Heliostar Metals drills 6.46 g/t gold over 98 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 three holes are the first to assess mineralization down-plunge of the high-grade panel at the core of Ana Paula.

Charles Funk, CEO, commented: “The Ana Paula project continues to deliver exceptional results. Drill results are exceeding expectations at every point. The widths of the intercepts, the consistency in the grades and the improvements in drill intersections over the PFS [prefeasibility study] resource continue to be impressive. As we better define the limits of the high-grade panel, today from the down-plunge target area, we believe that there is a clearly significant potential for an increase in total ounces and grade in the upcoming resource update.”

Heliostar continues to deliver on its three-pronged approach to the rescoping of Ana Paula in 2023: The results announced to date will grow the size of the high-grade panel in the resource update due in November; the grade distribution shows the potential to mine higher gold grades in the early years, and throughout the mine life and the metallurgical study results are anticipated to be received by the end of September.

The company’s initial focus has been on the potential to improve the economics of mining the high-grade panel. Now the company plans to introduce new exploration targets within and around Ana Paula to start to unlock the full potential of the district.

Results from this press release are from Heliostar’s down-plunge growth target at Ana Paula.

Hole AP-23-303 tested a large data gap in the High Grade Panel. The intercept returned significantly higher grades than expected, intersecting 98.0 metres grading 6.46 g/t gold, including 33.0 metres grading 16.4 g/t gold.

Hole AP-23-304 encountered a strong zone of mineralization containing 85.5 metres grading 4.73 g/t gold, including 9.5 metres grading 25.6 g/t gold. This intercept is 15 metres west of the nearest intercept in the High Grade Panel and will locally add a significant amount of high grade gold in an updated resource estimate.

Hole AP-23-305 tested deeper in the deposit, beneath AP-23-304. Results show the gold mineralization in two broad intervals, 47.6 metres grading 3.20 g/t gold from 111 metres downhole and 33.1 metres grading 2.14 g/t gold from 212 metres downhole. Within these intervals are high-grade sub zones including 1 metre grading 22.9 g/t gold, 2.8 metres grading 16.2 g/t gold and 7.38 metres grading 4.77 g/t gold. The High Grade Panel appears to be separating into discrete structures in hole AP-23-305.

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 than) 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.

At a 5 g/t cutoff, hole AP-23-303 has a 14% increase in gold grade when compared to an expected intercept calculated from the existing resource model. Using the same criteria; AP-23-304 has a 3% increase compared to the expected intercept from the resource model and AP-23-305 has a 307% increase compared to the expected intercept from the resource model.

The company has completed the High Grade Panel drilling program that will be included in the resource update in November. A total of 18 holes drilled in 2023, for a total of 3,219 metres, will be incorporated into the updated resource estimate.

The company is now swapping rigs for a smaller, more portable rig to commence drilling on shallow exploration targets close to the High Grade Panel.

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, United States of America.

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.