Heliostar Metals drills 10.4 g/t gold over 63 metres at Ana Paula, Mexico

Heliostar Metals Ltd. [HSTR-TSXV; HSTXF-OTCQX; RGG1-FSE] reported additional drill results from the Ana Paula project in Mexico. These two holes complete the drilling results that will be included in the resource update planned for November 2023. The holes form a detailed cross-section through the deposit. The regularly spaced and oriented holes show the remarkable grade consistency in the high-grade panel within the Ana Paula deposit.

Heliostar CEO Charles Funk commented: “Ana Paula continues to outperform our expectations and is growing more quickly than we expected when we acquired the project. The current two holes are 26% and 225% higher than predicted in the resource model and, in total, 12 of the 13 holes targeting the high-grade panel delivered intercepts with better grades or widths than the existing resource model. These results are encouraging for the resource update planned for November 2023. The company’s biggest near-term catalysts will come in rapid succession. Imminent metallurgical results, growth target drilling results and a resource update are all expected in Q4 2023.”

Results from this press release are infill holes within the high-grade panel at Ana Paula. Drill holes AP-23-306, AP-23-307 and AP-23-291 (previously released) form a tightly spaced fence of holes that form a north-south section through the high-grade panel. These data are a key component of the coming resource estimate. The fence spacing will set the confidence in the continuity of grade between drill holes.

The drill results show remarkably consistent gold mineralization across the section. The high-grade mineralization remains open beneath hole AP-23-306. The company plans additional drilling to define the full extent of the high-grade gold mineralization beneath this intercept.

The upper part of hole AP-23-306 also crossed the parallel panel target. The hole overlapped an intersection in the previously reported hole AP-23-299. It returned a strong intersection of gold mineralization (35.9 metres grading 8.2 g/t gold), further re-enforcing the potential of this target area.

Drill results from 12 of the 13 holes targeting the High Grade Panel delivered increased gold grades or thicknesses when compared to the existing model. One of the twelve holes (AP-23-302) intersecting gold mineralization where none was previously estimated. Results with increased grades or thicknesses are expected to positively impact future resource models.

AP-23-291 is a 30% increase; AP-23-292 is a 2% increase; AP-23-293 is a 139% increase; AP-23-297 is a 33% increase; AP-23-298 is a 38% increase; AP-23-300 is a 480% increase; AP-23-301 is a 63% decrease; AP-23-302 returned 52.0 metres of 5.0 g/t where none previously estimated; AP-23-303 is a 14% increase; AP-23-304 is a 3% increase; AP-23-305 is a 307% increase; AP-23-306 is a 26% increase; and AP-23-307 is a 225% increase.

The potential impact of these drill results on future resource models can be inferred by comparing the actual grades to those predicted by the existing model (as reported in the 2023 prefeasibility study). Drilling that outperforms (i.e. is higher grade or wider) the model may be expected to improve the grade and size of future resource and reserve estimates. Using a 5 g/t cut-off grade provides a useful benchmark to the most financially impactful ounces in an underground mining scenario.

The improved results are across the entire High Grade Panel (the infill drilling, the up-plunge extension, and the down-plunge extension). The current program has delivered on all three target concepts for resource growth. This sets a solid foundation for the gold resource in the November 2023 planned update.

The company is focused on developing the 100%-owned Ana Paula Project in Guerrero, Mexico. In addition, Heliostar is working with the Mexican federal and local government to permit the San Antonio Gold Project in Baja Sur, Mexico. The company continues to explore the Unga Gold Project in Alaska.

The Ana Paula Project deposit contains proven and probable mineral reserves of 1,081,000 ounces of gold (630,000 proven and 451,000 probable ounces) at 2.38 g/t gold and 2,547,000 ounces of silver (1,322,000 proven and 1,226,000 probable ounces) at 5.61 g/t silver. Ana Paula hosts measured and indicated resources of 1,468,800 ounces of gold (703,800 measured and 765,000 indicated ounces) at 2.16 g/t gold and 3,600,000 ounces of silver (1,637,000 measured and 1,963,000 indicated ounces) at 5.3 g/t silver. The asset is permitted for open-pit mining and contains significant existing infrastructure including a portal and a 412-metre-long decline.