Heliostar Metals to Produce 19,750oz of Gold in 2024

Canada-based mining company Heliostar Metals has released its production guidance for 2H24 following the acquisition of the San Agustin and La Colorada mines in Durango and Sonora, respectively. The company expects gold production to range from 19,350oz to 19,750oz, and gold equivalent production to be between 20,000oz and 20,250oz, with both outputs coming from the La Colorada and San Agustin mines.

Heliostar Metals expects cash costs to range from US$1,500/oz to US$1,600/oz, with all-in-sustaining costs (AISC) between US$1,650/oz and US$1,750/oz. The company notes that the La Colorada mine continues to produce gold from existing leach pads after mining activities were paused in September 2023. The company is evaluating the feasibility of restarting mining operations, focusing on previously stockpiled material. Recent work has identified a 4.2Mt stockpile as a potential ore source. A Pre-Feasibility Study is planned for completion in 1Q25, to restart mining at the Creston Pit by mid-2025.

Heliostar Metals reported that the San Agustin mine, which ceased mining due to permit constraints, also produces gold from existing leach pads. The company has submitted a permit application to expand the open pit, with plans to resume mining operations in 2025, contingent on approval. If the permit is not granted, the mine will transition to care and maintenance once leaching operations are completed.

In addition, Heliostar continues to conduct drilling and technical studies at the Ana Paula project. The company aims to complete a Feasibility Study for this asset by the end of 2025, which will inform a construction decision thereafter.

The company states it is now a cash flow-positive company with potential and an under-explored portfolio of properties that give it significant growth room. “This cash flow is being re-invested in our Mexican assets and represents the first significant investment these assets have received in many years. The immediate focus is to add to the current production at La Colorada and to advance Ana Paula to a production decision in 2025. The company has five drill rigs turning across its portfolio to grow the resource base to support our plans to grow into a mid-tier gold producer,” says Charles Funk, CEO, Heliostar Metals.