Heliostar Advances La Colorada Pit With Permits, Drill Data

Heliostar Metals confirmed all permits for the Veta Madre pit expansion at La Colorada in Sonora, backed by drill results targeting 20,000oz above the current mine plan, with waste stripping set for 3Q26 and production from the expanded pit expected in 1H27. The development signals renewed open-pit mining activity in Sonora under Mexico's positiva ficta permitting framework, with cash flows from La Colorada and San Agustin funding the Ana Paula flagship project in Guerrero, targeting production by 2Q28. Junior gold miners operating in Mexico's mining corridors, regulators, and upstream suppliers are the primary stakeholders affected.

Heliostar Metals released drill results on June 18 from the Veta Madre pit area at its La Colorada gold mine in Sonora, while confirming receipt of all regulatory approvals needed to begin a larger pit expansion. The company completed 44 holes totaling 8,425m in a program designed to de-risk and extend gold reserves currently standing at 376,200oz grading 0.68g/t across 17.1Mt.

The standout result came from hole CN-10, which intersected 10.9m grading 22.1g/t gold from 187.7m depth, including a 1.3m section at 174 g/t gold. Additional intercepts included 40.8m at 2.23g/t gold from 51.3m, with 17.45m grading 4.55g/t within that interval, and 147.2m at 0.70g/t gold from 32.65m. Deeper drilling in holes 26-LCDD-313 and 26-LCDD-319 returned 20.65m at 3.35g/t and 40.8m at 2.23g/t gold, respectively.

"The expansion of the Veta Madre Pit is the next step in our plan to grow Heliostar's production profile," said Heliostar Metals CEO Charles Funk. "We are currently designing a larger pit shape to commence pre-stripping in the next two months and are targeting an additional 20,000oz of gold above the current mine plan. With all permits received, we are on track to start producing gold from the pit in the first half of next year."

Permits and Engineering Progress

The company received final documentation for a Change of Use of Soils permit from Mexico's environmental authority for the Veta Madre pit expansion, a process that began in 2Q25 and advanced through the country's "positiva ficta" legal mechanism. That documentation complements existing environmental permits for both the pit expansion and a leach pad expansion, clearing the regulatory path for development.

Heliostar now refers to the broader expansion scenario as Veta Madre Plus, an enlarged pit design that incorporates mineralization identified south of and beneath the current reserve boundary. Engineering and geotechnical analysis are ongoing, with waste stripping scheduled to begin in early 3Q26. 

Based on January 2026 guidance, the company plans to pre-strip approximately 11Mt of waste this year to access 43,000oz of in-situ gold, targeting open-pit production from Veta Madre in the first half of 2027.

The drill program has confirmed mineralization extending up to 150m below the current reserve pit limit. Holes 26-LCDD-303 and 26-LCDD-316, drilled progressively deeper along the same section, intersected the main Veta Madre vein with consistent grade and thickness, demonstrating continuity that management says could support a future underground mining scenario.

An updated resource model incorporating these results is in progress. Heliostar does not anticipate releasing a new technical report for the expansion study but said its impact will be reflected in annual production and cost guidance from 2027 onward.

Broader Production Strategy

The La Colorada development forms one pillar of Heliostar's plan to reach 500,000oz per year of gold production by 2030. Two producing mines, La Colorada in Sonora and San Agustin in Durango, are guiding 2026 combined output of 50,000oz to 55,000oz at by-product cash costs of US$1,850/oz to US$1,950/oz and a consolidated all-in sustaining cost of US$2,025/oz to US$2,125/oz.

MBN reported in February 2026 that La Colorada is expected to contribute 20,000oz  to 22,300oz of that total this year at a site-level all-in sustaining cost of US$1,775 to US$1,875/oz, primarily through stockpile processing and re-leaching. Heliostar allocated up to US$5.8 million for resource development and exploration at La Colorada in 2026, including a dedicated drill program in the second half of the year to investigate underground potential below existing pits.

Cash flows from both operating mines are intended to fund development of the flagship Ana Paula project in Guerrero state. A PEA published in late 2025 outlined a post-tax net present value of US$426 million at a 5% discount rate, an internal rate of return of 28.1%, and average annual production of 101,000oz after ramp-up, at a life-of-mine all-in sustaining cost of US$1,011/oz. Initial capital expenditure to bring the mine into production was estimated at US$300 million. A feasibility study is scheduled for completion in 2026, and the company is targeting production at Ana Paula in the 2Q28.

Funk framed the sequence of milestones as financially self-reinforcing. "Cash flows from La Colorada and San Agustin will support construction of our flagship Ana Paula project and are key deliverables for Heliostar's aggressive growth ambitions," he said.

Heliostar's portfolio also includes the Cerro del Gallo project in Guanajuato, the San Antonio project in Baja California Sur and the Unga project in Alaska. The company reported US$40.6 million in cash and zero debt at the close of 2025, alongside US$47.4 million in mine operating earnings for the year.