Charles Funk, President and CEO of Heliostar Metals (TSX.V:HSTR – OTCQX:HSTXF – FSE:RGG1), joins me to discuss a series of key updates across the company’s portfolio in Mexico. We focus on the new La Colorada Technical Report, high-grade drill results from Ana Paula, and the expanding development and production pipeline.
Key Discussion Highlights:
- La Colorada Technical Report:
- Upside case based on $3,500/oz gold delivers a post-tax NPV of US$243M and 168% IRR.
- Base case uses $2,300/oz gold with a $1,626/oz AISC and a 6-year mine life producing ~286,000 ounces of gold.
- Fully funded development plan utilizing internal cash flow from San Antonio and stockpile production – no dilution required.
- Upside case based on $3,500/oz gold delivers a post-tax NPV of US$243M and 168% IRR.
- Expansion & Exploration Potential:
- Drilling at Veta Madre Plus could add ~28,000 ounces and ~$30M in cash flow through a larger pit shell.
- Additional upside from high-grade zones at depth and near-mine exploration around Creston and other targets.
- Drilling at Veta Madre Plus could add ~28,000 ounces and ~$30M in cash flow through a larger pit shell.
- Ana Paula Drill Results:
- Standout intercept: 88m grading 8.8 g/t gold from 88m downhole.
- 15,000m infill and conversion program underway; expanding to three rigs.
- Upcoming PEA this quarter to outline underground economics, followed by a feasibility study targeting construction decision for 2028 production.
- Resource: 710,000 oz M&I and 450,000 oz inferred with goal to convert total to M&I.
- Standout intercept: 88m grading 8.8 g/t gold from 88m downhole.
- Strong Financial Position:
- ~$30M cash (end of Q2) with increasing Q3 balance expected.
- ~$30M cash (end of Q2) with increasing Q3 balance expected.
Please email me at Fleck@kereport.com with any follow up questions for Charles.
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