Heliostar Metals drills 6 g/t gold over 129.2 metres at Ana Paula, Mexico

Heliostar Metals Ltd. [HSTR-TSXV; HSTXF-OTCQX; RGG1-FSE] reported additional drill results from the 100%-owned Ana Paula project, Guerrero, Mexico. These four holes continue to assess mineralization within and above the High-Grade Panel at the core of Ana Paula. This is the area of the deposit that Heliostar believes has the potential to increase grade significantly. This drill program will evaluate Ana Paula’s ability to host a high-margin, underground gold mine development opportunity.

Heliostar CEO Charles Funk commented: “The key to our vision for Ana Paula’s future is to define high-grade, underground-minable gold mineralization. The current drill program’s exceptional intercepts reinforce this view. The results from hole AP-23-293 illustrate the potential with a 139% increase in grade relative to the current resource model, at a greater than five g/t cut-off grade. This hole fills a gap in the historic model. It connects a continuous 195-metre-long strike length of drill hits with more than half an ounce of gold per tonne (15 g/t). The crew on site has moved to drill-test the up-plunge target next. This target has the potential to extend the strike length of the High Grade Panel.”

Ana Paula is an advanced gold project with over US$75M in recent exploration and development expenditures. These drill results are a critical part of re-scoping the Ana Paula project’s economics as an underground mine. The re-scoping program includes drilling, underground mine design, geometallurgical optimization studies and a resource update all of which will be delivered in 2023.

The company believes this program will deliver a technically simpler project with better economics and a materially improved Net Present Value (NPV) for Ana Paula.

Drill hole AP-23-293 targeted one of the largest data gaps near the center of the High-Grade Panel. The goal of AP-23-293 was to test the continuity of high-grade gold mineralization across this gap.

Assay results for AP-23-293 show 46 metres at 13.4 g/t gold, within 129.2 metres at 6.0 g/t gold. These grades and widths represent a 139% increase over the resource modeled grades and widths at a 5 g/t gold cut-off grade. This will positively affect the total ounces and grade of gold in the resource model. It adds critical geologic data in the vicinity of this hole. Furthermore, the result is above expectations set by the next closest drill holes. This demonstrates that Ana Paula has the potential to continue to grow through improved drill spacing.

Continuity of gold mineralization remains a feature of the High Grade Panel with only three of forty-nine samples that make up the 46 metres at 13.4 g/t gold in AP-23-293 returning less than 2 g/t gold.

Drill holes AP-23-294, 295, and 296 are lower priority holes completed whilst awaiting drill pads to be prepared for the up-plunge target.

Hole AP-23-294 returned an unexpectedly better intercept of 13.95 metres at 6.4 g/t gold within 67.2 metres at 2.1 g/t gold. These results came from an area where the model only indicated grades below 5 g/t gold.

Hole AP-23-295 contained 5.5 metres at 4.9 g/t gold within 41.5 metres at 2.6 g/t gold. AP-23-296 returned 2.0 metres grading 13.6 g/t gold. These results were respectively 63% and 46% lower than predicted by the model at a greater than 5 g/t cut-off.

The three holes competed above the panel extended potentially mineable underground grades over a vertical range of 170 metres. They show that mineralization extends more shallowly than modelled and in more discrete narrow zones than within the High-Grade Panel. They are expected to add underground mineable ounces in the 2023 resource update.

Currently, 11 holes have been completed at Ana Paula in the current program. Heliostar has reported results from six holes to date. The next drill hole, AP-23-297, tests the up-plunge extension of mineralization and then continues deeper into the target. Ultimately, it will assess the internal continuity of the High-Grade Panel. It will also contribute a large amount of sample material for the metallurgical program. Holes AP-23-298 to AP-23-301 all test zones in the up-plunge target.

Heliostar is working with the Mexican federal and local government to permit the San Antonio Gold Project in Baja Sur, Mexico. The company continues efforts 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 at 2.38 g/t gold and 2,547,000 ounces of silver at 5.61 g/t silver. Ana Paula hosts measured and indicated resources of 1,468,800 ounces of gold at 2.16 g/t gold and 3,600,000 ounces of silver 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.