Heliostar Metals drills 8 g/t gold over 72 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 four holes continue to assess mineralization up plunge of the high-grade panel at the core of Ana Paula.

Charles Funk, CEO, commented: “Drilling at Ana Paula continues to exceed our expectations and deliver impressive gold intercepts. The headline hole, AP-23-300, is a 480% increase to the current resource model prediction, at a >5 g/t gold cut-off grade. The most easterly of Heliostar’s holes, AP-23-302 was also particularly impactful with an intersection of 51 metres of 5.0 g/t gold in an area where high gold grades were not modelled in the 2023 PFS resource. These results validate our belief that we can meaningfully increase the value of the Ana Paula project. The company continues its well-funded expansion and infill drilling program of the High Grade Panel. Additional drill results will continue to be announced ahead of the planned resource update in November 2023.”

Results from this press release are from Heliostar’s up-plunge growth target at Ana Paula. Hole AP-23-299 tested the up-dip and central portion of the High Grade Panel. This hole extended mineralization towards the surface and returned 38.0 metres grading 6.95 g/t gold, including 11.0 metres grading 15.8 g/t gold.

Hole AP-23-300 tested a gap in the high grade in the up-plunge area where hole AP-23-297 had intersected a sub-interval of 24 metres at 8.8 g/t gold. Hole AP-23-300 returned 38 metres grading 13.4 g/t gold including 9.5 metres grading 31.8 g/t gold to better define the northern extent of High Grade Panel in this area.

Hole AP-23-301 tested deeper beneath AP-23-300 in an area where the panel is narrower. It intersected 8.5 metres grading 3.0 g/t gold.

Hole AP-23-302 tested a gap in the high-grade mineralization at the far east of the High Grade Panel in an area where no high grade mineralization was modelled in the resource. It returned a strong intercept of 51.8 metres grading 5.01 g/t gold including 4.7 metres grading 11.6 g/t gold. This is particularly impactful as it has the potential to infill a large gap in the panel with gold mineralization.

The potential impact of the drill results on future resource models can be demonstrated by comparing the current results to 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-23-299 has an 83% increase when compared to an expected intercept calculated from the existing resource model. Using the same criteria; AP-23-300 has a 480% increase compared to the expected intercept from the resource model, AP-23-301 has a 63% decrease compared to the expected intercept from the resource model and AP-23-302 was a significant increase as no high grade was estimated in the resource model.

The company is on schedule and on budget with the drilling program. The company completed 18 holes at Ana Paula. The company reported results from 12 holes to date. Holes AP-23-302 through and AP-23-305 are the company’s first holes targeting high-grade mineralization further west into the down-plunge target. The holes intersected sulfide mineralization throughout, particularly AP-23-303.

The company is finishing two infill holes in the vicinity of hole AP-23-291. The result will be a cross-section of tightly spaced intercepts and these holes will support resource modelling and provide metallurgical material for analysis.

Heliostar entered a marketing services arrangement with Robert Sinn on May 5, 2023 whereby he agreed to provide certain investor relation services to the company for a year for a total fee of US$25,000, which was paid upfront.

The company is developing the 100%-owned Ana Paula Project, 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 is also exploring 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.