Heliostar Metals Drills Longest & Highest Grade Gold Interval at Ana Paula in Mexico

From the Spanish colonial period to the present day, Mexico has been a significant player in the global mining industry. Its gold mining sector, in particular, has been a cornerstone of its mining industry (world’s seventh-largest in 2022). 

Located in the prolific Guerrero Gold Belt, Heliostar Metals Ana Paula project is situated in a region known for its gold mineralization. The project’s history dates back to the early 2000s, with several exploration campaigns conducted over the years. The geology of the project area is characterized by a hydrothermal system, with gold mineralization associated with skarn and intrusive rocks. 

Heliostar acquired 100% of the Ana Paula project from Argonaut Gold for $30 million in March this year. Based on the Preliminary Economic Assessment (PEA) report from 2016, the Ana Paula project showed promising financial prospects. The project had demonstrated to be economically viable with an after-tax IRR of 42.5% and a NPV 5% of $247.8 million.

Ana Paula resources estimates are proven and probable mineral reserves of 1,081,000 ounces of gold (2.38 g/t gold) and 2,547,000 ounces of silver (5.61 g/t); Measured and indicated resources of 1,468,800 ounces of gold (2.16 g/t) and 3.6 million ounces of silver (5.3 g/t). 

Heliostar Metals recently reported impressive exploration results from the Ana Paula project. The company drilled 9.06 grams per tonne (g/t) gold over 242 metres, including 31.5 metres at 21.5 g/t gold. 

This is the longest, highest grade interval drilled in the history of the project, exceeding the resource model’s predicted high grades and extending high-grade mineralization up plunge.

The Ana Paula project is not alone in this region. Other gold mines in the vicinity include Torex Gold’s El Limón Guajes mine and Equinox Gold‘s Los Filos mine. While these mines have shown promising results, the recent drill results from Ana Paula stand out for their high gold grades.

Heliostar’s CEO, Charles Funk, commented on the recent results, stating, “Hole AP-23-297, 242 metres grading 9.06 g/t gold, is an incredible gold intercept that exceeded our expectations. 

“It shows potential to add ounces at higher grade in the up-plunge growth target. And it illustrates the excellent continuity of high grade along the length of the high-grade panel.”

Looking ahead, Heliostar has a clear vision for the Ana Paula project. The company plans to change the mine plan from an open pit to a high-grade, underground gold mine. They aim to deliver re-scoping milestones in 2023, including drilling results, mine sequencing, metallurgy, and resource upgrade. The goal is to improve the project’s NPV and IRR, lower construction CAPEX, and reach a construction decision within 18 months and commercial production in 3 years.