Heliostar Announces Positive Prefeasibility Study for Cerro del Gallo with Significant Expansion Potential

Core Insights - Heliostar Metals Ltd. announced a positive Prefeasibility Study (PFS) for its Cerro del Gallo project, highlighting strong economic metrics and significant expansion potential [1][2] Project Overview - The Cerro del Gallo project has a reserve base of 2.27 million gold equivalent ounces (GEOs) of probable mineral reserves as of July 31, 2025 [3] - The project is designed as a 6 million tonne-per-year open-pit mining operation utilizing conventional methods [6] Economic Analysis - The base case scenario shows a post-tax NPV of US$424 million, an IRR of 33.1%, and a payback period of 2.3 years at a gold price of US$2,300/oz [4][5] - The upside case indicates a post-tax NPV of US$972 million, an IRR of 59.3%, and a payback period of 1.4 years at a gold price of US$3,900/oz [4][12] - Average annual free cash flow is projected at US$47.6 million at a gold price of US$2,300/oz, increasing to US$104.5 million at US$3,900/oz [4][25] Production Metrics - The mine life is estimated at 15.3 years, with an average annual production of approximately 85,700 GEOs [5][8] - The average total cash cost is projected at US$1,252 per GEO, with an all-in sustaining cost (AISC) of US$1,390 per GEO [9][18] Resource Estimates - Indicated resources total 240 million tonnes grading 0.63 g/t AuEq for 4.9 million GEOs, while inferred resources are 24 million tonnes grading 0.52 g/t AuEq for 0.4 million GEOs [4][40] Capital Expenditure - Initial capital expenditure is estimated at US$195.3 million, which includes costs for a heap leach mine and SART plant [4][20] - Total life-of-mine capital costs are projected at US$355.6 million, including US$132 million allocated for reclamation at the end of the mine life [10][21] Next Steps - The company plans to continue technical work, permitting, and community engagement to advance the project to a feasibility level [2][38] - Future drilling will focus on increasing mineral resources and reserves, particularly in areas with high potential for growth [37][36]