Heliostar Metals Estimates US$195.3 Million for Cerro del Gallo

Canada-based precious metals company Heliostar Metals announced the results of an updated Pre-Feasibility Study (PFS) for its 100%-owned Cerro del Gallo project in Guanajuato. The company considers the study confirms the project’s importance, as it offers low capital intensity and strong free cash flow potential. Heliostar Metals reported that the study outlines a 15.3-year mine life with an after-tax Net Present Value (NPV) at a 5% discount rate of US$424 million and an Internal Rate of Return (IRR) of 33.1%, based on a conservative gold price of US$2,300/oz.

The PFS presents two economic scenarios based on metal price sensitivity. Under the base case scenario of US$2,300/oz, the project is projected to achieve a payback period of 2.3 years. The study also included an upside case to reflect current market conditions; at a gold price of US$3,900/oz, the after-tax NPV increases to US$972 million with an IRR of 59.3% and a reduced payback period of 1.4 years.

According to the mine plan, total production over the life of the mine is expected to reach 1.31Moz AuEq. Average annual production is estimated at 85,700oz AuEq, with higher output averaging 94,000oz AuEq per year during the first five years of operation. The initial CAPEX required to bring the mine into production is estimated at US$195.3 million. This figure encompasses owner's costs, a 17.5% contingency, and US$15.6 million in initial working capital. The plan assumes the use of a contractor-supplied fleet to minimize upfront capital outlays.

Operational costs are projected to benefit from a low strip ratio of 0.3:1 and access to the national power grid. The study estimates a life-of-mine All-In Sustaining Cost (AISC) of US$1,390/oz AuEq and total cash costs of US$1,252/oz AuEq. The operation is designed as an open-pit mine using conventional extraction methods. Processing will involve a multi-stage crushing circuit, including High Pressure Grinding Rolls (HPGR), followed by heap leaching. A Sulphidization, Acidification, Recycling, and Thickening (SART) circuit will be employed to recover copper and silver, generating revenue credits to offset operating expenses.

The study is underpinned by a probable mineral reserve of 2.27Moz AuEq. The resource estimate further includes an Indicated resource of 240Mt grading 0.63g/t AuEq, around 4.9Moz AuEq, and an Inferred resource of 24Mt grading 0.52g/t AuEq, around 400,000oz AuEq.

Charles Funk, CEO, Heliostar Metals, stated that the study confirms Cerro del Gallo as a key component of the company's growth strategy. He noted that the project offers low capital intensity and strong free cash flow potential. “This study confirms Cerro del Gallo as an important development project in the Heliostar Metals’ portfolio, and the company plans to continue technical work, permitting, and community engagement to advance the project to a feasibility level. Organic growth from Ana Paula first, and later from Cerro del Gallo, is planned to launch Heliostar to 300,000oz AuEq production by the end of the decade,” he concluded.

Ana Paula: Another Successful PEA

On Nov. 6, 2025, Heliostar Metals released a PEA for a potential underground mine at its Ana Paula Project in Guerrero, outlining a post-tax NPV of US$426 million and an IRR of 28.1% at a base case gold price of US$2,400/oz. The study proposes a US$300 million initial capital investment to establish a 1,800t/d operation utilizing long-hole open stoping and bio-oxidation (BIOX) processing. 

This configuration is projected to yield an average of 101,000oz of gold annually over a nine-year mine life at an AISC of US$1,011/oz. To accelerate development, the company planned to submit a permit amendment in 1Q26 and complete an ongoing 15,000m drill program aimed at extending the mine life. Funk confirmed that underground decline development is scheduled to restart in 2026, with the estimated US$15 million cost funded by free cash flow from the company’s operating mines, La Colorada and San Agustin.