Technical Report Highlights:
Base Case shows US$66.2M post tax NPV5, 24.4% IRR, with a payback multiple of 1.9 at a US$2,300/oz gold price
Upside Case shows US$243.3M post tax NPV5, 168.4% IRR, with a payback multiple of 8.4 at a US$3,500/oz gold price
286k ounces of gold produced at an AISC of US$1,626 per AuEq ounce over a 6.1-year mine life with US$45M initial CAPEX
US$40M increase in base case post-tax NPV5 and US$9.4M reduction in initial capital expenditure from the previous technical report
La Colorada Indicated Mineral Resources grow by 62k ounces to 513k ounces, grading 0.79 grams per tonne
Expansion potential with Veta Madre Plus. Potential to convert up to 28k Indicated Mineral Resource ounces to Mineral Reserves to support a larger pit with drilling to be completed in Q4, 2025
Permits received in August and September 2025 to expand the leach pad at La Colorada
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Vancouver, Canada, October 17, 2025 – Heliostar Metals Ltd. (TSX.V: HSTR, OTCQX: HSTXF, FRA: RGG1) (“Heliostar” or the “Company”) is pleased to announce the results of an updated study on the La Colorada Mine (“La Colorada”). This updated life of mine plan includes the results from the first two phases of drilling performed from November 2024 to March 2025 from the Company’s ongoing ~20,000-metre drilling campaign.
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Heliostar CEO, Charles Funk, commented, “Today’s results show that the La Colorada mine can continue to be a high-margin, low CAPEX operation with a 6.1-year mine life. This updated study is focused on the open pits at La Colorada, demonstrating positive economics at conservative gold prices and a compelling opportunity at current gold prices. The Company aims to continue to maximize cash generation from stockpiles in the near term and internally fund capital requirements for open-pit production planned in 2027. Indicated gold resources grew significantly with higher or maintained resource grades at El Crestón and Veta Madre. Reserves remained almost unchanged with ounces defined by new drilling offset with more conservative pit wall angles at the El Crestón pit.”
“Beyond this study, three clear growth opportunities exist – Veta Madre Plus, an expanded pit at El Crestón and the exploration potential of the larger land package. Veta Madre Plus will be tested with an infill drilling program this quarter that could quickly show the ability to expand the pit and add an additional 28k ounces of reserves. Should higher gold prices sustain, a larger pit at El Crestón may allow for steeper pit walls, increasing reserves. The exploration potential of La Colorada remains significant with open resources and compelling exploration targets across the property. These have been virtually untested over the last 10 years despite their proximity to permitted mine infrastructure – this will change in late 2025 and 2026.”
The technical report supporting this news release will be available on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.heliostarmetals.com) within the next 45 days. The La Colorada technical report that is the subject of this news release will be reported in United States dollars (USD or US$) unless otherwise noted.
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La Colorada Mine Updated Technical Report
Mineral Resource and Mineral Reserve estimates, as well as a life-of-mine (LOM) plan, were updated for the 100% owned La Colorada Mine located in Sonora, Mexico. The LOM plan in the La Colorada technical report is based on production from three deposits staged sequentially: continued production from the Junkyard Stockpile, the Veta Madre pit expansion (Veta Madre), and the El Crestón pit expansion (El Crestón).
The study includes updated Mineral Resource and Mineral Reserve estimates for Veta Madre and El Crestón. The LOM plan indicates an overall Probable Mineral Reserve of 376.2k ounces of gold (a decrease of 0.8k ounces of gold compared to the previous technical report due to mining depletion), with Veta Madre having a forecast mine life of 1.3 years and El Crestón a forecast mine life of 4.6 years, respectively. The operation will have production rates up to the 13,000 t/d nameplate throughput capacity of the process plant at an estimated LOM average US$1,626 per AuEq ounce all-in sustaining cost (AISC).
The La Colorada technical report is anticipated in November 2025.
Key Highlights
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