Heliostar Metals Restarts Mining at San Agustin

Heliostar Metals announced that it has recommenced mining, crushing, and conveying and stacking operations at its San Agustin mine in Durango. This restart aligns with the guidance the company issued earlier in the year regarding a 4Q25 restart.

According to Heliostar Metals, mining the current reserve is projected to produce 45,000oz of gold. Management estimates that the operation will generate an All-In Sustaining Cost (AISC) of US$1,990/oz AuEq, providing a margin of over US$2,300/oz at current spot prices. At a gold price of US$3,000/oz, the company expects the project to generate US$40 million in cash flow.

The company received final government approvals to restart mining on Jul. 22, 2025. Since that date, Heliostar Metals has advanced site activities, including the purchase and transfer of surface access rights, the adjustment of a power line tower location, and the establishment of surface access roads to the Corner area. Operational progress includes the relocation of vegetation and topsoil at the Corner area and the recommissioning of the 30,000t/d crushing circuit.

Residual heap leach operations continued uninterrupted during the preparation phase. The company reports that two ore blasts and two waste blasts have been completed to date. The mining contractor has mobilized 90% of the mobile equipment fleet to the site to support production targets. Crushing activities are ramping up to full capacity, and the stacking of new oxide ore on the leach pad is currently underway.

The restart is supported by an amended and restated National Instrument 43-101 Technical Report filed on Jan. 14, 2025, with an effective date of Nov. 30, 2024. The Life-of-Mine (LOM) plan within the report indicates a probable mineral reserve of 68,000oz of gold exploitable over a 1.2-year mine life. The initial capital cost was estimated at US$4.2 million. The report outlines a post-tax Net Present Value (NPV) at a 5% discount rate of US$35.3 million and a post-tax Internal Rate of Return (IRR) of 548%, with a payback period of 0.2 years in an upside case, using a gold price of US$3,000/oz.

Charles Funk, CEO, Heliostar Metals, stated that restarting mining at San Agustin allows the company to meet its 2025 guidance and positions it for an increase in consolidated gold production in 2026. Funk noted that the company is currently executing a 10,000m to 15,000m drill program focused on finding potential extensions of the orebody to support an increase in mine life. “Investing in Heliostar at the beginning of the year required trust that the many undefined opportunities recognized by our team within our portfolio could be progressed. We move toward the end of the year having crystallized many of these opportunities,” he added.

To date, 37 drill holes totaling 3,300m have been completed as part of the company’s program, with assays pending. The drilling targets additional gold-bearing oxide material at the margins of the current pit and the edge of the Corner Area. Historical results from the Corner SW target area included intercepts such as 3.52g/t gold over 18.3m and 0.34g/t gold over 15.24m. The company expects to provide formal guidance in January 2026.

Heliostar Advances Other Projects 

On Dec. 11, 2025, MBN reported that a shift in federal administrative policy regarding environmental and water permitting has reactivated a mining investment pipeline valued at over US$11 billion. Fernando Aboitiz, Head of the Extractive Activities Coordination Unit at the Ministry of Economy, confirmed that officials have resolved 110 of 176 stalled projects inherited at the start of the term. The report highlighted that Heliostar Metals would restart mining at the Veta Madre Pit at La Colorada, targeting 43,000oz of gold reserves, upon receiving the required permits.

Heliostar Metals acknowledged the positive media reports regarding permit issuance restoration. In 2Q25, the company applied for a permit to expand the Veta Madre open pit. All necessary submissions and bonding payments were completed in November 2025, initiating a 20-day review period by SEMARNAT. This application is subject to the afirmativa ficta process, where a lack of government response within the period results in automatic approval. The company confirmed that the 20 days passed without requests and expects formal documentation in 1Q26.