Heliostar Presents Stronger Economics at the La Colorada Mine in Updated Technical Report

Core Insights - Heliostar Metals Ltd. has released an updated technical report for the La Colorada Mine, indicating improved economic metrics and growth opportunities [1][2][3] Technical Report Highlights - The updated life of mine plan includes results from a 20,000-metre drilling campaign conducted from November 2024 to March 2025 [1] - The mine is projected to have a 6.1-year life with significant indicated gold resources increasing to 513k ounces, grading 0.79 grams per tonne [3][7] - The report shows a post-tax NPV5 of US$66.2 million and an IRR of 24.4% at a gold price of US$2,300/oz, with a payback period of 3.4 years [3][28] Economic Analysis - The base case scenario indicates a total cash flow of US$105.5 million and a payback multiple of 1.9 at a gold price of US$2,300/oz [29] - An upside case at US$3,500/oz gold price shows a post-tax NPV5 of US$243.3 million and an IRR of 168.4% [3][14] - The average AISC is estimated at US$1,626 per AuEq ounce, with initial capital expenditures of US$44.5 million [10][28] Growth Opportunities - Three growth opportunities identified include Veta Madre Plus, an expanded pit at El Crestón, and exploration potential across the larger land package [2][34] - Infill drilling at Veta Madre Plus could add an additional 28k ounces of reserves [2][39] - The company plans to explore untested areas of the La Colorada property in late 2025 and 2026 [2][38] Mineral Resource and Reserve Estimates - The updated report estimates a total probable mineral reserve of 376.2k ounces of gold, with a forecast mine life of 6.1 years [7][9] - The mineral resource estimates include 20,213 kt with an average gold grade of 0.79 g/t [42] - The report indicates that the Veta Madre pit has a forecast mine life of 1.3 years, while El Crestón has a forecast mine life of 4.6 years [7][9] Operational Insights - The La Colorada Mine will continue to exploit the Junkyard Stockpile through 2025, generating revenue based on current gold prices [31][34] - The company has received permits to expand the leach pad, allowing for increased processing capacity [36] - The mining method and process circuit remain unchanged, benefiting from existing infrastructure [21]