Heliostar Announces PEA for Ana Paula Underground with Strong Economics and Sustainable Cash Generation

Core Viewpoint - Heliostar Metals Ltd. announced a Preliminary Economic Assessment (PEA) for the Ana Paula Project, indicating strong economic potential for an underground gold mine in Guerrero, Mexico, with plans to advance the project towards production by 2028 [1][2]. Economic Assessment - The base case scenario shows a post-tax NPV of US$426 million, an IRR of 28.1%, and a payback period of 2.9 years at a gold price of US$2,400/oz [4][12]. - The upside case indicates a post-tax NPV of US$1,012 million, an IRR of 51.3%, and a payback period of 1.9 years at a gold price of US$3,800/oz [4][15]. - The project is expected to produce approximately 874,700 ounces of gold over a nine-year mine life, averaging 101,000 ounces per year after ramp-up [4][32]. Production and Cost Metrics - The life-of-mine average all-in sustaining cost (AISC) is projected at US$1,011/oz, placing it in the lowest 13% of global costs for currently producing gold mines [4][12]. - Average annual after-tax free cash flow is estimated at US$93.8 million at a gold price of US$2,400/oz, increasing to US$168 million at US$3,800/oz [4][15]. Resource Estimates - The PEA is based on a resource update with 742,000 ounces classified as Measured and Indicated and 514,000 ounces as Inferred [6][7]. - The mill feed inventory includes 972,000 contained gold ounces, with a total of 5,625 kilotonnes of mill feed [8]. Development Plans - The company plans to accelerate development steps, including the restart of decline development in 2026, to de-risk the project and conduct exploration drilling [2][38]. - An early works program is expected to cost approximately US$15 million, funded by free cash flow from existing operations [38][40]. Next Steps - Heliostar has completed 10,909 meters of a 15,000-meter drilling program, with results expected every 4-6 weeks to support the ongoing Feasibility Study [37]. - The company aims to submit a permit amendment in Q1 2026 to alter previously granted open pit permits for the underground extraction plan [37].