9 %, avec un CAPEX de 53,9 millions de dollars et une production attendue de 287 000 onces au prix de 2 000 dollars/l’once d’or. Le redémarrage de la production a commencé ce mois-ci au Junkyard Stockpile, l'extension d'El Crestón devant produire plus de 50 000 onces d'or par an.
Les Opérations San Agustin montrent une VAN à 5 % de 12,7 millions de dollars, un TIR de 156,1 %, un CAPEX de 4,2 millions de dollars et 45 000 onces produites au prix de 2 100 dollars/l’once d'or. Le Permis de Phase 4, attendu pour 2025, permettra de générer des flux de trésorerie et de financer les coûts de réhabilitation.
Le PEA du Projet San Antonio indique une VAN à 5 % de 398,7 millions de dollars, un TIR de 40,7 %, un CAPEX de 131,3 millions de dollars et 1,1 million d'onces produites au prix de 1 900 dollars/l’once d'or, avec une ressource minérale de 1,6 million d'onces.
Heliostar Metals hat technische Berichte für drei kürzlich erworbene mexikanische Projekte eingereicht. Die La Colorada-Operationen zeigen einen NPV5 von 25,9 Millionen US-Dollar, eine IRR von 11,9%, einen CAPEX von 53,9 Millionen US-Dollar und eine erwartete Produktion von 287.000 Unzen zu 2.000 US-Dollar/Unze Gold. Die Wiederinbetriebnahme der Produktion begann diesen Monat bei der Junkyard-Lagerstätte, während die Erweiterung von El Crestón voraussichtlich über 50.000 Unzen Gold pro Jahr produzieren wird.
Die San Agustin-Operationen zeigen einen NPV5 von 12,7 Millionen US-Dollar, eine IRR von 156,1%, einen CAPEX von 4,2 Millionen US-Dollar und insgesamt 45.000 Unzen zu 2.100 US-Dollar/Unze Gold. Die Genehmigung für Phase 4, die für 2025 erwartet wird, wird die Generierung von Cashflow und die Finanzierung von Sanierungskosten ermöglichen.
Die PEA des San Antonio-Projekts zeigt einen NPV5 von 398,7 Millionen US-Dollar, eine IRR von 40,7%, einen CAPEX von 131,3 Millionen US-Dollar und insgesamt 1,1 Millionen Unzen zu 1.900 US-Dollar/Unze Gold, mit einer Mineralressource von 1,6 Millionen Unzen.
- La Colorada restart of mining operations this month
- El Crestón expansion targeting 50,000+ oz gold production annually
- San Antonio Project shows strong economics with US$398.7M NPV5
- Low AISC of sub-US$1,100/oz at San Antonio
- Significant upside potential at higher gold prices (shown in sensitivity analyses)
- High initial capital requirement of US$53.9M for La Colorada
- Maximum negative cash flow of US$139M projected for La Colorada at base assumptions
- Relatively low IRR of 11.9% at La Colorada at US$2,000/oz gold
- Long payback period of 2.2 years for La Colorada at base case
Company Overview on La Colorada:
- La Colorada Operations show US
$25.9M NPV5,11.9% IRR, US$53.9M CAPEX and 287k total ounces produced at a US$2,000 /oz gold price - New mineral reserve at Junkyard Stockpile supports restart of mining at La Colorada that has commenced this month
- El Crestón expansion at La Colorada is expected to produce over 50,000 ounces of gold per year
- Current drill program (five drill rigs) is targeting lower CAPEX and increased production for updated technical report planned for mid-2025
| Au Price (US$/oz Au) | Net Cash Flow (US$M) | After-Tax NPV @ (US$M) | IRR (%) | Payback Period (years) | Payback Multiple |
| 2,000 1 | 54.92 | 25.93 | 11.9 | 2.2 | 1.4 |
| 2,600 2 | 158.32 | 110.03 | 34.7 | 1.4 | 2.3 |
- Base Gold Price assumption used in the La Colorada technical report.
- Comparison gold price.
Company Overview on San Agustin:
- San Agustin Operations show US
$12.7M NPV5,156.1% IRR, US$4.2M CAPEX and 45k total ounces produced at a US$2,100 /oz gold price - Receiving the Phase 4 Permit will allow for strong cash flow generation from San Agustin including funding San Agustin rehabilitation costs
- Upon receipt of permit, expected in 2025, the Company will undertake drilling to potentially extend the mine life from oxide gold production and is reviewing the projects sulphide potential
| Au Price (US$/oz Au) | Net Cash Flow (US$M) | After-Tax NPV @ (US$M) | IRR (%) | Payback Period (years) | Payback Multiple |
| 2,100 1 | 14.83 | 12.67 | 156.1 | 0.8 | 1.1 |
| 2,600 2 | 28.84 | 25.22 | 365.0 | 0.3 | 2.2 |
- Base Gold Price assumption used in the San Agustin technical report..
- Comparison gold price.
Company Overview on San Antonio:
- San Antonio Project Preliminary Economic Assessment (PEA) shows US
$398.7M NPV5,40.7% IRR, US$131.3M CAPEX and 1.1 million total ounces produced at a US$1,900 /oz gold price - Mineral resource of 1.6 million ounces of gold at San Antonio project creates attractive optionality with high grade, low CAPEX, sub-US
$1,100 /oz ASIC and long mine life
| Au Price (US$/oz Au) | Net Cash Flow (US$M) | After-Tax NPV @ (US$M) | IRR (%) | Payback Period (years) | Payback Multiple |
| 1,900 1 | 651.21 | 398.66 | 40.7 | 2.0 | 5.2 |
| 2,600 2 | 1,135.42 | 715.05 | 58.8 | 1.5 | 8.3 |
- Base Gold Price assumption used in the San Antonio technical report..
- Comparison gold price.
Vancouver, British Columbia--(Newsfile Corp. - January 13, 2025) - Heliostar Metals Ltd. (TSXV: HSTR) (OTCQX: HSTXF) (FSE: RGG1) ("Heliostar" or the "Company") advises that it has filed technical reports on the La Colorada Operations, the San Agustin Operations and the San Antonio Project. The technical reports were prepared on material projects acquired in 2024.
The technical reports are available on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.heliostarmetals.com).
Heliostar CEO, Charles Funk, commented "Heliostar has filed technical reports for three of its recently acquired Mexican projects. At La Colorada, we have restarted production this month with 2025 focused on the newly defined Junkyard Stockpile and then expanding to over 50,000 ounces of gold per year with the El Crestón expansion. At San Agustin, the Phase 4 Permit area can generate strong cash flow and reduce closure costs. More importantly receiving expansion permits will provide the trigger to restart drilling, targeting further mine life expansion at the mine which has upside oxide and sulphide potential. The PEA at San Antonio demonstrates a rare, 1.0 Au g/t heap leach deposit with low CAPEX, low ASIC and a long mine life. It provides attractive optionality for our long-term growth. The combined projects have positive economics at conservative gold prices and significantly stronger returns at today's gold prices. In 2025, the Company will focus on reducing front-end capital requirements for El Crestón to improve the project economics for the expansion decision and will continue to advance Ana Paula through its Feasibility Study."
LA COLORADA MINE
Mineral Resource and Mineral Reserve estimates and a life-of-mine (LOM) plan were completed for the
The La Colorada technical report includes first-time disclosure of a Mineral Resource and Mineral Reserve estimate for the Junkyard and updated Mineral Resource and Mineral Reserve estimates for El Crestón and Veta Madre. The LOM plan indicates a Probable Mineral Reserve of 377k ounces of gold exploited with two years of pre-strip and 4.1 years of mine life, from the effective date of the La Colorada technical report, at production rates up to the 13,000 t/d nameplate throughput capacity of the mine at an all-in sustaining capital cost of US
Key Highlights
| La Colorada - Mineral Reserve & Production Highlights | |
| Mineral Reserves (kt) 1 | 18,159 |
| Gold Grade (g/t Au) | 0.65 |
| Contained Gold (koz Au) | 377 |
| Processing Rate (t/d average) 2 | 8,292 |
| Life of Mine (years) 3 | 4.1 |
| Annual Production (oz Au per year, 2026) | 14,564 |
| Annual Production (oz Au per year, average 2027-2030) | 64,309 |
- Probable Mineral Reserve.
- Processing throughput rates vary over the Life of Mine, up to the nameplate capacity of about 13,000 t/d.
- Excludes 2 years of metals production from the Junkyard (2025) and from near-surface ore extracted during pre-stripping (2026).
| La Colorada - Financial Highlights | |
| Average Cash Costs (US$ per oz AuEq) 1 | 1,549 |
| Average AISC (US$ per oz AuEq) 1 | 1,763 |
| Total Initial Capital Cost (US$M) 2 | 53.9 |
| Total Sustainable Capital Cost (US$M) | 9.8 |
| Total LOM Capital Cost (US$M ) | 63.7 |
- Non-International Financial Reporting Standards (IFRS) measures. All-in sustaining costs (AISC) were first issued by the World Gold Council (WGC) in 2013. In light of new accounting standards and to support further consistency of application, the WGC published an updated Guidance note in 2018.
- Reflects capital investment before first metals production from El Crestón. Further expenditure will be required after first metals production for pre-stripping. A maximum negative cash flow of US
$139 million is projected at the base assumptions used in the La Colorada technical report.
| La Colorada Return Estimates based on Gold Price1 | ||
| US | US | |
| IRR (%) | 11.9 | 34.7 |
| NPV @ | 25.9 | 110.0 |
| NPV @ | 15.0 | 91.2 |
| Payback (years) | 2.2 | 1.4 |
- All other key parameters set at base assumptions, including the
5% discount rate used. More detailed analysis is presented in the La Colorada technical report. - Base Gold Price assumption used in the La Colorada technical report.
- Comparison gold price with reference to US
$2,687.45 London Bullion Market Association (LBMA) PM gold price on trading day January 10, 2025.
La Colorada Mineral Resource Estimates
Mineral Resources were estimated at La Colorada for three deposits: El Crestón, Veta Madre and the Junkyard, and are summarized in the following tables by deposit.
El Crestón Mineral Resource Statement
| Category | Tonnes (kt) | Gold Grade (g/t) | Silver Grade (g/t) | Gold Contained Metal (koz) | Silver Contained Metal (koz) |
| Indicated | 12,393 | 0.91 | 11.94 | 364 | 4,758 |
| Inferred | 202 | 0.70 | 6.07 | 5 | 39 |
Notes to accompany El Crestón Mineral Resource table:
- Mineral Resources are reported insitu, using the 2014 CIM Definition Standards, and have an effective date of 31 October 2024. The Qualified Person for the estimate is Mr. David Thomas, P.Geo., Associate Mineral Resource Estimator with Mine Technical Services.
- Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Mineral Resource estimates use the end of month October 2024 topography.
- Mineral Resources are constrained by a conceptual pit shell using the following assumptions: a gold price of US
$2,150 /oz Au; a silver price of US$26 /oz Ag; rock mining cost of US$2.66 /t mined; backfill mining cost of US$2.0 /t mined; crushing and conveying cost of US$1.33 /t processed; process and leaching cost of US$4.54 /t processed; general and administrative cost of US$1.15 /t processed; selling cost of US$0.66 /t processed; gold metallurgical recovery of79% ; silver metallurgical recovery of13% ; and pit slope angles from 22º (pad), 35-42º (pit). - Mineral Resources are reported at a gold equivalent cut-off of 0.14 g/t AuEq, using AuEq = (Au + Ag/equivalency factor), where equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery)). This results in a Au:Ag ratio of 1:502.51.
- Totals may not sum due to rounding.
Veta Madre Mineral Resource Statement
| Category | Tonnes (kt) | Gold Grade (g/t) | Silver Grade (g/t) | Gold Contained Metal (koz) | Silver Contained Metal (koz) |
| Indicated | 2,724 | 0.73 | 3.5 | 64 | 309 |
| Inferred | 77 | 0.53 | 2.5 | 1 | 6 |
Notes to accompany Veta Madre Mineral Resource table:
- Mineral Resources are reported insitu, using the 2014 CIM Definition Standards, and have an effective date of 31 October, 2024. The Qualified Person for the estimate is Mr. David Thomas, P.Geo., Associate Mineral Resource Estimator with Mine Technical Services.
- Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Mineral Resource estimates use the end of month October 2024 topography.
- Mineral Resources are constrained by a conceptual pit shell using the following assumptions: a gold price of US
$2,150 /oz Au; a silver price of US$26 /oz Ag; mining rock costs of US$2.55 /t mined; crushing and conveying cost of US$1.33 /t processed; process and leaching cost of US$4.54 /t processed; general and administrative cost of US$1.15 /t processed; selling cost of US$0.66 /t processed; gold metallurgical recovery of72% ; silver metallurgical recovery9.0% ; and pit slope angles averaging 45º. - Mineral Resources are reported at a gold equivalent cut-off of 0.15 g/t AuEq, using AuEq = (Au + Ag/equivalency factor), where equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery)). This results in a Au:Ag ratio of 1:661.54.
- Totals may not sum due to rounding.
La Chatarrera Mineral Resource Statement
| Category | Tonnes (kt) | Gold Grade (g/t) | Silver Grade (g/t) | Gold Contained Metal (koz) | Silver Contained Metal (koz) |
| Indicated | 3,504 | 0.20 | 6.8 | 23 | 763 |
| Inferred | 1,220 | 0.41 | 33.29 | 16 | 1,305 |
Notes to accompany the Junkyard Stockpile Mineral Resource table:
- Mineral Resources are reported in stockpiles, using the 2014 CIM Definition Standards, and have an effective date of 31 October, 2024. The Qualified Person for the estimate is Mr. David Thomas, P.Geo., of Mine Technical Services.
- Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Mineral Resource estimates use the end of month October 2024 topography.
- Mineral Resources are reported using the following assumptions: a gold price of US
$2,150 /oz Au; a silver price of US$26 /oz Ag; a stockpile rehandle cost of US$1.30 /t mined; crushing and conveying cost of US$1.72 /t processed; process and leaching cost of US$3.10 /t processed; general and administrative cost of US$1.15 /t processed; selling cost of US$0.66 /t processed; gold metallurgical recovery of66% ; and a silver metallurgical recovery of27% . - Mineral Resources are reported at a gold equivalent cut-off of 0.17 g/t AuEq, using AuEq = (Au + Ag/equivalency factor), where equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery)). This results in a Au:Ag ratio of 1:202.14.
- Totals may not sum due to rounding.
La Colorada Mineral Reserve Estimates
Mineral Resources were converted to Mineral Reserves for El Crestón, Veta Madre and the Junkyard.
The Mineral Reserve estimate is based on operation of the existing crusher and conveyor system having a nameplate throughput capacity of about 13,000 t/d, and continued operation of the heap leach and carbon-in-circuit (CIC) process circuit and refinery to process ore from the three deposits. The Mineral Reserve estimate is presented in the following table.
Mineral Reserves Statement
| Classification | Zone | AuEq Cut-off (g/t) | Tonnes (kt) | Gold Grade (g/t Au) | Silver Grade (g/t Ag) | Contained Gold (koz) | Contained Silver (koz) |
| Probable | El Crestón | 0.160 | 12,841 | 0.76 | 10.1 | 312 | 4,181 |
| Veta Madre | 0.175 | 1,905 | 0.70 | 3.1 | 43 | 189 | |
| La Chatarrera | 0.164 | 3,413 | 0.20 | 6.4 | 22 | 704 | |
| Total | 18,159 | 0.65 | 8.69 | 377 | 5,074 |
Notes to accompany Mineral Reserves table:
- Mineral Reserves are reported at the point of delivery to the process plant, using the 2014 CIM Definition Standards.
- Mineral Reserves have an effective date of 30 November 2024. The Qualified Person for the estimate is Mr. Jeffrey Choquette, P.E., of Hard Rock Consulting.
- A 0.16 g/t AuEq cut-off is used for reporting the Mineral Reserves at El Crestón, and a 0.175 g/t AuEq cut-off is used for reporting Mineral Reserves at Veta Madre. Cut-offs were calculated based on a gold price of US
$1,900 /oz Au, silver price of US$23 /oz Ag, processing costs of US$5.87 /t, general and administrative costs of US$1.15 /t, refining and selling costs of US$0.66 /t, gold recovery of79% for El Crestón and72% for Veta Madre and a silver recovery of13% for El Crestón and9% for Veta Madre. The AuEq cut-off for the Junkyard Stockpile is 0.164 g/t AuEq based on metal prices of US$1,900 /oz Au, and US$23 /oz Ag, processing costs of US$4.82 /t, general and administrative costs of US$1.15 /t, refining and selling costs of US$0.66 /t, gold recovery of66% and a silver recovery of27% . The AuEq calculation uses the formula AuEq = (Au + Ag/equivalency factor) where equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery)). - Mineral Reserves are reported within the ultimate reserve pit design. An external dilution factor of
10% and a metal loss of5% were factored into the Mineral Reserves estimates. - Tonnage and grade estimates are in metric units.
- Mineral Reserve tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
The LOM plan outlines sequential exploitation of the three deposits with two years of pre-production from the Junkyard (2025) and from near-surface ore extracted during pre-stripping (2026), before a production LOM of 4.1 years.
Figure 1 - Ore Mined by Pit Phase
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7729/237102_heliostar1.jpg
Note: Figure prepared by Hard Rock Consulting, 2024
La Colorada Operating Cost Estimates
The existing mining and process circuit at the La Colorada Mine remains unchanged for the proposed LOM plan in the La Colorada technical report, with exploitation of the three deposits benefitting from the installed capacity. The expected operating performance and operating cost forecasts were compiled with the benefit of benchmarking historical performance at La Colorada and the input of seasoned professionals knowledgeable of the conventional technologies being used at La Colorada, the expected consumption quantities of key supplies, and commercial pricing for goods and services in Mexico.
Total Operating Cost Summary
| Operating Costs | Operating Cost ($/oz AuEq) | Operating Cost ($/t ore) | Operating Cost ($/t mined) |
| Total mining | 1,038.63 | 17.02 | 2.06 |
| Total processing | 368.21 | 6.04 | |
| Total site general and administrative | 68.40 | 1.12 | |
| Refinery and transport | 26.37 | 0.43 | |
| Cash operating costs | 1,501.61 | 24.61 | |
| Production taxes | 27.14 | 0.44 | |
| Royalties | 20.00 | 0.33 | |
| Total cash costs | 1,548.74 | 25.39 | |
| Capital costs | 214.11 | 3.51 | |
| Total AISC | 1,762.86 | 28.90 |
La Colorada Capital Cost Estimates
The Junkyard only requires working capital to bring the deposit into production.
The initial capital cost for El Crestón is estimated at US
The LOM plan includes US
Capital Cost Summary
| Capital Costs | Initial (US$ M) | Sustaining (US$ M) | Total LOM (US$ M) |
| Mine pre-production development | 43.40 | 0.00 | 43.40 |
| Contractor mobilization | 0.21 | 0.00 | 0.21 |
| Slope radar system | 0.00 | 0.50 | 0.50 |
| Leach pad expansion | 8.97 | 2.13 | 11.10 |
| Total direct costs | 52.58 | 2.63 | 55.21 |
| Owner costs and reclamation | 0.00 | 6.80 | 6.80 |
| Indirects and contingency | 1.35 | 0.37 | 1.72 |
| Total indirect costs | 1.35 | 7.17 | 8.52 |
| Total | 53.93 | 9.80 | 63.73 |
La Colorada Economic Analysis
The financial analysis shows an after-tax net present value at a discount rate of
Summary Economic Results
| Project Valuation Overview | Units | After Tax | Before Tax |
| Total cashflow | US$ M | 54.92 | 86.51 |
| NPV @ | US$ M | 25.93 | 49.77 |
| NPV @ | US$ M | 14.99 | 35.82 |
| NPV @ | US$ M | 5.90 | 24.14 |
| Internal rate of return | % | 11.9 | 17.2 |
| Payback period | Years | 2.15 | 2.04 |
| Payback multiple | 1.35 | 1.55 | |
| Total initial capital | US$ M | 53.93 | 53.93 |
Metal Prices
The La Colorada technical report includes a sensitivity analysis for key parameters impacting the forecast economic returns for La Colorada. 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
Gold Price Sensitivity Analysis
| Au Price (US$/oz Au) | Net Cash Flow (US$ M) | After-Tax NPV @ (US$ M) | IRR (%) | Payback Period (years) | Payback Multiple |
| 1,000 | -235.88 | -203.08 | - | 0.0 | 0.0 |
| 1,200 | -167.30 | -149.64 | - | 0.0 | 0.2 |
| 1,400 | -99.10 | -96.46 | -31.1 | 0.0 | 0.5 |
| 1,600 | -30.90 | -43.29 | -7.0 | 0.0 | 0.8 |
| 1,800 | 19.43 | -3.17 | 4.2 | 2.7 | 1.1 |
| 2,000 | 54.92 | 25.93 | 11.9 | 2.2 | 1.4 |
| 2,200 | 89.39 | 53.96 | 19.4 | 1.8 | 1.6 |
| 2,400 | 123.85 | 82.00 | 27.0 | 1.6 | 1.9 |
| 2,600 | 158.32 | 110.03 | 34.7 | 1.4 | 2.3 |
| 2,800 | 192.79 | 137.88 | 42.3 | 1.2 | 2.7 |
| 3,000 | 227.26 | 165.60 | 49.7 | 1.1 | 3.2 |
Commentary by the Company on Relevant Matters
The results from ongoing drilling and other technical studies being performed at El Crestón are excluded from the La Colorada technical report but will be incorporated into a mineral resource model and will support a Mineral Reserve update that will be published with an updated technical report in mid-2025.
A total initial capital of
The La Colorada technical report presents cash flows based on the base gold price used. With exploitation of the Junkyard starting this month, the project will generate revenues from sales based on current gold prices which are expected to be higher than the base gold price used in the La Colorada technical report.
The gold market has experienced significant upward price movement in the past few years and, considering that the gold price at the effective date of the La Colorada technical report is about
Commentary by the Company on Next Steps and Permitting
Restart of mining activities at La Colorada has commenced at the Junkyard this month. The Company will provide production and cost guidance for 2025 later in January.
The Company will be continuing the current drill program and conducting other technical programs at El Crestón and plans to complete updated technical study in mid-2025.
The drill program includes shallow infill drilling designed to support short-term mine planning, and a program of infill and expansion drilling deeper in the pit to include in the future update to Mineral Resource and Mineral Reserve estimate.
Some ancillary permitting work is planned at El Crestón and is expected to be completed by mid-2025. A change of land use permit is required to enable exploitation of Veta Madre.
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 El Crestón and Veta Madre will need to be financed. Subject to satisfactory conclusion of the planned work programs and arranging financing, the Company is anticipating making an investment decision at El Crestón in 2H 2025.
Qualified Persons
The technical report for the La Colorado Mine was prepared for Heliostar Metals Inc. by Mr. Todd Wakefield, RM SME, Mr. David Thomas, P.Geo., Mr. Jeffrey Choquette, P.E., Mr. Carl Defilippi, RM SME, and Ms. Dawn Garcia, CPG. Each of these Qualified Persons has reviewed and approved the technical information contained in this news release that was abstracted from the La Colorada technical report in their area of expertise and are independent of the Company.
SAN AGUSTIN MINE
Mineral Resource and Mineral Reserve estimates and a LOM plan were completed for the
The San Agustin technical report includes an updated Mineral Resource and Mineral Reserve estimate. The LOM plan indicates that a Probable Mineral Reserve of 68k ounces of gold can be exploited based on 1.2 years of mine life at an all-in sustaining capital cost of US
Key Highlights
| San Agustin - Mineral Reserve & Production Highlights | |
| Mineral Reserves (kt) 1 | 7,358 |
| Grade (g/t Au) | 0.29 |
| Contained Gold (koz Au) | 68 |
| Processing Rate (t/d) 2 | 17,100 |
| Life of Mine (years) 3 | 1.2 |
| Annual Production (oz Au per year, average 2026-2027) 4 | 19,091 |
- Probable Mineral Reserve.
- Processing throughput rates will vary over the Life of Mine, up to the nameplate capacity of about 30,000 t/d.
- Excludes one year of metals production from ongoing re-leaching of heap leach piles.
- Gold production in 2026 is 32,625 ounces.
| San Agustin - Financial Highlights | |
| Average Unit Costs (US$ per oz AuEq) 1 | 1,605 |
| Average AISC (US$ per oz AuEq) 1, 2 | 1,990 |
| Total Initial Capital Cost (US$M) | 4.2 |
| Total Sustainable Capital Cost (US$M) 2 | 14.3 |
| Total LOM Capital Cost (US$M) | 18.5 |
- Non-IFRS measures. AISC were first issued by the WGC in 2013. In light of new accounting standards and to support further consistency of application, the WGC published an updated Guidance note in 2018.
- Includes reclamation costs for San Agustin mine.
| San Agustin Return Estimates based on Gold Price 1 | ||
| US | US | |
| IRR (%) | 156.1 | 365.0 |
| NPV @ | 12.7 | 25.2 |
| NPV @ | 11.7 | 23.6 |
| Payback (years) | 0.8 | 0.3 |
- All other key parameters set at base assumptions, including the
5% discount rate used. More detailed analysis is presented in the LSan Agustin technical report. - Base Gold Price assumption used in the San Agustin technical report.
- Comparison gold price with reference to US
$2,687.45 LBMA PM gold price on trading day January 10, 2025.
San Agustin Mineral Resource Estimates
Mineral Resources were estimated for San Agustin as summarized in the following table.
Mineral Resource Statement
| Material Type | AuEq Cutoff (g/t AuEq) | Confidence Classification | Tonnes (kt) | Gold Grade (g/t Au) | Silver Grade (g/t Ag) | Contained Gold (koz) | Contained Silver (koz) |
| Oxide | 0.14 | Indicated | 17,154 | 0.30 | 11.5 | 165 | 6,333 |
| Transitional | 0.27 | 700 | 0.44 | 17.4 | 10 | 391 | |
| Sulphide argillic | 0.41 | 5,348 | 0.80 | 14.0 | 138 | 2,403 | |
| Sulphide silicified | 0.60 | 427 | 0.90 | 7.4 | 12 | 102 | |
| Total | 23,629 | 0.43 | 12.2 | 325 | 9,229 | ||
| Oxide | 0.14 | Inferred | 1,273 | 0.29 | 9.2 | 12 | 378 |
| Transitional | 0.27 | 5 | 0.32 | 25.6 | 0 | 4 | |
| Sulphide argillic | 0.41 | 121 | 0.64 | 9.6 | 2 | 38 | |
| Sulphide silicified | 0.60 | 2 | 0.68 | 6.0 | 0 | 0 | |
| Total | 1,401 | 0.32 | 9.4 | 14 | 421 | ||
Notes to accompany San Agustin Mineral Resource table:
- Mineral Resources are reported insitu, using the 2014 CIM Definition Standards, and have an effective date of 30 November, 2024. The Qualified Person for the estimate is Mr. David Thomas, PGeo., Associate Mineral Resource Estimator with Mine Technical Services.
- Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Mineral Resource estimates are defined by end of month July 2024 topography.
- Mineral Resources are constrained by a conceptual pit shell using the following assumptions: a gold price of
$2,150 /oz Au; a silver price of$26.0 /oz Ag; mining cost of$2.0 /t mined; oxide process and leaching cost of$4.23 /t processed; transition process and leaching cost of$5.14 /t processed; sulphide argillic process and leaching cost of$5.36 /t processed; sulphide silicic process and leaching cost of$4.94 /t processed; general and administrative cost of$1.4 /t processed; selling cost of$0.66 /t processed; gold metallurgical recoveries from 17-66% ; silver metallurgical recoveries from 9-10% ; and pit slope angles of 45º. - Totals may not sum due to rounding.
San Agustin Mineral Reserve Estimates
The Mineral Reserve estimate at San Agustin is based on operation of the existing crusher and conveyor system having a nameplate throughput capacity of about 30,000 t/d and continued operation of the heap leach and CIC process circuit to processing ore from the expanded open pit. The Mineral Reserve estimate is presented in the following table.
Mineral Reserve Statement
| Classification | Material Type | AuEq Cut-off (g/t AuEq) | Tonnes (kt) | Gold Grade (Au g/t) | Silver Grade (Ag g/t) | Contained Gold (koz) | Contained Silver (koz) |
| Probable | Oxide | 0.156 | 7,281 | 0.29 | 16.24 | 67 | 3,803 |
| Transition | 0.310 | 77 | 0.39 | 31.39 | 1 | 77 | |
| Total | 7,358 | 0.29 | 16.40 | 68 | 3,880 |
Notes to accompany Mineral Reserves table:
- Mineral Reserves are reported at the point of delivery to the process plant, using the 2014 CIM Definition Standards.
- Mineral Reserves have an effective date of 30 November 2024. The Qualified Person for the estimate is Mr. Jeffrey Choquette, PE, of Hard Rock Consulting, LLC.
- A 0.156 g/t AuEq cut-off is used for reporting the Mineral Reserves in oxide, and a 0.310 g/t AuEq cut-off is used for reporting Mineral Reserves in transitional material. Cut-offs were calculated based on a gold price of US
$1,900 /oz Au, silver price of US$23 /oz Ag, processing costs of US$4.23 /t for oxide, processing costs of US$5.14 /t for transitional, general and administrative costs of US$1.40 /t, refining and selling costs of US$0.66 /t, gold recovery of66% for oxide and38% for transitional and a silver recovery of10% for oxide and transitional. The AuEq calculation uses the formula AuEq = (Au + Ag/equivalency factor) where equivalency factor = ((Au price in US$/g * Au recovery) / (Ag price in US$/g * Ag recovery)). - Mineral Reserves are reported within the ultimate reserve pit design. An external dilution factor of
5% and a metal loss of3% have been factored into the Mineral Reserve estimate. - Tonnage and grade estimates are in metric units.
- Mineral Reserve tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding
Figure 2 - Ore Mined by Pit Phase
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Note: Figure prepared by Hard Rock Consulting, 2024
San Agustin Operating Cost Estimates
The existing mining and process circuit at San Agustin remains unchanged for the proposed LOM plan in the San Agustin technical report, with exploitation of the ore from the expanded open pit benefitting from the installed capacity. The expected operating performance and operating cost forecasts were compiled with the benefit of benchmarking historical performance at San Agustin and the input of seasoned professionals knowledgeable of the conventional technologies being used at San Agustin, the expected consumption quantities of key supplies, and commercial pricing for goods and services in Mexico.
Total Operating Cost Summary
| Operating Costs | Operating Cost (US$/oz AuEq) | Operating Cost (US$/t ore) | Operating Cost (US$/t mined) |
| Total mining | 681.41 | 4.44 | 2.36 |
| Total processing | 699.96 | 4.56 | |
| Total site general and administrative | 123.57 | 0.80 | |
| Refinery and transport | 38.47 | 0.25 | |
| Cash operating costs | 1,543.41 | 10.05 | |
| Production taxes | 40.10 | 0.26 | |
| Royalties | 21.00 | 0.14 | |
| Total cash costs | 1,604.51 | 10.45 | |
| Capital costs | 385.59 | 2.51 | |
| Total AISC | 1,990.09 | 12.96 |
San Agustin Capital Cost Estimates
The initial capital cost is estimated at US
The LOM plan includes US
Capital Cost Summary
| Capital Costs | Initial (US$ M) | Sustaining (US$ M) | Total LOM (US$ M) |
| Definition drilling Phase 4 Pit | 0.60 | 0.00 | 0.60 |
| Mine contractor mobilization and demobilization | 0.15 | 0.05 | 0.20 |
| Leach pad expansion | 0.00 | 0.61 | 0.61 |
| Total direct costs | 0.75 | 0.66 | 1.41 |
| Owner Costs and reclamation | 3.40 | 13.57 | 16.97 |
| Indirects and contingency | 0.00 | 0.09 | 0.09 |
| Total indirect costs | 3.40 | 13.67 | 17.07 |
| Total | 4.15 | 14.33 | 18.48 |
San Agustin Economic Analysis
The financial analysis in the San Agustin technical report shows an after-tax net present value at a discount rate of
Summary Economic Results
| Project Valuation Overview | Units | After Tax | Before Tax |
| Total cashflow | US$ M | 14.83 | 19.69 |
| NPV @ | US$ M | 12.67 | 19.46 |
| NPV @ | US$ M | 11.74 | 18.10 |
| NPV @ | US$ M | 10.88 | 16.86 |
| Internal rate of return | % | 156.1 | 218.9 |
| Payback period | Years | 0.79 | 0.59 |
| Payback multiple | 1.09 | 1.66 | |
| Total initial capital | US$ M | 4.15 | 4.15 |
Metal Prices
The San Agustin technical report includes a sensitivity analysis for key parameters impacting the forecast economic returns for San Agustin. The LOM plan and Mineral Reserves estimates are most sensitive to gold price and gold grade. Since silver is projected to contribute only about
Gold Price Sensitivity Analysis
| Au Price (US$/oz Au) | Net Cash Flow (US$ M) | After-Tax NPV @ (US$ M) | IRR (%) | Payback Period (years) | Payback Multiple |
| 1,000 | -34.64 | -31.50 | - | - | - |
| 1,200 | -24.16 | -22.18 | - | - | - |
| 1,400 | -13.69 | -12.86 | - | - | - |
| 1,600 | -3.22 | -3.53 | -19.6 | - | - |
| 1,800 | 4.75 | 3.62 | 38.2 | 1.6 | 0.4 |
| 2,000 | 12.03 | 10.16 | 119.8 | 1.1 | 0.9 |
| 2,100 | 14.83 | 12.67 | 156.1 | 0.8 | 1.1 |
| 2,200 | 17.63 | 15.18 | 194.8 | 0.6 | 1.3 |
| 2,400 | 23.23 | 20.20 | 277.4 | 0.4 | 1.8 |
| 2,600 | 28.84 | 25.22 | 365.0 | 0.3 | 2.2 |
| 2,800 | 34.44 | 30.23 | 455.6 | 0.2 | 2.7 |
| 3,000 | 40.05 | 35.25 | 548.3 | 0.2 | 3.2 |
Commentary by the Company on Relevant Matters
The San Agustin technical report presents cash flows based on the base gold price used. With exploitation of the Mineral Reserve as presented in the San Agustin technical report, the project will generate revenues from sales which may be higher than the base gold price used in the San Agustin technical report.
The gold market has experienced significant upward price movement in the past few years and, considering the gold price at the effective date of the San Agustin technical report is about
Commentary by the Company on Next Steps and Permitting
Although mining activities at San Agustin ceased in August 2024, the Company is continuing re-leaching activities. The Company will provide production and cost guidance for 2025 later in January.
A change of land use permit is required to enable exploitation of the Mineral Reserve at San Agustin. Subject to obtaining the permit, the Company plans to conduct a small, in-fill drill program to provide geotechnical information and support short-term mine planning, and to complete other preparation work needed to restart the mining activities. These activities are expected to require 4-6 months to complete from permit approval.
Qualified Persons
The technical report for the San Agustin Mine was prepared for Heliostar Metals Inc. by Mr. Todd Wakefield, RM SME, Mr. David Thomas, P.Geo., Mr. Jeffrey Choquette, P.E., Mr. Carl Defilippi, RM SME, and Ms. Dawn Garcia, CPG. Each of these Qualified Persons has reviewed and approved the technical information contained in this news release that was abstracted from the San Agustin technical report in their area of expertise and are independent of the Company.
SAN ANTONIO PRELIMINARY ECONOMIC ASSESSMENT
A Preliminary Economic Assessment (PEA) based on Mineral Resource estimates was completed for the
The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the preliminary economic assessment will be realized.
Key Highlights
| San Antonio PEA - Resource & Production Highlights | |
| Mineral Resource within PEA mine plan | |
| Indicated Mineral Resources (kt) | 49,410 |
| Grade (g/t Au) | 1.00 |
| Contained Gold (koz Au) | 1,590 |
| Inferred Mineral Resources (kt) | 5,397 |
| Grade (g/t Au) | 0.47 |
| Contained Gold (koz Au) | 82 |
| Processing Rate (t/d) | 10,960 |
| Life of Mine (years) | 13.7 |
| Average recovery rate (% Au) | 65.8 |
| Annual Production (oz Au per year, average) | 80,268 |
| Life of Mine Production (Moz Au) | 1.10 |
| San Antonio PEA - Financial Highlights | |
| Average Unit Cash Costs (US$ per oz Au)1 | 898 |
| Average AISC (US$ per oz Au)1 | 1,063 |
| Total Initial Capital Cost (US$M) | 131.3 |
| Total Sustainable Capital Cost (US$M) | 48.6 |
| Total LOM Capital Cost (US$M) | 179.9 |
- Non-IFRS measures. AISC were first issued by the WGC in 2013. In light of new accounting standards and to support further consistency of application, the WGC published an updated Guidance note in 2018. Gold Price used in La Colorada technical report
| San Antonio Return Estimates based on Gold Price 1 | ||
| US | US | |
| IRR (%) | 40.7 | 58.8 |
| NPV @ | 398.7 | 715.1 |
| NPV @ | 315.1 | 575.9 |
| Payback (years) | 2.0 | 1.5 |
- All other key parameters set at base assumptions, including the
5% discount rate used. More detailed analysis is presented in the San Antonio technical report. - Base Gold Price assumption used in Technical Report.
- Comparison gold price with reference to US
$2,687.45 LBMA PM gold price on trading day January 10, 2025.
San Antonio Mineral Resource Estimates
Mineral Resources were estimated for San Antonio Project as summarized in the following table.
Mineral Resource Statement
| Confidence Classification | Area | Oxidation State | Cut-off Grade (g/t Au) | Tonnage (kt) | Gold Grade (g/t Au) | Contained Metal (koz Au) |
| Indicated | Los Planes | Oxide and transition | 0.095 | 15,839 | 0.91 | 461.2 |
| Sulphide | 0.156 | 26,607 | 1.10 | 943.7 | ||
| Intermediate | Oxide, transition, and sulphide | 0.150 | 5,239 | 0.87 | 146.3 | |
| Las Colinas | Oxide and transition | 0.184 | 1,430 | 0.69 | 31.9 | |
| Sulphide | 0.199 | 6,407 | 0.77 | 158.1 | ||
| Total | Oxide, transition, and sulphide | 0.095-1.99 | 55,522 | 0.98 | 1,741.3 | |
| Inferred | Los Planes | Oxide and transition | 0.095 | 5,479 | 0.34 | 59.1 |
| Sulphide | 0.156 | 1,319 | 0.71 | 30.2 | ||
| Intermediate | Alluvium, oxide, transition, and sulphide | 0.150 | 660 | 0.43 | 9.2 | |
| Las Colinas | Alluvium, oxide, and transition | 0.184 | 689 | 0.49 | 10.9 | |
| Sulphide | 0.199 | 579 | 0.59 | 11.0 | ||
| La Colpa | Alluvium, oxide, and transition | 0.120 | 4,635 | 0.29 | 43.9 | |
| Sulphide | 0.194 | 1,597 | 0.39 | 19.9 | ||
| Total | Alluvium, oxide, transition, and sulphide | 0.095-1.99 | 14,957 | 0.38 | 184.4 |
Notes to Accompany Mineral Resource Table:
- Mineral Resources are reported insitu, using the 2014 CIM Definition Standards.
- Mineral Resources have an effective date of 30 November, 2024. The Qualified Person for the estimate is Mr. Richard Schwering, RM SME, a Hard Rock Consulting employee.
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Mineral Resources are constrained within a conceptual open pit shell that used the following input parameters: gold price of US
$2,150 /oz; a mining cost of US$2 /t mined, incremental mining cost of US$0.01 7/t mined for each 6 m depth; variable processing costs by oxidation state, ranging from US$3.84 -5.26/t processed; general and administrative costs of US$1.00 /t processed; finishing and selling costs of US$0.75 /t processed; variable metallurgical recoveries by oxidation state, ranging from 44-86% ; and variable pit slope angles ranging from 35-45º. Mineral Resources are reported above variable cut-off grades, ranging from 0.095-1.99 g/t Au. - Numbers have been rounded.
San Antonio Mineral Resources Scheduled Within PEA Mine Plan
A mine plan was prepared based on an open pit and heap leach-CIC mine operation, with mineralized material processed sequentially and concurrently from three distinct mineral zones within the San Antonio deposit.
Mineral Resource Scheduled Within PEA Mine Plan
| Material Type | Indicated | Inferred | ||||
| Tonnes (kt) | Gold Grade (g/t Au) | Contained Gold (koz Au) | Tonnes (kt) | Gold Grade (g/t Au) | Contained Gold (koz Au) | |
| Los Planes; oxide, mixed | 15,566 | 0.92 | 458.0 | 3,569 | 0.40 | 46.3 |
| Los Planes; sulphide | 25,276 | 1.13 | 918.9 | 968 | 0.76 | 23.7 |
| Intermediate; oxide, mixed | 478 | 0.58 | 8.9 | 204 | 0.40 | 2.6 |
| Intermediate; sulphide | 3,242 | 0.88 | 91.3 | 120 | 0.44 | 1.7 |
| Las Colinas; oxide, mixed | 1,275 | 0.69 | 28.3 | 313 | 0.42 | 4.2 |
| Las Colinas; sulphide | 3,574 | 0.74 | 84.8 | 223 | 0.42 | 3.0 |
| Total | 49,410 | 1.00 | 1,590.2 | 5,397 | 0.47 | 81.6 |
Figure 3 - Mineralization Mined by Pit Phase
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San Antonio Operating Cost Estimates
The operating costs in the San Antonio Project technical report were estimated for mining, processing, and general administration activities for an open pit and heap leach-CIC mine operation.
Total Operating Cost Estimate
| Operating Costs | Operating Cost (US$/oz Au) | Operating Cost (US$/t mineralized material) | Operating Cost (US$/t mined) |
| Total mining | 522.78 | 10.40 | 2.06 |
| Total processing | 204.24 | 4.06 | |
| Total site general and administrative | 59.26 | 1.18 | |
| Refinery and transport | 16.85 | 0.34 | |
| Cash operating costs | 803.13 | 15.97 | |
| Production taxes | 76.22 | 1.52 | |
| Royalties | 19.00 | 0.38 | |
| Total cash costs | 898.34 | 17.87 | |
| Capital costs | 165.04 | 3.28 | |
| Total AISC | 1,063.39 | 21.15 |
San Antonio Capital Cost Estimates
The initial capital cost including contingency was estimated at US
Total LOM Capital Costs
| LOM Capital Costs | Initial (US$M) | Sustaining (US$M) | Total LOM (US$M) |
| Mine area | 4.36 | 5.00 | 9.36 |
| General and administrative infrastructure | 72.26 | 20.50 | 92.76 |
| Processing | 12.81 | 0.00 | 12.81 |
| Total direct costs | 89.43 | 25.50 | 114.93 |
| Owner costs and reclamation | 5.00 | 17.31 | 22.31 |
| Project indirect costs | 16.51 | 0.00 | 16.51 |
| Contingency | 20.35 | 5.80 | 26.16 |
| Total indirect costs | 41.86 | 23.11 | 64.97 |
| Total | 131.28 | 48.62 | 179.90 |
San Antonio Economic Analysis
The financial analysis in the San Antonio Project technical report shows an after-tax net present value at a discount rate of
Summary Economic Results
| Project Valuation Overview | Units | After Tax | Before Tax |
| Total cashflow | US$ M | 651.21 | 1,013.36 |
| NPV @ | US$ M | 398.66 | 635.33 |
| NPV @ | US$ M | 315.09 | 509.96 |
| NPV @ | US$ M | 250.14 | 412.36 |
| Internal rate of return | % | 40.7 | 53.7 |
| Payback period | Years | 2.05 | 1.71 |
| Payback multiple | 5.24 | 7.65 | |
| Total initial capital | US$ M | 138.59 | 138.59 |
Metal Prices
The San Antonio Project technical report includes a sensitivity analysis for key parameters impacting the cashflow forecast. The PEA LOM plan that is based on Mineral Resources is most sensitive to gold price and gold grade. It is less sensitive to operating cost changes, and least sensitive to changes in capital costs.
Gold Price Sensitivity Analysis
| Au Price (US$/oz Au) | Net Cash Flow (US$ M) | After-Tax NPV @ (US$ M) | IRR (%) | Payback Period (years) | Payback Multiple |
| 1,000 | 11.34 | -20.14 | 1.5 | 5.3 | 1.1 |
| 1,200 | 162.93 | 78.70 | 15.0 | 3.5 | 2.0 |
| 1,400 | 303.75 | 171.10 | 23.8 | 2.8 | 3.0 |
| 1,600 | 443.11 | 262.51 | 31.2 | 2.4 | 3.9 |
| 1,800 | 582.04 | 353.46 | 37.7 | 2.2 | 4.8 |
| 1,900 | 651.21 | 398.66 | 40.7 | 2.0 | 5.2 |
| 2,000 | 720.38 | 443.86 | 43.5 | 2.0 | 5.7 |
| 2,200 | 858.73 | 534.26 | 49.0 | 1.8 | 6.6 |
| 2,400 | 997.07 | 624.66 | 54.0 | 1.7 | 7.5 |
| 2,600 | 1,135.42 | 715.05 | 58.8 | 1.5 | 8.3 |
| 2,800 | 1,273.76 | 805.45 | 63.4 | 1.5 | 9.2 |
| 3,000 | 1,412.10 | 895.85 | 67.8 | 1.4 | 10.1 |
Commentary by the Company on Relevant Matters
The gold market has experienced significant upward price movement in the past few years and considering gold price at the effective date of the San Antonio technical report is about
Commentary by the Company on Next Steps and Permitting
The Project requires further development planning and engineering. All major environmental and other permits will need to be obtained before an investment decision can be considered by Heliostar.
Based on the results from the San Antonio Project technical report, the Company will conduct a strategic Project review with the objective of identifying and evaluating the next development steps and challenges. The Company will also consider additional work programs and alternative business possibilities to potentially add Project value to the San Antonio Project as presented in the PEA. This strategic review is expected to require 3-4 months to complete.
Qualified Persons
The technical report for the San Antonio Project was prepared for Heliostar Metals Inc. by Mr. Todd Wakefield, RM SME, Mr. Richard Schwering RM SME, Mr. Jeffrey Choquette, P.E., Mr. Carl Defilippi, RM SME, and Ms. Dawn Garcia, CPG. Each of these Qualified Persons has reviewed and approved the technical information contained in this news release that was abstracted from the San Antonio Project technical report in their area of expertise and are independent of the Company.
With respect to this News Release:
Qualified Persons for News Release
Sam Anderson, CPG, Gregg Bush, P.Eng. and Mike Gingles, MBA, the Company's Qualified Persons, as such term is defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, have reviewed the scientific and technical information not derived from the technical reports and included in this news release in the Company Overview, Commentary by the Company on Relevant Matters and Commentary by the Company on Next Steps and Permitting sections for each property and have approved the disclosure herein.
Data Verification
In addition, the Qualified Persons for each of the technical reports verified the data in the reports in their areas of expertise, and concluded that the information supported Mineral Resource and Mineral Reserve estimation, and could be used in mine planning and economic analysis. The verification completed by each Qualified Person is discussed in each technical report and included site visits, and could include data audits, suitability of data for use in estimation and mine planning, quality assurance and quality control checks, review of available technical and economic study data, review of data collection and evaluation methods, review of production data including reconciliation where available, review of actual cost data for operations, and review of third-party inputs to forecasts.
The Company's Qualified persons verified the information that was not derived from the technical reports. The data verification included site visits, data audits, review of available study data, review of data collection and evaluation methods, review of production data including reconciliation where available, review of actual cost data for operations, and review of third-party inputs to forecasts, and consideration of the Company's plans for the projects.
About Heliostar Metals Ltd.
Heliostar aims to grow to become a mid-tier gold producer. The Company is focused on increasing production and developing new resources at the recently acquired La Colorada and San Agustin mines in Mexico, and on developing the
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Charles Funk
President and Chief Executive Officer
Heliostar Metals Limited
Email: charles.funk@heliostarmetals.com
Phone: +1 844-753-0045
Rob Grey
Investor Relations Manager
Heliostar Metals Limited
Email: rob.grey@heliostarmetals.com
Phone: +1 844-753-0045
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things, El Crestón expansion at La Colorada is expected to produce over 50,000 ounces of gold per year, Current drill program (five drill rigs) is targeting lower CAPEX and increased production for an updated technical report planned for mid-2025, Receiving the Corner Permit allow for strong cash flow generation from San Agustin including funding San Agustin rehabilitation costs, Upon receipt of permit, expected in 2025, the Company will undertake drilling to potentially extend mine life from oxide gold production and is reviewing the projects sulphide potential, Mineral resource of 1.6 million ounces of gold at San Antonio project creates attractive optionality with high grade, low CAPEX, sub-US
Forward-looking statements and forward-looking information relating to the terms and completion of the Facility, any future mineral production, liquidity, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the receipt of necessary approvals, price of metals; no escalation in the severity of public health crises or ongoing military conflicts; costs of exploration and development; the estimated costs of development of exploration projects; and the Company's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect the Company's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or forward-looking information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: precious metals price volatility; risks associated with the conduct of the Company's mining activities in foreign jurisdictions; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding exploration and mining activities; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of public health crises; the economic and financial implications of public health crises, ongoing military conflicts and general economic factors to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption "Risk Factors" in the Company's public disclosure documents. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
This news release includes certain non-International Financial Reporting Standards (IFRS) measures. The Company has included these measures, in addition to conventional measures conforming with IFRS, to provide investors with an improved ability to evaluate the project and provide comparability between projects. The non-IFRS measures, which are generally considered standard measures within the mining industry albeit with non-standard definitions, are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Cash costs (Cash Costs) are a common financial performance measure in the gold mining industry but with no standard meaning under IFRS. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate each project's economic results in the technical reports and each project's potential to generate operating earnings and cash flow. All-in Sustaining Costs (AISC) more fully defines the total costs associated with producing precious metals. The AISC is calculated based on guidelines published by the World Gold Council (WGC), which were first issued in 2013. In light of new accounting standards and to support further consistency of application, the WGC published an updated Guidance Note in 2018. Other companies may calculate this measure differently because of differences in underlying principles and policies applied. Differences may also arise due to a different definition of sustaining versus growth capital. Note that in respect of AISC metrics within the technical reports because such economics are disclosed at the project level, corporate general and administrative expenses were not included in the AISC calculations.
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FAQ
What is the expected gold production from La Colorada's El Crestón expansion?
What are the key financial metrics for HSTXF's La Colorada operations?
When is Heliostar's Phase 4 Permit expected for San Agustin operations?
What is the mineral resource estimate for HSTXF's San Antonio project?
What is the projected payback period for La Colorada at US$2,000/oz gold?
