Heliostar's Ana Paula Project Shows Strong Economics in Updated PEA

Stonegate Capital Partners has released an updated coverage report on Heliostar Metals Ltd (TSXV: HSTR), highlighting significant progress at the company's flagship Ana Paula project in Guerrero. The recently completed Preliminary Economic Assessment reveals compelling economics for a high-grade underground gold operation, projecting approximately 875,000 ounces of recovered gold over a nine-year mine life. The operation would process 1,800 tons per day at an average grade of 5.37 grams per ton gold, producing roughly 101,000 ounces annually with cash costs around US$923 per ounce and all-in sustaining costs of approximately US$1,011 per ounce. At current gold prices of US$2,400 per ounce, the project demonstrates robust financial metrics including a post-tax NPV5 of US$426 million, a 28% internal rate of return, and a 2.9-year payback period, showing strong leverage to potential gold price increases.

Beyond the Ana Paula project, Heliostar maintains a diversified portfolio of producing assets and development projects that support its growth strategy. The company's cash-flowing operations at La Colorada and San Agustin, acquired through the November 2024 Florida Canyon transaction, provide essential funding for corporate overhead and early development work at Ana Paula while optimizing recoveries from existing leach pads and stockpiles. Management expects these producing assets, combined with future project financing, to significantly contribute to funding the planned US$300 million initial capital expenditure at Ana Paula. The company's broader exploration portfolio includes the Cerro del Gallo project advancing toward a pre-feasibility study, the San Antonio project under strategic review, and the Unga project in Alaska awaiting follow-up drilling as part of medium-term exploration initiatives.

Looking forward, Heliostar maintains strong production guidance and strategic objectives that position the company for substantial growth. Management has confirmed 2025 guidance of 31,000 to 41,000 gold equivalent ounces at cash costs of US$1,800-1,900 per ounce and all-in sustaining costs of US$1,950-2,100 per ounce, with production expected to ramp up significantly to 150,000 ounces by 2028 and ultimately reach 300,000 to 500,000 ounces by 2030. Near-term priorities include completing a 15,000-meter drill program to upgrade inferred resources and extend high-grade zones, filing an underground permit amendment in early 2026, and advancing decline extension and early works to support a potential construction decision in the first half of 2027. The company aims to leverage internal cash flow and strategic financing to minimize equity dilution while building toward its ambitious production targets, with Stonegate Capital Partners' valuation analysis suggesting a target price range of $2.36 to $4.57 based on different valuation methodologies.