Heliostar to Restart Mining Operations and Invest in Growth at Its San Agustin Mine, Durango

Core Viewpoint - Heliostar Metals Ltd. is restarting mining operations at the San Agustin Mine in Durango, aiming to increase gold production and cash flow through active mining, particularly in the Corner Area, which is expected to yield 45,000 ounces of gold and generate US$40 million in cash flow at a gold price of US$3,000 per ounce [1][2]. Production and Financial Highlights - The restart of mining operations is projected to produce 45,000 ounces of gold from the current reserve, generating US$40 million in cash flow at a gold price of US$3,000 per ounce [2]. - The life-of-mine (LOM) plan indicates a probable mineral reserve of 68,000 ounces of gold with an all-in sustaining cost (AISC) of US$1,990 per ounce, and an initial capital cost estimated at US$4.2 million [4][5]. - The post-tax NPV5% is estimated at US$35.3 million with an internal rate of return (IRR) of 548% and a payback period of 0.2 years at a gold price of US$3,000 per ounce [4][5]. Operational Developments - Mining operations are set to restart in the second half of 2025, with initial production expected in the fourth quarter [5]. - Heliostar has complied with all necessary applications and received approvals for open pit expansion, including a variance to increase the height of the leach pad, saving approximately US$5 million in capital costs [8][9]. - The company plans to commence drilling immediately in H2 2025, focusing on oxide expansion targets and sulphide exploration [5][10]. Growth and Exploration Targets - The immediate focus for growth is on near-surface oxide material that can be processed through existing facilities, with several growth targets identified at the margins of the current pit and the Corner Area reserve [10][11]. - Heliostar geologists have developed a detailed geological model of the San Agustin deposit, identifying four significant new porphyry/breccia targets adjacent to the current pit [19][20]. - A modern sampling and target generation program will be undertaken on regional exploration targets, including the Consejo vein prospect, to define additional drill targets in H2 2025 [24][25]. Technical Report Summary - The amended technical report filed on January 14, 2025, outlines the operational and financial metrics for the San Agustin Mine, with an effective date of November 30, 2024 [3]. - The mineral reserve estimate is based on the operation of the existing crusher and conveyor system, with a throughput capacity of about 30,000 tonnes per day [6].